Industry unites to back jobs during COVID-19

During this time of unprecedented challenge for Australia, those in the life sciences industry have answered the nation’s call to fast-track COVID-19 vaccines, as well as treatment, diagnostics and digital health solutions to support Australia in coping with this pandemic.

However, the industry is now calling on the Government to rectify the ATO’s decision to deny the industry’s application to expand the JobKeeper payment eligibility criteria to include some 65,000 highly skilled employees working in the sector’s pre-revenue BioTech and MedTech companies.

These life science companies, which make up 85 per cent of the sector, are at the heart of the essential research and development of vaccines, repurposed and emerging therapies, diagnostics, digital solutions, as well as test kits and ventilators to combat COVID-19.

These companies face a myriad of challenges different from those of other industries. The unique business model enables them to translate research into lifesaving and enhancing products for patients, but involves very long timeframes and significant capital.

Because these companies do not have the revenue to show, nor revenue to reduce by 30 per cent, they are unable to meet the current eligibility criteria set by the Government for JobKeeper — meaning the entire sector risks being brought to its knees with companies potentially being ‘moth-balled’, innovative research parked and staff forced to be let go.

Without JobKeeper eligibility criteria being expanded to included pre-revenue life science companies, Australia stands to lose up to a decade of substantial scientifically and capital contributions.

A recent survey conducted by AusBiotech, the body representing the life sciences industry, found 62 per cent of respondents indicated that their clinical trials are being delayed or that recruitment has been paused as a result of the downturn. This disruption to clinical trials will impact patients nationally and globally. The necessity and ability to keep on staff being vastly impacted by JobKeep payments.

A joint industry statement, signed by AusBiotech, ANDHealth, Medicines Australia, MTAA, BioMelbourne Network and Life Science Queensland, stated: “The companies behind the innovative products being developed and delivered have been at the forefront of global responses to COVID-19 coronavirus, after also rallying to respond to the medical needs of those who suffered during the summer of catastrophic fires across Australia. It is unjust to the sector to be left unsupported through this globally-challenging and unprecedented period. We cannot lose the social and economic benefits being delivered through the Australian life sciences sector.”