MRFF’s 10-year anniversary overshadowed by funding shortfalls

The Medical Research Future Fund (MRFF) yesterday marked its 10-year milestone, celebrating a decade that has seen more than 1,690 research projects supported across the country. Yet, concerns over the distribution and utilisation of MRFF funding are once again in the spotlight.

The MRFF traces its origins back to a 2011 review of the health and medical research system led by Simon McKeon, then Australian of the Year and former CSIRO Chair. Established by legislation in 2015, the MRFF is an investment fund with earnings channelled into health and medical research. While the Health Minister oversees disbursements, decisions are guided by an independent advisory board that sets the MRFF Strategy and Funding Priorities under a 10-Year Investment Plan.

Independent MP for Kooyong, Dr Monique Ryan, recently revived warnings long voiced by Research Australia and the Association of Australian Medical Research Institutes (AAMRI).

While the Future Fund Board of Guardians determined that $973 million would be available for grants under the MRFF in 2024–25, the Federal Budget capped disbursements at $650 million. A similar shortfall was seen in 2023–24, when $870 million was available yet only $650 million allocated. Since its inception, the MRFF has generated around $7.3 billion in earnings, but only $3.3 billion has been directed to research, fuelling concerns about the underutilisation of its potential.

At the same time, structural funding gaps are placing research institutions under strain. Unlike international counterparts, the MRFF provides no support for indirect research costs. In NSW, indirect costs reach 69 cents for every dollar of direct research, yet the state contributes just 15 cents – covering only 22% of the burden. VIC faces a similar challenge, with indirect costs of 48 cents per dollar but state support of only 7 cents, or 15%.

By contrast, the UK covers over 80% of indirect research costs, the US covers them in full, while Singapore and the EU contribute between 20%–30% and 25% respectively. The imbalance, described as financially unsustainable, has now been formally acknowledged in the recently released draft National Health and Medical Research Strategy.

Mark Butler MP, Minister for Health, Ageing and Disability, said “The 10-year anniversary of the MRFF is a significant milestone and a reminder of its enduring impact on Australian health and medical research. It has already had a huge impact on the lives of Australians, with many thousands more set to benefit from groundbreaking work.”

However, it remains too early to assess the full impact of MRFF funding. The first survey tracking its performance indicators, released in December 2024, showed that 85.6% of projects are still underway. As a result, the long-term benefits for health outcomes, healthcare delivery, and commercialisation are yet to be fully realised.

Clinical trials form a significant share of MRFF activity, with more than half of funded projects in this category. Of these, 58.7% are taking place in rural, regional, and remote locations. Cardiovascular disease, cancer, and mental health top the list of research areas, while nearly half of MRFF-funded trials (45.7%) are in later-stage phase 3 or 4 trials.

Health and medical research represents 26% of Australia’s total R&D activity. Although government investment in R&D continues to sit below the OECD average, the sector’s economic case is undeniable: every dollar invested in medical research generates an estimated $3.90 in return.

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