2022/23 BUDGET UPDATE- 25 October 2022

Summary

Treasurer Jim Chalmers has used his first Budget to implement some of the new Government’s election promises and make cuts to the former Government’s programs. This is a ‘mini budget’, which sets the scene for Labor’s first full Budget in April or May next year.

As such, there were no significant changes to funding for the ARC or the NHMRC research funding programs in the next two years, with modest increases across a range of funding programs in the following two years . It seems that any major increases in funding health and medical research will have to wait until the Budget situation improves.

The rising cost of living has continued to be a key political issue. In the March Budget, the CPI was forecast to be 3.0% for 2022-23 and 2.75% in 2023-24. In tonight’s Budget inflation for this year is expected to be 7.75% for 2022-323 and 3.5% in the next financial year. Rising inflation also affects health and medical research, making the cost of undertaking research higher. As noted above, the Government has once again failed to address this issue, with increases in funding for the NHMRC and ARC announced in the March Budget and maintained tonight failing to even keep pace with inflation.

Revamping Primary Care

The Treasurer has announced a $2.9 billion package to drive an innovative revamp of Australia’s primary health care system including $100 million to co-develop and pilot innovative models with states and territories to improve care pathways and inform program roll out. The new models of care will make it easier for Australians to see a healthcare professional when they have an urgent, but not life- threatening, need for care.

Comprehensive Cancer Centres

In a win for research-active healthcare, the Government has announced tonight $375.0 million over 6 years from 2022–23 to contribute to the establishment of the Queensland Cancer Centre in Brisbane. The centre will be owned and operated by the Queensland Government and will be located within the Herston Health Precinct at the Royal Brisbane and Women’s Hospital.

There is also $77.0 million over 5 years from 2022–23 to contribute to the establishment of the Bragg Comprehensive Cancer Centre in Adelaide. The centre is an extension of the Australian Bragg Centre for Proton Therapy and Research at the South Australian Health and Medical Research Institute.

National Centre for Disease Control
The Government is fulfilling its election promise to create a National Centre for Disease Control, with $3.2 million allocated over the forward estimates in preparatory work.

National Health Sustainability and Climate Unit
In a sign of changing health priorities, a $3.4 million investment in the Budget will establish a National Health Sustainability and Climate Unit and develop Australia’s first National Health and Climate Strategy.

National Reconstruction Fund
The National Reconstruction Fund is a $15 billion election promise which includes $1.5 billion for medical products over seven years. In tonight’s budget the Government has confirmed this Fund is central to its plan to invest in a stronger economy, delivering better jobs

Other announcements that affect health and medical research and innovation include:

- $39.0 million over 4 years from 2022–23 to increase the number and consistency of conditions screened through the newborn bloodspot screening
- The new investment of $3 billion to deliver better aged care includes $23.1m for research and consultation for reforms to in-home aged care.

There are big spending announcements in areas as diverse as Defence and infrastructure. While not on the same scale, there is some good news for STEM, including:

- $13.5 million over 4 years from 2022–23 to strengthen coordinated policy capability
  to identify, assess and support Australian development of critical and emerging
  technologies, an issue Research Australia has been tracking for some years now.
- $10.3 million over 6 years from 2022–23 for Australia to host the International Science
  Council’s Regional Presence for Asia and the Pacific and to deepen Australia’s science
  engagement in the region.
- $5.8 million over 5 years from 2022–23 to support women in science, technology,
  engineering and maths (STEM) through the Women in STEM and Entrepreneurship
  program and to undertake an independent review of existing STEM programs.
- $4.8 million over 4 years from 2022–23 to develop Australian quantum technology
  through sponsoring up to 20 PhD research scholarships and encouraging collaboration
  on quantum research across Australian universities. This cost will be partially met from
  within the existing funding for the Department of Defence’s Next Generation
  Technologies Fund.

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

Health Portfolio

Addressing these and other issues are at the centre of Research Australia’s advocacy for a truly national health and medical research and innovation strategy, We are working with Commonwealth, State and Territory Governments to make this vision a reality.

Medical Research Future Fund

The amount of funding available from the MRFF is predicted by the Budget to be $650 million per annum over the next four years. This is unchanged from the March Budget

The funding available from the MRFF each year is dependent on the investment return on its capital. Investment returns for the MRFF were adversely affected by the COVID driven economic downturn. The previous Government has committed the MRFF to providing funding of $650 million of the next few years, regardless of the actual investment returns on the MRFF’s capital. The Albanese Government has honoured this commitment for 2022/23, requiring it to provide an additional $62 million from consolidated revenue to meet this target. (Only $598 million has been released by the Future Fund Guardians to fund MRFF commitments this year.)

NHMRC

Funding for the NHMRC’s MREA remains unchanged from the March Budget for 2022-23 and 2023-24, but is higher in the last two years of the forward estimates. Funding for the NHMRC’s programs is continuing to grow very slightly. The increase in this financial year is 1.7%, and around 1.5% in the following year before over the forward estimates. This is lower than the forecast CPI of 7.75% for 2022-23 and CPI of 3.5% in 2023-24. It also comes on top of CPI of 4.25% in 2021-22. In effect, NHMRC funding continues to decline in real terms in the next couple of years, as it has done for many years now.

$m.	21-22	22-23	23-24	24-25	25-26
Funding to MREA 2022 Budget (OCT)	875.751	877.952	905.160	922.365	938.095
Funding to MREA 2022 Budget (MAR)	863.266	877.952	891.094	905.355	918.985
Funding to MREA 2021 Budget	863.266	875.362	887.588	899.124	N/A

Australian Centre for Disease Control

Fulfilling an election promise, the Government will provide $3.2 million in 2022–23 to undertake the initial design for the establishment of an Australian Centre for Disease Control. The design work will incorporate stakeholder consultations to ensure the new Centre will support improved pandemic preparedness and response, as well as the prevention of chronic disease. There is no detail about where the Centre will be located or potential partners.

Comprehensive Cancer Centres

The Government will provide $452.0 million over 6 years from 2022–23 to support the establishment of world class cancer centres in Brisbane and Adelaide. The centres will provide multi-disciplinary cancer care, research and clinical trials for all types of cancers.

Centre of Excellence in Disability Health

The Government will provide $15.9 million over 4 years from 2022–23 (and $6.6 million per year ongoing) to establish and support a National Centre of Excellence in Intellectual Disability Health (the National Centre of Excellence). Partial funding has already been provided for, with only some of this funding a new commitment.

The National Centre of Excellence will deliver a central hub of expertise, resources and research on the health care of people with intellectual disability and provide leadership in meeting the needs of people with intellectual disability.

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.

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

Over the forward estimates in this Budget, funding is slightly higher than the March Budget from 2023-24. The funding to the ARC for the Discovery Program increases by 0.8% compared to 2021/22, and by an average of 8% per annum over the next two years and 4% in 2025-26. This means that for the first time in many years the Discovery Program is forecast to increase slightly in real terms (i.e. at a rate higher than inflation).

$m.	21-22	22-23	23-24	24-25	25-26
2022 Budget (OCT)	506.735	511.074	551.867	596.388	622.986
2022 Budget (MAR)	489.188	511.074	535.915	562.406	585.206
2021 Budget	489.188	494.922	501.162	509.432
2020 Budget	487.016	487.860	490.610
2019 Budget	525.537	538.350	N/A

Linkage

The ARC Linkage Program had been singled out by the previous Government as an important component of Australia’s innovation system and delivering the Industry Fellows component of the University Research Commercialisation Scheme. Accordingly there is a boost to the Linkage Program’s funding in this Budget of around $11 million per annum compared to what was allocated last year. This is not enough to enable the Linkage program to fund 800 new Industry Fellowships over 10 years announced in February and keep up with inflation.

Linkage Program

$m.	21-22	22-23	23-24	24-25	25-26
2022 Budget (OCT)	292.543	319.503	345.731	374.289	400.792
2022 Budget (MAR)	325.454	340.820	357.704	375.595	390.950
2021 Budget	325.454	329.948	334.109	339.622
2020 Budget	323.871	325.240	327.074	N/A
2019 Budget	295.246	301.741	N/A	N/A

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.

In the 2020 Budget, the Government used the Research Support Program to provide a vital injection of $1 billion into higher education research in the current financial year. No further injection was provided in last year’s Budget and funding in the March Budget for 2022-23 was actually lower than was forecast in the 2019 Budget. The October Budget provides increases of around 5% per annum in the Research Support Program from 2023-24.

$m.	20-21	21-22	22-23	23-24	24-25	25-26
2022 Budget (OCT)		930.659	951.188	1004.314	1058.779	1089.934
2022 Budget (MAR)		930.659	951.188	978.674	1,002.668	1,028.230
2021 Budget	1918.298	930.659	942.775	958.326	974.143
2020 Budget	1918.298	926.490	929.270	938.107	N/A
2019 Budget	920.573	941.748	962.455	N/A	N/A
2018 Budget	1018.879	1042.302	N/A	N/A	N/A

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 issue of indirect research costs remains unresolved for the whole health and medical research sector and indeed publicly funded research more broadly. Research Australia continues to call for a whole of government approach to the issue of funding indirect research costs.

Research Training

The Research Training Program (RTP) provides funding to universities to support higher degree by research students (mostly PhDs). Funding for the RTP also declined in absolute terms between the 2019 and 2020 Budgets, and has only partly recovered in the 2022 Budget. The October Budget provides increases of around $50 million per year from 2023-24.

$m.	20-21	21-22	22-23	23-24	24-25	25-26
2022 Budget (OCT)		1069.181	1092.766	1153.800	1216.372	1251.497
2022 Budget (MAR)		1069.182	1092.766	1124.344	1151.909	1181.153
2021 Budget	1054.981	1069.182	1083.160	1100.967	1119.137
2020 Budget	1054.981	1064.392	1067.585	1077.738	N/A
2019 Budget	1057.595	1081.921	1105.710	N/A	N/A

Australia’s Economic Accelerator

The Australia’s Economic Accelerator was a new program announced in the March Budget which was not implemented before the election. The Albanese Government has given a commitment to fund it. 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. The funding in the October Budget indicates less finding this year, accounting for delays in starting the program, with slightly higher funding over the forward estimates in subsequent years.

$m.	22-23	23-24	24-25	25-26
2022 Budget (OCT)	10.172	99.444	162.395	159.95
2022 Budget (MAR)	49.160	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 2021 National Research Infrastructure Roadmap informs the 2022 Research Infrastructure Investment Plan. Areas of interest to HMR that have been nominated for the New NCRIS roadmap include synthetic biology, digital research infrastructure, collections (biobanks) and facilities to scale up materials for clinical trials.

This Budget maintains the forecast $100 million boost to NCRIS from 2023-24 and slightly more funding each following year than was forecast in March. The 2022 Research Infrastructure Investment Plan should provide more detail about how this funding will be allocated once it is completed, hopefully later this year.

$m.	21-22	22-23	23-24	24-25	25-26
2022 Budget (OCT)	273.567	286.043	400.028	499.848	458.338
2022 Budget (MAR)	273.567	286.043	396.826	496.739	454.441
2021 Budget	273.565	283.922	391.092	491.265

Start Up Year

Fulfilling an election promise, the Government will provide $15.4 million over 4 years from 2022–23 (and $2.8 million per year ongoing) to establish the Startup Year program to deliver income contingent Higher Education Loan Program loans to up to 2,000 recent graduates, postgraduate and final year undergraduate students per year. The Startup Year will support students’ participation in a one-year, business-focused accelerator program at an Australian higher education provider, which will encourage innovation and support Australia’s startup community.

Industry, Innovation and Science Portfolio

National Reconstruction Fund

Fulfilling another election promise, the Government will invest $15.0 billion over 7 years from 2023–24 to establish the National Reconstruction Fund (NRF) to provide targeted co-investments in 7 priority areas: resources; agriculture, forestry and fisheries sectors; transport; medical science; renewables and low emission technologies; defence capability; and enabling capabilities.

The NRF is expected to generate revenue from investments, with policy and legislation design to follow public consultation.

$50 million over two years from 2022–23 has been allocated to the Department of Industry, Science and Resources, and the Department of Finance to establish the NRF.

Supporting Australian Science

The Government will provide $47.2 million over 6 years from 2022–23 to support the development of talent and leadership in Australian science and technology. Funding includes:

- $13.5 million over 4 years from 2022–23 to strengthen coordinated policy capability to identify, assess and support Australian development of critical and emerging technologies
- $10.3 million over 6 years from 2022–23 for Australia to host the International Science Council’s Regional Presence for Asia and the Pacific and to deepen Australia’s science engagement in the region
- $10.0 million over 3 years from 2022–23 to continue delivery of Questacon outreach programs to engage young Australians and science teachers in science, technology, engineering and mathematics, including through touring exhibitions for regional, rural and remote communities
- $5.8 million over 5 years from 2022–23 to support women in science, technology, engineering and maths (STEM) through the Women in STEM and Entrepreneurship program and to undertake an independent review of existing STEM programs
- $4.8 million over 4 years from 2022–23 to develop Australian quantum technology through sponsoring up to 20 PhD research scholarships and encouraging collaboration on quantum research across Australian universities. This cost will be partially met from within the existing funding for the Department of Defence’s Next Generation Technologies Fund
- $2.9 million in 2022–23 to improve the Prime Minister’s National Science and Technology Council’s provision of science and technology advice and continue support of the Prime Minister’s Prizes for Science event.

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 30 year life of the program being health related. Current CRCs include the Digital Health CRC and the Autism 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 the 2021 and March 2022 Budget papers.

$m.	20-21	21-22	22-23	23-24	24-25	25-26
2022 Budget (OCT)		187.343	199.374	199.962	205.054	201.579
2022 Budget (MAR)		189.395	199.374	193.117	197.070	193.540
2021 Budget	222.777	189.980	197.815	191.042	193.807	N/A

Modern Manufacturing Initiative

The Modern Manufacturing Initiative was a major announcement in the 2020 Budget and part of the previous Government’s response to COVID-19. The program is being curtailed, with the Government reversing uncommitted funding in the Modern Manufacturing Initiative and not proceeding with a third round of the Manufacturing Modernisation Fund. The saving is $303.7 million over three years.

CSIRO

The CSIRO has Flagship Programs relevant to heath 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 rises in the next two financial years before dropping back again.

$m.	21-22	22-23	23-24	24-25	25-26
2022 Budget (OCT)	949.037	991.134	1.005.563	919.405	931.573
2022 Budget (MAR)	949.037	991.289	985.625	899.352	904.477

Conclusion

Research Australia will continue to provide analysis and commentary in the coming days and weeks. We invite your responses and reactions to how the second 2022 Budget affects you and your work.

For further information or questions, please contact Greg Mullins, Head of Policy, greg.mullins@researchaustralia.org

Ends …..

Ms ELIZABETH KOFF AM APPOINTED TO THE BOARD OF RESEARCH AUSTRALIA

The nation’s peak body for health and medical research and innovation, Research Australia, has welcomed Managing Director of Telstra Health, Ms Elizabeth Koff AM, to its Board.

Chair of Research Australia Associate Professor Annette Schmiede said, “As the national peak body across all health and medical research in Australia, our Board is drawn from the leaders in our membership across our sector.”

“During her time as Secretary of NSW Health Ms Koff oversaw the NSW response to the Covid pandemic and advised the Government on the management of covid and the successful vaccine rollout. Elizabeth’s experience in both the public and private sector will provide an invaluable contribution to our strategic focus on health and medical research advocacy.”

Ms Koff said, “The pandemic demonstrated unequivocally the value of health and medical research. I am pleased to be joining the Research Australia board and contributing my support for this vital sector.”

Research Australia’s CEO, Nadia Levin said, “Ms Koff’s appointment reflects our recognition of the importance of cooperation between public, private enterprise and government when it comes to the broader scientific research endeavour in this country.

“Ensuring that Australia’s people continue to enjoy good health and a quality of life means we must make greater use of our research outcomes to drive greater health and economic impact.”

Research Australia has also expressed its heartfelt thanks to outgoing Director and past Telstra Health Managing Director, Professor Mary Foley. “Professor Foley’s contribution to the health and medical research community is immense and she will continue to share her deep health system expertise with Research Australia as part of our prestigious alumni group,” Annette Schmiede said.

Biography
In April 2022 Elizabeth was appointed Managing Director of Telstra Health, Australia’s largest digital health company and a subsidiary of Telstra Corporation.
Prior to this Elizabeth was Secretary, NSW Health for a six year term. As Secretary, Elizabeth was responsible for the management of the NSW health system, the largest health system in Australia with a $30 billion budget and 124,000 FTE. Key strategy achievements include the implementation of value based care across NSW, the progression of e-Health initiatives and a $2B/year capital infrastructure program. In 2020/2021 Elizabeth lead the NSW Health system through the COVID-19 pandemic and advised NSW crisis cabinet on the management of covid in NSW, and the subsequent vaccination roll out.
Elizabeth was chair of the Australian Health Ministers Advisory Council (AHMAC) and its subsequent iteration of Health Chief Executives Forum. She is also a member of Chief Executive Women.
Elizabeth was appointed a Member of the Order of Australia in the Queen’s Birthday 2022 Honours.

MEDIA RELEASE – RESEARCH AUSTRALIA ANNOUNCES NEW DATE FOR ITS 19TH ANNUAL HEALTH AND MEDICAL RESEARCH AWARDS THURSDAY DECEMBER 8, 2022

Research Australia will hold the 19th Annual Health and Medical Research Awards on Thursday 8th December 2022, at the Metropolis, Melbourne.

As the national peak body for health and medical research, Research Australia’s Awards are highly regarded and coveted by the health and medical research sector. These prestigious awards are our recognition of the outstanding efforts and achievements of individuals and teams who drive and support the opportunities that health and medical innovation bring to each and every one of our lives.

Acknowledging talent and excellence in our sector is not only a key part of Research Australia’s role in advocacy for health and medical research, it is also paramount to encouraging future generations of great researchers. This event allows student, early to mid-career researchers and the sector’s more prominent influencers to share an experience which not only celebrates current innovation but encourages future growth in research, funding and corporate leadership.

Past Award winners include: Professor Brendan Murphy AC, The Hon Bob Carr, Lady Mary Fairfax AC OBE, Dame Elisabeth Murdoch AC DBE, Laureate Professor and 2018 Scientist of the Year, Nicholas Talley AC, Sir Frank Lowy AC, Connie Johnson OAM & Samuel Johnson OAM and Andrew Forrest AO and Dr Nicola Forrest AO. Prominent politicians, both Federal and State, are invited to attend each year to speak and present the Awards.

For more information on Research Australia’s Annual Health & Medical Research awards and how you can nominate someone to win one of these prestigious awards visit the website.

ENDS

Research Australia is the national peak body for health and medical research, representing the entire health and medical research pipeline.

MEDIA RELEASE – RESEARCH AUSTRALIA WELCOMES ALBANESE MINISTRY

Research Australia welcomes the Albanese Ministry and looks forward to working with the Government to strengthen Australian health and medical research and innovation to meet future health challenges.

As the national peak body for Australian health and medical research, Research Australia welcomes the appointment of the Hon. Mark Butler MP as Minister for Health and Aged Care and his team, including Anika Wells MP as Minister for Aged Care and Ged Kearney MP as Assistant Minister for Health and Aged Care.

“Minister Butler has a wealth of experience in leading health reform in Australia in his previous roles as Parliamentary Secretary for Health, Minister for Mental Health and Ageing and Minister Assisting the Prime Minister on Mental Health Reform,” Acting Research Australia CEO Lucy Clynes said.

“The health and medical research sector looks forward to working with Minister Butler to progress the National Health and Medical Research Strategy. We must develop a more cohesive health and medical research ecosystem better positioned to respond to national health challenges and improve translation of research into best practice care and new economic opportunities in health innovation.

“This must include a national health and medical research workforce plan to ensure Australia has the skills it needs to deliver healthcare of the future and to address challenges faced by many health and medical researchers, in particular early and mid-career researchers,” Ms Clynes said.

“We stand ready to assist the Albanese Government to create a truly innovative, research active health and aged care system, ensuring Australians receive the best care when they need it.”

Research Australia extends its congratulations to the Hon. Ed Husic MP on his appointment as Minister for Industry and Science and looks forward to working with Minister Husic to enable our best and brightest medical minds to effectively translate scientific breakthroughs to improve health and economic outcomes for all Australians.

“Labor’s commitment of $1.5 billion as part of the National Reconstruction Fund to create medicines and medical technologies in Australia will support the advancement of health innovation and our country’s health and wealth,” Ms Clynes said.

“Together, we can systematically build Australia’s capacity in commercialisation and medical manufacturing to meet local demand, grow industries and jobs and build export markets for products and services.”

“Establishing stronger global links between Australian health innovators and global funding networks and supply chains, both regional and beyond, must also be our ambition,” Ms Clynes said.

The Education portfolio is critical to Australia’s health and medical research sector, and Research Australia congratulates the Hon. Jason Clare MP on his appointment as Minister for Education.

“We look forward to Minister Clare’s response to the recent review of Research Block Grants and to the Government’s response to the latest National Critical Research Infrastructure Roadmap”, Ms Clynes said

Research Australia has led the call for a National Health and Medical Research Strategy to facilitate a nationally strategic approach to strengthen health and medical research and see Australia reach its full research potential. See the Statement on this here.

ENDS

Research Australia is the national peak body for health and medical research, representing the entire health and medical research pipeline.

MEDIA RELEASE – RESEARCH AUSTRALIA WELCOMES AN ALBANESE GOVERNMENT

Research Australia, the national peak body for health and medical research, congratulates Prime Minister Anthony Albanese and the new Government on their election win.

“We look forward to working with the incoming Government to advance a comprehensive approach to Australia’s health and medical research and innovation to improve health and economic outcomes for Australians,” Research Australia Acting CEO Lucy Clynes said.

“A National Health and Medical Research Strategy is the pathway to improving translation of research into best practice care. It’s through research that we minimise waste, reduce costs and improve the efficiency and productivity of our health system and its workforce. Short and long-term reforms are needed to harness the skills and talent that can help us realise the ambition of a world’s best health system.

“We are pleased to continue the conversation with Mark Butler MP and the Albanese Government about how best to develop a truly national approach to supporting a sustainable health and medical research ecosystem with a focus on excellence in fundamental and translational research and areas of global competitive advantage” Ms Clynes said.

There are significant opportunities for real economic stimulus and jobs growth across Australia’s health and medical research pipeline. We are pleased to see this has already been acknowledged through Labor’s commitment to a $1.5 billion Medical Manufacturing Fund as part of the $15 billion National Reconstruction Fund.

“Establishing stronger global links between Australian health innovators and global funding networks and supply chains, both regional and beyond, must also be a priority”.

Research Australia has also called for an urgent injection of funding into the National Health and Medical Research Council to keep pace with inflation. This remains a priority for Research Australia with the incoming Government.

ENDS

Research Australia is the national peak body for health and medical research, representing the entire health and medical research pipeline.

MEDIA RELEASE – AUSTRALIA’S HEALTH AND MEDICAL RESEARCHERS ASKED TO DO MORE FOR EVEN LESS

Research Australia, the national peak body for health and medical research, is calling for an urgent injection of funding into the National Health and Medical Research Council (NHMRC) with news today that inflation is running at 5.1%, meaning important medical discoveries are at greater risk of going unfunded.

Research Australia CEO Nadia Levin said the health and medical research sector is concerned that key funding streams have failed to keep pace with inflation, which has been exacerbated by today’s Consumer Price Index (CPI) increase.

“In the recent Budget, the funding available to the NHMRC increased by only 1.5% for 2022-23. This was bad enough with the Budget forecasting inflation at 3%, but with CPI now hitting 5.1%, the situation is getting worse,” Ms Levin said.

“Researchers are expected to do more with less, at a time when universities are still recovering from the pandemic and delays have impacted research. We have researchers on fixed term contracts of as little as 3 months and the rising cost of conducting research puts the already dire position of so many researchers at even greater risk.

“We have such opportunity in drawing international companies to Australia to support industry and jobs growth because of our research excellence, but we must adequately fund basic research to ensure new discoveries are coming through the pipeline to commercialise.”

Research Australia is representing the sector on the Strategy Advisory Committee to develop the nation’s health and medical research strategy that will facilitate a national approach to health and medical research and innovation.

“We know this strategy is long-term and must be underpinned by stronger investment in key supports for fundamental research, in particular the NHMRC, which is a crucial part of building future capabilities,” Ms Levin said.

“We also need action now, to protect vital research and ensure researchers’ continuing employment. Research Australia is calling for a further injection into the NHMRC’s budget allocation, at a bare minimum, to reflect the projected cost of inflation as an urgent short-term fix.

“We saw the Government take steps with the petrol excise levy and one-off cash payments – we are asking for the same sort of urgent consideration for our vital research,” Ms Levin said.

ENDS

Research Australia is the national peak body for health and medical research, representing the entire health and medical research pipeline.

For more on Research Australia, go to: www.researchaustralia.org

Media contact: Peta Garrett – 0400 011 394

PRE-ELECTION STATEMENT ON BEHALF OF AUSTRALIA’S HEALTH AND MEDICAL RESEARCH SECTOR

14 April 2022

Research Australia, the national peak body for health and medical research, presents a Pre-Election Statement on behalf of Australia’s health and medical research sector. The collective statement is made by a broad cross section of Australia’s health innovators across the entire research pipeline.

The collective Statement outlines the following four key reforms the health and medical research sector recommends to ensure Australia’s future innovation and health of our nation:

A National Health and Medical Research Strategy that ensures research priorities better meet health system and population needs and maximises economic opportunities.
A National HMR Workforce Plan that attracts and supports a highly skilled, sustainable research workforce with circular mobility between academia and industry.
Consumers as co-designers of research to enable researchers and consumers to meaningfully engage in research co design by ensuring they have the skills to improve research translation and Australians’ health.
Australia as a global health innovator to systematically build Australia’s capacity in medical commercialisation and medical manufacturing to meet local demand, grow industries and jobs, and build export markets for products and services.

“Australia must have a clearly articulated national approach to supporting a sustainable research ecosystem with a focus on excellence in fundamental and translational research and areas of global competitive advantage,” Research Australia CEO Nadia Levin said.

“There are significant opportunities for real economic stimulus and jobs growth across Australia’s health and medical research pipeline. Short and long-term reforms are needed to harness the skills and talent that can help us realise the ambition of a world’s best health system,” Ms Levin said.

Research Australia has led the call for a national strategy on behalf of the sector, which was announced by Health Minister Greg Hunt MP at the Research Australia Awards in December.

Ms Levin has been appointed to the recently formed Strategic Advisory Committee as a representative of the sector to develop the nation’s strategy for health and medical research.

To view the Pre-Election Statement please click here.

ENDS

Research Australia is the national peak body for health and medical research, representing the entire health and medical research pipeline.

MEDIA RELEASE – MEETING OF THE MINDS ON AUSTRALIA’S FUTURE HEALTH AND MEDICAL RESEARCH

8 April 2022

SEIZING opportunities for Australian health and medical research under a future National Health and Medical Research Strategy was the focus at Research Australia’s Pre-Election Summit this week in Melbourne.

Research Australia, the national alliance for health and medical research, has led the call for a national strategy on behalf of the sector, which was announced by Health Minister Greg Hunt MP at the Research Australia Awards in December. Research Australia CEO, Nadia Levin has been appointed to the recently formed Strategic Advisory Committee as a representative of the sector to develop the nation’s strategy for health and medical research.

“This week’s Summit saw a meeting of the minds between both political and sector leaders to set the policy objectives needed to strengthen our health and medical research. This national strategy will meet future health challenges and maximise the economic opportunities our world-leading research offers our nation,” Ms Levin said.

Hosted in partnership with WEHI and CSL, the Summit saw medical researchers and innovators from around Australia join parliamentarians to advance Australia’s medical research and innovation capacity to improve health and economic outcomes for Australia.

“We received strong commitment across the political divide to back our world-class researchers to advance our sovereign capability to innovate and translate research and realise our sector’s full potential in improving health and saving lives,” Ms Levin said.

“The need to develop a more secure and sustainable health and medical research workforce through strategic pathways and skills development was identified as was the chance to invest in our amazing research, both basic and applied, deliberately and sustainably,” Ms Levin said.

Federal Member for Higgins and Co-Chair Parliamentary Friends of Health and Medical Research Dr Katie Allen MP said health and medical research is greatly valued not only by government but also by the Australian people.

“It is important to look at the impact health and medical research makes in changing and saving lives,” Dr Allen said. “We are resourceful and resilient. We need to be better at celebrating that impact and talking about what our strengths and successes are but also to recognising what we can do to build on those capabilities.”

Dr Allen also said we need to acknowledge the world class investment in research in Australia and that the Government’s priority is bridging the gap between commercialisation and research, our sovereign capabilities and competitive advantages.

Federal Shadow Assistant Health Minister Ged Kearney MP said that Labor recognised workforce issues need to be addressed by government and that Labor will target a stream of the National Reconstruction Fund to health and medical research and medical innovation.

“When public policy is married with research, public good follows,” Ms Kearney said. “Labor will prioritise greater job security in health and medical research.”

Federal Shadow Assistant Minister for Manufacturing Senator Louise Pratt identified Australia’s poorly diversified economy as a key challenge for our country, pointing to the ALP’s National Reconstruction Fund as prioritising domestic medical manufacturing.

“We currently import more drugs than we export. The National Reconstruction Fund will prioritise domestic manufacturing, which will provide us with access to the medical products that we need,” Ms Pratt said.

The Greens Spokesperson for Science, Research, and Innovation Senator Dorinda Cox highlighted the need to translate research concepts into rapid application to ensure improved health outcomes.

Ms Cox also spoke of the Greens’ policy to invest 4 per cent of GDP in science, research and innovation by 2030 and boost home-grown manufacturing.

“We don’t have the ability to produce modern medical manufacturing because we don’t have the infrastructure,” Ms Cox said.

The Hon Warren Snowdon MP, Federal Member for Lingiari and Co-Chair Parliamentary Friends of Rural and Remote Health pointed to the role that research can play in addressing social determinants of health in Indigenous communities.

In addressing the question of better translating research into best practice outcomes, Mr Snowdon recommended including local government at the national table to ensure research is designed to meet local health needs.

The need to bring state and federal jurisdictions together working strongly together under a National Strategy to strategically find the best way to invest in research was also a key theme.

To view Research Australia’s Pre-Election Statement on behalf of the health and medical research sector, please see here.

ENDS

Research Australia is the national peak body for health and medical research, representing the entire health and medical research pipeline. For more on Research Australia, go to: www.researchaustralia.org

Media contact: Peta Garrett – 0400 011 394

2022/23 BUDGET UPDATE- 30 March 2022

Summary

With an election due to be called any day now, it is no surprise that the 2022 Budget has contained some significant spending commitments.

The rising cost of living has become a key election issue and this Budget delivers cash payments, extends tax relief and cuts the fuel excise in half for six months. Rising inflation also affects health and medical research, making the cost of undertaking research higher. Disappointingly, the Government has once again failed to address this issue, with increases in funding for the NHMRC failing to even keep pace with inflation. The ARC’s Discovery program is forecast to increase slightly in real terms by around 1% per annum above forecast inflation. The ARC Linkage Program will increase by around the same amount, but is also expected to deliver new Industry Fellowships announced in February as part of the University Research Commercialisation Scheme.

There are big spending announcements in areas as diverse as Defence and infrastructure. While not on the same scale, there is some good news for health and medical research, including:

- A continuation of the important MRFF Frontier Health and Medical Research initiative (designed by Research Australia in partnership with the Department of Health) out to 31-32;
- $28.1 million for a new government agency, Genomics Australia, to support the implementation of genomics as a standard of care in Australia;
- Much-needed funding for primary care research with an additional $70m through the MRFF and $1.9m to the University of QLD for an effectiveness-implementation trial to reduce anti-depressant use; and
- Targeted funding for research of benefit to rural and regional Australia with new University Departments of Rural Health at Edith Cowan University and Curtin University and a new Rural Clinical School at Charles Sturt University.

This year’s Budget also includes the announcement of the Biotechnology in Australia- Strategic Plan for Health and Medicine, which focuses on the health and medical applications of biotechnology. A framework to identify gaps and align future initiatives to support the important biotechnology sector is very welcome news. Research Australia will be watching this initiative closely to understand how it aligns with Vision 2040 the National Strategy for Health and Medical Research announced by Minister Hunt at the Research Australia Awards last year.

The spending in this Budget has been made possible by better than forecast tax revenue, led by high export prices for commodities like iron ore and coal. What the Budget fails to do in any meaningful way is prepare Australia for the post-mining resources economy, where we will need to rely on the production of high-value-added goods and services if we are to maintain our standard of living. Research Australia has been arguing for several years now for a substantial, sustained and long-term investment by the Government in R&D. Once again, this issue has not been addressed.

The innovation focus of this Budget appears to be a continuation of the Government’s research commercialisation agenda, first announced in February, with $988.2m of funding over five years, including $505.2m to establish Australia’s economic accelerator grants to support collaboration between universities and industry.

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

Health Portfolio

In Research Australia’s Pre-Budget Submission and our Pre-Election Statement we continued to call for increases in funding for the NHMRC’s Medical Research Endowment Account (MREA). This Budget sees the Government’s funding to the MREA continue to decline in real terms. This is of genuine concern to the health and medical research community; it jeopardises our long term research capability and increases the precariousness of research careers, especially for early and mid-career researchers. Addressing these and other issues are at the centre of Research Australia’s advocacy for a truly National Health and Medical Research Strategy, which has been given impetus by Health Minister Greg Hunt’s announcement last year of Vision 2040. We are working with Commonwealth, State and Territory Governments to make this vision a reality.

Overall health expenditure reflects the recurrent expenditure needed to maintain our health system as is. While there is some funding for planned growth, there is not the major funding injection that so many from the medical community and State and Territory Governments have been calling for.

Medical Research Future Fund

The amount of funding available from the MRFF is predicted by the Budget to be $650 million per annum over the next four years. The MRFF 10 year Plan, first announced in the 2019 Budget has been extended, committing $6.3 billion across the following themes:

$2.1 billion over 10 years from 2022-23, representing a further $604.8 million for medical translation to support medical discoveries become part of medical practice
$1.5 billion over 10 years from 2022-23, representing a further $114.9 million for medical research to help researchers tackle significant challenges through investment, leadership and collaboration
$1.4 billion over 10 years from 2022-23, representing a further $117.4 million to support patients by funding innovative treatments, supporting clinical trials, and delivering more advanced health care and medical technology
$1.3 billion over 10 years from 2022-23, representing a further $495.4 million for medical researchers to make breakthrough discoveries, develop their skills and progress their careers in Australia.

The Government will extend the Biomedical Translation Fund’s (BTF) initial investments period by a further 3 years to support the commercialisation of biomedical discoveries.

The funding available from the MRFF each year is dependent on the investment return on its capital. Investment returns for the MRFF were adversely affected by the COVID driven economic downturn. In the mid-year budget review in December 2020, the Government committed to delivering additional funding of $172.5 million from consolidated revenue to enable it to meet the spending outlined in the MRFF 10 year Plan for 2021-22. A further ‘top up’ was not required in the 2021-22 Budget because markets bounced back. This Budget forecasts healthy investment returns for the MRFF.

NHMRC Programs

The 2022/23 Budget reveals funding for the NHMRC’s programs continuing to grow very slightly, and slower than was forecast in last year’s Budget. The increase in this financial year is 1.7%, with annual increases of around 1.5% per annum over the forward estimates. This is lower than the forecast CPI of 3.0% for 2022-23 and CPI of 2.75% in 2023-24. It also comes on top of CPI of 4.25% in 2021-22. In effect, NHMRC funding continues to decline in real terms, as it has done for many years now.

NHMRC Medical Research Endowment Account Funding

$m.	20-21	21-22	22-23	23-24	24-25	25-16
Funding to MREA 2022 Budget		863.266	877.952	891.094	905.355	918.985
Funding to MREA 2021 Budget	853,864	863,266	875,362	887,588	899,124	N/A
Funding to MREA 2020 Budget	853,864	862,412	872,770	884,960	N/A
Funding to MREA 2019 Budget	856.250	869.950	883.870	N/A	N/A

Preventive Health Strategy

In December last year, the Australian Government published the National Preventive Health Strategy 2021-2030. The Strategy refers to the ‘need to significantly enhance investment in prevention in order to achieve a better balance between treatment and prevention. A long-term, sustainable funding mechanism is essential to achieving the aims of this Strategy, including that investment in prevention is increased (Aim 4).’

The 2022 Budget includes only a modest $30.1 million over 4 years from 2022-23 to improve health outcomes through preventive and other health initiatives under the National Preventive Health Strategy 2021-2030. Only some of this funding is new, with part being met form ‘within the existing resources of the Department of Health’. None of this funding is directed to research to support preventive health measures.

Elsewhere in the Budget under the heading of preventive health there is funding of $1 million over 2 years from 2022-23 to conduct research to address priority men’s health issues in line with the objectives of the National Men’s Health Strategy 2020-2030.

MND Clinical Trials

Staying with direct Department of Health funding for research, $4 million will be provided over 2 years from 2022-23 to the FightMND Foundation for the delivery of early-phase clinical trials to develop new treatments for Motor Neurone Disease.

Comprehensive Cancer Centre for WA

Earlier this week the Prime Minister announced $375 million to establish a comprehensive cancer centre in WA, modelled on the Victorian Comprehensive Cancer Centre and the Chris O’Brien Lighthouse in Sydney. Proposed by Research Australia member the Harry Perkins Institute of Medical Research, it is also dependent on funding form the WA Government, which has yet to be confirmed.

Education Portfolio

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

Over the forward estimates in this Budget, the funding to the ARC for the Discovery Program increases by 4.5% compared to 2021/22, and by an average of 4.5% per annum over the forward estimates. This means that for the first time in many years the Discovery Program is forecast to increase slightly in real terms (i.e. at a rate higher than inflation). The increase is not significant, perhaps only 1% above forecast inflation, but nonetheless welcome.

Discovery Program

$m.	21-22	22-23	23-24	24-25	25-26
2022 Budget	489.188	511.074	535.915	562.406	585.206
2021 Budget	489.188	494.922	501.162	509.432
2020 Budget	487.016	487.860	490.610
2019 Budget	525.537	538.350	N/A

Linkage

The ARC Linkage Program has been singled out by the Government as an important component of Australia’s innovation system and is delivering the Industry Fellows component of the University Research Commercialisation Scheme. Accordingly, there is a boost to the Linkage Program’s funding in this Budget of around $11 million per annum compared to what was allocated last year. Like the Discovery Program, this equates to annual increases of 4.5% per annum, about 1% per annum ahead of inflation over the forward estimates. At the same time, the Linkage Program is meant to be delivering 800 new Industry Fellowships over 10 years announced in February; the increases announced in the Budget are not enough to enable it to do this and also keep up with inflation. Funding the Industry Fellowships will require savings elsewhere in the Linkage Program.

Linkage Program

$m.	21-22	22-23	23-24	24-25	25-26
2022 Budget	325.454	340.820	357.704	375.595	390.950
2021 Budget	325.454	329.948	334.109	339.622
2020 Budget	323.871	325.240	327.074	N/A
2019 Budget	295.246	301.741	N/A	N/A

Research Support

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

In the 2020 Budget, the Government used the Research Support Program to provide a vital injection of $1 billion into higher education research in the current financial year. No further injection was provided in last year’s Budget and funding in this Budget for 2022-23 is actually lower than was forecast in the 2019 Budget. The increases forecast in this Budget averages 2.5% per annum over the forward estimates. Once again this is less than inflation and represents a decline in funding in real terms.

Research Support Program

$m.	20-21	21-22	22-23	23-24	24-25	25-26
2022 Budget		930.659	951.188	978.674	1,002.668	1,028.230
2021 Budget	1918.298	930.659	942.775	958.326	974.143
2020 Budget	1918.298	926.490	929.270	938.107	N/A
2019 Budget	920.573	941.748	962.455	N/A	N/A
2018 Budget	1018.879	1042.302	N/A	N/A	N/A

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 cuts to the Research Support Program beyond the one-off boost in 2020-21 represent a real and continued threat to the capacity of our universities to undertake vital health and medical research.

The issue of indirect research costs remains unresolved for the whole health and medical research sector and indeed publicly funded research more broadly. Research Australia continues to call for a whole of government approach to the issue of funding indirect research costs.

Research Training

The Research Training Program (RTP) provides funding to universities to support higher degree by research students (mostly PhDs). Funding for the RTP also declined in absolute terms between the 2019 and 2020 Budgets, and has only partly recovered in the 2022 Budget. The increase in the next financial year is 2.2% and the average increase over the four year period is 2.% per annum; once again failing to keep up with inflation even as it provides an additional 1800 Industry PhDs over the next 10 years.

Research Training Program

$m.	20-21	21-22	22-23	23-24	24-25	25-26
2022 Budget		1069.182	1092.766	1124.344	1151.909	1181.153
2021 Budget	1054.981	1069.182	1083.160	1100.967	1119.137
2020 Budget	1054.981	1064.392	1067.585	1077.738	N/A
2019 Budget	1057.595	1081.921	1105.710	N/A	N/A

Research Commercialisation

In addition to the Industry PhDs and Industry Fellows, the University Research Commercialisation Action Plan committed to implementing Australia’s Economic Accelerator. 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. It requires an amendment to the Higher Education Act before it can be implemented, so can only really progress after the election, and if the amendments to the Act are adopted.

National Critical Research Infrastructure (NCRIS) Program

The NCRIS Program funds vital national research infrastructure needed to support Australian research. The 2021 National Research Infrastructure Roadmap is yet to be finalised, with a draft Roadmap released in December 2021. Finalisation of the Roadmap will inform the 2022 Research Infrastructure Investment Plan.

This year’s Budget maintains the forecast $100 million boost to NCRIS from 2023-24. The 2022 Research Infrastructure Investment Plan should provide more detail about how this funding will be allocated once it is completed, hopefully later this year.

National Critical Research Infrastructure Strategy

$m.	21-22	22-23	23-24	24-25	25-26
2022 Budget	273.567	286.043	396.826	496.739	454.441
2021 Budget	273.565	283.922	391.092	491.265

Industry, Innovation and Science Portfolio

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 30-year life of the program being health related. Current CRCs include the Digital Health CRC and the Autism CRC.

CRC Program $million

$m.	20-21	21-22	22-23	23-24	24-25	25-26
2022 Budget		189.395	199.374	193.117	197.070	193.540
2021 Budget	222.777	189.980	197.815	191.042	193.807	N/A

Modern Manufacturing Initiative

The Modern Manufacturing Initiative was a major announcement in the 2020 Budget and part of the Government’s response to COVID-19. The program continues pretty much as planned over the next three years.

Modern Manufacturing Initiative

$m.	20-21	21-22	22-23	23-24	24-25	25-26
2022 Budget		420.901	520.00	340.00
2021 Budget	40.000	380.000	520.000	340.000	Nil

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 rises in the next two financial years before dropping back again.

CSIRO

$m.	21-22	22-23	23-24	24-25	25-26
2022 Budget	949.037	991.289	985.625	899.352	904.477

Conclusion

Research Australia will continue to provide analysis and commentary in the coming days and weeks. We invite your responses and reactions to how the 2022 Budget affects you and your work.

Please contact Greg Mullins, Head of Policy, greg.mullins@researchaustrlaia.org

INVESTMENT IN TRANSLATIONAL HEALTH AND MEDICAL RESEARCH WELCOME BUT NHMRC AND ARC CONTINUE TO GO BACKWARDS

29 March 2022

Research Australia, the national alliance for Australian health and medical research, has welcomed strategic investment in medical research and innovation announced in tonight’s Federal Budget while expressing concern at the lack of further investment in key funding streams, including the NHMRC’s Medical Research Endowment Account (MREA).

Research Australia welcomed much-needed support for primary care research, the establishment of Genomics Australia and two new Rural Health Departments at Edith Cowan and Curtin Universities and a Rural Clinical School at Charles Sturt University.

“A framework to identify gaps and align future initiatives to support the biotechnology sector is also very good news and investment in mRNA further supports Australia as a global leader in RNA research,” Research Australia CEO Nadia Levin said.

“We need further significant investment like this if we are serious about innovation and creating future industries.

“We also applaud the continued investment in the MRFF Frontier Health and Medical Research initiative, which was designed by Research Australia in partnership with the Department of Health,” Ms Levin said.

However, while these key announcements supporting health and medical research and innovation are great news, Ms Levin said there is a worrying continuation of the real terms decline in funding for the NHMRC’s MREA.

“This is of genuine concern to the health and medical research community, and it jeopardises our long-term research capability and increases the precariousness of research careers. The pandemic has shown us just how much we need these critical skills and they are not developed overnight. Research is a long term, sustained investment and these funding bodies are crucial to guiding our future,” Ms Levin said.

“It has real impacts for all Australians who rightly expect health and medical research to protect their health and it’s a missed opportunity to build new industries and skills creation in health as a sector.”

“The rising cost of living has been addressed in the Budget with cash payments, tax relief and cuts to the fuel excise however, increasing inflation also affects health and medical research, making the cost of undertaking research higher; and an insecure workforce means we are at risk of losing the skills of those we most need from a health and economic perspective” Ms. Levin said.

Addressing these issues are at the centre of Research Australia’s advocacy for a National Health and Medical Research Strategy, as announced by Minister Hunt at the Research Australia Awards in December.

ENDS

Research Australia is the national peak body for health and medical research, representing the entire health and medical research pipeline.

Media contact: Peta Garrett – 0400 011 394