More tailoring required in biotech strategy

The Australian Biotechnology Association has called for a more co-ordinated, strategic approach to the development of the biotechnology industry.

It calls for taxation improvements that it argues are needed to bring Australia in line with other leading biotechnology nations. For instance it suggests that shares and options issued under employee share/option plans should only be taxed at the point of sale, and income generated from those sales should be taxed at the Capital Gains Tax not at the higher personal marginal tax.

Other key recommendations are that the tax treatment of pension plan assets of individuals who are attracted to Australia be brought into line with normal international practices, the R&D expenditure ceiling for the R&D tax rebate should be lifted from $1million to $15million, and that self-assessment is introduced for companies that have existed for more than three years, so that any company doing eligible R&D can access the R&D concession.