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

Published

May 18 2021

Written By

I am a partner in our Intellectual Property Group, based in Sydney. My experience spans the breadth and depth of IP issues, but my specialty is complex IP litigation and disputes including contentious patent, trade mark, copyright, and confidential information and consumer protection/passing-off matters.

Patrick Brown

Associate
UK

I am an Associate in our Intellectual Property Group in London, with a particular focus on the life sciences, pharmaceutical and chemical sectors.

Practices

The Australian Government has committed $206.4 million to a patent box tax incentive scheme to encourage investment in medical and biotechnology 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…