R&D tax credit will deliver real benefit to economy
The introduction of a new 40 per cent R&D tax credit will help keep Australia at the forefront of medical research, Medicines Australia chief executive Dr Brendan Shaw said today.
Dr Shaw welcomed the Senate Economics Committee’s recommendation that the new R&D tax credit be implemented before the end of June.
“The bottom line is that this tax credit will make Australia more competitive because it effectively lowers the cost of conducting R&D by 10 per cent,” Dr Shaw said.
“The pharmaceuticals industry is the second largest investor in R&D in Australia after the transport equipment industry. We invest $1 billion a year in R&D.
“This tax credit will help keep Australia at the forefront of medical research globally. It will also help secure high-value research jobs and down the track deliver health benefits such as early access to medicines through clinical trials conducted in Australian hospitals and research institutions.
“The pharmaceuticals industry regards this measure as a very important step forward in making Australia a more attractive R&D investment destination.
“I strongly encourage the Senate to pass this legislation and not delay implementation of a program that will deliver significant benefits to the Australian economy.”
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