The Rudd Labor Government will accelerate the growth of high-tech jobs and industries by investing $3.1 billion in public and private sector research and development over the next four years.
The significant new funding delivered in this Budget will lift Australian Government investment in science and innovation by almost 25 per cent between 2008 09 and 2009 10 – from $6.9 billion to $8.6 billion.
This investment will generate inventions and discoveries that we can sell to the world and apply at home to improve the lives of all Australians. It will help us tackle climate change and modernise the Australian economy, creating high-skill, high wage jobs for the future.
It includes (new funding amounts for five years from 2008-09 to 2012-13):
More support for world-class university research
The Government will invest $703.1 million to increase the capacity of Australia’s universities to develop the ideas and technologies needed to build new industries and increase the wellbeing of individuals, families and communities. Specific measures include:
- $512.0 million for the Sustainable Research Excellence in Universities initiative to help address the gap in funding for indirect research costs (augmenting and reforming the Research Infrastructure Block Grants Scheme, and more than doubling the level of support over time);
- a new Joint Research Engagement program, replacing the Institutional Grants Scheme, to support research between universities, industry and end users;
- $52.0 million to establish Collaborative Research Networks;
- $51.7 million to increase the Australian Postgraduate Award stipend by over 10 per cent from $20,427 in 2009 to $22,500 a year in 2010; and
- $35.8 million for Excellence in Research for Australia, which will guarantee the quality of Australian research and ensure that Australian taxpayers get value for money; and
- $51.6 million to replace the current inadequate indexation arrangements for research block grants from 2012 with an index that better recognises the cost pressures on Australian universities.
A new Super Science Initiative to explore the knowledge frontier
- $160.5 million for Super Science: Space and Astronomy – to reinforce Australia’s leadership in a field that inspires us with wonder and delivers practical applications for a growing international market;
- $387.7 million for Super Science: Marine and Climate – to tackle the most pressing environmental challenges of our time and unlock the hidden wealth of Australia’s vast ocean territory;
- $504.0 million for Super Science: Future Industries – to support research infrastructure for biotechnology and nanotechnology, including the supercomputing capacity needed to deliver cutting-edge research in the 21st century;
- $27.2 million for 100 new Super Science Fellowships for early-career researchers; and
- an extra $11.3 million in support for Questacon to strengthen and improve its science and education facilities and boost its highly successful outreach and communications program.
More support for Australia’s business innovators
- access for business to an estimated $1.4 billion per year through a simpler tax incentive for R&D, by replacing the current R&D Tax Concession with a Tax Credit – doubling the level of support for innovative small businesses;
- $65 million for a transitional R&D tax measure, to support high technology start up firms during the global downturn by increasing the R&D expenditure limit for the R&D Tax Offset from $1.0 million to $2.0 million for 2009-10;
- $196.1 million for an innovative Commonwealth Commercialisation Institute to help translate great ideas into products and services;
- a retargeted TCF Innovation Package to renew the textiles, clothing and footwear sector, with an extra $55.0 million to support innovation, including $10.0 million in new funding (from 2010-11 to 2014-15);
- $14.7 million to continue the successful Support for Industry Service Organisations Program to underpin the work of Standards Australia and the National Association of Testing Authorities; and
- the reallocation of $83.0 million, announced in March, for the Innovation Investment Follow-on Fund to support companies relying on early-stage venture capital funding, in an environment where capital for high-risk sectors has dried up.
Infrastructure
The significant infrastructure investments under the Super Science initiative are complemented by:
- the $802.0 million in new funding for universities and research organisations under Round Two of the Education Investment Fund, including $321.7 million for research infrastructure, which complements the $1.58 billion the Rudd Government has invested in university infrastructure since early 2008;
- $400.0 million under the Clean Energy Initiative to ensure that Australia continues to build its research and development capacity in the critical area of clean energy generation; and
- establishing a new National Research Infrastructure Committee to coordinate future infrastructure decisions.
Other measures
Other measures in the Innovation, Industry, Science and Research portfolio include:
- $92.8 million for the Australian Research Council to support the Government’s total commitment of $185.5 million from 2011 12 to 2014 15 for National ICT Australia to continue its world-class information and communications technology research and commercialisation activities;
- $50.0 million for home-grown researchers to develop a bionic eye, making better vision an increasing likelihood;
- $15.0 million to support the establishment of the Royal Institution of Australia as a national science exchange; and
- $15.0 million for bushfire research – to better understand and manage the threat of fire to life and property.
To maintain a responsible approach to Budget management, the Government will phase down the payment rate under the LPG conversion scheme, which has experienced a considerable cost blow-out since it was introduced by the previous Government.
The scheme will continue to help families and stimulate the production of greener cars by:
- maintaining the $2,000 rebate for LPG systems fitted at the time of manufacture – in line with the Government’s commitment in its New Car Plan for a Greener Future; and
- providing rebates for post-factory conversions at the following rates:
- $1,750 for conversions 1 July 2009 and 30 June 2010;
- $1,500 for conversions in 2010-11;
- $1,250 in 2011-12; and
- $1,000 in 2012-13 and 2013-14.
Media contact: Catriona Jackson, Minister’s Office, 0417 142 238