The 2021 budget revealed the Government’s intentions to support businesses in various ways, with the key measures outlined below.
Patent Box Tax Concession
From 1 July 2022 the patent box will tax income derived from Australian patents in the medical and biotechnology sectors at a concessional tax rate of 17% (rather than 25%). Consideration will be given as to whether this would also be rolled out to the clean energy sector.
Digital Games Tax Offset
Gaming developers will receive a 30% digital games tax offset. The offset will be available from 1 July 2022 to tax resident companies or those with an Australian permanent establishment.
Intangible Asset Effective Life Self-Assessment
From 1 July 2023 taxpayers will be able to self-assess the effective lives of intangible assets, such as patents, registered designs, copyrights and inhouse software. These assets must currently be amortized over a prescribed effective life.
By Dave Corbin, Managing Director of Catalyst Solutions Australia