Building research into the Allied Health Workforce Strategy

In May 2024 the Department of Health and Aged Care released a consultation paper on a draft outline of the National Allied Health Workforce Strategy, intended to to ensure there are enough highly trained allied health professionals distributed across the country.

Research Australia’s responses to the consultation paper focus on the need for the strategy to recognise the role of allied health professionals as clinician researchers in creating a self improving allied health sector and supporting retention of allied health professionals. To achieve this the Strategy needs to better support clinician researchers and the submission highlights ways to do this.

Read our submission here.

A National Immunisation Strategy to 2030

In May 2024 The Department of Health and Aged Care released a consultation paper to support the development of the Next National Immunisation Strategy for 2025-2030. The consultation paper proposed a vision, mission, priority areas, and opportunities for action for the next Strategy.

Research Australia’s submission has welcomed the overall direction of the Strategy but proposed some amendments to the Vision and Mission. We have also highlighted areas where the Strategy could better engage and make use of researchers, including the secure sharing of more data, and learning the lessons of the COVID pandemic. We have also proposed an expert panel from research organisations and industry to periodically advise on the latest developments and trends in vaccine development and delivery technologies.

Research Australia’s submission is available here.

Effective and meaningful consumer involvement in HMR

In March 2024, the National Health and Medical Research Council (NHMRC) and the Consumers Health Forum of Australia Ltd (CHF) commenced a review of the 2016 Statement on Consumer and Community Involvement in Health and Medical Research (the Statement).

The Statement aims to support consumer and community involvement across all types and levels of health and medical research.

Research Australia’s submission has supported the expanded involvement of consumer and community representatives in HMR while emphasising the need for research organisations and funding bodies to appropriately train and resource researchers to ensure the involvement of consumers and community representatives is effective and meaningful.

Research Australia’s submission is available here.

2024-25 Budget Update

Summary

In what could well be the last Budget before the next election, the main focus of the Budget has been on supporting families with the rising cost of living and securing Australia’s manufacturing capacity with the Future Made in Australia commitment.

The second consecutive Budget surplus has been delivered, once again due to higher than expected commodity prices. Commodity prices are expected to fall in the future, and the Government has committed to diversifying our economy with more high value advanced manufacturing.

The Government has further elaborated the Made In Australia plan announced by the Prime Minister in April. Shaping up as the signature policy initiative of this Government, it is focused on the green economy industries, resources and defence.

What is largely missing from the Made In Australia Plan is the significant additional public investment in research needed to underpin this manufacturing led transformation of the Australian economy. (There is an increase to the ARC’s Discovery program.) There will be a new strategic review of Australia’s R&D system ‘to determine how we can get more value from every taxpayer dollar invested in research, maximise the contribution of science and R&D to the broader economy and maintain our competitive edge.’ With health and medical research representing 28% of all Australian R&D[1], Research Australia will continue to champion a focus on health and medical research as part of this review.

In the Health Portfolio existing NHMRC research funding is maintained, with a slight increase just to account for forecast inflation, while the MRFF Funding is not indexed and remains at $650m per year for the next 4 years.

In Higher Education, we have seen the first down payments on the Government’s response to the Universities Accord, with a change to the indexation of HECS/Help debts and paid placements for some students. There is also a welcome increase to the ARC’s Discovery Program. Other announcements tonight include a limit to international student numbers tied to universities’ capacity to create more student housing. The limits to international student numbers, however, will reduce universities’ capacity to invest in research in a further challenge to the Made in Australia ambitions of the Government.

The rising cost of living has been the defining political issue of this Government. In last year’s Budget, the CPI was forecast to be 3.25% for 2023-24, The Budget tonight expects inflation to have been 3.5% for the current financial year and to fall to 2.75% over 2024-25.

Inflation increases the cost of undertaking health and medical research and innovation. Consistent with Research Australia’s sustained advocacy on this issue, this Budget sees the Government’s funding to the NHMRC’s Medical Research Endowment Account keep up with projected inflation for the third consecutive year. MRFF funding meanwhile is static at $650 million per annum, meaning it fails to keep up with inflation and is declining in real terms. This is despite an additional $323 million being available from the MRFF for expenditure in 2024-25.

Research Australia will continue working with Government to unlock the full potential of the MRFF. The Board overseeing the Future Fund says $973 million is available for grants in 2024-25, but the Government has only budgeted for disbursement of $650 million. This means an extra $323 million – a 50% increase in the MRFF – could be invested in life-changing and economy-building Australian medical research if the Federal Government realised the full potential of the MRFF.

Key funding for Australian health and medical research in tonight’s Budget includes:

- $1.4bn over 13 years investment via the Medical Research Future Fund (MRFF)
- $18.8m for the national Clinical Trials One Stop Shop
- $1.1m for Australian Prevention Partnership Centre to deliver policymakers the evidence-base for preventive health
- As part of the $32.2m Specialist Dementia Care Program, Australian Dementia Network researchers will be funded to ready the health system for promising new dementia and diagnostic treatment options

Please read on for our summary of what this Budget means for health and medical research and innovation.

Our members-only Post-Budget Briefing webinar will unpack what is in this year’s Budget on Thursday 23 May, 12 noon to 1pm AEST. Members of Research Australia’s eminent Health Economics Roundtable will provide a briefing on the economic implications of the Budget on health and medical research and Australia’s health system – please CLICK HERE to register.

Health Portfolio

NHMRC’s MREA Funding

Funding for the NHMRC’s Medical Research Endowment Account has increased slightly to $940 million in 2024-25, the same as forecast in last year’s Budget. An increase of around 3% over 2023-24, this is roughly equivalent to forecast inflation of 2.75%. There are similar annual increases in the next two financial years. Overall, the MREA is set to at least keep pace with expected inflation over the next few years, an improvement on years of real declines in funding.

$m.	23-24	24-25	25-26	26-27	27-28
Funding to MREA 2024 Budget	910.652	940.330	961.099	979.749	999.346
Funding to MREA 2023 Budget	910.652	940.330	962.039	949.747
Funding to MREA 2022 Budget (OCT)	905.160	922.365	938.095
Funding to MREA 2022 Budget (MAR)	891.094	905.355	918.985

Medical Research Future Fund

The funding available from the MRFF each year is dependent on the investment return on its capital. For 2024-25 the Future Fund Board of Guardians has determined the amount available for grants of financial assistance is $973 million.[2] Despite this, only $650 million has been made available as funding in 2024-25. After accounting for inflation, real funding from the MRFF continues to decline.

$m.	23-24	24-25	25-26	26-27	27-28
Funding from MRFF 2024 Budget	650.0	650.0	650.0	650.0	650.0
Funding from MRFF 2023 Budget	650.0	650.0	650.0	650.0
Funding from MRFF 2022 Budget (OCT)	650.0	650.0	650.0
Funding from MRFF 2022 Budget (MAR)	650.0	650.0	650.0

There are programs that could be extended or expanded immediately, including support for early and mid career researchers and continuation of the highly regarded REDI program. Other programs could be established or piloted relatively easily, including the Clinical Research Fellowships proposed previously by Research Australia.

Research Australia will continue our campaign to increase the funding released from the MRFF, which has no bearing on the Budget deficit or surplus.

Education Portfolio

Nearly half of all Australian health and medical research is undertaken in the higher education sector, and the Department of Education makes a significant contribution to the funding of this research through several programs, as outlined below.

Universities Accord

The final report of the Universities Accord Expert panel was provided to the Government earlier this year, and the Budget provides the Government’s first substantive response.

There is a change to the indexation of HECS/Help debts and paid placements for some students. Other announcements tonight include a welcome increase to the ARC’s Discovery Program

The limits to international student numbers, however, will reduce universities’ capacity to invest in research in a further challenge to the Made in Australia ambitions of the Government.

ARC Programs

The Australian Research Council’s Funding Programs are critical to Australian publicly funded research, including to the life sciences and medical technologies.

Discovery Program

In a major boost, funding to the ARC for the Discovery Program increases by $105 million in 2024-25 compared to this year, and a further $30 million in 2025-26. This is the first substantive increase in funding for the Discovery Program in many years (although coming off an underspend in 2023-24), and a welcome boost to research funding. It reflects the call of the Universities Accord Expert Panel for a substantial increase in ARC funding for research, although increases have been on the cards since the 2022 Budget, as can be seen in the table below.

$m.	23-24	24-25	25-26	26-27	27-28
2024 Budget	524.526	629.744	630.410	648.369	655.549
2023 Budget	552.390	599.499	629.581	646.895
2022 Budget (OCT)	551.867	596.388	622.986
2022 Budget (MAR)	535.915	562.406	585.206

Linkage Program

The ARC Linkage Program has been charged with delivering the Industry Fellows component of the University Research Commercialisation Scheme and accordingly the boost to the Linkage Program’s funding in 2022-23 is maintained in 2024-25 and across the forward estimates, with annual increases of around 8% to 9% per annum, up to 2026-27, at a rate higher than expected inflation. These increases were first forecast in the 2022 Budget and are not a response to the Universities Accord.

$m.	23-24	24-25	25-26	26-27	27-28
2024 Budget	328.845	397.556	406.789	435.368	446.903
2023 Budget	343.808	373.989	402.784	430.918
2022 Budget (OCT)	345.731	374.289	400.792
2022 Budget (MAR)	357.704	375.595	390.950

Research Support

In addition to providing funding for the ARC research programs, the Department of Education provides funding to universities to help cover the indirect costs of research.

The 2024 Budget continues the annual increases of around 5% per annum which commenced with the 2022 Budget, meaning funding for this program increases slightly in real terms if inflation is as predicted.

Research Support Program

$m.	23-24	24-25	25-26	26-27	27-28
2024 Budget	1005.282	1064.389	1100.438	1131.822	1161.757
2023 Budget	1005.282	1064.389	1101.524	1131.792
2022 Budget (OCT)	1004.314	1058.779	1089.934
2022 Budget (MAR)	978.674	1,002.668	1,028.230

Funding for the indirect costs of research funded by the MRFF is provided from the Research Support Program. With the MRFF providing hundreds of millions of dollars in funding to universities, a substantial increase in the Research Support Program is needed just to maintain the levels of research support funding for research projects at their current already inadequate level.

The Universities Accord Final Report recommended substantial increases in funding for the indirect costs of research; this recommendation is not reflected in this Budget. Research Australia continues to call for a whole of government approach to the issue of funding indirect research costs, including for medical research institutes.

Research Training

The Research Training Program (RTP) provides funding to universities to support higher degree by research students (mostly PhDs). Funding for the RTP declined in absolute terms between the 2019 and 2020 Budgets, and only partly recovered in the 2022 Budget. Consistent with the 2023-24 Budget, the latest Budget provides an increase of 5.8% in 2024-25, before the annual increase drops to around 3.3%. Inexplicably, funding actually declines slightly in 2026-27, before increasing again in 2027-28.

The Universities Accord Final Report has recommended a substantial increase in PhD stipends; this recommendation is not reflected in this Budget.

$m.	23-24	24-25	25-26	26-27	27-28
2024 Budget	1154.911	1222.827	1264.231	1259.314	1289.728
2023 Budget	1154.911	1222.827	1264.691	1260.070
2022 Budget (OCT)	1153.800	1216.372	1251.497
2022 Budget (MAR)	1124.344	1151.909	1181.153

Australia’s Economic Accelerator

The Australia’s Economic Accelerator was announced in the March 2022 Budget, with the legislation passed in 2023. This is a $1.6 billion program over 10 years, administered by the Department of Education to overcome the valley of death that currently exists between the point at which public research funding ceases (typically publication) and the point at which commercial investors are prepared to get involved. Unlike ARC programs, the Accelerator is open to application for medical products. The funding for the program reflects the delayed start in 2022-23 and slower than expected spending in 2023-24 with higher funding over 2024-25 and subsequent years.

$m.	23-24	24-25	25-26	26-27	27-28
2024 Budget	61.851	177.639	180.742	179.580	170.628
2023 Budget	99.536	163.247	161.646	212.089
2022 Budget (OCT)	99.444	162.395	159.95
2022 Budget (MAR)	99.444	149.498	154.601

National Collaborative Research Infrastructure (NCRIS) Program

The NCRIS Program funds vital national research infrastructure needed to support Australian research. The most recent National Research Infrastructure Roadmap nominated synthetic biology, digital research infrastructure, collections (biobanks) and facilities to scale up materials for clinical trials.

This Budget maintains the forecast annual boost to NCRIS of more than $100 million in 2024-25. The new Research Infrastructure Investment Plan should provide more detail about how this funding will be allocated once it is completed; hopefully it will be announced soon.

$m.	23-24	24-25	25-26	26-27	27-28
2024 Budget	402.290	502.648	463.501	372.614	356.057
2023 Budget	402.290	503.116	462.850	372.323
2022 Budget (OCT)	400.028	499.848	458.338
2022 Budget (MAR)	396.826	496.739	454.441

Industry, Innovation and Science Portfolio

National Reconstruction Fund

Fulfilling an election promise, the legislation to create the National Reconstruction Fund (NRF) was passed in early 2023.

The NRF will invest $15.0 billion over 7 years from 2023–24 to provide targeted co-investments in seven priority areas: resources; agriculture, forestry and fisheries sectors; transport; medical science; renewables and low emission technologies; defence capability; and enabling capabilities. It can provide debt, equity or guarantees, but does not provide grants. The NRFC’s first corporate plan is available here. It commits the NRF to making its first investments before the end of 2024.

CRC Program

The Cooperative Research Centre (CRC) Program is important to health and medical research and innovation, with many of the CRCs funded over the 3 decades of the program being health related. Current CRCs include the Digital Health CRC.

The smaller CRC projects program is also relevant, with recently funded projects including the creation of better brain electrodes and development of a bionic medical device that delivers high-fidelity visual-spatial perception for blind people. Funding for the CRC Program is scheduled to increase slightly faster than forecast in last year’s Budget but not enough to keep up with inflation.

$m.	23-24	24-25	25-26	26-27	27-28
2024 Budget	200.532	210.044	206.712	209.738	212.161
2023 Budget	200.532	208.046	205.199	209.737
2022 Budget (OCT)	199.962	205.054	201.579
2022 Budget (MAR)	193.117	197.070	193.540

CSIRO

The CSIRO has Flagship Programs relevant to health and medical research and is a key collaborator and partner in research. While it generates much of its own revenue it is also funded by the Government. The Government contribution to the CSIRO outlined in the Budget declines in the next financial year by $92 million before modest rises over the forward estimates. There are slight increases on the funding outlined in the 2023 Budget.

$m.	23-24	24-25	25-26	26-27	27-28
2024 Budget	1,008.739	916.459	931.330	932.858	948.650
2023 Budget	1,008.739	934.391	945.155	948.486
2022 Budget (OCT)	1.005.563	919.405	931.573
2022 Budget (MAR)	985.625	899.352	904.477

New beamlines for Synchrotron

ANSTO’s Australian Synchrotron continues its partner-funded $98 million BRIGHT beamline expansion program, with eight new beamlines being constructed. This will nearly double the Synchrotron’s capacity and allow for broader engagement with researchers and industry in a range of applications, from high-tech manufacturing, including aerospace and transport, to health, including drug development and medical implants.

Industry Growth Program

The Industry Growth Program was introduced in last year’s Budget, replacing other similar programs provided by the Department. The Budget forecasts total expenditure of $396.28 million over the four years of the forward estimates, ramping up to $125 million in 2026/27 before dropping back to $56 million in 2027/28.

$m.	23-24	24-25	25-26	26-27	27-28
2024 Budget	37.010	76.765	101.264	124.961	56.238
2023 Budget	37.010	76.765	101.264	124.961

Conclusion

Research Australia will continue to provide analysis and commentary in the coming days and weeks.

Our members-only Post-Budget Briefing webinar to unpack what is in this year’s Budget is on Thursday 23 May, 12 noon to 1pm AEST. Members of Research Australia’s eminent Health Economics Roundtable will provide a briefing on the economic implications of the Budget on health and medical research and Australia’s health system – please CLICK HERE to register.

We invite your responses and reactions to how the 2024 Budget affects you and your work. Please contact Greg Mullins, Head of Policy, greg.mullins@researchaustralia.org

Research Australia continues to advocate to support you and your work!

[1] https://researchaustralia.org/category/hmr-facts/

[2] Australian Government Future Fund, Determination pursuant to section 34(1) of the MRFF Act 2015 Maximum annual distribution for financial year 2024-25, obtained under FOI

RESEARCH AUSTRALIA WELCOMES MEDICAL RESEARCH COMMITMENT

Media Release 1 May 2024

RESEARCH AUSTRALIA WELCOMES MEDICAL RESEARCH COMMITMENT

The Albanese Government’s commitment to medical research today is a critical step towards underwriting the health and economic outcomes that Australians want and deserve.

Research Australia CEO Nadia Levin today welcomed the announcement, and in particular the National Strategy for Health and Medical Research which the organisation has long called for.

“Medical research is the path to a healthy Australian population and a healthy Australian economy, and today’s commitment is a critical step,” Ms Levin said.

“Health and medical research represents 23 per cent of Australian R&D activity and it needs and deserves a coordinated strategy to focus and target it.

“A strategic, national approach will guide discoveries faster to market and to the Australians who want the best possible health care – all imperative for a healthy, wealthy future.

“We look forward to working with Minister Butler to progress the National Health and Medical Research Strategy.”

Ms Levin said that the next step the Australian Government could take would be to fully utilise the funds available from the Medical Research Future Fund.

“As Australia’s peak health and medical research body, we’re pleased to see the Medical Research Future Fund supporting new missions in low survival cancers and a focus on reducing health inequities,” she said.

“The next thing the Government could do is ensure all of the available MRFF funding is flowing through to researchers.”

The Future Fund Board of Guardians determined $973 million was available for grants through the Medical Research Future Fund (MRFF) for the 2024-25 financial year, however the Federal Government has so far only budgeted for $650 million to be disbursed.

It follows 2023-24 when $870 million was available but funding actual funding was still capped at $650 million.

“The health and medical research sector has abundant capacity to immediately use every available dollar of research funding, with worthy projects and medical advances ready to be made,” Ms Levin said.

“The more we invest in medical research the better the health, policy and economic outcomes for Australia in the years to come.”

As the peak national body for health and medical research and innovation, Research Australia played a key role in the establishment of the MRFF.

Media contact: Jack Douglas 0450 115 005

Download the Media Release here.

The Chronic Disease Framework and the role of research

In March 2024 the Department of Health and Aged Care commenced a refresh of the National Strategic Framework for Chronic Conditions.

‘The Framework was published in 2017 with a timeframe of eight years, from 2017 to 2025. The Department of Health and Aged Care (Department) is leading a review and refresh of the Framework to ensure it remains current, accurate and relevant.

The refresh of the Framework will consider how chronic conditions can best be prevented and managed for all Australians, including priority population groups.’ (Consultation paper, page 7)

Research Australia made a submission in response to the consultation on the initial Strategic Framework, and has now followed this up with a response to the new consultation, emphasising the need to identify a broader role for research.

Research Australia’s submission is available here.

Research in perimenopause and menopause

Research Australia has responded to the Senate Inquiry into issues related to perimenopause and menopause.

Our submission identifies areas in which further research into perimenopause and menopause is required; and where research is needed to improve the understanding of existing evidence on menopause and perimenopause among the medical community, individuals, employers and disadvantaged populations.

Our current knowledge of the symptoms of perimenopause and menopause and their prevalence and impact in the Australian community and economy is patchy. This lack of evidence is impairing the response to perimenopause and menopause in Australia. We recommend a more strategic approach to the funding of research into menopause and perimenopause in Australia to address these gaps.

Research Australia’s submission is available here.

Pre Budget Submission calls for greater investment in health and medical research and innovation

Research Australia’s Pre Budget submission to the Treasurer ahead of the 2024 Budget has made the case for increased investment in Australian health and medical research and innovation to support a healthier and more prosperous Australia.

The Australian Government’s investment in R&D is below the OECD average.

There is an additional $323 million approved for release from the MRFF in 2024-25 that the Government is not investing in medical research and innovation.

The Universities Accord process provides the ideal opportunity to increase the investment in the NHMRC, ARC and indirect research costs.

We have advocated for a greater role for the Australian Centre for Disease Control, for the greater use of Government procurement to support Australian innovation, and for the full development of the National HMR strategy and workforce strategy.

Read Research Australia’s submission here.

The future of National Digital Research Infrastructure

As part of development of the new NCRIS Investment Plan, the Department of Education is developing a National Digital Research Infrastructure Strategy.

The Strategy aims to provide a vision and strategic direction to steer the National Collaborative Research Infrastructure Strategy (NCRIS) response to major challenges facing Australia’s NDRI system and guide Government investment and decision making.

Research Australia’s submission to the Consultation has proposed a definition of ‘digital research infrastructure’ and a vision that better reflects the expected outcomes if the Strategy is successful. We also emphasised the need to consider and prepare for the increasing complexity of data as well as increased volumes of data.

Research Australia’s submission is available here.

Linking National Science Priorities to strategies and funding

Research Australia’s response to the Draft National Science and Research priorities has focused on Priority 2: Supporting Healthy and Thriving Communities.

The draft document identifies several improvements to the health and wellbeing of Australia’s population as the objectives of this Priority. Research Australia’s submission makes the point that while research can provide the evidence for new approaches, responsibility for applying the evidence and delivering better health outcomes lies with our Commonwealth, State and Territory Governments, through the health system and public health programs they provide, and through the provision of other services and programs which affect the social and environmental determinants of health and wellbeing.

Research Australia’s submission also emphasises the importance of alignment with other national strategies, in particular the National Strategy for Health and Medical Research (under development), disease specific strategies (e.g. prevention, obesity, mental health) and with research funding bodies.

Read Research Australia’s submission here.