2020-21 Pre-Budget Submission

This updated submission to the Treasurer for the delayed 2020–21 Budget focuses on health and medical research in Australia’s COVID-19 response and recovery. Drawing on its survey of more than 1,200 researchers, Research Australia reports that nearly 70% expect their research to be affected beyond 2020, 47.7% of those affected expect to be unable to complete projects, 45.8% expect job losses and over half are on fixed-term contracts, with a conservatively estimated financial impact of $75 million among respondents alone. It maintains the pandemic has exposed a fragmented funding system that relies on international student revenue, which universities may lose to the tune of $10–19 billion over 2020–2023, and on philanthropy. It recommends a contingency pool of up to $100 million in bridging funding for disrupted government-funded research, and an assessment of COVID-19’s impact on the sector. Noting that Australian Government R&D spending has fallen to 0.48% of gross domestic product and that Australia ranks 93rd for economic complexity, it recommends at least 0.75% of GDP, funding for Australia 2030: Prosperity through Innovation and the Innovation Metrics Review, and no changes to the R&D Tax Incentive that would dampen investment. Other recommendations include real increases to NHMRC and Australian Research Council funding, reversal of Research Support Program cuts and new indirect cost funding for MRFF grants, multi-year funding for the National Preventive Health Strategy, investment in artificial intelligence and data sharing, resourcing for My Health Record secondary use, and a digital health literacy strategy.