Australian research ecosystem ‘chronically underfunded’

Universities’ pre-budget submissions request more funding for overheads, infrastructure and regional research

Australian universities say higher education should be a priority in May’s federal budget, at a time of “global uncertainty”.

In a pre-budget submission published on 2 February, the vice-chancellors’ group Universities Australia emphasised universities’ role in creating skilled workers, alongside the sector’s export earnings.

Top of UA’s wish list is “fixing” the Job-Ready Graduates student fee scheme, followed by increased domestic student places and growth in the international student sector. It also wants a “dedicated infrastructure fund” to modernise facilities to allow expansion and support research.

“Australia’s research ecosystem is chronically underfunded, particularly at the university level,” the submission warned. It noted that around a third of the government’s A$14 billion annual spend on research programmes goes to industry via the R&D Tax Incentive.

“This leaves foundational research—the bedrock of future innovation—largely under-resourced,” UA said, asking for the overall level of government R&D spending to rise from the current 0.52 per cent of GDP to the OECD average of 0.74 per cent.

Joining the EU’s Horizon Europe research and innovation scheme was also recommended. UA warned that the Aukus military cooperation agreement with the UK and the US creates a risk of “over-concentration on a limited set of partners. Horizon Europe, in contrast, would supercharge Australia’s research impact in Europe and the Indo-Pacific, addressing structural weaknesses in mid-stage research translation and enhancing industry engagement.”

Indirect costs

Other university lobby groups also focused on economic returns in their submissions.

The Group of Eight research-intensive universities said that if the government is “serious” about growing the economy and productivity, it should repair the “broken” university research funding system.

The Go8 said the Universities Accord review of higher education and the recent national R&D review made it clear that action is needed.

“Without reform, the deficiencies of the current system will continue to act as an unnecessary brake on Australia’s research and innovation capability, and in turn hamper Australia’s productivity, economic growth and competitiveness.”

Its top request is “a transition toward public funding of university research meeting the full economic costs of research”. This includes all overheads, infrastructure and building maintenance.

“Increasingly, universities are under pressure to cover the indirect costs on top of co-contributions to the direct costs of research. The Go8 estimates that on average A$1.19 is required to support indirect costs of every A$1 of direct research income.”

Australian Bureau of Statistics figures suggest that more than A$13bn is spent annually by universities on direct research costs.

The group said full funding of research would help reduce reliance on international student income. It also urged the government to provide funding to support association to Horizon Europe.

Regional fund

The Regional Universities Network told the government that university places in the regions have not kept up with population growth.

Run also warned of research activities being “increasingly concentrated” at large city-based universities, and it called for a ringfenced regional research fund. “This growing concentration of research talent and infrastructure represents a vulnerability in the diversity, accessibility and culture of Australia’s research ecosystem.”

The group, representing six universities, said it wants the Australian Tertiary Education Commission to be expanded to include commissioners with regional expertise, and to have sufficient resources to negotiate “bespoke compacts” with universities to meet their needs.

Regional universities have “distinct social missions” and need a dedicated infrastructure fund to address a backlog of work, Run said. This includes research infrastructure, educational facilities and digital capacity.

“Regional universities continue to undertake the nation’s heavy lifting in terms of meeting the 2050 equity attainment targets of the Australian Universities Accord,” it said.