The 2026–27 Budget must mark a turning point in Australia’s long-running decline in research and development (R&D) investment, or risk lasting damage to the nation’s economy, security and living standards, according to the Australian Academy of Science.
Academy President Professor Chennupati Jagadish AC said science and technology are not luxury investments in an era 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 said.
“Science and technology are today’s currency of power and prosperity. What the Government chooses to prioritise in this Budget will shape Australia’s future for decades.
“Long-term business underinvestment in R&D, plummeting competitive grant funding and mounting resourcing pressures for research agencies are not isolated issues.
“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.”
The Academy is urging the Government to commit to a 10-year national R&D investment plan that brings government, business and the higher education sectors together to rebuild Australia’s R&D capability and restore international 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 said.
The Academy also warned that Australia is falling behind global competitors without urgent investment in next-generation high-performance computing and data infrastructure, which underpins artificial intelligence, quantum technology development, weather forecasting, climate modelling, agriculture advances, health, 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 said./p>
The Academy also urged the Government to strengthen national science advice by bolstering the National Science and Technology Council, so all ministers have rapid access to independent, expert evidence.
“Science must inform decision-making if Australia is to navigate complex economic, environmental and security challenges,” Professor Jagadish said.
Read all the Academy’s recommendations in its submission
The Academy has also co-published a separate pre-Budget submission calling on the Australian Government to develop a national indoor air quality strategy and establish a multidisciplinary advisory council to oversee the strategy.
© 2026 Australian Academy of Science
