Proposed Concessions for Life Sciences Sector
AusBiotech has welcomed the Australian Prime Minister's announcement of proposed Capital Gains Tax (CGT) exemptions, aimed at supporting early-stage investors in the life sciences industry. Announced on 18th June 2026, the 'Innovative Business CGT Concession' is designed to recognise the sector's contribution to economic growth.
The new concession will offer a 50 per cent CGT discount to early-stage investors, including founders and employee share scheme participants in innovative start-up businesses. This proposal is part of a broader government initiative to drive investment in biotechnology and medical technology sectors.
AusBiotech CEO, Rebekah Cassidy, expressed support for the proposal, stating, "AusBiotech advocated tirelessly for recognition of the health innovation sector, as well as the unique traits of life sciences founders, their employees and investors."
Sector-Specific Considerations
The consultation paper accompanying the announcement acknowledges the long development and commercialisation timelines inherent in biotechnology and medical technology sectors. These timelines are critical in bringing new therapies and medical innovations to market.
AusBiotech also welcomes provisions that allow both listed and unlisted companies to apply for the concessions under certain conditions, recognising that life sciences companies often list earlier to access necessary capital for clinical trials.
Ms Cassidy highlighted the need for the government to address proposed changes to the Research and Development Tax Incentive (RDTI), which could adversely impact the sector. "These proposed changes to RDTI are unrealistic and fail to reflect the long-recognised realities, timelines and investment cycles of a sector that by necessity navigates long processes to develop life-changing and saving healthcare innovations," she said.
As AusBiotech reviews the consultation paper, it plans to engage with members, the wider sector, and the government to ensure the final design of the concession accurately reflects the needs of Australia's biotech, medtech, and health tech innovators.
According to the consultation paper, the life sciences industry employs around 350,000 people in Australia and has doubled in size since 2017. The sector's growth highlights its importance to the national economy.
The government's proposal includes longer eligibility periods for biotech and medtech start-ups, allowing them to apply for concessions even after listing, which acknowledges the specific needs of the sector.
