Research grant funding must be inflation-indexed: Science and Technology Australia
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The news: Science and Technology Australia (STA) is calling on the federal government to index its funding for research agencies and grant programs to CPI, according to the professional association’s 2026-27 pre-budget submission.
The numbers: Australia’s gross expenditure on research and development as a proportion of GDP was 1.7% in 2023-24, which is below the Organisation for Economic Cooperation and Development average of 2.7%.
The group argues that while government funding for STEM research has increased over time, it is not keeping up with inflation. The cost of most essential supplies have increased 20% – 75%, with the cost of some materials up by 400% post-Covid.
The context: As such, the STA is calling for grant funding for the federal government’s Australian Research Council and the National Health and Medical Research Council to receive CPI-adjusted increases.
The group also wants Research Block Grants — paid to universities based on their relative performance in attracting non-government research and development income — to be indexed to inflation.
The submission also recommends that Medical Research Future Fund disbursements be increased “toward the annual distribution amount” and that publicly funded research agencies be “adequately and sustainably resourced”.
Beyond research funding, the STA is calling for an uplift in PhD stipends to prevent the loss of STEM talent and investment in upskilling teachers to improve STEM performance and participation in schools.
What they said: “Death by a thousand cuts must be prevented. Small cuts — and the impacts of stagnating funding levels — accumulate into systematic dismantling of research capability,” the STA’s pre-budget submission reads.
“Programs supporting early-career researchers, emerging businesses, and translation pathways — precisely what's needed for commercialisation and building new industries — are often first casualties of budget pressure. Once critical mass is lost, the entire innovation system becomes unviable.”
The sources: STA 2026-27 pre-budget submission, STA media release
