The sector is impacted by multiple portfolios, and this is reflected in Tuesday’s announcements.
Announcements in the 2023 Federal Budget have both encouraged and disappointed the biotech sector, with new programmes introduced, timely updates on priority areas, and inaction on critical industry initiatives.
For the biotech industry, the key Federal Budget takeaways include the reiteration of the commitment to the National Reconstruction Fund (NRF), and its complementary addition of a new and welcome SME support programme, the ‘Industry Growth Program’, to replace and expand on the Entrepreneur’s Programme; further information on the ‘Buy Australia’ procurement programme; and a number of other announcements, both encouraging and disappointing.
AusBiotech welcomes the announcement to establish the ‘Industry Growth Programme’, after the last budget signalled the end of the Entrepreneur’s Programme when 75 percent of funding was slashed. The Industry Growth Programme has been established to align with the Federal Government’s National Reconstruction Fund (NRF) priorities, and aims to support Australian SMEs and startups to commercialise their ideas and grow their operations SMEs and startups.
The Budget also included a number of encouraging updates, such as the announcement of $18.1m over four years for the procurement programme ‘Buy Australia’, with the aim of providing greater access to procurement which would offer the biotech sector much needed demand security for those in the process of technology development.
It is promising to see a commitment to critical and emerging industries, including $116 million over five years to support artificial intelligence and quantum growth, and $3.2 million for the preparatory work for implementing new legislation and modernising the National Gene Technology Scheme.
While there were several positive signals, the Budget also included some notable disappointments. After years of advocating for a patent box scheme, industry will be disappointed to hear the Federal Government has indicated the regime will no longer proceed.
The Budget failed to mention funding for Australia’s One Stop Shop for clinical trials, a proposal aiming to improve coordination and harmonisation across jurisdictions and offer a single point of access for clinical trials, in spite of years of development and two years of consultation. Many people in industry will also be discouraged to note that $61m has been slashed from the Export Market Development Grants as part of the Government’s ‘efficiency gains’.
Finally, the Federal Budget did not address the need for a sustainable funding model for our world-class regulator, the Therapeutic Goods Administration.
This is despite AusBiotech’s efforts in uniting the life science industry to communicate the need to appropriately fund the TGA and its very worthy public health initiatives. With other Government departments being offered this support in this Budget, AusBiotech hopes that this will be reflected for the TGA in future Budgets. Whilst the Budget included measures to fund vaping related projects, this will not support the breadth of public good activities that the TGA undertakes.
As the national voice of the biotechnology sector for more than 37 years, AusBiotech has been committed to communicating industry’s concerns, reducing barriers and amplifying opportunities. It is pleased to deliver a wrap-up of announcements for life sciences.
