News
5th June 2009 - Media Release
$83M FUND TO SUPPORT INNOVATION OPENS
The Rudd Government’s $83 million Innovation Investment Follow-On Fund opened for applications today.
Announcing the opening, Senator Kim Carr, Minister for Innovation, Industry, Science and Research, encouraged eligible fund managers to apply for funding.
“The fund is a temporary, targeted response to address a lack of capital available to the most promising young innovative companies during the global recession,” Senator Carr said.
“It will enable these companies to continue to develop and to commercialise their products and services during this difficult period.
“The commercialisation of innovation is vital to Australia's prosperity and will continue to be strongly supported by this Government.”
Funding is available to fund managers currently licensed by the Government though Rounds 1 and 2 of the Innovation Investment Fund, the Renewable Energy Equity Fund and the Pre Seed Fund as well as successful applicants under the ICT Incubators program. Fund managers may invest in early stage companies that have already received investment capital under these programs.
The Rudd Government’s commitment to encouraging innovation and supporting all firms bring their new ideas to market was reaffirmed in the 2009-10 Budget.
Two new measures will assist firms commercialise their research through the establishment of a $196.1 million Commonwealth Commercialisation Institute and the introduction of an R&D Tax Credit.
These initiatives are aimed at ensuring the best ideas developed by Australian universities, publicly funded research agencies and new enterprises are grown in Australia and become successful commercial realities.
For further information on these important initiatives visit AusIndustry’s website, call the hotline 13 28 46 or email hotline@ausindustry.gov.au
June 1st 2009 - Media Release
Seeking Australia’s top life science students
Student life-scientists and bio-entrepreneurs are invited to apply for the annual awards and present their research, vying for the AusBiotech-GSK Student Excellence Award 2009.
The award program aims to recognise and encourage promising researchers who are working on innovations to extend and enhance our lives, including medicines, diagnostics and medical devices, as well as solutions to address food shortages and climate change.
Previous winner for NSW, Mr Leo McHugh from the University of Sydney, was honoured for developing a new software package to assist in proteomics research, the study of proteins and their functions. The proteins present (or absent) in disease samples compared to the protein profiles of normal tissue can assist scientists to elucidate the biochemical processes underlying disease. Leo’s software, named PINNACLE, uses a powerful artificial intelligence approach and his results showed more protein identifications when compared against a number of leading packages.
“The student awards program, made possible through GlaxoSmithKline’s (GSK) support, is a key driving factor in the development of our future bio-industry leaders,” said AusBiotech CEO, Dr Anna Lavelle. “Student research is a critical factor in the life cycle that takes discoveries through the commercialisation process to reach and benefit the community.”
"GSK is proud to support the student awards. While it's always valuable to celebrate achievement in science, it is also so important to encourage an understanding of the business aspects of the bioscience field for those entering it. This leads to better research outcomes and a stronger people ‘pipeline’ for academia and industry in Australia," said Dr Ashley Bates, Head of R&D Alliances Australia/NZ, GSK.
The Awards, which open on today (1 June 2009), recognise one winner in each state. Winners from around the country will gather to share their research at the annual international conference AusBiotech 2009, this year to be held in Melbourne. More information is available at www.ausbiotech.org/studentexcellenceawards or by contacting Olgatina Bushi obushi@ausbiotech.org or
08 8217 6499
May 12 2009- Media Release
MAKING IDEAS REALITY: COMMONWEALTH COMMERCIALISATION INSTITUTE
The Government will establish a $196.1 million Commonwealth Commercialisation Institute to develop a radical new approach to commercialising the best Australian research.
The Institute will aim to see that the best ideas developed by our universities and publicly funded research organisations become successful commercial realities.
This initiative is about making the most of home-grown innovations and getting the best value for taxpayers’ investment by supporting new innovation activity.
It will keep high-wage, high-skill jobs in Australia with long term economic and social benefits for the nation.
As well as supporting commercialisation of promising research, the Institute will support innovative firms with the potential for rapid growth, helping to take their research and ideas to the marketplace.
Bringing an innovative product or service to market is always challenging. The global recession has made things even tougher, stalling the development of potentially lucrative Australian inventions.
The Australian Government is establishing the Commonwealth Commercialisation Institute now to ensure our innovative young companies are still here when the global recession is over.
12th May 2009-Media Release
R&D TAX CREDIT TO BOOST BUSINESS INVESTMENT
The Rudd Government will simplify and enhance the Research and Development (R&D) Tax Concession so that it provides better incentives and more support for Australian jobs in the face of the global recession.
The new R&D Tax Credit is the biggest reform to business innovation support for more than a decade. It will boost investment, support jobs and strengthen Australian companies so they can take full advantage of new opportunities as the economy recovers.
From 2010-11, the Government will replace the complex and outdated R&D Tax Concession with a simplified R&D Tax Credit which cuts red tape and provides a better incentive for business to invest in research and innovation.
Importantly, the new R&D Tax Credit will better reflect the financial realities facing many businesses during the global recession. It will help ensure that Australian businesses are well placed to take full advantage of generous incentives to innovate during the global recovery.
The new Tax Credit provides a 45 per cent refundable credit for firms with an annual turnover of less than $20 million – equivalent to a Tax Concession of 150 per cent. This means that firms will receive a tax refund of 45 per cent of their R&D spending when they file their tax return.
This measure effectively doubles the standard level of support for innovative small and medium sized companies. The measure reverses the previous government’s retrograde decision to halve the R&D Tax Concession when it came to office.
Importantly, the refundable credit will be available to small companies in tax loss, with no limit on the level of R&D expenditure they undertake. This will provide a real boost to start-up companies in areas such as biotechnology and ICT.
Around 5,500 small firms stand to benefit under these new arrangements.
Businesses with a turnover of more than $20 million will also benefit from the new scheme, with access to a 40 per cent non-refundable credit – equivalent to a tax concession of 133 per cent.
Companies undertaking R&D in Australia where the intellectual property is held offshore will also be able to access the 40 per cent non-refundable credit.
As a transitional measure for 2009-10, the R&D expenditure cap for the existing R&D Tax Offset will be lifted from $1 million to $2 million. The cap is the maximum amount a firm can spend on R&D to be eligible for the Tax Offset.
This change addresses the perverse incentive for firms to limit their R&D spending under the current threshold, and will provide a further boost to small companies in research intensive industries of the future.
Under the new Tax Credit system, eligibility criteria will be tightened to make sure that our investment is getting the best results – supporting only genuine R&D. This will provide offsetting savings to fund improvements to the system.
The Government will consult further on the eligibiltiy criteria in developing legislation for the new Tax Credit. A consultation paper will be released in the next few months.
The complex Premium Concession and International Premium will be abolished. Industry feedback indicates that the unpredictability of the Premium means it provides little or no incentive for companies to invest in new projects, or for multinationals to bring their R&D to Australia.
The new R&D Tax Credit will provide certainty for business and its operation will align with international best practice. Under this simpler system businesses will be able to invest in R&D with confidence.
The reform of the R&D Tax Concession will complement the Government's new $196.1 million to establish a Commonwealth Commercialisation Institute and reaffirms its commitment to supporting innovation in Australia.