Submission: Capital Gains Tax Reforms – Arrangements for Innovative Start-Ups

A joint submission by the Medical Technology Association of Australia (MTAA) and Association of Australian Medical Research Institutes (AAMRI)

We acknowledge the need to balance the competing interests of the Government to fund critical initiatives supporting the whole Australian economy and society, whilst also setting in place appropriate incentives to promote local industry development across different business sectors.

If tax policy is calibrated in the optimum way, sectors can continue to grow, crowd in private and public investment, while at the same time provide essential revenue streams to support broader public policy objectives.

The focus of this submission is to acknowledge the needs of the Government to balance recouping vital public revenue to reinvest into key economic and social deliverables for Australians whilst also encouraging ongoing investment and innovation across key sectors including MedTech.

The proposals outlined below are intended to provide a way forward to:

• promote ongoing public and private capital investment in Australian MedTech that crowds in capital, thereby increase the taxable base by encouraging positive and responsible investment behaviour that balance rewards for investing in higher risk assets.
• promote a culture of innovation in Australian MedTech by ensuring the IBCC’s design can be optimised for the MedTech sector, which is a world leader in cutting edge medical research but has ongoing challenges in commercialising concepts.
• ensure Australia can leverage patient capital to commericalise MedTech innovation locally, while giving patients early access to cutting edge therapies and technologies.

View the full submission below.