Cochlear response to 2026 Federal Budget

Cochlear backs first steps of R&D reform to lift productivity, jobs and living standards

Sydney, Australia – 12 May: Cochlear has welcomed tonight’s Federal Budget measures in response to the Ambitious Australia: Strategic Examination of R&D, which deliver an important first steps to strengthen Australia’s innovation system. In particular, Cochlear welcomed the Government’s decision to increase the R&D Tax Incentive (RDTI) cap and core R&D offset rates, alongside broader reforms to improve the effectiveness and targeting of R&D support.

Cochlear CEO and President, Dig Howitt, said the changes represent a positive signal that Government is responding to the broader challenges facing Australia’s innovation system and taking practical steps to improve global competitiveness.

“This is a strong first step for organisations investing in Australian R&D. Lifting the RDTI cap sends an important message that Australia wants to attract and retain large‑scale innovation activity,” said Mr Howitt.

Cochlear recognises that changes to RDTI mechanics are complex and will require careful design in the policy detail to ensure they continue to support genuine R&D activity across the ecosystem.

Cochlear also noted that the Budget also includes broader R&D investments and governance reforms, reflecting elements of the Ambitious Australia report.

“In a constrained fiscal environment, this package strikes a practical balance of better targeting incentives while maintaining support for innovation. It is an important step towards making Australia a more attractive place to invest, develop and manufacture advanced technologies,” Mr Howitt said.

Building momentum for long‑term reform

Cochlear emphasised that these measures represent an important first phase of reform and encouraged the Government to continue implementing longer-term reforms of the Ambitious Australia Report.

“The opportunity now is to build on this momentum. Further improvements to support research and development and its flow on to commercialisation and production in Australia will be critical to capturing the full economic benefits of innovation and ensure Australia is internationally competitive.”

“Across the R&D ecosystem, engagement has been clear, aligned and constructive. We look forward to continuing to work with government to ensure this is the start of a sustained program of reform.”

 

About Cochlear Limited (ASX: COH)

People have always been Cochlear’s inspiration, ever since Professor Graeme Clark set out to create the first multi-channel cochlear implant after seeing his father struggle with hearing loss. Since 1981, Cochlear has helped more than 750,000 people of all ages in more than 180 countries to hear. As the global leader in implantable hearing solutions, Cochlear connects people with life’s opportunities, and welcomes them to the world’s largest hearing implant community.

Cochlear has a global workforce of more than 5,500 people, with a passion for progress, who strive to meet the needs of people living with hearing loss. The company continually innovates to anticipate future needs, investing more than AUD$3 billion to date in research and development to push the boundaries of technology and help more people hear.

www.cochlear.com

For further information, please contact:

Aaron Dowling
Director, Corporate Communications
Email: adowling@cochlear.com
Phone: +61448 457 583