AusBiotech responds to Budget 2026–27

Life sciences industry body AusBiotech has responded to measures set out in the Australian Government’s Budget 2026–27, welcoming some measures while expressing caution about others.

In particular, moves to commence implementation of Ambitious Australia, including the establishment of the National Resilience and Science Council, were welcomed, as was increased funding through the Medical Research Future Fund.

As to areas for caution, AusBiotech said while to assist with encouraging industry investment, changes to the R&DTI cap and tax measures for startups showed promise, to ensure it encourages and not unintentionally thwarts genuine research and development (R&D), considered analysis is required of the total tax package.

Similarly, AusBiotech said changes to CGT could disincentivise investment in true innovation, with a commitment by the Australian Government to consultation with the sector on this being welcomed.

“No Budget is perfect; while some elements of this Budget take steps towards good, more analysis is required to ensure the outcomes help rather than hinder the growth of Australia’s life sciences industry,” AusBiotech CEO Rebekah Cassidy said.

“Ambitious Australia has the potential to strengthen Australia’s RD&I system and unlock greater economic resilience and societal impact from national investment in innovation, including health and medical life sciences. Fully leveraging the Medical Research Future Fund is also critical to supporting the sector’s growth and impact.

“Changes to the R&DTI need to spur investment and boost productivity, not hinder true Australian innovation. It’s critical that we get those settings right; this will require extensive industry consultation.

“More detail is needed on the consultation mechanism for changes to CGT. These changes have potential adverse implications for investment, and attracting and retaining critical specialised talent in life sciences, particularly for startups.

“We were disappointed with the changes to the Australian Economic Accelerator (AEA) and Industry Growth Program (IGP), with the AEA being discontinued and the IGP receiving further funding cuts. Both programs play an important role in supporting startups and SMEs with commercialising research, including in the medical science and research sector.”

Cassidy said AusBiotech would be convening a meeting with its members today — after reviewing the detail of the Budget — and will have more to say on this point.

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