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The Federal Budget is revealed to Australia on the third Tuesday night in May each year.
The Budget papers outline government spending for the next 4 years, highlighting where investments will be made.
For Australia’s science sector, there was a mixed bag of Budget measures, including increased investment and cuts to major research programs.
SPENDING ON SCIENCE
The headline figure for science this year was a $1.5 billion investment in research and science institutions, including funding to create a National Resilience and Science Council.
The council is designed to better coordinate research and development investment and ensure it remains aligned with Australia’s economic goals.
More than $387 million was announced for national science agency CSIRO, while just over $21 million was allocated to the Australian Space Agency.
The government also pledged $589 million to support Australian clinical trials and $508.5 million for the Medical Research Future Fund, which supports health and medical research.
Reforms to the Research and Development (R&D) Tax Incentive were also outlined, aiming to simplify the scheme and better support businesses involved in R&D.
Taking effect from 1 July 2028, the changes will provide stronger financial incentives for businesses to spend on R&D activity.
The reform was backed by a range of peak bodies and companies, including the Business Council of Australia and hearing implant company Cochlear.
Despite the long list of investments, there were also notable cuts.
NOT ENOUGH FOR FUTURE GROWTH
The largest cut was to Australia’s Economic Accelerator, created to support research commercialisation programs.
The grant program will be axed, with $800 million in funding redirected towards other research activity.
The Budget papers also confirmed that the Trailblazer Universities Program will be scrapped and $67 million will be cut from the National Environmental Science Program.
The reaction from industry has been pointed.
The Australian Academy of Science stated that the 2026–27 Budget “falls well short” of reversing a decade of underinvestment in a media release.
Meanwhile, Universities Australia warned the nation will not become “more productive or competitive by investing less”.
As with every Federal Budget, there will be winners and losers. Only time will tell whether Australia’s science sector benefits from this year’s fiscal plans.
