February 02, 2026
The 2026–27 Budget must mark a turning point in Australia’s long-running decline in analysis and improvement (R&D) investment, or danger lasting injury to the nation’s financial system, safety and residing requirements, in line with the Australian Academy of Science.
Academy President Professor Chennupati Jagadish AC mentioned science and know-how are usually not luxurious investments in an period of mass technological, geopolitical and environmental disruption.
“The Strategic Examination of Research and Development (SERD) was designed to deliver a blueprint for an efficient and effective R&D system needed to serve our national interests. We call on the Government to embrace this once-in-a-generation opportunity and start R&D system optimisation in this Budget,” Professor Jagadish mentioned.
“Science and know-how are as we speak’s forex of energy and prosperity. What the Government chooses to prioritise on this Budget will form Australia’s future for a long time.
“Long-term enterprise underinvestment in R&D, plummeting aggressive grant funding and mounting resourcing pressures for analysis businesses are usually not remoted points.
“They are clear signs of a system at breaking point. Reversing more than 10 years of decline will take multiple budgets. But it must start with this one.”
An extended-term plan, beginning this Budget
The Academy is urging the Government to decide to a 10-year nationwide R&D investment plan that brings authorities, enterprise and the upper training sectors collectively to rebuild Australia’s R&D functionality and restore worldwide competitiveness.
“The Academy recognises the budget pressures this Government is under, and that’s why we have proposed establishing a budget-positive research fund supported by revenue from a temporary R&D levy on large businesses, discounted for companies that invest in R&D. This could raise between $2 and $12 billion for research,” Professor Jagadish mentioned.
Supercomputing in danger
The Academy additionally warned that Australia is falling behind world rivals with out pressing investment in next-generation high-performance computing and knowledge infrastructure, which underpins synthetic intelligence, quantum know-how improvement, climate forecasting, local weather modelling, agriculture advances, well being, and cybersecurity.
“Australia’s supercomputing capacity is ageing, oversubscribed and nearing end of life, with no plan for replacement. Australia’s sovereign computing capability is at risk,” Professor Jagadish mentioned./p>
Science recommendation on the centre of presidency
The Academy additionally urged the Government to strengthen nationwide science recommendation by bolstering the National Science and Technology Council, so all ministers have speedy entry to unbiased, professional proof.
“Science must inform decision-making if Australia is to navigate complex economic, environmental and security challenges,” Professor Jagadish mentioned.
Read all the Academy’s recommendations in its submission
The Academy has additionally co-published a separate pre-Budget submission calling on the Australian Government to develop a nationwide indoor air high quality technique and set up a multidisciplinary advisory council to supervise the technique.