Australian Government announces “patent box” scheme to boost medical and biotech innovation

Patent box schemes are a type of tax incentive where income from certain types of patents is taxed a preferential lower corporate tax rate. Australia will join over 20 other countries including the UK, France, China, Belgium and Switzerland in offering patent box type tax incentive schemes.

The scheme will come into effect from 1 July 2022 and will apply to granted patents that were filed after 11 May 2021. Although the details of the scheme are yet to be finalised, income derived solely from eligible…