Australian Budget 2014: R&D, Innovation & Medical Research

On Tuesday 13 May, the Federal Government released their budget for the 2014/15 financial year and of course, there have been ‘winners’ and ‘losers’. Here are some of the key takeaways relating to R&D, innovation and medical research.

R & D Tax Incentive reduction

A reduction to both the refundable and non-refundable R&D tax offsets was announced as part of the 2014 Federal Budget.

The reductions will apply effective from 1 July 2014, and have the following effect:

  • Refundable R&D tax offset – reduction from 45% to 43.5%
  • Non-refundable R&D tax offset – reduction from 40% to 38.5%

These changes are being made to maintain the relative value of the R&D tax incentive in light of the proposed reduction in the corporate tax rate from 30% to 28.5% on 1 July 2014 (*effectively for companies with taxable incomes below $5 million).

For more information, please click here.

Medical Technology Innovation and Research

The Government also announced plans to establish the ‘$20 billion Medical Research Future Fund’, which would be the largest medical research fund in the world. Additional funding will be provided for a range of strategic incentives to encourage and support innovation and research.

The fund will be run by an independent Future Fund board, and will pay annual dividends worth $20 million in its initial year, growing to $1 billion by 2023.

The idea is to help boost Australia’s position as a global leader in the fields of medical technology, science and research.  For more information, please click here.


Mark’s academic background is in computer science and electrical engineering. He assists clients in obtaining and enforcing their intellectual property rights in the areas of software, electronics and engineering. Prior to joining Phillips Ormonde Fitzpatrick, Mark worked for a leading automotive manufacturer.