Australia

Australia is a leading destination for biotech innovation thanks to our strong government commitment, support and investment into the life sciences sector providing biotech and pharma companies with world class researchers, clinicians and knowledge.

A key benefit of coming to Australia to conduct research and clinical trials is the generous R&D Tax Incentive (R&DTI) administered by the Australian Government, which can provide a refundable tax incentive up to 43.5% (and in rarer cases 48.5%) of eligible R&D expenditure for companies with an aggregated turnover below $20 million.

The incentive can then be put back into funding further clinical trials and research in Australia, resulting in a cycle which can significantly increase the scope of the trials in a way not otherwise possible in many other jurisdictions. In addition, the Australian Government recently announced in the 2021-2022 Federal Budget that it plans to introduce a new Patent Box scheme to encourage commercialisation of Australian IP which some larger biotech and pharma companies may take advantage of.

Our services

Company incorporation

A company is the most common structure for entering the Australian market. We can assist you incorporate a company, appoint directors and complete all tax registrations. We can also provide the registered business address for corporate purposes.

Corporate secretarial and ASIC lodgements

Our corporate secretarial service will assist you keep up to date on compulsory corporate regulator filings.

International structuring and tax advice

As a cross-border company, a number of international tax considerations will need to be considered and addressed. Broadly, biotech companies will require assistance with forward-looking tax structuring advice, as well as assistance with complying with Australia’s complex international tax law. We have experience advising on tax planning, transfer pricing, efficient profit repatriation, thin capitalisation, MAAL/Diverted Profits Tax and double tax treaties.

R&D tax incentives and grants

Inbound biotech companies with aggregated turnover of less than AUD$20m can receive a refundable R&D tax incentive rebate equal to 43.5% of eligible R&D expenditure. A smaller, non-refundable tax offset applies to other larger companies. With our extensive experience working with inbound biotech companies and an emphasis on quality, we can help you plan and access the R&D tax incentives. We also provide assistance with certain other grants based on their application window.

Outsourced accounting and payroll

We provide a full outsourced accounting solution including payroll, superannuation (pension), bookkeeping and management reporting capabilities such that the financial functions of your Australian biotech is managed seamlessly with your head office.

Audit

Inbound biotech companies are often required by the parent company or the Australian corporate regulator (ASIC) to undertake an audit of its financial statements. Our audit team has extensive experience providing quality, timely and efficient audits for inbound biotech companies. Our client experience is unique – we are supportive and seek to work with you to navigate the complex financial reporting and auditing standards so that the burden on your finance team is minimised.

Tax compliance

As a registered tax agent, we can assist you keep your tax filing up to date. Biotech companies generally require assistance with the annual corporate tax return and quarterly or monthly “Business Activity Statements” (BAS).

Resources

Doing business in Australia                                             

Serious pensive thoughtful focused young casual business accountant bookkeeper in office looking at and working with laptop and income tax return papers and documents

Biotech accounting and tax considerations

Benefits of biotechnology companies undertaking R&D

Insights_Biotech_woman researcher scientist

Helping biotech companies set up R&D operations through global alliance

Female scientists working in modern biotechnology laboratory

Australia’s patent box regime for biotech and medtech companies

Our Specialists

Profile image_Jack Qi_200X300

Jack Qi

Director, Tax Services

Sydney

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