Tax breaks needed to attract investment in advanced manufacturing: med tech company

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Ultrasound device manufacturer Signostics has
suggested that tax breaks should be offered to encourage direct investment in
high-tech manufacturers.

In an interview with The Australian Financial Review, Stewart
Bartlett – the company’s co-founder and chief operating officer – said that tax
breaks for investors would encourage a more entrepreneurial culture.

Bartlett was also critical of the decision in last year’s budget to axe Commercialisation Australia, as part of a slashing of eight
programs to save $845.6 million over the next five years.

These were replaced by the Entrepreneurs’ Infrastructure
Programme.

“We wouldn’t be where we are today without them,”
said Bartlett to The AFR regarding Commercialisation Australia.

Signostics is among other medical industry manufacturers, such as Cook Medical Australia and the Medical Technology Association of Australia, who
have proposed tax breaks to encourage the development of local, knowledge-based
manufacturing.

The MTAA and others are lobbying for a lower tax rate on profits for locally commercialised IP, similar to the UK’s patent box scheme.

Signostics exports to ten countries and makes four-fifths of
its sales through a partnership with Konica Minolta.

This week the company launched its SignosRT Bladder Scanner
a portable, palm-size ultrasound product – in Europe and the UK.

Image: http://www.flinders.edu.au