Australia’s health and medical research sector is experiencing financial strain and workforce decline, according to multiple reports and expert statements. Key concerns include stagnating funding growth, low grant success rates, and a discrepancy between the size of the Medical Research Future Fund (MRFF) and the amount currently being disbursed.
Funding Levels and Growth
In the 2023-24 financial year, Australia spent an estimated US$5.3 billion (AUD 7.6 billion) on health and medical research, according to the National Health and Medical Research Strategy 2026-2036, released by the Department of Health, Disability and Ageing. The federal government provided approximately US$4.1 billion (AUD 5.9 billion, or 77.2% of total spending), state and territory governments contributed US$839 million (AUD 1.2 billion, 15.4%), and the non-government sector contributed US$419 million (AUD 600 million, 7.4%).
The average annual real funding growth over the past decade was just 1.4%, which is reported to be below the rising costs of conducting research.
The Strategy warns that independent research institutes are becoming financially unsustainable, as indirect research costs are growing faster than the block grants provided to cover them.
Grant Success Rates and Workforce Impact
Success rates for government-funded research grants are declining. Data from the National Health and Medical Research Council (NHMRC) indicates that 91.9% of applications for its annual "ideas grants" were unsuccessful in the most recent round. Professor Andrew Coats, scientific director and chief executive of the Heart Research Institute, stated that recent grant rounds have had a success rate of one in ten.
This environment has been cited as a factor in workforce attrition. The Australian Health and Medical Research Workforce Audit reported that more than 60% of researchers left active roles between 2019 and 2024. Researchers and sector leaders attribute this to job insecurity related to funding difficulties. For example, skin cancer researcher Dr. Rehan Villani and immunology researcher Hamish McWilliam have cited funding difficulties as reasons for leaving or pausing their research careers. Professor Coats stated he has observed researchers abandoning their careers due to low grant success rates and advises against pursuing a career in medical research due to related insecurities.
Medical Research Future Fund (MRFF) Discrepancy
The Medical Research Future Fund (MRFF) was established in 2015 with the intention of disbursing $1 billion annually once it reached a $20 billion valuation. The fund reached this benchmark in 2020 and has since grown to over $25 billion. Despite exceeding its original target, the federal government currently releases just $650 million per year from the fund.
A spending cap, introduced in 2022 by the then-Morrison government, limits disbursements to $650 million per year until 2032-33. Proponents of the cap argue it promotes sustainable growth and shields disbursements from market fluctuations. Critics, including federal crossbench MPs, universities, and research sector bodies, argue that the cap is depriving the sector of needed funding.
Proposed Policy Responses
The National Health and Medical Research Strategy 2026-2036 recommends several changes to address the funding environment. These include:
- Establishing a dedicated Commonwealth funding stream for high-risk, high-reward discovery research using a "fail-fast" approach.
- Implementing a consistent approach to supporting indirect research costs across the Medical Research Endowment Account (MREA) and the MRFF.
- Creating a unified executive agency to oversee both funds, while preserving their distinct purposes.
Parliamentary Budget Office costings, commissioned by independent MP Monique Ryan, suggest that annual MRFF disbursements could be raised to $1.4 billion without reducing the fund's base level below $24.5 billion over the next decade.
Health Minister Mark Butler stated that the health and medical research budget has grown significantly over the past 15 years. He confirmed that the government is reviewing a report submitted on the matter and acknowledged calls from the sector for larger disbursements from the MRFF. The National Health and Medical Research Strategy will be considered by the government, with the Implementation Roadmap proposing a phased rollout.