Research on life support as government Budget fails to deliver critical funding

Stakeholders are voicing disappointment over the government’s Budget failure to at least maintain research funding in line with inflation. In real terms, funding has gone backwards – leaving critical research at risk.

“We cannot continue to ignore the building blocks of our healthcare system. These are tough economic times, and our institutes have been fighting hard to plug holes any way they can, but when funding is going backwards in the budget, where does it leave us?” questioned Dr Saraid Billiards, CEO of the Association of Australian Medical Research Institutes (AAMRI).

According to Research Australia, this year presents a vital opportunity to tackle the systemic challenges undermining the research sector, with the government developing the National Health and Medical Research Strategy alongside the Strategic Examination of R&D. But that opportunity is slipping away.

“A whole-of-systems approach to reforming the health and medical research and innovation sector is crucial. It is disappointing that this year’s Budget is not demonstrating the bold and ambitious reform or smarter investment needed for the health and medical research and innovation sector to continue to thrive now and into the future,” emphasised Nadia Levin, CEO & Managing Director of Research Australia.

With the sector on shaky ground, Research Australia is calling for a firm, bipartisan commitment to advancing both the National Strategy and the Strategic Examination of R&D in the next Parliament – ensuring not just their development, but the necessary funding to implement these long-overdue reforms.

The warning signs are already flashing red. AAMRI has spent years highlighting the growing funding gap faced by medical research institutes. Now, fresh economic modelling suggests many medical research institutes in Victoria could be forced to shut down by 2029 – an ominous preview of what may unfold across the country.

At the heart of the crisis is a broken funding model: government grants only cover part of the actual cost of conducting research, forcing institutes to shoulder an ever-expanding financial burden. That gap continues to widen, leaving the future of Australian medical research hanging by a thread.

“The plan to build Australia’s future isn’t much of a plan without medical research,” said Dr Billiards.

Without decisive action, Australia risks losing its global standing in medical research and innovation. Science & Technology Australia CEO Ryan Winn reiterated that the “Strategic Examination of R&D, development of a Health and Medical Research Strategy and a new National Research Infrastructure Roadmap are of critical importance in mapping Australia’s STEM R&D needs. Together, these must address the urgent imperative to invest deeply to safeguard the nation’s future.”

Australian Academy of Science President, Professor Chennupati Jagadish, warned “Just-in-time funding for Australia’s research agencies does not deliver the secure, long-term investment in science capability that Australia needs for the future. A newly elected government must act decisively to protect Australia’s strategic research capability.”

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