AusBiotech welcomes some Federal Budget measures but cautions against unintended consequences
AusBiotech
AusBiotech says the 2026/27 Federal Budget includes strong signals that the Government has listened and responded to our bold advocacy over the past year but says detail is needed to understand the true impact of the Research and Development Tax Incentive (R&DTI) and Capital Gains Tax (CGT) reforms.
In particular, AusBiotech welcomed moves to commence implementation of Ambitious Australia, including the establishment of the National Resilience and Science Council. This major report follows an extensive review of Australia’s Research, Development and Innovation (R&DI) system and offers recommendations to unlock greater economic and societal impact from investment in homegrown innovation.
Responding to calls from the sector, increased funding through the Medical Research Future Fund is warmly welcomed. Accessing this fund’s full potential will help strengthen Australia’s health and medical research ecosystem and support continued innovation and translation. Similarly, continued funding for the National One Stop Shop for clinical trials is also welcome.
While changes to the R&DTI cap and tax measures for start-ups show promise to assist with encouraging industry investment, considered analysis is required of the total tax package to ensure it encourages and not unintentionally thwarts genuine Research and Development (R&D). Similarly, changes to CGT could disincentive investment in true innovation, and we welcome the Government’s commitment to consultation with the sector on this.
AusBiotech is the peak body for Australia’s world-leading life sciences industry, comprising 3,500 members who power the full lifecycle of health innovation in Australia, from research discovery to translation, clinical trials, development, manufacturing, commercialisation and global trade.
“No Budget is perfect, while some elements of this Budget take steps towards good more analysis is required to ensure the outcomes help rather than hinder the growth of Australia’s life sciences industry,” said AusBiotech CEO, Rebekah Cassidy.
“Ambitious Australia has the potential to strengthen Australia’s RD&I system and unlock greater economic resilience and societal impact from national investment in innovation, including health and medical life sciences. Fully leveraging the Medical Research Future Fund is also critical to supporting the sector’s growth and impact.”
“Changes to the R&DTI need to spur investment and boost productivity, not hinder true Australian innovation. It’s critical that we get those settings right, this will require extensive industry consultation."
“More detail is needed on the consultation mechanism for changes to CGT. These changes have potential adverse implications for investment, and attracting and retaining critical specialised talent in life sciences, particularly for start-ups."
“We were disappointed with the changes to the Australian Economic Accelerator (AEA) and Industry Growth Program (IGP), with the AEA being discontinued and the IGP receiving further funding cuts. Both programs play an important role in supporting startups and SMEs with commercialising research, including in the medical science and research sector."
“We will be convening a meeting with our members on Friday after we have reviewed the detail of the Budget, and will have more to say on this point.”
AusBiotech continues to encourage the Albanese Government to advance much needed systemic reforms and coordination to strengthen and secure the industry.
This includes the urgent implementation of the overarching goals of Ambitious Australia, establishing a National Strategy Advisory Council or Life Sciences Council that will oversee and drive reforms under the health and medical pillar, and Australia’s first whole-of-government National Life Sciences Strategy. In addition, recognising this critical industry as a priority under the Future Made in Australia Act.
Rebekah said a systemic reform agenda for life sciences must be pursued by the Government to capture the full value and strategic contribution of the industry to Australia’s economic diversity and productivity and health security interests.
“Life sciences is a significant industry which makes an invaluable contribution to the economy and can’t be ignored – it supports 350,000 jobs and has doubled in size since 2017,” said Rebekah.
“It also crucial to the health and wellbeing of all Australians, with groundbreaking research and technology leading to new medical devices and diagnostics, vaccines and medicines. Put simply, life sciences save lives."
“We look forward to continuing to partner with the Government to pursue important industry reforms which prioritise economic growth and positive health outcomes, and ensure Australia remains globally competitive in life sciences.”
ENDS
Media: William Sparling [email protected] 0416 628 276
About AusBiotech
AusBiotech is Australia's leading national and global advocate for life sciences, working to help its more than 3500 members thrive by shaping policy, creating connections, and fostering knowledge sharing. With an unrivalled national convening power, AusBiotech supports its members’ growth by building an Australian life sciences ecosystem that leads in development and commercialisation, creating high-quality, innovative life sciences companies.