The 2026-27 federal budget recognises the difficult economic environment facing the government, but it comes at a time when Australia cannot afford to take its foot off the accelerator on skills, research and innovation.
"We understand the government is operating in a tight fiscal environment and trying to ease pressure on inflation while lifting productivity and growing the economy," Universities Australia Chair Professor Carolyn Evans said.
"But Australia will not become more productive or competitive by investing less in the people and institutions that drive productivity.
"This budget contains a package of measures to boost research, development and innovation, which we welcome.
"The establishment of a National Resilience and Science Council, steps toward greater research specialisation, measures to incentivise startups to engage in and commercialise research, the commitment to Horizon Europe and a boost to the Medical Research Future Fund are all very positive.
"What's critical is that investment in research and development continues to grow so that Australia can reverse its long-term decline in R&D investment and lift national productivity."
Universities Australia Chief Executive Officer Luke Sheehy universities educate the workforce, power research and innovation, and help create the new industries and jobs Australia will rely on in the future.
"We welcome the focus on R&D in the budget, but it can't simply come from moving funding from one pot to another," Mr Sheehy said.
"Universities are bearing the brunt of increased regulation and costs at a time when investment in teaching and research is not keeping up.
"It's disappointing to see no further investment in the Australian Universities Accord and only a partial response to the Strategic Examination of Research and Development in this budget.
"The decision to axe Australia's Economic Accelerator, in particular, is deeply disappointing and sends the wrong signal at exactly the wrong time.
"The AEA was designed to help turn Australian research into Australian companies, Australian industries and Australian jobs. You cannot talk about building a Future Made in Australia while cutting one of the country's key research commercialisation programs.
"We do welcome the government's continued investment in the CSIRO, but our university researchers also deserve funding stability and certainty, and this budget rips $800 million away from them.
"Our system can't do more of the heavy lifting with less.
"The budget also misses the opportunity to fix the Job-ready Graduates Package - a failed, broken system that continues to push up costs for students while stripping billions out of university funding.
"We understand the fiscal pressures facing the government and the need for budget restraint, but investing in universities is not spending for spending's sake.
"Investing in Australia's universities is investing in productivity, economic growth, better jobs, stronger industries and higher living standards for Australians.
"These are all returns on investment every Australian expects from the federal budget, and this budget shows there is more work to do."
