This past month the BioMelbourne Network has working on an R&D Tax Incentive Submission, planning a five year strategy for the organisation, arranging two special events - a BioEthics Forum with Professor Laurie Zoloth from the United States and a breakfast with Dr Linda Magee from the United Kingdom (both free of charge to BMN members) as well as watching the gene patenting debate.
First ,let's dicuss tax. Submissions for the proposed Federal Government's R&D Tax Incetive are now in and being scrutinised. In case you have been disconnected from the media - the new proposed tax system will see companies with a group turnover of up to $20 million gaining double the basic level of support for R&D with a 45 per cent refundable credit, equivalent to a 150 per cent tax concession, for R&D that meets the criteria.
The new regime is expected to benefit about 5500 firms. A big improvement and a genuine committment to innovation.
Labelled by Treasurer Wayne Swan and Innovation Minister Kim Carr as the first step in the “biggest reform to business innovation support for more than a decade”, the doubling of the spending cap on the R&D tax offset scheme to $2 million as an interim measure for the 2009-10 financial year announced in September, was another welcome piece of news. Overall things are looking good.
But one fly in the ointment is the definition of 'innovation and high technical risk'.
So far the legislation has accepted a broad "industrial definition" of R&D that covers basic, applied and experimental development, but the proposed changes rewrite the rules. The other detail to watch is whether the assesment of 'innovation and technical risk' are confined to activities or with the wider view of the objectives of a project. The assesment approach is going to be very important .
The BioMelbourne Network, with the generous assistance from Mr Alun Needham, Executive Director, Research and Development at Ernst & Young, hosted a discussion forum on the 1st October with representatives of the biotechs sector to discuss the impacts of the proposed tax changes. The discussion formed the basis of the BioMelbourne Network's submission (available on the home page of the web site under News and Opinion).
After seven almost eight years years of operation, the BioMelbourne Network has established a presence that has successfully interconnect the Victorian biotech sector and supported its continued growth. But what does the Network need to do in the coming five years to maintain the results we have achieved and to adapt to the changing needs of the sector ? Will the needs of the sector change at all ? These are questions that we are investigating in a comprehensive five year strategy designed to inform and direct our focus over the next five years.
One of the great characteristics of the BioMelbourne Network, in my view, is our flexibility in being able to take up opportunities that unexpectedly appear. In November we are delighted to welcome to Melbourne Professor Laurie Zoloth from Northwestern University in the US and Dr Linda Magee from the Manchester Academic Health Science Centre in the UK. Professor Zoloth is in Australia as a part of the AusiMed Stem Cell Centrefence hosted by Hadassa Australia. Dr Magree is visiting courtesy of the NorthWest Development Agency Both events are free of charge to BioMelbourne Network members. See the Events section of the Newsletter or web site for details on how to register.
We are also closely watching the debate relating to gene patenting as well as the discussion taking place around the National Health and Hospitals Reform Commission Report.
