There are positives, particularly for medical research and for Australian researchers’ access to global funding. One key challenge remains unresolved is that a contracting research funding environment tends to disproportionately disadvantage early-career researchers and those from underrepresented groups. This budget does not fully resolve that pressure.
Horizon funding — opportunities await
On a positive note, the budget included funding for Australia’s association with Horizon Europe. Treaty negotiations concluded last week, putting Australia on track to access the $155b research program, the world’s largest, from next year. SAGE members are well positioned here, as Horizon funding access includes gender equity prerequisites. While many SAGE members already meet these requirements, we are developing guidance to help those earlier in their SAGE Athena Swan journey to identify gaps and qualify for Horizon funding.
Medical research: progress, with caveats
The government committed to lifting the Medical Research Future Fund (MRFF) cap from $650 million annually to $1 billion by 2030-31, with $508.5 million in additional funding over four years. The MRFF has been frozen at $650 million since 2018-19 despite the fund growing to nearly $25 billion in capital. The sector had advocated for the full $1 billion to flow from the next financial year, however, the budget papers show funding reaching only around $745 million by 2029-30. A significant jump would still be required in the final year to meet the stated target. The additional funds also sit in the Contingency Reserve pending finalisation of the National Health and Medical Research Strategy. Progress, but incomplete.
Mixed signals for the broader research sector
The budget funded a $387 million boost for CSIRO and the establishment of a National Resilience and Science Council, which will work to consolidate a fragmented science system and ensure science is central to government decision-making. Defence was among the biggest STEMM winners, with a $53 billion lift in spending over the next decade, requiring significant growth in STEMM skills.
Against these positives, the $760 million Australia’s Economic Accelerator program, which funded commercialisation of university discoveries, was cancelled. The National Universities Accord received no additional funding, leaving questions about the pace of implementation of the government’s long-term higher education reform agenda.
TAFE and gender segregation
In the TAFE sector, the Advancing Gender Equality in Gender Segregated Industries Grant Program has been extended to 2028, with $28.5 million allocated over the next two years. This directly supports the policy environment in which SAGE’s TAFE accreditation work is being developed.
Women’s budget statement
The Government’s fifth Women’s Budget Statement announced no new initiatives for workplace gender equity but highlighted existing measures including investment in the child support system and expansion of paid parental leave to 26 weeks. These are meaningful steps toward greater equity and will help improve economic stability and workforce participation for women and marginalised groups.
A concern for the sector: the AHRC funding cut
The Australian Human Rights Commission has had its funding cut by around 30%. For SAGE members this is not an abstract governance matter. The AHRC is a key pillar of the positive duty framework that member institutions must navigate and that monitors the legal obligation to proactively prevent sex discrimination and harassment in the workplace. A significantly under-resourced regulator has consequences not just for enforcement but for the guidance, tools and support that institutions rely on to meet their obligations. SAGE will continue to monitor the implications for our members and provide guidance as the situation becomes clearer.
