Patent Box

This consultation process has now been completed. Submissions available
Consultation Type
Discussion Paper

Key Documents

On 11 May 2021, the Australian Government announced that it will introduce a patent box for eligible corporate income associated with new patents in the medical and biotechnology sectors. The patent box will apply to companies for income years commencing on or after 1 July 2022.

‘Patent box’ is a generic term for regimes that apply a concessional tax treatment to profits derived from eligible intellectual property (IP). Currently, over 20 jurisdictions, including the UK, Singapore and many European countries have patent boxes or other regimes that offer concessional tax treatments to IP derived profits.

The aim of the Government’s policy is to encourage companies to base their medical and biotechnology research and development (R&D) operations, and commercialise innovation, in Australia and to retain associated patent profits in Australia.

The objective of this discussion paper is to inform the Government’s consideration of the detailed design of the patent box announced in the 2021‑22 Budget.

The discussion paper references the OECD/G20 Forum on Harmful Tax Practice’s (FHTP) framework governing IP regimes, including the OECD’s Base Erosion and Profit Sharing (BEPS) Action 5 minimum standard. Pages 23‑36 of this OECD report may assist you with understanding the framework.



45 submissions were received for this consultation, including 2 confidential submissions.

AmCham - pdf 719.01 KB
Ashurst Australia - pdf 124.68 KB
AusBiotech - pdf 867.15 KB
Baker McKenzie - pdf 163.11 KB
Bates, Ashley - pdf 118.02 KB
BDO - pdf 695.69 KB
BioMelbourne Network - pdf 271.49 KB
Cochlear - pdf 346.17 KB
Committee for Sydney - pdf 178.81 KB
CPA Australia - pdf 221.97 KB
CSL - pdf 284.62 KB
Ernst & Young - pdf 250.99 KB
GlaxoSmithKline - pdf 159.17 KB
Grant Thornton - pdf 332.25 KB
IPH Group - pdf 908.99 KB
Kantara Consulting - pdf 194.92 KB
KPMG - pdf 1.62 MB
Life Sciences WA - pdf 177.99 KB
Medicines Australia - pdf 828.52 KB
PwC - pdf 213.11 KB
Research Australia - pdf 635.48 KB
ResMed - pdf 645.19 KB
RSM Australia - pdf 244.25 KB
Snoretox - pdf 152.35 KB
SpeeDx - pdf 240 KB
Telix Pharmaceuticals - pdf 195.02 KB
The Group of Eight - pdf 391.47 KB
The Tax Institute - pdf 284.13 KB
University of Melbourne - pdf 306.05 KB
University of Tasmania - pdf 219.62 KB
VT Advisory - pdf 629.33 KB
Wrays - pdf 322.48 KB