Patent Box To Drive Innovation
A jack-in-the-box set by Treasurer Josh Frydenberg has surprised many in the R&D industry, with the Government offering a patent box. Targeting last stage of the innovation lifecycle, namely commercialisation of patents, the patent box regime is aimed at providing a fillip for research in medical and biotech technologies.
The Government will consult closely with industry on the design of the patent box and explore whether expanding the incentive would support clean energy.
The main point of the patent box is to encourage innovation in Australia by taxing corporate income derived from patents at a concessional effective corporate tax rate of 17pc, compared to current rates of 30pc for large businesses and 25pc for small to medium enterprises.
The Government anticipates the box will support and drive skilled jobs by encouraging companies to base their R&D laboratories in Australia.