Australian biotechnology company CSL is supportive of the 2030 Strategic Plan to increase Australia’s level of innovation, but has requested that the government retain the R&D tax incentive for businesses and provide more support to scientists to make a real impact. Chief Executive Paul Perreault stated that, “It’s really about making sure that the R&D done here is actually translated into patient care and commercialised.” He believes that the government’s short-term thinking is why some of the country’s best scientists are leaving and that the current tax incentives are good, but that they need to stay consistent to eliminate uncertainty in future years.
Tinkering with the R&D tax incentive creates uneasiness for companies who rely heavily on it. CSL would like the government to keep the existing R&D tax incentive to encourage biotech companies to continue developing and commercialising their products in Australia rather than moving overseas. CSL alone has over 1,500 R&D experts globally who are developing new therapies. The company supplies products such as blood plasma, antivenom and vaccines.
CSL says ‘Innovation is in our DNA’ and focuses on R&D as a strategic priority, as its products are heavily science based. These opportunities include investing in stem cell therapy and products to help with transplants. The company spends around $800 million per annum on R&D worldwide, which is approximately 10.5% of their global revenue. They have been partners with Melbourne University’s Bio21 medical research institute since 2007.
Relying on R&D investment for growth, CSL adopts a long-term outlook in high-risk and high-opportunity projects. The government provides the R&D tax incentive to any company who spends over $20,000 on eligible research and development in Australia in a financial year. It provides around $3 billion in R&D tax offsets per year. To get started on a claim, contact Swanson Reed R&D Tax Advisors. Swanson Reed can guide you through the entire R&D claim process and work with your accountant of choice.