Hearing implant maker Cochlear could shift its research and development out of Australia because of cuts to tax incentives.
Chairman Rick Holliday-Smith says Cochlear, which in August reported a record full-year profit of $189 million, has until recently received an annual benefit of about $10 million under the research and development tax incentive.
He told Cochlear's annual shareholder meeting on Tuesday that the majority of the company's R&D was based in Australia, but warned that could change following tax concession cuts in the budget savings bill.
"The impact of these decisions can only be fully understood over the longer term," Mr Holliday-Smith said.
"There may be little or no apparent impact from changes to taxation policy in the first year, but over time we may see the loss of an increasing amount of research investments to overseas jurisdictions."
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Mr Holliday-Smith said that Cochlear spent $143 million, or 12 per cent of its sales revenue, a year on R&D.
The company generated 95 per cent of its revenue overseas, but more than 75 per cent of its tax was paid in Australia, he added.
"Cochlear will continue to vigorously promote the maintenance of a globally competitive R&D tax concession regime in Australia," Mr Holliday-Smith said.
"Australia needs leaders in export-oriented businesses, and Australia should encourage research-oriented companies like Cochlear that are involved in advanced manufacturing."
At 1040 AEDT, Cochlear shares were up 37 cents, or 0.27 per cent, at $137.04 against the backdrop of a flat Australian market.
