Australian industry leaders recently presented the Australian Innovation & Manufacturing (AIM) Incentive to Members and Senators, at Parliament in Canberra, declaring the model would boost Australia’s manufacturing and knowledge-based industries and international competitiveness.
The event, hosted by John Alexander MP at the end of November, was a result of an ongoing commitment to consultation on the proposed AIM Incentive model with industry representatives and stakeholders by AusBiotech, Cook Medical Australia, the Export Council of Australia and the Medical Technology Association of Australia.
The proposed AIM 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, arising from 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 regime within the Government, and that such a system was being looked at.
Speaking at the event, Barry Thomas, Managing Director of Cook Medical Australia, commented: “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.”
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.”
Lisa McAuley of The Export Council of Australia commented: “The relative success of our export-driven economy relies on Australia’s manufacturers being able to compete globally. It is our hope the Government sees the proposed AIM Incentive as a viable solution to the challenge of retaining IP domestically, allowing our manufacturers to continually operate in and export from Australia.”
Susi Tegen, Chief Executive of the Medical Technology Association of Australia said: “If we are to maximise Australia’s skills base and global reputation for outstanding innovation in the medical technology sector, we must address the environment and outflow of IP overseas. We are delighted the Government is listening about how the proposed AIM Incentive could support Australian ideas being commercialised and manufactured locally, with the aim of growing the export market, indeed the economy, for this crucial and positive sector.”
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 propose the AIM Incentive, and are looking to the Government to incorporate it into the current review of Australia’s tax system.
There are currently nine countries in the world, including the UK, France, Netherlands and China that have already adopted similar ‘patent’ or ‘innovation box’ -style tax incentive policies.
