Research Australia supports voluntary National IP Framework for university research commercialisation

Research Australia has welcomed the Australian Government’s proposal for a standardised Intellectual Property Framework to streamline the commercialisation of university research, but has opposed the Framework being made mandatory.

In a joint submission with Medicines Australia, MTAA and AusBiotech, Research Australia has proposed a pilot of the IP Framework to collect information about how and where it is useful, which could be used to evaluate and refine the contracts and processes. We have also called for the Department to extend the consultation process and organise a series of sector-specific workshops to allow all stakeholders to explore the potential issues of a standard IP Framework in detail.

Read the submission here.

A new Strategy for the MRFF

Research Australia’s submission in response to the consultation on the new MRFF Strategy 2021-26 and related Priorities has proposed several critical changes:

- It has emphasised the need for the Strategy to provide more guidance about how the MRFF should be invested.
- Greater engagement with health systems in the states and territories is essential, as is a focus on preventive health.
- The Strategy needs to address how evidence arising from the research and innovation funded by the MRFF is embedded into the health system.
- The new MRFF strategy should identify and address gaps in skills and capability that prevent the implementation of evidence into practice into our health system.
- Infrastructure funding priorities for the MRFF should be developed in consultation with Department of Education Skills and Employment and state and territory governments, to ensure research infrastructure is funded where needed and complements other programs and initiatives.
- The Strategy should propose a mechanism for better differentiating the funding programs of the NHMRC and the MRFF. The Strategy should also propose the development of a national HMR strategy to better coordinate funding for HMR from all sources, in much the same way the first strategy proposed a whole of government approach to addressing funding for the full cost of research.
- COVID-19 has highlighted the particular difficulties facing early- and mid-career researchers. The Strategy could commit the MRFF to considering how the design of the MRFF’s funding programs could better support EMCRs.
- The effects of COVID-19 in our region provide the opportunity for the strategy to consider how Australia can use its research capability to support our neighbours’ response to and recovery from COVID-19, as an exemplar for broader engagement on regional health issues.

Read Research Australia’s submission here.

The new MRFF Strategy, for the period from 2021-2026 was subsequently published on 2 November. It is available here. More information about the MRFF Strategies and Priorities is available on our website here.

National Medicines Policy- researchers as partners

Research Australia’s submission to the review of the National Medicines Policy has made the case for researchers to be formally recognised as partners in the Policy alongside government, industry, healthcare providers and consumers. We have also supported the expansion of the policy to include vaccines and new health technologies. Our submission provides examples of how the Policy can be more consumer-centric, by making better use of the data already collected to understand consumer behaviour in relation to medicines.

Read Research Australia’s submission.

Changes to MRFF investments and disbursements

The Investment Funds Legislation Amendment Bill 2021 will:

- change the way the MRFF is invested,
- allow the annual disbursements from the MRFF to be set for a period of up to five years, and
- change the period for the MRFF Strategy and Priorities to six years and 3 years respectively (currently 5years and 2 years.)

In its submission to the The Senate Finance and Public Administration Legislation Committee Inquiry, Research Australia has welcomed the changes, which have the potential to increase the funds available from the MRFF to fund research and innovation and provide greater stability. Research Australia has urged the MRFF Act be amended to make it explicit that the capital value of the MRFF is to be maintained in the long term.

Research Australia’s submission is available here.

A patent box tax concession for Australia

Research Australia welcomed the Government’s announcement in the May 2021 Budget that it would introduce a patent box tax concession for the medical and biotechnology sector. As part of the further development of this proposal, the Australian Treasury has issued a consultation paper, outlining the key features. Research Australia’s response addresses several major concerns with the proposal including the focus on incentivising licensing but not manufacturing, and limiting eligibility to patents granted in Australia.

We are working with our membership and other key stakeholders across the sector, and look forward to engaging further with Treasury as the development of the patent box continues.

Research Australia’s submission is available here.

Research Australia responds to National Data Strategy Consultation

The Department of Prime Minister and Cabinet is responsible for developing a National Data Strategy to guide all of the Government’s initiatives in relation to data. Research Australia was invited to comment on a high level outline of the principles and topics for the strategy, as the first stage of the Strategy’s development.

Our response has emphasised the importance of building social licence for the greater use of data. We have also highlighted the need to increase the capacity of the APS and Government agencies to share data securely and safely, which is is not currently addressed as part of the strategy. The submission also draws attention to the need to work with State and Territory Governments to increase the sharing and linkage of datasets across the jurisdictions.

Read Research Australia’s submission here.

Championing research in Primary Care

The Primary Health Reform Steering Group has been charged by the Australian Government with assisting the development of a 10 year Plan for Primary Care. Research Australia has used its submission to the Group’s Discussion Paper to make the case for a greater role for research in the new 10 year Plan.

Research Australia welcomes the Plan’s recognition of the key role research can and must play if reforms are to be achieved. Research Australia has argued for research to be integrated onto the system and to be informed by primary care practitioners (including nurses and midwives, allied health and general practitioners) and patients and carers.

As the national peak body for health and medical research, Research Australia has included case studies from its members of relevant primary care research that demonstrates the expertise available in Australia to support implementation of the Steering Group’s Plan.

Research Australia’s submission is available here.

Budget Update 2021

Summary

The economic impact of COVID-19 continues to dominate the Australian Budget, with tonight’s Budget, the second handed down in just seven months. Like the last one, this is a big spending Budget, but the focus has shifted from providing immediate stimulus to longer term recovery and Australia’s future prosperity. In the health sector, policy reform is focused on aged care and mental health.

Apart from COVID, the biggest health issue the Australian Government has had to grapple with in the last 12 months is aged care. The Royal Commission into Aged Care Quality and Safety provided the Government with 148 recommendations earlier this year. Until tonight, the Government had not provided a substantial response to the report.

This Budget outlines an additional $17.7 billion over five years, seeking to address the needs of aged Australians living at home and those in residential care. This equates to around half of what is called for overall in the Royal Commission’s Final Report. The Prime Minister’s press release states the Government has accepted 126 of the 148 recommendations, we are awaiting the Government’s detailed response to the Royal Commission – particularly the recommendations for dedicated funding for aged care and ageing research. The proposals from the Royal Commissioners in relation to funding for innovation and research have not been funded in this Budget.

Mental Health has also been under the spotlight, including the impact of COVID-19 on mental health. The Productivity Commission provided the Government with a report last year on what could be done to improve mental health, and earlier this year the Department of Health and Ageing consulted on what measures from the report should be implemented, and when.

Tonight’s budget provides $2.3 billion over four years from 2021-22 for the National Mental Health and Suicide Prevention Plan, including initiatives to be progressed with states and territories for a new national agreement on mental health and suicide prevention. The Government has indicated that it has accepted all the recommendations of the Productivity Commission Report on Mental Health and that the funding announced tonight is only phase one of its response. The only research specific funding announced as part of this package is establishment of an Eating Disorders Research Centre as part of a $26 million package of funding for eating disorders. Further funding for research-related aspects of the Productivity Commission’s recommendations may follow in future budgets. There is $117.2 million for data collection, in part to establish the evidence base for reforms. We will be seeking the advice of key mental health research experts to understand how this data can inform continuous, evidence-based improvement in mental health care for Australians.

While Preventative Health has gained attention from the Government in the last couple of years, the National Preventive Health Strategy is still very much a work in progress and there is only very limited additional funding for preventive health in tonight’s Budget. There is $1.9 million in 2021-22 for preventive health research and scoping activities, including a national health literacy strategy, to inform the National Preventive Health Strategy. Research Australia has previously advocated the need to improve health literacy (and digital health literacy) as a key measure to address health inequity and enable all Australians to better use technology to manage their health.

One of the key lessons from the COVID-19 pandemic is that we have become overly reliant on global supply chains for vital materials. This drove a new focus in last year’s Budget on manufacturing, with the announcement of $1.3 billion over five years from 2020-21 for the Modern Manufacturing Initiative. While the Government seems satisfied this is enough, Research Australia believes more needs to be done, and has proposed raising annual Government spending on R&D to 0.75% of GDP, setting a target for Australia to become a net exporter of pharmaceuticals by 2035, and using the Government’s influence as a key buyer of products and services to boost Australian innovation.

A key measure in this regard is a patent box; a tax deduction provided to companies that manufacture in Australia using Australian developed IP (patents). The patent box will only apply to income derived from Australian medical and biotechnology patents, with consideration to be given to the clean energy sector. It provides a concessional effective corporate tax rate of 17 per cent, with the concession applying from income years starting on or after 1 July 2022. Such a scheme has operated in the UK for many years and is designed to support high value manufacturing in Australia, complementing the R&D Tax Incentive. Research Australia has been a long-term advocate of patent box tax treatment, along with CSL and others in our sector, and this is a significant win for health and medical research.

Much has been said recently about mRNA manufacture of vaccines and therapeutics, with the Victorian and NSW Governments both announcing support and Victoria proposing to invest $50 million. In the Budget tonight the Government has announced that it, too, is acting. It will provide an undisclosed amount of funding (commercially sensitive) to the Department of Industry, Science, Energy and Resources to work with the Department of Health to develop an onshore mRNA vaccine manufacturing capability in Australia. Research Australia called for such a commitment from the Government in our Pre-Budget Submission and we have been calling for this facility privately and publicly, to encourage this sovereign capability .

While the MRFF funding proceeds as outlined in the Government’s MRFF 10 year Plan, the funding to the NHMRC’s Medical Research Endowment Account continues to decline in real terms.

Medical Research Future Fund

Funding from the MRFF

The MRFF reached the target of $20 billion of capital in August 2020. Tonight’s Budget sees this balance maintained over the forward estimates.

Forecast spending from the MRFF remains largely as expected over the forward estimates. While only $455 million is available from the MRFF to fund research and innovation in 2021/22 due to lower-than-expected investment returns, the Government is maintaining spending this financial year by providing an additional $175 million for MRFF funding from consolidated revenue (announced in the December 2020 mid-year budget). At this stage the Government expects the investment returns to recover this financial year, with $650 million available to fund medical research and innovation in 2022/23.

MRFF expenditure

$m.	20-21	21-22	22-23	23-24	24-25
MRFF Funding 2021 Budget	579.9	455.0	650.0	650.0	650.0

NHMRC and ARC Funding

In Research Australia’s Pre- Budget Submission and our Pre-Election Statement we continue to call for increases in funding for the NHMRC and ARC’s research programs. This Budget sees both schemes continue to decline in real terms, which is of genuine concern to the health and medical research community.

NHMRC Programs

The 2021/22 Budget reveals funding for the NHMRC’s programs continuing to grow very slightly, and only slightly faster than was forecast in last year’s budget. The increase in this financial year is 1,1%, with annual increases of around 1% thereafter. This is lower than the forecast CPI of 3.5%% for 2020-21 and CPI of between 1.75% and 2.5% expected in subsequent years. In effect, NHMRC funding continues to decline in real terms, as it has done for many years now. Research Australia remains concerned about this deficit because research and its outcomes is a long-term commitment.

NHMRC MREA Funding

$m.

20-21

21-22

22-23

23-24

24-25

Funding to MREA

2021 Budget

853,864

863,266

875,362

887,588

899,124

Funding to MREA

2020 Budget

853,864

862,412

872,770

884,960

N/A

ARC Programs

The Australian Research Council’s Funding Programs are critical to Australian publicly funded research including to the life sciences and medical technologies.

Over the forward estimates, the funding to the ARC for the Discovery Program increases slightly each financial year and while higher than in last year’s Budget, the funding is at significantly lower levels than forecast in the 2019 Budget. In real terms funding to the Discovery Program declines over the forward estimates. Again, a cause for concern.

$m.	20-21	21-22	22-23	23-24	24-25
Discovery 2021 Budget	483,272	489,188	494,922	501,162	509,432
Discovery 2020 Budget	483.272	487.016	487.860	490.610
Discovery 2019 Budget	513.542	525.537	538.350	N/A

The ARC Linkage Program has been singled out by the Government as an important component of Australia’s innovation system, and it was announced that from 1 July 2016 the Program would be open to continuous applications and decision making would be fast tracked.

Funding over the forward estimates is higher than forecast in last year’s budget, but future years fail to keep pace with inflation.

$m.	20-21	21-22	22-23	23-24	24-25
Linkage 2021 Budget	323.166	325.454	329.948	334.109	339.622
Linkage 2020 Budget	322.181	323.871	325.240	327.074	N/A
Linkage 2019 Budget	288.788	295.246	301.741	N/A	N/A

While not funding ‘medical and dental research’, the ARC Linkage program remains important to the health and medical research and innovation sectors.

Research Support

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

In last year’s 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 is provided in this year’s Budget and funding in is actually lower than was forecast in the 2019 Budget.

Research Support Program

$m.	20-21	21-22	22-23	23-24	24-25
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	1,018.879	1,042.302	N/A	N/A	N/A

Funding for the indirect costs of research funded by the MRFF is now provided from the Research Support Program. With the MRFF providing hundreds of millions of dollars in funding to universities over the next few years, beyond this financial year, 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 Australia proposes that the Chief Scientist lead a review of the funding of indirect research costs to establish a sustainable and equitable funding program. In the short term, the pool of funding for the Research Support Program must be increased substantially.

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 have only partly recovered in this year’s Budget.

Research Training Program

$m.	20-21	21-22	22-23	23-24	24-25
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

Industry PhDs

The Department of Industry will provide $1.1 million over two years from 2020-21 to create new employment pathways for students and boost financial incentives for universities to enrol students in ‘Industry PhDs’. This measure will introduce an additional weighting in the Research Training Program funding formula for PhD students who undertake an industry placement.

Research Commercialisation

In last year’s Budget the Government committed funding for a scoping study for a University Research Commercialisation Scheme to better translate and commercialise university research outputs. The development of the Scheme is still in train and there is no funding for the Scheme in this year’s Budget. It looks like this might have to wait until next year. Research Australia remains actively engaged in consultation with the Department of Prime Minister and Cabinet on this Scheme.

CRC Program

Funding forecasts for the CRC Program reflect a shift in some funding between 2019-20 and 2020-21. Beyond that, they are slightly lower over the forward estimates.

CRC Program $million

$m.	20-21	21-22	22-23	23-24	24-25
2021 Budget	222,777	189,980	197,815	191,042	193,807
2020 Budget	234,168	189,040	186,378	188,599	N/A
2019 Budget	187,356	192,239	191,223	N/A	N/A

The CRC Program is important to health and medical research and innovation with about one third of the CRCs funded over the life of the program being health related.

Conclusion

Research Australia will continue to provide analysis and comment in the coming days and weeks as well as seek further input from across the membership for your reactions and insight into the policy and funding announced for our sector; and how it affects or enhances your research and related activities as a result.

Ends …..

A Preventive Health Strategy for Australia enabled by research

Following a Discussion Paper released in 2020, the Australian Government released a draft National Preventive Health Strategy for consultation in early 2021.

Research Australia’s response to the consultation emphasises:

- the critical role of research in supporting the evaluation of existing programs and measures and the development and implementation of new programs;
- the importance of the proposal to increase funding for preventive health measures to 5% of health expenditure by 2030; and
- while providing information is an important tool to empower and support people, supporting people to make the best possible decisions also require practical strategies and programs that can support and incentivise behaviour change, and policies that make it easier for people to make healthy choices.

Research Australia’s submission is available here.

Our response to the earlier 2020 Discussion paper is available here.

Critical Technologies Consultation

The Australian Government’s Critical Technologies Policy Coordination Office is identifying critical current and emerging technologies with the capacity to significantly enhance or pose risk to Australia’s national interest, including our economic prosperity, social cohesion and national security. One of the key areas identified is health.

Research Australia’s submission to the consultation on health related technologies has emphasised the opportunity to address supply chain issues in the development and manufacturing of new technologies in Australia. Research Australia’s submission is available here.