Research Australia has cautiously welcomed key reforms announced in the Federal Budget, including increased investment through the Medical Research Future Fund and reforms to Research and Development (R&D).
The Federal Budget arrives at a critical juncture for Australia, navigating a complex fiscal environment defined by a persistent cost-of-living crisis and heightened global instability.
It is why the announcement on the MRFF is welcome news, however, more still needs to be done to support Australia’s health and medical research and innovation sector.
The Government has confirmed it will increase disbursements from the MRFF by $508.5 million over the next four years from 2026–27 and lift annual investment from $650 million to $1 billion from 2030–31.
“This is crucial for a sector under significant strain, providing much-needed certainty and momentum at a time when rising costs, workforce pressures and global competition are placing increasing pressure on Australia’s health and medical research and innovation system,” Research Australia Chair, Professor Dawn Freshwater FRCN said.
While increasing allocations through the MRFF is important, it is disappointing that the NHMRC (MREA) is still tracking below forecast inflation and does little to address years of real decline.
Research Australia CEO, Nadia Levin, reconfirmed the crucial role that research, development and innovation play to both the health of Australian’s and our nation’s economic future through boosting economic resilience, sovereign capability and productivity.
“Investing in health and medical research is not only about better care – it’s about building a more productive, resilient and sustainable Australia – tonight’s Budget is a small step towards this,” said Nadia Levin, CEO of Research Australia. “Every dollar invested delivers around four dollars in economic returns. We cannot afford to leave this potential untapped.”
Research Australia also welcomed measures to improve coordination across the research, development and innovation system, including the establishment of the National Resilience and Science Council to provide coordinated advice on more than $15 billion in RD&I investment.
“Better alignment of public and private investment is critical to lifting productivity, strengthening economic resilience, and ensuring Australia captures the full value of its research capability,” Ms Levin said. If we are serious about innovation, we need smart, sustained investment and partnerships that reflect the role of both public and private investment.” While tonight’s announcements are that small first step, high rewards need courageous investment.
Research Australia notes other measures announced in tonight’s Budget to support the research pipeline and translation, including:
- $15.8 million to continue development of the National One Stop Shop to streamline approvals for clinical trials and human research
- Additional support for Health Technology Assessment system sustainability and improvements to R&D Tax Incentive and Venture Capital settings
- Funding committed over the forward estimates following the establishment of the Australian Centre for Disease Control
- $40.1 million to establish the Neale Daniher MND Clinical Network to accelerate research and improve outcomes for people living with motor neurone disease
- •$387.4 million over four years (and ongoing funding) to support the long-term sustainability of the CSIRO, including upgrades to the Australian Centre for Disease Preparedness
Research Australia noted that while the Government has not allocated specific funding for implementation of the forthcoming National Health and Medical Research Strategy, this reflects the scale and complexity of the reform but is eager to see further detail for this crucial piece.
Research Australia looks forward to more announcements on the this and will continue to work constructively with Government and our members to support its implementation.
