RESEARCH AUSTRALIA SHARES CONCERNS OF THE SECTOR REGARDING IMPACT OF PROPOSED INTERNATIONAL STUDENT CAPS ON HEALTH AND MEDICAL RESEARCH

The national peak body for health and medical research and innovation, Research Australia, today notes the Australian Government’s announcement that it intends to introduce a National Planning Level for new international student commencements from 2025.

It is widely known that the revenue universities receive from international student enrolments is reinvested back into universities, especially in the funding of research. More than half of all R&D funded within the higher education sector comes from the universities themselves, with health and medical research accounting for 35% of all R&D expenditure in universities.

Research Australia acknowledges that some universities, especially in regional centres may not have their international student numbers reduced under the caps. However, overall Research Australia is concerned that these caps will see a reduction in the amount of lifesaving health and medical research being undertaken, as well as severely reducing some universities’ capacity to cover the full costs of research.

“International students add immensely to Australia’s tertiary education landscape. Research is inherently a collaborative and international endeavour. The diverse perspectives brought by international students foster innovation, drive research forward, and lead to more comprehensive nationally and globally relevant outcomes”, CEO & Managing Director of Research Australia, Nadia Levin said.

“Research Australia urges policymakers to carefully consider solutions that do not jeopardise the future of Australia’s health and medical research capabilities”.

Research Australia will be working closely with our members over the coming weeks to understand the impact of what has been proposed today and will continue to advocate for a strong and sustainable health and medical research landscape and workforce.

Policy Update August 2024

This Policy Update covers developments since the May Budget.

National Science Statement and new National Science Priorities

The much-awaited new National Science Priorities were released on Monday 12 August, and were accompanied by a Science Statement. They are available from the Department of Industry Science and Resources website.

The Science Statement has a strong emphasis on the role science can play in supporting and creating industry, with a strong focus on economic prosperity. This is to be achieved through missions, multidisciplinary research and breaking down siloes, guided by 5 imperatives:

    1. Australian scientists, science institutions, and infrastructure shaping Australia’s science future
    2. Science at the centre of Australian industry
    3. A diverse, skilled workforce to underpin the translation of science into new industries
    4. Embracing science to drive Australia’s regional and global interests
    5. A science system prepared for future challenges

The new Statement provides an opportunity to position the health, disability and aged care sectors as an ‘industry’ that is vital to Australia’s future success and prosperity, as a means of aligning health and medical research more closely with the Statement.

The Statement also focuses on encouraging people to undertake STEM careers but there is little on supporting the existing research workforce. A lot about missions, multidisciplinary research and breaking down siloes.

Five national Science Priorities have also been identified:

    • Transitioning to a net zero future
    • Supporting healthy and thriving communities
    • Elevating Aboriginal and Torres Strait Islander knowledge systems
    • Protecting and restoring Australia’s environment
    • Building a secure and resilient nation

Supporting healthy and thriving communities is a very broad priority, embracing social and environmental determinants, and building health literacy. It includes disability and ageing, as well as health and medicine more generally.

Modernising Human Tissue laws

On Thursday 14 August, the Attorney General, the Hon. Mark Dreyfus and Assistant Health Minister the Hon. Ged Kearney MP announced an inquiry by the Australian Law Reform Commission into Australian tissue donation laws. Largely the responsibility of the State and territories, the review will consider whether legislative reform is required to harmonise laws across the nation. The inquiry will include consideration of donation of tissue for scientific purposes. Further information on the Inquiry is expected to be provided on the ALRC’s website in coming weeks.

Australian Centre for Disease Control

While the interim Australian CDC has been operating within the Department of Health the Department has advised a new timeline for its development, to enable recommendations from the report of the COVID-19 Inquiry, due at the end of September, to be incorporated into the design, followed by further consultation. The establishment of the Australian CDC will be subject to the passage of legislation; the lack of funding for the CDC in this Budget indicates the Government does not expect it to start in this financial year.

Australia’s Economic Accelerator

Only available to universities and funded through the Education portfolio, the AEA is set to provide funding of $270 million over 2024/25, through two separate programs:

Round 1 Round 2
AEA Ignite

Proof of Concept (TRL2.3.4)

Max. $500,000 for 12 months

$60 m. open now $30m. open Nov.24
AEA Innovate

Proof of Scale (TRL 5,6,7)

Max. $5m. for up to 2 years

$120m. open now $60 m. early 2025

For AEA Ignite an industry partner is recommended and it is mandatory for AEA innovate.

The programs must fit within the Government’s seven Priority areas for investment:

    • Value-add in Resources
    • Agriculture, forestry & fisheries
    • Medical Science
    • Renewables & low emission tech
    • Defence Capability
    • Transport
    • Enabling capabilities

In addition to being in one of these priority areas, The AEA Advisory Board for the Australia’s Economic Accelerator has set the investment plan for the AEA for 2024/25. As a result, any proposal must also fit one of the six focus areas selected by the Board:

    • Critical and strategic minerals processing
    • Sustainable fuels
    • Digital agriculture
    • Quantum
    • Artificial intelligence
    • Advanced manufacturing

The most likely ‘fits’ within the focus areas for medical science are going to be products which require advanced manufacturing or utilise AI.

The focus area may change when the AEA Advisory Board sets its new investment plan for 2025/26.  More information is available here.

National HMR Strategy

The National HMR Strategy now has its own webpage.

‘The strategy will:

    • cover the entire sector and include all levels of government, industry, philanthropy, academia and consumers
    • strengthen and leverage Australia’s world-leading research capability.’

Several current activities have been brought under the umbrella of the National Health and Medical Research Strategy, including:

    • The MRFF/MREA alignment
    • The National One Stop Shop; and
    • The health and medical research workforce audit

MRFF/MREA Alignment

The MRFF/MREA alignment is proceeding in two stages, with legislative change required to fully implement a merged administration of the MRFF and MREA, with both funds managed by the NHMRC. ‘In the interim, the NHMRC and the department are working together to address key concerns and issues while we consider options for implementation. This includes working together to better use existing advisory committees (eg MRFF will seek advice from NHMRC committees), developing and implementing policies together, and other efforts that better align the two funds without requiring formal governance reforms.’ [Consultation Summary Report, Next Steps.]

Strategic Examination of R&D

Announced on Budget night, the new strategic examination of Australia’s R&D system is intended ‘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.’ Led by the Science and Industry Minister, it is nonetheless be a whole of government review.

A secretariat has been set up within the Department of Industry Science and Resources, and Dom English has moved from the Department of Education to lead the Secretariat. Consultation on the terms of reference and the members of the independent panel has been undertaken but the results are not yet public.

With health and medical research representing 26% of all Australian R&D, Research Australia will continue to champion a focus on health and medical research as part of this review.

National Reconstruction Fund

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

The NRF was initially scheduled to 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. With time running out to make initial investments in this financial year, the plan commits the NRF to making its first investments before the end of 2024. No investments have been publicly disclosed to date.

HTA Review

The Health Technology Assessment (HTA) Policy and Methods Review concluded on 4 May 2024. The HTA Review Reference Committee which was responsible for overseeing the HTA Review, held its final meeting on 2 May 2024 and its final report has been provided to the Minister for Health and Aged Care.

The Minister has yet to make the Review Report, or any response to the report, public.

Recent Submissions

Good Institutional Practice Guide

In May, the NHMRC released a draft Good Institutional Practice Guide, which seeks to provide guidance to NHMRC-funded institutions and NHMRC-funded researchers about good institutional practice ‘to promote open, honest, supportive and respectful institutional cultures conducive to the conduct of high-quality research’. Its development has been overseen by NHMRC’s Research Quality Steering Committee.

Research Australia made a submission to the NHMRC, directed to the CEO Professor Steve Wesselingh. While welcoming the Guide we indicated that awareness of practices and initiatives that can improve research culture is not the primary barrier to improving research culture; significant work has already been done to identify the issues and raise awareness. The key problem is implementing the measures needed to improve the culture.

We suggested the finalisation and publication of the Good Institutional Practice Guide will provide impetus for improvement that we can build on if we act collectively. Research Australia suggested leadership and involvement from the NHMRC will be essential, and would demonstrate the NHMRC’s ongoing commitment to improving research culture and practice. We offered to work with the NHMRC, the Research Quality Steering Committee, other peak bodies and research institutions that want to participate in a coalition to improve research practice and culture.

Allied health Workforce

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

Research Australia’s response to the consultation paper focussed 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 highlighted ways to do this.

Upcoming Consultations and Submissions

Keep up to date with new consultations on the Research Australia website here.

All Research Australia’s submissions to closed consultations can be found here.

RNA BLUEPRINT A WELCOME ANNOUNCEMENT BUT MORE CAN BE DONE TO SUPPORT AUSTRALIAN HEALTHCARE INNOVATORS

Media Release 16 July 2024

The national peak body for health and medical research and innovation, Research Australia, welcomes today’s release of a new RNA blueprint for growing medical manufacturing by the Federal Government.

Australia’s RNA Blueprint: Understanding our ribonucleic acid (RNA) potential outlines Australians current RNA capability and opportunities for future growth and capability building.

Research Australia welcomes the Department of Industry, Science and Resources’ recognition of the need for governments, academia and industry to work together on the blueprint’s 5 goals and actions, which include:

  • Connect and promote our national RNA ecosystem
  • Increase skills and access to infrastructure
  • Improve research, translation and investment
  • Lead RNA regulation and guidance development
  • Build and strengthen international partnerships

Whilst the potential actions outlined within the blueprint are welcome, there are a number of policy reforms government could implement to better support local health innovators and manufacturers, including:

  • Better supporting innovators with early-stage development advice through the TGA on prospective treatments and devices to assist in bringing products to the Australian marker quicker
  • Government procurement as a tool to support Australian innovations
  • Better supporting innovators in the progression of research to translation and commercialisation.
  • Better support to attract and retain innovation and manufacturing in Australia.

“Australian health innovation represents 26% of all Australian R&D activity. Australia is leading the world in many health technologies but bringing them to market more quickly and efficiently is key to facilitating better commercial, economic and social outcomes for Australia and Australians.” Nadia Levin, CEO & Managing Director of Research Australia said.

“Australia needs a strong and thriving medical manufacturing industry to ensure Australians have access to world-leading therapies and technologies. This can only be achieved when government, academia and industry work together.”

“Research Australia was pleased to be able to contribute to the consultation on this blueprint and look forward to working with Government to progress the actions outlined by the Department.”

EMBEDDING RESEARCH INTO THE ALLIED HEALTH WORKFORCE STRATEGY

Media release 10 July 2024

The national peak body for health and medical research and innovation, Research Australia, is calling for better support for clinician researchers.

In its response to the Department of Health and Aged Care’s consultation paper on a draft outline of the National Allied Health Workforce Strategy, Research Australia, is calling for better recognition of the role of allied health professionals as clinician researchers in creating a self-improving allied health sector. Doing so will support the retention of allied health professionals, a primary goal of the Strategy.

In supporting clinician researchers, the Strategy needs to:
• Create a more research aware and research active allied health workforce.
• Provide resources and training to allied health professionals so they can rapidly translate evidence into clinical practice
• Better partnerships between universities and healthcare agencies to enable clinical research to be done in clinical settings, with support for allied health professionals to undertake education and training, including higher degrees on topics relevant to health industry partners.
• Allow for better pathways to support allied health practitioners to upskill, particularly in research.
• Provide more opportunities for AH practitioners to become allied health clinician researchers and find ongoing employment.

“Australia needs more experts to bridge the growing divide between medical science and healthcare delivery. Clinician researchers, especially those in allied health, are crucial in connecting our knowledge with practical healthcare to ensure the best outcomes for everyone,” Nadia Levin, CEO & Managing Director of Research Australia said.

“Despite this vital role in the healthcare workforce, allied health clinician researchers are often overlooked and poorly understood”.

Read Research Australia’s submission to this consultation here.

BETTER COORDINATION ESSENTIAL FOR SMARTER INVESTMENT IN HEALTH MEDICAL RESEARCH AND INNOVATION

Media release 5 July 2024

The national peak body for health and medical research and innovation, Research Australia, welcomes today’s announcement confirming a better alignment between the National Health and Medical Research Council (NHMRC) and Medical Research Future Fund (MRFF).

This announcement sees the establishment of four new committees to advise on strategies and funding for the MRFF and NHMRC’s Medical Research Endowment Account (MREA), including:

• Consumer Advisory Group
• Industry, Philanthropy and Commercialisation Committee
• Public Health and Health Systems Committee
• Indigenous Advisory Group

“Research Australia has long championed the need for better coordination of the MRFF and NHMRC’s MREA. Achieving better coordination is essential for a nationally unified, strategic approach to health and medical research investment. This can bring clarity to funding availability at every stage of the research pipeline, ensuring smarter investment in Australia’s world-leading health and medical research and innovation sector,” said Nadia Levin, CEO & Managing Director of Research Australia

Research Australia has been advocating for a National Health and Medical Research and Innovation Strategy and was pleased to have the Hon Mark Butler MP, Minister for Health and Aged Care, re-commit the Australian Government to the development of a National Strategy in the 2024-2025 Federal Budget.

“The development of a National Strategy and better alignment between the MRFF and MREA creates a unique opportunity for smarter investment in health and medical research and innovation across the research pipeline.”

Research Australia continues to advocate for a 50% increase in the MRFF.

“The intent of the MRFF has always been to make $1 billion available each year for investment in medical research, and Australia needs to build to that level as a priority,” Nadia Levin said.

“The Board of Guardians overseeing the Future Fund says $973 million is available for grants in 2024-25, an almost 50% increase on the currently budgeted disbursement of $650 million. The release of this funding would benefit the health and wealth of all Australians”.

Read Research Australia’s response to the Australian Government’s consultation focused on improving strategic alignment and coordination between the MRFF and the MREA here.

RESEARCH AUSTRALIA AND VAXXAS PUT AUSTRALIAN HEALTH INNOVATION ON THE NATIONAL AGENDA

Media Release 27 June 2024

The national peak body for health and medical research and innovation, Research Australia has partnered with Australian biotech company, Vaxxas, to bring around 70 health innovators together with Government to identify policy solutions to support the uptake of Australian health innovations here at home.

The Policy Roundtable, kindly hosted by the Australian National University, will be used to explore what’s required by Australian enterprise to enable it to more consistently articulate the vital next steps from R&D to procurement, and subsequent marketing and sales.

Following the Roundtable, a Parliamentary Friends of Health and Medical Research event will take place at Parliament House, hosted at the Speaker’s Courtyard by Speaker of the House of Representatives, Hon Milton Dick MP to celebrate the success stories of Australian health innovation and the opportunities the sector presents to further Australian health and wealth.“

Australian health innovation represents 28% of all Australian R&D activity.1 Australia is leading the world in many health technologies, bringing them to market is key to facilitating better commercial, economic and social outcomes for Australia and Australians,” said Nadia Levin, CEO & Managing Director of Research Australia.

“The Australian Government’s recently announced ‘A Future Made in Australia’ initiative and the National Reconstruction Fund are welcome, innovative new public policies, but more can be done to drive Australian medical, biotech and health innovation for the benefit of Australians’ health and wealth.

“Today we put Australian health innovation on the national agenda,” Ms Levin said.

One of a number of Australian healthcare innovators represented at today’s events, Vaxxas is developing an innovative needle-free technology that will be fundamental to transforming the way vaccines are delivered in the future with its high-density microarray patch (HD-MAP) technology.

Vaxxas President and CEO, David Hoey said, “Vaxxas takes its role as a leader in Australian health innovation seriously. We want to do everything we can to support a flourishing national health innovation sector.

“We know firsthand the challenges Australian health innovators can face in accessing procurement and traversing complex regulatory pathways, among others. It’s great to be working with Research Australia to bring everyone together to identify policy solutions that can advance the whole sector.”

The key insights gathered from the Roundtable will be developed into policy proposals for future consideration by Government and all political parties at the Commonwealth level.

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

FEDERAL BUDGET: CALL TO REALISE FULL POTENTIAL OF AUSTRALIAN HEALTH AND MEDICAL RESEARCH

Media Release 14 May 2024

FEDERAL BUDGET: CALL TO REALISE FULL POTENTIAL OF AUSTRALIAN HEALTH AND MEDICAL RESEARCH

Research Australia, the national peak body for Australian health and medical research, says the Budget’s $22.7 billion Future Made in Australia investment must do more to bring Australian health innovations to the world.

“Health and medical research accounts for 28% of Australian R&D and presents an enormous and unrealised health and economic opportunity for Australia’s healthy prosperity. The Government’s commitment to a strategic examination of Australia’s R&D system must shine a spotlight on health and medical research.

“While the Medical Science Co-investment Plan is a good start, there’s certainly more that must be done to realise the full potential of Australian health and medical research.

“A Future Made in Australia must consider the future health of our nation and our growing health innovation sector,

“As is stands there is nothing in the Future Made In Australia Innovation Fund for medical products, despite the lessons of COVID about the importance of manufacturing sovereignty,” said Nadia Levin.

Research Australia Chair, Martin Bowles AO PSM says Research Australia will continue working with Government to unlock the full potential of the Medical Research Future Fund

“While tonight’s MRFF investment of $650 million per year is undoubtedly welcome, an extra $323 million could be invested in lifechanging and economy-building Australian medical research if the Federal Government realised 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.

The intent of the MRFF is to make $1 Billion available each year for investment in medical research, and we need to build to that level as a priority.

“Medical research is the path to a healthy Australian population and a healthy Australian economy. When first announced, the goal of the Fund was to make $1 billion available every year for investment into cutting-edge Australian medical research, innovations and economic growth.

“The Federal Government can help make that goal a reality, with $973 million available for grants in the upcoming financial year.

“We have abundant capacity in the sector to immediately use the additional $323 million in funding, with worthy Australian projects just waiting to be advanced by skilled researchers,” Martin Bowles said.

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.

RESEARCH AUSTRALIA WELCOMES MEDICAL RESEARCH COMMITMENT

The Albanese Government’s commitment to medical research today it 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