Yesterday’s Federal Budget was delivered amid an increasingly unpredictable geopolitical and trade landscape, as Australia also confronts the ongoing challenges posed by climate change, pandemics, and chronic disease.
The Budget passed down by Treasurer Jim Chalmers took steps towards acknowledging that emerging global risks and the evolving security environment are increasingly intertwining Australia’s economic and national security.
These steps include funding to decarbonise heavy industries and build competitiveness, and trade diversification measures such as $16 million for a new Australia-India Trade and investment Accelerator Fund.
However, the Australian Academy of Health and Medical Sciences notes that the 2025-26 Budget did not fully leverage one of Australia’s key assets for economic diversification and national resilience: research and innovation.
“Health and medical research is not just about better health outcomes – it’s a powerful driver of innovation, jobs, and economic growth. Strategic investment in the health and medical sciences can diversify Australia’s economy and build our national resilience in the face of global uncertainty,” said Professor Louise Baur AM, PresAHMS.
With research consistently showing that every dollar invested in Australian health and medical research delivers an estimated $3.90 return, the Academy emphasises that investing in health and medical research is an investment in economic growth. However, Australia’s real terms investment in health and medical research is in decline, and we continue to fall behind the UK, the US, and key Asian economies.
“As Australia navigates an increasingly complex international landscape, it must leverage health and medical research as a strategic asset – critical not only for managing emerging health threats, but also for safeguarding our national prosperity and security,” Professor Baur added.
The Academy will continue to work with policymakers and stakeholders to ensure the health and medical research sector is adequately resourced and enabled through mechanisms such as the emerging National Health and Medical Research Strategy and the Strategic Examination of Research and Development.
Media: Khaled Chakli: [email protected] (0423 099 568)