January 30, 2026
The Group of Eight (Go8) has made clear that the 2026-27 Federal Budget is a critical test of the Government's commitment to productivity, innovation, and long‑term economic growth, outlining three decisive actions required to stabilise and strengthen Australia's research system.
Go8 Chief Executive Vicki Thomson said two major, independent reviews had provided an undeniable evidence base.
"The evidence is in. Australia's research funding system is broken, financially unsustainable, and a direct impediment to national productivity
"The Government now has a responsibility to fix the system it relies on for Australia's innovation, health outcomes and economic strength."
Key priorities:
1. Start the transition to funding the full economic cost of research (FEC)
Universities currently shoulder the indirect costs of research-energy, infrastructure, maintenance-because public grants fail to meet the actual cost of delivering world‑class research.
"Every time a research grant is awarded, universities must top it up from other revenue, including international student income. That model is not viable, and it is holding Australia back.
The Go8 submission outlines the need for a national, transparent costing model and a Budget‑beginning transition to FEC.
2. Remove the $650m MRFF cap and unlock up to $1 billion for medical research each year
Despite authorising more than $1 billion in annual disbursements, the Government continues to release only $650 million through the MRFF.
"The MRFF is accumulating billions while Australians face rising health challenges. Holding back these funds is a false economy – the cost of delayed research is paid in poorer health and lost productivity," Ms Thomson said.
Every $1 invested in medical research returns $3.90 to the economy. Australia has already forgone an estimated $4 billion in benefits due to recent under‑spending.
3. Fund Australia's associate membership of Horizon Europe
Horizon Europe is the world's largest collaborative research and innovation program (budget €175 billion from 2028-2034). Limited access has left Australia on the sidelines of major global partnerships.
"Associate membership gives Australia a seat at the table in the world's most significant research program. The opportunities are too large-and too aligned with our national interests-to ignore," Ms Thomson said.
The Go8 Budget recommendations represent sound investments that will contribute to Australian's future social and economic prosperity.
"These reforms are nation‑building investments. They will strengthen Australia's economic base, accelerate innovation, and support a healthier, more prosperous Australia."
Read the Group of Eight 2026-27 Pre-Budget Submission.
