2019/20 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 2019–20 Budget. It recommends the Government to release and fund the overdue Digital Economy Strategy and to keep the Medical Research Future Fund (MRFF) on track to reach its $20 billion capital target by 2020–21. Pointing to a real decline in National Health and Medical Research Council (NHMRC) funding, it recommends NHMRC and Australian Research Council (ARC) research programs to be increased in real terms. On indirect research costs, it asks that MRFF grants be treated as Category 1 income, that the $328.5 million cut to Research Block Grants in the December 2018 Mid-Year Economic and Fiscal Outlook be reversed and the Research Support Program enlarged, that the Independent Research Institute Infrastructure Support Scheme (IRIISS) gain an MRFF stream, and that the Chief Scientist lead a review. Citing a 12% fall in business R&D expenditure between 2013–14 and 2015–16, it opposes further cuts to the R&D Tax Incentive and supports restoring the refundable offset to 45%. It asks that $1.9 billion for research infrastructure be retained, that the Australia 2030 innovation strategy be funded, and that Commonwealth agencies be resourced to link and release data. It recommends resourcing the Australian Institute of Health and Welfare (AIHW) to release deidentified My Health Record data, a balanced public information campaign on My Health Record, and a national strategy to improve digital health literacy, noting that only 41% of adults had adequate health literacy in 2006.