2020–21 Pre-Budget Submission

This pre-budget submission to the Treasurer for the 2020–21 Budget recommends renewed Commonwealth investment in research and innovation. Research Australia maintains that Australia’s economy is poorly diversified, ranking 93rd on Harvard’s Economic Complexity Index, and that Australian Government R&D investment has fallen from 0.64% of GDP in 2009–10 to 0.48%, below the 0.63% benchmark in Australia 2030: Prosperity through Innovation. It recommends committing to at least 0.75% of GDP by the end of the Government’s term. It welcomes Medical Research Future Fund (MRFF) disbursements rising from $61 million in 2016–17 to a forecast $580 million and looks forward to the final capital instalment, but warns that National Health and Medical Research Council (NHMRC) and Australian Research Council (ARC) funding is declining in real terms and must be increased. On indirect costs, it seeks reversal of cuts to Research Block Grants, a proportionate increase in the Research Support Program to cover MRFF grants, a new Independent Research Institute Infrastructure Support Scheme stream for MRFF-funded institutes, and a Chief Scientist-led review. Other recommendations cover retaining the $1.9 billion research infrastructure commitment, implementing Australia 2030 and the Innovation Metrics Review, funding the CSIRO artificial intelligence roadmap, resourcing data sharing legislation and the Australian Institute of Health and Welfare’s release of My Health Record data, a public awareness campaign and a digital health literacy strategy, multi-year funding for the National Preventive Health Strategy, and no further R&D Tax Incentive changes while business R&D spending is falling.