The patent box regime will apply from July 1 2022
In the Australian Federal Budget on May 11 2021 the Treasurer announced a patent box regime for Australia and on May 20 2021 the Australian Taxation Office (ATO) issued a Practical Compliance Guideline on ‘intangibles arrangements’.
Patent box regime
The regime will apply from July 1 2022 to income derived from Australian medical and biotech patents. The government also said it would consider extending the concession to ‘green’ technology patents, during consultation. The effect of the regime is that the income from such patents will be taxed at a concessional rate of 17%, rather than the standard corporate rate of 30%. The regime is designed to incentivise R&D activities in Australia and encourage companies to retain ownership of patents in Australia.