A report of Australian clinical trial costs is flawed according to Industry claims. The report on the global competitiveness of 14 countries came out this time last year, in which Australia was ranked as the second most expensive country to run clinical trials. Australian R&D Industry representatives are now making noise in response to the report. The report rankings were based on areas such as labour costs, transport, facility lease costs and utilities such as electricity. Exact data sources are unclear but it seems no consideration was given to R&D Tax Incentives.
“Foreign entities can claim R&D Tax Incentives through their Australian subsidiaries at 43.5 cents in the dollar, that means $435,000 for $1,000,000 foreign spend in Australia”, says Adam Rogers, Swanson Reed R&D Tax specialist.