Investing in innovation

Innovation is critical to Australia's growth and its ability to fully confront both current and emerging economic, social and environmental challenges. In light of the review of the National Innovation System, the Government is undertaking a number of reforms involving a $2.4 billion investment.

Improving research quality

Recognising the importance of adequately funding the indirect costs of university research, the Government will provide an additional $512 million to support research excellence in universities. The Government will also provide $36 million to improve university research standards through

the Excellence in Research for Australia initiative. Postgraduate students and researchers will also benefit from an extra $79 million in support.

Investing in critical research infrastructure

The Government will provide $901 million from the Education Investment Fund (EIF) for the Super Science initiative, to support the development of key future industries. A further $322 million from the EIF will provide for a range of research projects.

Encouraging business innovation

To strengthen incentives for business to invest in research, the Government will introduce a simplified research

and development tax credit to replace the current research and development tax concessions. This effectively doubles the support for innovative small and medium‑sized firms, while improving incentives for smaller firms in tax loss. Funding of $196 million will be provided to establish the Commonwealth Commercialisation Institute to support business in realising the benefits of research.

Investing in enabling technologies

The Government will provide $46 million to build our capacity in future technologies, including through the development of a National Enabling Technologies Strategy.