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CONSULTATION ON THE PATENT BOX
THE HON MICHAEL SUKKAR MP
Assistant Treasurer
Minister for Housing
Minister for Homelessness, Social and Community Housing
MEDIA RELEASE
Monday 5 July 2021
CONSULTATION ON THE PATENT BOX
As part of our economic plan to secure Australia’s recovery the Morrison Government announced a new patent box as a part of the 2021-22 Budget.
Today, the Government is releasing a discussion paper on the design of the patent box which will start on 1 July 2022.
Under the patent box, income earned from new patents that have been developed in Australia will be taxed at a concessional rate of 17 per cent.
Initially, the patent box will apply to the medical and biotech sectors.
Patent boxes are widely used in other jurisdictions, including the UK, France, Switzerland and Singapore.
By providing internationally competitive tax treatment, the patent box will encourage the retention of Australian-developed inventions in Australia.
The patent box will also encourage research and development in the medical and biotechnology sectors and complements the substantial support the Government already provides to innovative sectors through the Research and Development Tax Incentive.
The discussion paper also seeks views on whether the patent box would be an effective way of supporting low emissions technologies.
The paper is available on the Treasury website and will be open for submissions for six weeks until 13 August 2021.
The Government will then consult on exposure draft legislation for the patent box prior to introducing legislation into the Parliament.