New incentive to boost medtech manufacturing in Macquarie Park

A new incentive for Australian medical and biotech companies will boost advanced domestic manufacturing. Macquarie Park-based Cochlear and the Medical Technology Association of Australia were among those who led the call for the implementation of a so-called “patent box”.

From 1 July 2022, the concessional tax incentive will become available to companies in the medical and biotech sectors whose intellectual property and manufacturing is maintained here in Australia.

Cochlear, a global leader in implantable hearing solutions, was a leading voice in support of the introduction:

“Australia has an outstanding record in medical research. However, Australia’s record in commercialising that research is not as strong.”

“The patent box legislation makes Australia a more competitive country to commercialise research, which will create local jobs and build our sovereign capability in medical products manufacturing.” Cochlear’s CEO and President, Dig Howitt said.

A patent box is a policy tool that applies a lower rate of corporation tax to any profits made from patented intellectual property assets, and targets the last stage of the innovation lifecycle, namely commercialisation.

Rather than going offshore, the concessional tax motivates companies to manufacture their ideas locally, encouraging greater research and development in Australia.

Cochlear’s HQ and advanced manufacturing facility is based on University Avenue in Macquarie Park, forming part of the The Australian Hearing Hub - a cluster of world-class researchers, specialist facilities including an anechoic chamber, and Hearing Australia’s National Acoustics Laboratory.