Treasury Laws Amendment (Tax Concession for Australian Medical Innovations) 2022

# Tax Concession for Australian Medical Innovations Bill 2022 ## What it does The government is creating a new "patent box" tax break for Australian companies that develop and commercialise patented medicines and medical inventions. Companies that qualify can exclude some of their income from these patents from being taxed, essentially getting a tax discount on profits from homegrown medical innovations. ## Why it matters Australia's biotech and pharmaceutical companies currently compete globally without special tax advantages that other countries offer their innovators. This is meant to make it more attractive for companies to invest in developing new treatments here and selling them worldwide, rather than moving their operations offshore. ## Key details - **Who qualifies:** Only "R&D entities" (research and development companies) that voluntarily elect into the scheme and own patents for therapeutic goods listed on the Australian Register of Therapeutic Goods - **When it starts:** The tax concession kicks in from the first January, April, July or October after the bill gets Royal Assent (not immediately) - **What gets the discount:** Only income directly linked to qualifying patents gets the tax benefit—it's not a blanket tax cut for medical companies