Medtech and Medical Devices
Medtech manufacturing and distribution
Solid supply chain
Adelaide has decades of experience in world’s-best-practice manufacturing in the automotive and defence industries, providing high-skilled workers and solid supply chains that are now being successfully applied to medical device manufacturing.
Automotive experience includes GM and Mitsubishi car manufacturing, while defence experience includes ship and submarine building. This strong tradition of manufacturing provides Adelaide with skilled workers and supply chains able to deliver:
- Precision mechanics
- Artificial Intelligence
- Data Analytics
Manufacture in Adelaide
The Tonsley Innovation District combines university-led research and development with vocational training and advanced manufacturing premises for companies, with an emphasis on biomedical devices, sustainable energy and clean technology.
A 61 hectare former automobile manufacturing site, Tonsley has been transformed into the ideal location for hi-tech development and manufacturing.
Tonsley is great for startups, SMEs and global companies taking advantage of Adelaide.
The Medical Device Partnering Program provides access to academic research, R&D support, and market connections.
Also located at Tonsley is Flinders University’s Medical Device Research Institute (MDRI). One of Australia’s leaders in the field, it creates strong links between researchers and industry. The MDRI includes the local hub for MTPConnect, an Australia-wide organisation growing medtech, biotech and pharma industries.
Australia’s Therapeutic Goods Administration regulates medical devices and is a member of the International Medical Device Regulators Forum, which eases international registration of devices once approved in Australia.
Distribute in Asia and Australia from Adelaide
More people live inside this circle than outside.
Built in Adelaide, Australia
Automotive manufacturing has developed a culture which delivers precision products, efficiently and cost-effectively, with a strikingly low defect rate and high traceability. Six Sigma, kaizen and lean manufacturing have helped deliver this for car companies and now manufacturers in Adelaide are using techniques like these to build ground-breaking medical devices.
Adelaide has been rated as the most cost-competitive city for doing business in Asia-Pacific by KPMG on their Competitive Alternatives 2016 index.
South Australia’s labour costs are 9% below the Australian average.
Industrial land and office space are available at rates lower than other mainland Australian states. With a well-planned supply of industrial land linked to strategic infrastructure and transport corridors, Adelaide is highly competitive for its cost of doing business.
With established domestic and international logistics for hi-tech goods, companies based in Adelaide can serve the national market and easily distribute throughout the rapidly growing Asia-Pacific markets.
Take advantage of Australia’s free trade agreements with Japan, Singapore, Malaysia, Korea, Thailand, Indonesia, and China.
Centre of Australia
Adelaide’s location makes it a centre of Australia’s road, rail and air links and is the only city in Australia where you can easily fly to and from any other capital city in a single day. South Australia offers quick and cost effective air and sea freight transport to major markets in Asia.
By locating in Adelaide, businesses can manage, train and further grow their national and regional sales and distribution teams.
Foreign investors are assured by Australia’s stable political environment as well as the efficiency and transparency of its legal system. Australia’s legislative and regulatory frameworks are similar to those of many developed countries in the Western world.
The World Heritage Foundation notes Australia “has recorded impressive economic progress without undergoing a single recession for almost 25 years”, describing Australia as benefitting from “lasting entrepreneurial development facilitated by an effective system of government, a well-functioning legal system, and an independent bureaucracy”. Australia is one of only five countries rated as economically free in the world.
2016 Index of Economic Freedom
Up to 43.5% cashback for medtech R&D
Up to 43.5% of R&D costs will be reimbursed in cash to eligible companies with an aggregated annual turnover of less than A$20 million (approx. US$15 million). A substantial tax offset is offered to all other eligible entities.
Cashback covers all phases of development, from preclinical to phases 1, 2, and 3. Companies can claim the cost of R&D activities conducted overseas in support of their Australian R&D project, when certain conditions are met. The incentive covers costs including:
- Clinical trials
- Prototype manufacturing
There is a solid track record of successful claims by companies headquartered overseas, such as the US, when conducting research in Adelaide.
What’s the process?
Before commencing R&D activities, investors interested in benefiting from the financial incentives must set up an Australian company with a local director. There is no requirement to hire full-time employees. A formal agreement with the parent company is required.
The whole process is inexpensive and can take as little as a month. Importantly, all intellectual property remains with the parent company. Consultants with a track record of successful claims are available in Adelaide.
Adelaide’s banking system is available to provide a loan secured against the cashback amount.
The R&D Tax Incentive is an Australian Government initiative jointly managed by AusIndustry and the Australian Taxation Office. For further information please visit www.business.gov.au and www.ato.gov.au.