Industry launches AIM Incentive policy paper in Canberra

AusBiotech and Australian industry leaders presented the Australian Innovation & Manufacturing (AIM) Incentive to members and senators at Parliament in Canberra this morning, declaring the model a ‘good’ patent box solution that would boost Australia’s manufacturing industry and international competitiveness.

The event, hosted by the Hon John Alexander MP and including remarks from the Hon Bob Baldwin MP, Parliamentary Secretary to the Minister for Industry, is a result of an ongoing commitment to the consultation process on the proposed AIM Incentive model with industry representatives and stakeholders.

The proposed incentive encourages companies to commercialise intellectual property (IP) both in and from Australia. The incentive works by providing a reduction in the tax payable on profits derived from the commercialisation of qualifying IP (mainly patents or licences to patents) in Australia.

The presentation of the AIM Incentive model at Parliament follows the recent acknowledgment by the Minister for Industry that there was some enthusiasm for consideration of a patent box-type scheme within the government, and that such a system was being looked at.

Speaking at the event, Dr Anna Lavelle, Chief Executive Officer of AusBiotech, commented: “Australia’s biotech industry is an increasingly significant contributor to the economy, with the very real potential to be a key driver of growth in the future. Our message to the government today is that the AIM Incentive will support these local innovators and manufacturers so they can maintain their global competitiveness and cultivate domestic innovation.”

Also speaking at the event, Barry Thomas, Managing Director of Cook Medical Australia and Director of AusBiotech, said: “Over the last 12 months we have gathered a significant amount of support from industry for the proposed AIM Incentive as a policy that will foster entrepreneurship, innovation and commercialisation translating into job creation and economic growth. We are encouraged by the government’s acknowledgment of the proposed AIM Incentive here today, and we look forward to further discussions on how our proposed model could help to secure Australia’s ongoing international competitiveness.”

The group representing many of Australia’s leading innovators, manufacturers and exporters, including AusBiotech, Cook Medical Australia, the Export Council of Australia and the Medical Technology Association of Australia, collectively proposed the AIM Incentive and is looking to the government to include it in the review of the Australian tax system that is currently underway.

The policy paper can be found here