Coalition pledges "new approach" to manufacturing

AusBiotech has welcomed ‘The Coalition’s Policy to Boost the Competitiveness of Australian Manufacturing’ with its support for a “new approach” to manufacturing and a returned focus to Australian industry and SMEs.

AusBiotech Acting CEO Glenn Cross said: “In general, AusBiotech is supportive of the thrust of the policy and was particularly pleased to see the Coalition open to the idea of a ‘patent box’ tax incentive, which AusBiotech has been advocating for in recent months.”

The R&D Tax Incentive remains a top priority for the life sciences industry; however, industry is urging further tax reform to provide incentives for manufacturing and to encourage long-term investment in home-grown technologies. AusBiotech is pursuing a tax incentive to support export-oriented local production. Australia is competing with other countries, which, due to their tax treatments, are attracting our IP, after Australia has contributed to the R&D phase of innovation.

Support is growing for the proposed patent box incentive that will encourage high-tech innovation and advanced manufacturing to stay in Australia and attract overseas interest.

“Manufacturing can and will play a role in the future prosperity of Australia. Its strength is in niche pockets of manufacturing where we can value-add and provide inputs to highly technical processes,” said Cross.

AusBiotech also noted key elements of the policy, welcoming the restoration of the Export Market Development Grants (EMDG); the $50 million transition grant program; and the appointment of a Trade and Investment Minister.

Earlier this year, AusBiotech joined several industry groups to express concern over the Export Market Development Grants Amendment Bill to redirect export market promotion funding from the USA/Canada, European Union and United Kingdom markets to the East Asian area, with grants for years six, seven and eight being abolished for the all applicants except approved bodies.

The $50 million transition grant program is to support the transition to competitive industries, in acknowledgment that manufacturing is not dying but transitioning to niche industries centred on intellectual capital, such as biotechnology.

AusBiotech would also welcome the appointment of a Trade and Investment Minister, dedicated to the “development of more high value-added manufacturing industries” and to attract foreign investment.

AusBiotech has established a comprehensive series of national and international investor events as a global platform for Australian life sciences companies to showcase their company’s offering to attract partnership and investment. The ability to attract investment is a vital component in the future prosperity of the biotechnology industry.