Position Australia as a global leader in medical research

Fund health and medical breakthroughs by increasing the National Health and Medical Research Council budget by 30% to cover the full costs of research, both direct and indirect costs.

Independent public health and medical research are critical drivers of health innovation, improving health outcomes, reducing healthcare costs, and enhancing the overall quality of life for all Australians. Medical research from 1990 to 2004 delivered net present gains of $78 billion – $52 billion in health gains and a further $26 billion in wider economic gains.10

In a time of unprecedented health challenges, including the ongoing impact of the COVID-19 pandemic, the rising burden of noncommunicable diseases, and emerging health threats such as climate emergency, investing in robust and sustainable public health and medical research is essential.

Australia’s research community has consistently demonstrated capacity to deliver world-leading medical and public health innovations, advancing both national and global health. One of the most striking examples is the development of the human papillomavirus vaccine, which has positioned Australia to become the first country to eliminate cervical cancer. This achievement exemplifies how investment in public health and medical research can lead to transformative improvements in public health, as well as economic and social benefits.

Despite government support, funding levels have not kept up with the increasing cost of research. This jeopardises global leadership and international partnerships, and has implications for medical research workforce, technology and drug development, as well as medical device manufacturing and industry research and development (R&D) which rely on collaborations with medical research institutes.

Data from the Association of Australian Medical Research Institutes (AAMRI) reveals that for every dollar received through government grants, an additional 64 cents is required to cover the full costs of research, pushing the financial viability of the medical research institute sector to a crisis point. For example, in 2023, medical research institutes had to find an extra $42 million to cover salary gaps, as National Health and Medical Research Council (NHMRC) grants don’t provide enough to meet the minimum legal salary requirements, and unlike NHMRC’s Independent Research Institute Infrastructure Support Scheme (IRIISS), Medical Research Future Fund (MRFF) grants offer no support for the indirect costs of research at independent medical research institutes.11 We support AAMRI’s call for increased investment in health and medical research to cover the full costs of research; a national health and medical research workforce plan to support commercialisation and attract and retain the best talent; and increasing R&D investment to 3% of GDP to fund the next generation of medical breakthroughs.

Read the full statement to learn more.

References:

10 KPMG 2018. Economic Impact of Medical Research. https://aamri.org.au/wp-content/uploads/2018/10/Economic-Impact-of-Medical-Research-full-report.pdf
11 Association of Australian Medical Research Institutes 2024, ‘AAMRI Report 2024’ https://aamri.org.au/resources/aamri-reports/2024-aamri-report

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Date published: Node Type: policy practice report