Tag: Medical Research

Policy Update August 2024

This Policy Update covers developments since the May Budget.

National Science Statement and new National Science Priorities

The much-awaited new National Science Priorities were released on Monday 12 August, and were accompanied by a Science Statement. They are available from the Department of Industry Science and Resources website.

The Science Statement has a strong emphasis on the role science can play in supporting and creating industry, with a strong focus on economic prosperity. This is to be achieved through missions, multidisciplinary research and breaking down siloes, guided by 5 imperatives:

    1. Australian scientists, science institutions, and infrastructure shaping Australia’s science future
    2. Science at the centre of Australian industry
    3. A diverse, skilled workforce to underpin the translation of science into new industries
    4. Embracing science to drive Australia’s regional and global interests
    5. A science system prepared for future challenges

The new Statement provides an opportunity to position the health, disability and aged care sectors as an ‘industry’ that is vital to Australia’s future success and prosperity, as a means of aligning health and medical research more closely with the Statement.

The Statement also focuses on encouraging people to undertake STEM careers but there is little on supporting the existing research workforce. A lot about missions, multidisciplinary research and breaking down siloes.

Five national Science Priorities have also been identified:

    • Transitioning to a net zero future
    • Supporting healthy and thriving communities
    • Elevating Aboriginal and Torres Strait Islander knowledge systems
    • Protecting and restoring Australia’s environment
    • Building a secure and resilient nation

Supporting healthy and thriving communities is a very broad priority, embracing social and environmental determinants, and building health literacy. It includes disability and ageing, as well as health and medicine more generally.

Modernising Human Tissue laws

On Thursday 14 August, the Attorney General, the Hon. Mark Dreyfus and Assistant Health Minister the Hon. Ged Kearney MP announced an inquiry by the Australian Law Reform Commission into Australian tissue donation laws. Largely the responsibility of the State and territories, the review will consider whether legislative reform is required to harmonise laws across the nation. The inquiry will include consideration of donation of tissue for scientific purposes. Further information on the Inquiry is expected to be provided on the ALRC’s website in coming weeks.

Australian Centre for Disease Control

While the interim Australian CDC has been operating within the Department of Health the Department has advised a new timeline for its development, to enable recommendations from the report of the COVID-19 Inquiry, due at the end of September, to be incorporated into the design, followed by further consultation. The establishment of the Australian CDC will be subject to the passage of legislation; the lack of funding for the CDC in this Budget indicates the Government does not expect it to start in this financial year.

Australia’s Economic Accelerator

Only available to universities and funded through the Education portfolio, the AEA is set to provide funding of $270 million over 2024/25, through two separate programs:

Round 1 Round 2
AEA Ignite

Proof of Concept (TRL2.3.4)

Max. $500,000 for 12 months

 $60 m. open now $30m. open Nov.24
AEA Innovate

Proof of Scale (TRL 5,6,7)

Max. $5m. for up to 2 years

 $120m. open now $60 m. early 2025

For AEA Ignite an industry partner is recommended and it is mandatory for AEA innovate.

The programs must fit within the Government’s seven Priority areas for investment:

    • Value-add in Resources
    • Agriculture, forestry & fisheries
    • Medical Science
    • Renewables & low emission tech
    • Defence Capability
    • Transport
    • Enabling capabilities

In addition to being in one of these priority areas, The AEA Advisory Board for the Australia’s Economic Accelerator has set the investment plan for the AEA for 2024/25. As a result, any proposal must also fit one of the six focus areas selected by the Board:

    • Critical and strategic minerals processing
    • Sustainable fuels
    • Digital agriculture
    • Quantum
    • Artificial intelligence
    • Advanced manufacturing

The most likely ‘fits’ within the focus areas for medical science are going to be products which require advanced manufacturing or utilise AI.

The focus area may change when the AEA Advisory Board sets its new investment plan for 2025/26.  More information is available here.

National HMR Strategy

The National HMR Strategy now has its own webpage.

‘The strategy will:

    • cover the entire sector and include all levels of government, industry, philanthropy, academia and consumers
    • strengthen and leverage Australia’s world-leading research capability.’

Several current activities have been brought under the umbrella of the National Health and Medical Research Strategy, including:

    • The MRFF/MREA alignment
    • The National One Stop Shop; and
    • The health and medical research workforce audit

MRFF/MREA Alignment

The MRFF/MREA alignment is proceeding in two stages, with legislative change required to fully implement a merged administration of the MRFF and MREA, with both funds managed by the NHMRC. ‘In the interim, the NHMRC and the department are working together to address key concerns and issues while we consider options for implementation. This includes working together to better use existing advisory committees (eg MRFF will seek advice from NHMRC committees), developing and implementing policies together, and other efforts that better align the two funds without requiring formal governance reforms.’ [Consultation Summary Report, Next Steps.]

Strategic Examination of R&D

Announced on Budget night, the new strategic examination of Australia’s R&D system is intended ‘to determine how we can get more value from every taxpayer dollar invested in research, maximise the contribution of science and R&D to the broader economy and maintain our competitive edge.’ Led by the Science and Industry Minister, it is nonetheless be a whole of government review.

A secretariat has been set up within the Department of Industry Science and Resources, and Dom English has moved from the Department of Education to lead the Secretariat. Consultation on the terms of reference and the members of the independent panel has been undertaken but the results are not yet public.

With health and medical research representing 26% of all Australian R&D, Research Australia will continue to champion a focus on health and medical research as part of this review.

National Reconstruction Fund

Fulfilling an election promise, the legislation to create the National Reconstruction Fund (NRF) was passed in early 2023.

The NRF was initially scheduled to invest $15.0 billion over 7 years from 2023–24 to provide targeted co-investments in seven priority areas: resources; agriculture, forestry and fisheries sectors; transport; medical science; renewables and low emission technologies; defence capability; and enabling capabilities. It can provide debt, equity or guarantees, but does not provide grants. The NRFC’s first corporate plan is available here. With time running out to make initial investments in this financial year, the plan commits the NRF to making its first investments before the end of 2024. No investments have been publicly disclosed to date.

HTA Review

The Health Technology Assessment (HTA) Policy and Methods Review concluded on 4 May 2024. The HTA Review Reference Committee which was responsible for overseeing the HTA Review, held its final meeting on 2 May 2024 and its final report has been provided to the Minister for Health and Aged Care.

The Minister has yet to make the Review Report, or any response to the report, public.

Recent Submissions

Good Institutional Practice Guide

In May, the NHMRC released a draft Good Institutional Practice Guide, which seeks to provide guidance to NHMRC-funded institutions and NHMRC-funded researchers about good institutional practice ‘to promote open, honest, supportive and respectful institutional cultures conducive to the conduct of high-quality research’. Its development has been overseen by NHMRC’s Research Quality Steering Committee.

Research Australia made a submission to the NHMRC, directed to the CEO Professor Steve Wesselingh. While welcoming the Guide we indicated that awareness of practices and initiatives that can improve research culture is not the primary barrier to improving research culture; significant work has already been done to identify the issues and raise awareness. The key problem is implementing the measures needed to improve the culture.

We suggested the finalisation and publication of the Good Institutional Practice Guide will provide impetus for improvement that we can build on if we act collectively. Research Australia suggested leadership and involvement from the NHMRC will be essential, and would demonstrate the NHMRC’s ongoing commitment to improving research culture and practice. We offered to work with the NHMRC, the Research Quality Steering Committee, other peak bodies and research institutions that want to participate in a coalition to improve research practice and culture.

Allied health Workforce

In May the Department of Health and Aged Care released a consultation paper on a draft outline of the National Allied Health Workforce Strategy, intended to ensure there are enough highly trained allied health professionals distributed across the country.

Research Australia’s response to the consultation paper focussed on the need for the strategy to recognise the role of allied health professionals as clinician researchers in creating a self improving allied health sector and supporting retention of allied health professionals.

To achieve this the Strategy needs to better support clinician researchers and the submission highlighted ways to do this.

Upcoming Consultations and Submissions

Keep up to date with new consultations on the Research Australia website here.

All Research Australia’s submissions to closed consultations can be found here.

Australian H&MR Facts

Funding health & medical research in Australia

Summary

    • $10 billion is spent on health and medical research (HMR) in Australia each year
    • More than a quarter (26%) of all Australian Research and Development (R&D) is spent on HMR (Total R&D is around $40.6 billion in 2022/23)
    • 4% of all spending on health is spent on HMR (total health expenditure in 2021-22 was $241 billion)
    • 0.4% of GDP was spent on HMR (Australian GDP in 2022-23 was $2,564 billion)
    • Nearly half of all Australian HMR is undertaken in the higher education sector
    • HMR accounts for more than one third (35%) of all R&D expenditure in higher education institutions
    • 31% of all HMR expenditure is in the private sector

Expenditure by sector

The following table is an estimate of where HMR expenditure occurs in Australia

Location of expenditure $million      
Aust. Govt. (including agencies) States & Territories Higher Education Not For Profit Business Total
134 672 4,947 1,387 3,200 10,340
1% 7% 48% 13% 31% 100%

The estimates are complicated because they are:

  • based on Australian Bureau of Statistics (ABS) data and the ABS surveys the different sectors for different periods. Government and NFP data is for 2022/23; Higher Education is for the calendar year 2022 and Business is for 2021/22
  • the ABS categorises data by Socioeconomic Objective (SEO) and by Field of Research (FoR). The SEO of Health generally provides the most accurate estimate but the combined FoRs of Biomedical and Clinical Sciences; and Health Sciences (ANZSCR 2020); is used for Business because most HMR in industry is classified not under the SEO of health but under the SEO of manufacturing. The ABS data is not provided at sufficient detail to enable health R&D to be extracted from the SEO of manufacturing.[1]

[1] Prior to 2020 the FoR of medical and health sciences (ANZSCR 2008) was used. From 2020, the New ANZSCR 2020 is applicable.

Australian Government 

While only a relatively small proportion of HMR is undertaken directly by the Australian Government it is responsible for providing the funding for a much larger proportion, particularly in higher education and Medical Research Institutes (MRIs). This includes funding provided through the National Health and Medical Research Council (NHMRC) and Australian Research Council (ARC). It also includes funding provided to universities through the block grants system, which is tied to the volume of each university’s research and the number of research students.

Australian Government funding of HMR through universities and MRIs

Australian Government funding of HMR through universities and MRIs

NHMRC Funding $946 million
ARC Funding contribution to HMR (10%) $81 million
Research Block Grants contribution to HMR (35%) $700 million
MRFF $650 million
Total $2,377 million

Source: Australian Government Science Research and Innovation Budget Tables 2023-24 estimated expenditure for 2023-24

 

This estimate assumes all MRFF funding in 2023-24 went to universities and MRIs as it is not possible to break this figure down. This estimate does not take into account taxation measures such as the R&D Tax Incentive and programs like the Department of Industry Innovation and Science Entrepreneurs Program, which support the development and commercialisation of research generally, including new medicines, medical devices and therapies. It also doesn’t reflect other Commonwealth Government support provided to universities and MRIs which are used for new buildings and facilities that support HMR.

 

State and Territory Governments

State and territory governments are responsible for funding research undertaken within the State and territory hospital systems; the provision of support to MRIs for the indirect costs of research; and other programs to support R&D, a portion of which funds HMR. State and territory governments also provide capital funding for stand-alone research institutions (e.g. the South Australian Health and Medical Research Institute) and for organisations that combine research with health care delivery (e.g. the Victorian Comprehensive Cancer Centre).

It is likely that the total support provided to HMR significantly exceeds the $672 million per annum captured in the table above.

Higher Education

The bulk of Australian HMR is conducted in the Australian higher education sector, and is funded by the Australian Government, philanthropy and universities own funds from other sources, including teaching revenue for the Australian Government and students. Approximately one third (35%) of all research expenditure by the higher education sector is on health and medical research.

Source: ABS 8111.0, Research and Experimental Development, Higher Education Organisations, Australia 2022, SEO Health ($4,947 million) divided by total expenditure ($13,990 million).

Not for Profit sector

The Not for Profit sector spent approximately $1.4 billion on R&D in 2022/23, of which $1.64 billion (87%) was spent on the SEO of Health. The concentration of research in the non profit sector on HMR reflects the dominance of this sector by Medical Research Institutes (MRIs). The next highest categories were Education and Training with $58 million, Plant Production and Plant Primary Products ($18 million) and ICT ($15 million).

Source: Research and Experimental Development, Government and Private Non Profit Organisations, 2022-23 PNP expenditure by SEO, 2022-23

Business

Expenditure on HMR represents approximately 15.5% of total R&D spending by business. Much of the R&D expenditure by businesses has an emphasis on the ‘D’ (Development) in R&D rather than research. For this reason it is captured in the broad SEO of Manufacturing rather than Health; the combined FoRs of Biomedical and Clinical Sciences; and Health Sciences are used in the above table to estimate business expenditure on H&MR.

Source: Research and Experimental Development, Businesses, Australia, 2021-22 FoR for  the combined FoRs of Biomedical and Clinical Sciences; and Health Sciences ($3,200,000,000) divided by total expenditure ($20,642,000,000).

For more information contact Greg Mullins, Head of Policy, greg.mullins@researchaustralia.org

Image credit: Professor Len Harrison, Walter and Eliza Hall Institute

Research in perimenopause and menopause

Research Australia welcomes the report of the Senate Inquiry into Menopause and perimenopause, tabled 18 September. Our submission was referenced a number of times in the Inquiry’s report, where a number of our concerns and recommendations were specifically highlighted throughout the report and in the recommendations. These include the need for better understanding of the diversity of symptoms which impact women’s lives differently; the lack of robust data; the diverse experiences of different groups within Australia (such as First Nations women or women from culturally and linguistically diverse backgrounds), and experiences of intersectional discrimination.

The report also acknowledged the need for a strategic approach to menopause research to guide the ‘prevention, diagnosis and effective treatment of the symptoms of menopause and perimenopause and provide appropriate support’, which needs appropriate funding investment. We acknowledge the contributions made to the submission by our members, particularly, Professor Debra Anderson UTS and Dr Yvonne Middlewick, Curtin ECU.

Research Australia continues to be committed to advocating for women’s health research. Earlier this year we released a survey to members, and during the next few months we are looking forward to undertaking further consultations with members to inform this work.

——

Research Australia has responded to the Senate Inquiry into issues related to perimenopause and menopause.

Our submission identifies areas in which further research into perimenopause and menopause is required; and where research is needed to improve the understanding of existing evidence on menopause and perimenopause among the medical community, individuals, employers and disadvantaged populations.

Our current knowledge of the symptoms of perimenopause and menopause and their prevalence and impact in the Australian community and economy is patchy. This lack of evidence is impairing the response to perimenopause and menopause in Australia. We recommend a more strategic approach to the funding of research into menopause and perimenopause in Australia to address these gaps.

Research Australia’s submission is available here.

 

2022/23 BUDGET UPDATE- 25 October 2022

Summary

Treasurer Jim Chalmers has used his first Budget to implement some of the new Government’s election promises and make cuts to the former Government’s programs. This is a ‘mini budget’, which sets the scene for Labor’s first full Budget in April or May next year.

As such, there were no significant changes to funding for the ARC or the NHMRC research funding programs in the next two years, with modest increases across a range of funding programs in the following two years . It seems that any major increases in funding health and medical research will have to wait until the Budget situation improves.

The rising cost of living has continued to be a key political issue. In the March Budget, the CPI was forecast to be 3.0% for 2022-23 and 2.75% in 2023-24. In tonight’s Budget inflation for this year is expected to be 7.75% for 2022-323 and 3.5% in the next financial year. Rising inflation also affects health and medical research, making the cost of undertaking research higher. As noted above, the Government has once again failed to address this issue, with increases in funding for the NHMRC and ARC announced in the March Budget and maintained tonight failing to even keep pace with inflation.

Revamping Primary Care

The Treasurer has announced a $2.9 billion package to drive an innovative revamp of Australia’s primary health care system including $100 million to co-develop and pilot innovative models with states and territories to improve care pathways and inform program roll out. The new models of care will make it easier for Australians to see a healthcare professional when they have an urgent, but not life- threatening, need for care.

Comprehensive Cancer Centres

In a win for research-active healthcare, the Government has announced tonight $375.0 million over 6 years from 2022–23 to contribute to the establishment of the Queensland Cancer Centre in Brisbane. The centre will be owned and operated by the Queensland Government and will be located within the Herston Health Precinct at the Royal Brisbane and Women’s Hospital.

There is also $77.0 million over 5 years from 2022–23 to contribute to the establishment of the Bragg Comprehensive Cancer Centre in Adelaide. The centre is an extension of the Australian Bragg Centre for Proton Therapy and Research at the South Australian Health and Medical Research Institute. 

National Centre for Disease Control
The Government is fulfilling its election promise to create a National Centre for Disease Control, with $3.2 million allocated over the forward estimates in preparatory work.

National Health Sustainability and Climate Unit
In a sign of changing health priorities, a $3.4 million investment in the Budget will establish a National Health Sustainability and Climate Unit and develop Australia’s first National Health and Climate Strategy.

 

National Reconstruction Fund
The National Reconstruction Fund is a $15 billion election promise which includes $1.5 billion for medical products over seven years. In tonight’s budget the Government has confirmed this Fund is central to its plan to invest in a stronger economy, delivering better jobs

Other announcements that affect health and medical research and innovation include:

    • $39.0 million over 4 years from 2022–23 to increase the number and consistency of conditions screened through the newborn bloodspot screening
    • The new investment of $3 billion to deliver better aged care includes $23.1m for research and consultation for reforms to in-home aged care.

There are big spending announcements in areas as diverse as Defence and infrastructure. While not on the same scale, there is some good news for STEM, including:

    • $13.5 million over 4 years from 2022–23 to strengthen coordinated policy capability
      to identify, assess and support Australian development of critical and emerging
      technologies, an issue Research Australia has been tracking for some years now.
    • $10.3 million over 6 years from 2022–23 for Australia to host the International Science
      Council’s Regional Presence for Asia and the Pacific and to deepen Australia’s science
      engagement in the region.
    • $5.8 million over 5 years from 2022–23 to support women in science, technology,
      engineering and maths (STEM) through the Women in STEM and Entrepreneurship
      program and to undertake an independent review of existing STEM programs.
    • $4.8 million over 4 years from 2022–23 to develop Australian quantum technology
      through sponsoring up to 20 PhD research scholarships and encouraging collaboration
      on quantum research across Australian universities. This cost will be partially met from
      within the existing funding for the Department of Defence’s Next Generation
      Technologies Fund.

Please read on for our summary of what this Budget means for health and medical research and innovation.

Health Portfolio

In Research Australia’s Pre- Budget Submission and our Pre-Election Statement we continued to call for increases in funding for the NHMRC’s Medical Research Endowment Account. This Budget sees the Government’s funding to the MREA continue to decline in real terms. This is of genuine concern to the health and medical research community; it jeopardises our long term research capability and increases the precariousness of research careers, especially for early and mid career researchers.

Addressing these and other issues are at the centre of Research Australia’s advocacy for a truly national health and medical research and innovation strategy, We are working with Commonwealth, State and Territory Governments to make this vision a reality.

Medical Research Future Fund

The amount of funding available from the MRFF is predicted by the Budget to be $650 million per annum over the next four years. This is unchanged from the March Budget

The funding available from the MRFF each year is dependent on the investment return on its capital. Investment returns for the MRFF were adversely affected by the COVID driven economic downturn. The previous Government has committed the MRFF to providing funding of $650 million of the next few years, regardless of the actual investment returns on the MRFF’s capital. The Albanese Government has honoured this commitment for 2022/23, requiring it to provide an additional $62 million from consolidated revenue to meet this target. (Only $598 million has been released by the Future Fund Guardians to fund MRFF commitments this year.)

NHMRC 

Funding for the NHMRC’s MREA remains unchanged from the March Budget for 2022-23 and 2023-24, but is higher in the last two years of the forward estimates. Funding for the NHMRC’s programs is continuing to grow very slightly. The increase in this financial year is 1.7%, and around 1.5% in the following year before over the forward estimates. This is lower than the forecast CPI of 7.75% for 2022-23 and CPI of 3.5% in 2023-24. It also comes on top of CPI of 4.25% in 2021-22. In effect, NHMRC funding continues to decline in real terms in the next couple of years, as it has done for many years now.

$m. 21-22 22-23 23-24 24-25 25-26
Funding to MREA

2022 Budget (OCT)

 875.751 877.952 905.160 922.365 938.095
Funding to MREA

2022 Budget (MAR)

 863.266 877.952 891.094 905.355 918.985
Funding to MREA

2021 Budget

 863.266 875.362 887.588 899.124 N/A

Australian Centre for Disease Control

Fulfilling an election promise, the Government will provide $3.2 million in 2022–23 to undertake the initial design for the establishment of an Australian Centre for Disease Control. The design work will incorporate stakeholder consultations to ensure the new Centre will support improved pandemic preparedness and response, as well as the prevention of chronic disease. There is no detail about where the Centre will be located or potential partners.

Comprehensive Cancer Centres

The Government will provide $452.0 million over 6 years from 2022–23 to support the establishment of world class cancer centres in Brisbane and Adelaide. The centres will provide multi-disciplinary cancer care, research and clinical trials for all types of cancers.

Centre of Excellence in Disability Health

The Government will provide $15.9 million over 4 years from 2022–23 (and $6.6 million per year ongoing) to establish and support a National Centre of Excellence in Intellectual Disability Health (the National Centre of Excellence). Partial funding has already been provided for, with only some of this funding a new commitment.

The National Centre of Excellence will deliver a central hub of expertise, resources and research on the health care of people with intellectual disability and provide leadership in meeting the needs of people with intellectual disability.

 

Education Portfolio

Nearly half of all Australian health and medical research is undertaken in the higher education sector, and the Department of Education makes a significant contribution to the funding of this research through several programs, as outlined below.

ARC Programs

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

Discovery Program

Over the forward estimates in this Budget, funding is slightly higher than the March Budget from 2023-24. The funding to the ARC for the Discovery Program increases by 0.8% compared to 2021/22, and by an average of 8% per annum over the next two years and 4% in 2025-26. This means that for the first time in many years the Discovery Program is forecast to increase slightly in real terms (i.e. at a rate higher than inflation).

$m. 21-22 22-23 23-24 24-25 25-26
2022 Budget (OCT) 506.735 511.074 551.867 596.388 622.986
2022 Budget (MAR) 489.188 511.074 535.915 562.406 585.206
2021 Budget 489.188 494.922 501.162 509.432
2020 Budget 487.016 487.860 490.610
2019 Budget 525.537 538.350 N/A

Linkage

The ARC Linkage Program had been singled out by the previous Government as an important component of Australia’s innovation system and delivering the Industry Fellows component of the University Research Commercialisation Scheme. Accordingly there is a boost to the Linkage Program’s funding in this Budget of around $11 million per annum compared to what was allocated last year. This is not enough to enable the Linkage program to fund 800 new Industry Fellowships over 10 years announced in February and keep up with inflation.

Linkage Program

$m.  21-22  22-23  23-24  24-25  25-26 
2022 Budget (OCT)  292.543  319.503  345.731  374.289  400.792 
2022 Budget (MAR)  325.454  340.820  357.704  375.595  390.950 
2021 Budget  325.454  329.948  334.109  339.622   
2020 Budget  323.871  325.240  327.074  N/A   
2019 Budget  295.246  301.741  N/A  N/A   

 

Research Support

In addition to providing funding for the ARC research programs, the Department of Education provides funding to universities to help cover the indirect costs of research.

In the 2020 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 was provided in last year’s Budget and funding in the March Budget for 2022-23 was actually lower than was forecast in the 2019 Budget. The October Budget provides increases of around 5% per annum in the Research Support Program from 2023-24.

 

$m.  20-21  21-22  22-23  23-24  24-25  25-26 
2022 Budget (OCT)     930.659  951.188  1004.314  1058.779  1089.934 
2022 Budget (MAR)     930.659  951.188  978.674  1,002.668  1,028.230 
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  1018.879  1042.302  N/A  N/A  N/A   

Funding for the indirect costs of research funded by the MRFF is provided from the Research Support Program. With the MRFF providing hundreds of millions of dollars in funding to universities, 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 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 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 has only partly recovered in the 2022 Budget. The October Budget provides increases of around $50 million per year from 2023-24.

 

$m. 20-21 21-22 22-23 23-24 24-25 25-26
2022 Budget (OCT) 1069.181 1092.766 1153.800 1216.372 1251.497
2022 Budget

(MAR)

 1069.182 1092.766 1124.344 1151.909 1181.153
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

Australia’s Economic Accelerator

The Australia’s Economic Accelerator was a new program announced in the March Budget which was not implemented before the election. The Albanese Government has given a commitment to fund it. This is a $1.6 billion program over 10 years, administered by the Department of Education to overcome the valley of death that currently exists between the point at which public research funding ceases (typically publication) and the point at which commercial investors are prepared to get involved. The funding in the October Budget indicates less finding this year, accounting for delays in starting the program, with slightly higher funding over the forward estimates in subsequent years.

$m. 22-23 23-24 24-25 25-26
2022 Budget (OCT) 10.172 99.444 162.395 159.95
2022 Budget (MAR) 49.160 99.444 149.498 154.601

National Collaborative Research Infrastructure (NCRIS) Program

The NCRIS Program funds vital national research infrastructure needed to support Australian research. The 2021 National Research Infrastructure Roadmap informs the 2022 Research Infrastructure Investment Plan. Areas of interest to HMR that have been nominated for the New NCRIS roadmap include synthetic biology, digital research infrastructure, collections (biobanks) and facilities to scale up materials for clinical trials.

This Budget maintains the forecast $100 million boost to NCRIS from 2023-24 and slightly more funding each following year than was forecast in March. The 2022 Research Infrastructure Investment Plan should provide more detail about how this funding will be allocated once it is completed, hopefully later this year.

$m. 21-22 22-23 23-24 24-25 25-26
2022 Budget (OCT) 273.567 286.043 400.028 499.848 458.338
2022 Budget (MAR) 273.567 286.043 396.826 496.739 454.441
2021 Budget 273.565 283.922 391.092 491.265

Start Up Year

Fulfilling an election promise, the Government will provide $15.4 million over 4 years from 2022–23 (and $2.8 million per year ongoing) to establish the Startup Year program to deliver income contingent Higher Education Loan Program loans to up to 2,000 recent graduates, postgraduate and final year undergraduate students per year. The Startup Year will support students’ participation in a one-year, business-focused accelerator program at an Australian higher education provider, which will encourage innovation and support Australia’s startup community.

Industry, Innovation and Science Portfolio

National Reconstruction Fund

Fulfilling another election promise, the Government will invest $15.0 billion over 7 years from 2023–24 to establish the National Reconstruction Fund (NRF) to provide targeted co-investments in 7 priority areas: resources; agriculture, forestry and fisheries sectors; transport; medical science; renewables and low emission technologies; defence capability; and enabling capabilities.

The NRF is expected to generate revenue from investments, with policy and legislation design to follow public consultation.

$50 million over two years from 2022–23 has been allocated to the Department of Industry, Science and Resources, and the Department of Finance to establish the NRF.

Supporting Australian Science

The Government will provide $47.2 million over 6 years from 2022–23 to support the development of talent and leadership in Australian science and technology. Funding includes:

    • $13.5 million over 4 years from 2022–23 to strengthen coordinated policy capability to identify, assess and support Australian development of critical and emerging technologies
    • $10.3 million over 6 years from 2022–23 for Australia to host the International Science Council’s Regional Presence for Asia and the Pacific and to deepen Australia’s science engagement in the region
    • $10.0 million over 3 years from 2022–23 to continue delivery of Questacon outreach programs to engage young Australians and science teachers in science, technology, engineering and mathematics, including through touring exhibitions for regional, rural and remote communities
    • $5.8 million over 5 years from 2022–23 to support women in science, technology, engineering and maths (STEM) through the Women in STEM and Entrepreneurship program and to undertake an independent review of existing STEM programs
    • $4.8 million over 4 years from 2022–23 to develop Australian quantum technology through sponsoring up to 20 PhD research scholarships and encouraging collaboration on quantum research across Australian universities. This cost will be partially met from within the existing funding for the Department of Defence’s Next Generation Technologies Fund
    • $2.9 million in 2022–23 to improve the Prime Minister’s National Science and Technology Council’s provision of science and technology advice and continue support of the Prime Minister’s Prizes for Science event.

 CRC Program

The Cooperative Research Centre (CRC) Program is important to health and medical research and innovation, with many of the CRCs funded over the 30 year life of the program being health related. Current CRCs include the Digital Health CRC and the Autism CRC.

The smaller CRC projects program is also relevant, with recently funded projects including the creation of better brain electrodes and development of a bionic medical device that delivers high-fidelity visual-spatial perception for blind people. Funding for the CRC Program is scheduled to increase slightly faster than forecast in the 2021 and March 2022 Budget papers.

$m. 20-21 21-22 22-23 23-24 24-25 25-26
2022 Budget (OCT) 187.343

 

 199.374

 

 199.962

 

 205.054

 

 201.579
2022 Budget (MAR) 189.395 199.374 193.117 197.070 193.540
2021 Budget 222.777 189.980 197.815 191.042 193.807 N/A

Modern Manufacturing Initiative

The Modern Manufacturing Initiative was a major announcement in the 2020 Budget and part of the previous Government’s response to COVID-19. The program is being curtailed, with the Government reversing uncommitted funding in the Modern Manufacturing Initiative and not proceeding with a third round of the Manufacturing Modernisation Fund. The saving is $303.7 million over three years.

CSIRO

The CSIRO has Flagship Programs relevant to heath and medical research and is a key collaborator and partner in research. While it generates much of its own revenue it is also funded by the Government. The Government contribution to the CSIRO outlined in the Budget rises in the next two financial years before dropping back again.

 

$m. 21-22 22-23 23-24 24-25 25-26
2022 Budget (OCT) 949.037 991.134 1.005.563 919.405 931.573
2022 Budget (MAR) 949.037 991.289 985.625 899.352 904.477

Conclusion

Research Australia will continue to provide analysis and commentary in the coming days and weeks. We invite your responses and reactions to how the second 2022 Budget affects you and your work.

For further information or questions, please contact Greg Mullins, Head of Policy, greg.mullins@researchaustralia.org

 

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.