AusBiotech welcomes proposed exemptions to Capital Gains Tax reforms
18 June 2026
Australia’s life sciences industry welcomes the Prime Minister’s announcement today of a new ‘Innovative Business CGT Concession’ and the release of a consultation paper to get the fundamentals of that right.
AusBiotech, the peak body representing 3,500 members in life sciences, says the announcement is an important recognition of the critical contribution that Australia’s innovation sector makes to economic growth, productivity and global competitiveness.
AusBiotech particularly welcomes the explicit recognition of the biotechnology and medical technology sectors by the Prime Minister and within the consultation paper itself.
Specifically, the Government has proposed a new Innovative Business CGT Concession that would provide a 50 per cent CGT discount to early-stage investors, including founders and employee share scheme participants of innovative start-up businesses.
AusBiotech CEO, Rebekah Cassidy, said the CGT proposals outlined today are a positive step forward.
“AusBiotech advocated tirelessly for recognition of the health innovation sector, as well as the unique traits of life sciences founders, their employees and investors,” Ms Cassidy said.
“We welcome that recognition in the Discussion Paper as an important step forward.
“Australia’s health innovation sector is a critical part of the Australian economy, which employs around 350,000 people and has doubled in size since 2017.
“Biotechnology is a sector dedicated to saving lives and improving patient outcomes.”
The consultation paper acknowledges the unique characteristics of the biotechnology and medical technology sectors, including long development and commercialisation timelines inherent in bringing new therapies, technologies and medical innovations to market.
AusBiotech also welcomes the Discussion Paper’s recognition that many companies in our sector list earlier than businesses in other industries, often by necessity, in order to access the capital required to progress clinical trials and development.
Proposals such as longer eligibility periods for biotech and medtech start-ups, and allowing listed as well as unlisted companies to apply in specific circumstances, would be a good step towards acknowledging the realities of building a life sciences company in Australia.
AusBiotech is reviewing the consultation paper in detail and will consult with members, the wider sector and Government on feedback that ensures the final design of the concession reflects the needs of Australia’s biotech, medtech and health tech innovators.
Ms Cassidy said the Government also needs to commit to reforming its proposed changes to the Research and Development Tax Incentive (RDTI), which if implemented, would apply a 10-year age limit to access the refundable R&D offset, and remove eligibility of ‘supporting’ R&D activities. Otherwise, the intent of the reforms won’t be fully realised.
“While this renewed focus to tax reform is good news, the Government must urgently address its proposed changes to RDTI, which risks clinical trials, manufacturing and companies going offshore,” Ms Cassidy said.
“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.
“We will continue to work with the highest levels of Government to get these policy settings right to avoid unintended consequences for our sector.”
ENDS
Media: William Sparling [email protected] 0416 628 276
About AusBiotech
AusBiotech is Australia's leading national and global advocate for life sciences, working to help its more than 3,500 members thrive by shaping policy, creating connections, and fostering knowledge sharing. With an unrivalled national convening power, AusBiotech supports its members’ growth by building an Australian life sciences ecosystem that leads in development and commercialisation, creating high-quality, innovative life sciences companies.