2018/19 Pre-Budget Submission: A Submission on Behalf of Australia’s Health and Medical Research and Innovation Sectors

This pre-budget submission to the Treasurer sets out Research Australia’s priorities for the 2018/19 Federal Budget, arguing that recent policy initiatives in innovation, data and health will only deliver benefits if they are funded and implemented. It calls on the Government to keep the Medical Research Future Fund (MRFF) on track to reach its $20 billion capital target by 2020/21, to fund the Department of Health to administer MRFF programs as disbursements rise from $120 million to over $600 million a year, and to assign a modest share of the MRFF (around 10%) to a two-stage frontier technology program offering up to $75 million per project. Citing a real decline in National Health and Medical Research Council (NHMRC) and Australian Research Council (ARC) funding since 2013/14, it seeks real increases for both. On indirect research costs, it repeats its 2016 recommendations: treat MRFF grants as Category 1 income with a matching increase to the Research Support Program, fund a new Independent Research Institute Infrastructure Support Scheme (IRIISS) stream for MRFF grants, and have the Chief Scientist lead a review. Noting a $2.2 billion (12%) fall in business R&D expenditure, it opposes changes to the R&D Tax Incentive. It also recommends funding for the Research Infrastructure Investment Plan, release and funding of the National Innovation Strategy 2030, investment in public sector data capability, and resourcing for secondary use of My Health Record data, which 93% of polled Australians supported for research.