Some of Australia's leading health and life sciences organisations are urging Treasurer Jim Chalmers to review the changes to research and development taxes proposed in his budget.
Sector advocates say while they're concerned over a number of Dr Chalmers' latest tax initiatives, the move to limit a long-standing refundable offset for less-established R&D companies is especially unworkable.
They say restricting the mechanism would ignore the fact that it routinely takes more than a decade to progress life-changing and life-saving health discoveries while navigating clinical, regulatory and market pathways.
Nine biotech, med tech and health tech companies have petitioned the treasurer, seeking an urgent rethink.
The so-called research and development tax incentive was conceived to encourage businesses to invest in innovation by allowing them to offset a percentage of their eligible R&D costs, either by reducing their corporate tax liability or receiving a direct cash refund.
