The Australian Government is introducing new tax, research and development, and innovation incentives to attract talented individuals and exceptional businesses to Australia.
In its Budget 2021–22 Statement, the Government committed to the following programs.
The Government has introduced a new Global Talent visa and Temporary Activity visa. It will modernise the framework for individual tax residency to encourage relocation to Australia.
New business investment incentives
To encourage global businesses to invest in and relocate to Australia, the Government will:
- finalise the implementation of the Corporate Collective Investment Vehicle regime
- establish a more efficient licensing regime for foreign financial service providers
- review the tax treatment of venture capital to examine whether current arrangements are creating incentives for additional investment and genuine early stage Australian startups.
Providing certainty around tax on investments
The Australian Tax Office will establish an early engagement process to provide investors with certainty around the tax implications of large investments.
The service will provide upfront confidence to investors about how Australian tax laws will apply and be tailored to the particular needs of each investor. It will be available from 1 July 2021.
The Australian Government is introducing a patent box to encourage investment in Australian medical and biotech technologies. The patent box will reduce taxes on income from innovative research to encourage businesses to undertake their R&D in Australia and keep patents here.
The Government is also introducing a Digital Games Tax Offset, which provides a 30% refundable tax rebate to encourage international businesses to develop digital games in Australia.