The Australian Department of Innovation, Industry, Science & Research and The Treasury jointly announced an AUS $1.8 ($1.9) billion R&D tax credit last month aimed at boosting biotech companies and other innovation-oriented firms. In a bid to stimulate smaller businesses, companies with an aggregated turnover of less than AUS $20 ($21) million will benefit the most, with a 45% refundable tax credit on R&D expenditure. It is seen as being especially useful for startup biotech firms trading in loss. But larger companies exceeding the AUS $20 million benchmark will still enjoy a 40% nonrefundable offset. The reform, which is expected to pass the Senate in August and be backdated to July 1, has cross-party support and is the result of significant consultation and negotiation since at least 2008. Anna Lavelle, the CEO of AusBiotech, an industry organization representing more than 3,000 Australian biotech companies, said that the announcement represented the “most significant positive news” that the industry has had for a number of years. She predicts that the move will stimulate new investment and the production of more intellectual property, and will allow companies to begin their clinical trials earlier and reach their end goal of entering the market faster than before. She added, “All biotechnology companies will benefit from the reform to some degree and the majority will benefit dramatically.”