The Government has invited submissions on the draft Terms of Reference for the Financial System Inquiry. The Inquiry, to report to the Treasurer in November 2014, ‘will make recommendations to foster an efficient, competitive and flexible financial system, consistent with financial stability, prudence, integrity and fairness.’
Research Australia’s submission has sought to have the terms of reference amended to specifically include consideration of how the financial system can better support productive innovative companies and ideas, as an essential element in commercialising the outcomes of Australia’s scientific research.
Financial Systems Inquiry Terms of Reference
The Government has established a National Commission of Audit (NCOA) to identify areas of waste and duplication in Commonwealth Government Expenditure. Research Australia has made a submission to the NCOA. The Government has given a commitment to protect funding for health and medical research, and Research Australia has sought to ensure that the Commission is aware of the breadth and extent of HMR funding, and that this goes far beyond NHMRC grants. Research Australia has also urged the Commission to support implementation of the McKeon Review’s recommendations as a means of making our health system safer, more effective and efficient; even small improvements in efficiency in the $140 billion health sector can generate significant savings.
National commission of Audit
In June 2013 the Australian Government issued a consultation paper seeking views on a proposal to assess the wider benefits of university based research. The paper proposed that a pilot exercise be undertaken in 2014 using case studies and quantitative data, and sought input on its design. Research Australia made a submission, urging a small scale ‘experimental’ approach using existing data to the greatest extent possible to test the feasibility and value of measuring research impact in this manner.
Assessing the wider benefits of university based research
Unlike some other States, Western Australia’s Guardianship and Administration Act does not make provision for the participation in human research of individuals who are unable to make a reasonable judgment or decision for themselves.
Research Australia’s submission proposes the Act be amended to make specific provision for this purpose. Research Australia’s chief recommendations are that Human Research Ethics Committees (HRECs) be responsible for determining whether medical research is safe for individuals who are unable to make a reasonable judgment or decision for themselves to participate in; and that persons responsible be able to decide whether a person who is eligible to participate will do so.
Review of the WA Guardianship and Administration Act
The May 2013 discussion paper released by Treasury proposes a $2000 cap on the tax deduction for self education expenses. In the health and medical research sector, where many researchers are forced to meet the cost of a range of expenses associated with work themselves, this proposal will have a significant adverse effect on health and medical research in Australia. Research Australia’s submission opposes the proposal.
UPDATE: The Government has subsequently withdrawn the proposal to impose a cap on self education expenses.
Reform to Deductions for Education Expenses
In October 2012, the Australian Government announced a review of pharmaceutical patents, including the provisions for extending the terms of eligible pharmaceutical patents. The Review has issued a draft report with a number of interim findings and recommendations. Research Australia has made a submission to the Review, emphasising the important role that pharmaceutical patents play in encouraging innovation and competition, and the importance of providing a level of protection that is consistent with our collaborators in pharmaceutical development in the USA and Europe. Research Australia has also emphasised the important distinction between paying a drug company for its innovation by buying drugs under patent, and providing public funding for research.
Pharmaceutical Patents Review Draft Report
Each year the Treasurer invites the Australian community to make submissions in relation to the preparation of the budget for the following financial year. Research Australia recommended:
- A real increase in Commonwealth Government funding for health and medical research, to enable continued improvements in the health and wellbeing of all Australians.
- A specific allocation to fund the implementation and monitoring of the McKeon Review recommendations and the development of a coherent national health and medical research strategy
- Increased funding for health systems research to increase capacity to analyse and identify best practice for the Australian health care system and to increase research into the most successful, effective and efficient delivery mechanisms and structures for implementing best practice.
- Increased funding for research to support the effective and rapid translation of new discoveries into practice.
- Greater funding for population health and preventive health research to improve the effectiveness of preventive health campaigns and identify emerging trends in the health and disease profile of the Australian population.
- Retention of the R&D tax credit as an important mechanism for supporting the commercialisation of Australian research.
Pre Budget Submission 2013
In late 2012, the South Australian Government initiated a review of its Science, Research and Industry Innovation Strategy. Research Australia made a submission to the Government drawing its attention to the benefits of increased support for health and medical research, and innovation as part of the strategy.
Review of the SA Science research and industry innovation strategy