Tax Changes Threaten Medical Breakthroughs in Australia

Tax changes are a problem.

The news was reported on Saturday, June 6, 2026, at 4:44 am.

The medical sector says tax changes are bad for business.

Here is a short summary:

Australia's medical technology sector says the government's budget changes will hurt local startups.

Industry groups say the changes to research and development tax incentives will hurt the health sector.

What happens next?

The government is moving forward with tax changes and consulting on new laws.

Medical technology companies say new tax rules will hurt health startups in Australia.

A 10-year limit on a part of the research and development tax incentive is causing problems for health startups.

Nine health and medical technology industry groups wrote a letter to the government asking for changes.

The groups want the government to adjust the tax changes to support Australian companies.

The bill passed the lower house this week.

The letter said the tax changes pose a significant threat to domestic medical technology companies.

Labor's changes to capital gains tax and negative gearing passed the House of Representatives.

The omnibus bill will be reviewed, and Labor hopes to pass the changes through the Senate this month.

The Greens and Coalition might work together to have a longer inquiry into the tax changes.

Despite this, Labor is confident the short tax inquiry will remain, and the bill will pass in July.

Research and development incentives are critical to the health tech sector.

Labor's budget made several changes to the R&D incentive, making it more generous for some companies but less refundable for others.

Previously, eligible companies could receive a refundable R&D tax offset.

The 2026-27 budget increased the turnover threshold to $50 million but limited refundability to companies less than 10 years old.

Businesses that have existed for longer than that can still access the R&D incentive, but it becomes non-refundable.

The letter to the government warned that bringing health and medical technologies to market takes longer than 10 years.

Companies spend years developing products before revenue generation is possible.

The government has acknowledged the time it takes to get a medical product to market.

A spokesman for the government said Labor is significantly boosting funding for research and development tax incentives.

The government is establishing a new National Resilience and Science Council to guide innovation investment.

The changes to the R&D tax settings were designed to increase incentives and drive more investment from young firms.

Biotech developers were surprised by Labor's changes.

Medical tech bodies warned that the removal of R&D supporting activities is also a problem.

The groups advised the government that the CGT changes would make many medical technology businesses question whether staying in Australia is the right choice.

The medical technology sector wants to work with the government.

Over the past 10 years, biotechnology has become a significant export industry for Australia.

AusBiotech chief executive Rebekah Cassidy said the proposed changes have created uncertainty for Australian companies.

The long timeframes required to develop medical research into health products are not new news.

It is well understood by industry and government.

Ms Cassidy said the sector was blindsided by the CGT overhaul.

We want to work with the government to get these policy settings right.

We just need the government to meet us at the table.

Tim Wilson says Australia is at risk of falling behind with health technology.

Shadow Treasurer Tim Wilson accused Labor of failing to understand the impact of the budget on the medical technology sector.

Shadow Health Minister Anne Ruston said the Coalition shares the concerns of the medical research sector.

Combined with the government's slow pace in responding to the Health Technology Assessment Review, Australia risks falling behind.

Labor's tax consultation won't be a drawn-out process.

The government is consulting with the tech sector and startups about carve-outs for Labor's CGT changes.

Some entrepreneurs argue that changes to the capital gains tax discount should carve out the startup sector.

Treasury is conducting consultations that will inform a position paper on the implementation of the CGT changes.

The new tax regime is not due to begin until July 1 next year.

Business groups have demanded significant changes to the CGT overhaul.

Prime Minister Anthony Albanese has continued to rule out significant changes.

Speaking at the Australia's Economic Outlook 2006 summit, Mr Albanese ruled out a long, drawn-out process.

We will engage in good faith on the detailed design of the legislation.

My door has always been open to discussions with business.

The news was reported on Saturday, June 6, 2026, at 4:44 am.

Promotion

听力练习

听力练习