AusBiotech welcomes today's release of Ambitious Australia: Strategic Examination of Research and Development Final Report, which calls for urgent action to strengthen Australia's research, development and innovation (R&DI) system and unlock greater economic and societal impact from national investment in innovation.
AusBiotech CEO Rebekah Cassidy said the report recognises the critical role Australia's health and medical life sciences sector can play in driving productivity, strengthening economic resilience and enhancing the nation's global competitiveness at a time of accelerating global investment in innovation and critical industries.
"The report is unequivocal: strategic, comprehensive and orderly change is essential. Australia has a once-in-a-generation opportunity to move beyond reliance on being 'the lucky country' and invest in the industries that will secure our future prosperity — including health and medical life sciences.
"Backing homegrown RD&I will lift productivity, strengthen our economy and keep Australia competitive in a rapidly changing global landscape."
Health and medical as one of the six "National Innovation Pillars"
AusBiotech welcomes the report's recognition of "health and medical" as the first of six National Innovation Pillars, acknowledging our sector's critical role in driving domestic innovation, improving health outcomes and strengthening Australia's economic competitiveness.
"Australia's global peers have long recognised the importance of their health and medical innovation industries — coordinating government and industry strategies to grow their onshore capability while creating new jobs and improved economic and health security. It's heartening to see recognition of the important role our home-grown health innovators can play in Australia's ambitious future," Rebekah Cassidy said.
Stronger coordination via a National Council
The recommendation to establish a National Innovation Council supported by a health and medical specific National Strategy Advisory Council, with ultimate accountability to the Prime Minister, reflects long-standing advocacy from AusBiotech and our members for a National Life Sciences Strategy and Council. This cross-portfolio partnership with industry will improve whole-of-government policy coherence, and support strategic investment and productivity gains across the sector. We are grateful to our partners at Medicines Australia and MTPConnect for joint advocacy on this topic.
"Over the past 18 months, AusBiotech has consistently advocated for a Council of this nature to deliver the very improvements outlined by the Expert Panel. We welcome this recommendation as a critical enabler of government and industry collaboration, insight and strategic goal setting to help grow our nation's innovation capability into the future," Rebekah Cassidy said.
Aligning tax and business settings to enable onshore investment
AusBiotech welcomes the Report's recommendations designed to boost investment in onshore manufacturing and RD&I capability, noting that many of these have been reflected in our recent advocacy and pre-budget submission:
• Research and Development Tax Incentive (RDTI): removing the ceiling on RD&I expenditure under the RDTI — acknowledging AusBiotech member, Cochlear's leadership advocacy on this issue, elevating the importance of effective RD&I tax settings for innovative Australian companies.
• Tax reform to prioritise competitive effective corporate tax rate for RD&I companies to make Australia an attractive location for investment and innovative business activity.
• On-shore manufacturing and RD&I: introducing a production tax credit or subsidy for onshore advanced manufacturing; and prioritising government procurement of Australian RD&I.
• Growing and diversifying investment and capital: mobilising superannuation investment and reforming the Early-Stage Innovation Company (ESIC) incentive scheme.
• Strengthening the workforce: incentivising stronger alignment between universities and industry, including the introduction of an RD&I voucher of up to $150k for businesses to conduct R&D projects with universities or research institutions.
Urgent action on recommendations
AusBiotech is now reviewing the report in detail with its member Committees and Advisory Groups and looks forward to working closely with Government as it responds to the recommendations. We urge the Government to prioritise its response to the report and work in partnership with industry to implement recommendations through the 2026–27 Federal Budget.
"Australian health, medical and life sciences innovators cannot afford delays to reform, particularly as many of our global peers have already moved ahead. The time is now for strategic, comprehensive and orderly change," said Rebekah Cassidy.
AusBiotech thanks the Review Chair Robyn Denholm and the Expert Panel for their engagement with AusBiotech and the sector throughout the examination process. AusBiotech contributed to the consultation by convening a number of bespoke roundtables with industry experts and members of the Panel, as well as written submissions.
AusBiotech also thanks its members and industry partners who engaged with the Review at every stage, providing valuable insights and expertise to help inform the development of the report and recommendations.
