Australia presented its 2022 budget on March 29, 2022. The budget, which includes limited measures affecting large businesses, expands the patent box regime to the agricultural sector and low emissions technology innovations, and introduces measures to reduce the administrative burden on businesses, among other changes.
Expand patent box regime
The budget expands Australia's patent box regime to:
- Agricultural sector and low emissions technology innovations, with eligible corporate income subject to a 17% effective tax rate for patents granted or issued after March 29, 2022, for income years starting on or after July 1, 2023
- Patents for medical and biotechnology innovations granted or issued after May 11, 2021.
Reduce administration for businesses
To reduce the administration burden on business, the budget includes measures to report certain taxable payments automatically (as of January 2024) and align excise and other reporting requirements (as of July 2023), among other measures.
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Information is current to April 4, 2022. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500