Commonwealth government axes $800m research commercialisation program
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The news: The federal government has axed the remaining unallocated $800 million from Australia’s Economic Accelerator (AEA) program, which provided grants to drive the commercialisation of research.
Finance Minister Katy Gallagher told journalists on Friday morning that the funding would be “redirected to support Australian science and research measures”.
The numbers: The program was conceived of under former prime minister Scott Morrison in February 2022. It was initially intended to be a $1.6 billion program in the 10 years to 2032 and was then launched under the Albanese government in 2023.
The program committed more than $240 million in grants to about 400 research commercialisation projects.
In FY25, the federal government’s investment in R&D is expected to come in at $15.1 billion.
The AEA cut was made as the Australian Bureau of Statistics found that higher education expenditure on research and development reached $16.4 billion in 2024, 17% higher than the previous reference period in 2022.
The context: New projects will not be funded under the AEA beyond FY25 as “part of the Australian government’s commitment to responsible economic management and essential Budget repair”, according to the AEA website.
Finance minister Katy Gallagher announced the cut alongside a slew of budget savings and reprioritisations on Friday morning.
No changes will be made to current AEA grant milestones, payments and reporting requirements and projects are expected to be delivered in full.
What they said: Science and Technology Australia CEO Ryan Winn, who represents scientists and technologists in Australia, said “change to the research and development system is necessary, but it needs to come with certainty and a plan”.
“At the moment we have no plan and no clarity on where this money is going. I’m worried we’re throwing out the baby with the bathwater. This is such a waste of researcher’s time, who have submitted applications for a program that’s now being scrapped,” he said.
“I’m worried that we’re turning off the tap, while we wait 12 months for the design of a program. Meanwhile some projects will be left dead in the water.”
The sources: AEA website, Jim Chalmers and Katy Gallagher joint press conference
