What can the 2025–26 SRI Budget Tables tell us about Australian Government investments in science, research and innovation?

Read analysis on the 2025–26 SRI Budget Tables.

The 2025–26 Science, Research and Innovation (SRI) Budget Tables show the Australian Government will invest $15.1 billion in research and development (R&D) in 2025–26. This is 1.4% higher than the $14.9 billion allocated in 2024–25 (DISR, 2025). 

The SRI Budget Tables are published annually after the delivery of the federal Budget. They capture government investments in R&D and other science, research and innovation activities. The publication follows the methodology set out in the Organisation for Economic Co-operation and Development (OECD) Frascati Manual 2015 (OECD, 2015). 

This insight explores some key trends in government R&D investments, which are a component of Australia’s broader innovation system, and data on the new National Science and Research Priorities.

Government R&D investments have grown by 51% since 2018–19

Total government investments in R&D have risen every year since 2018–19 from $10 billion to $15.1 billion in 2025–26. However, the spending as a share of GDP, and in inflation adjusted terms, has remained relatively consistent over the past 10 years. In 2025–26, this investment represents 0.53% of GDP, up from the historical low of 0.51% in 2022–23. Australia invests below the 2022 OECD average of 0.73% of GDP, which is the latest available datapoint for comparison (OECD, 2025).

Australian Government R&D investments

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Source: Department of Industry, Science and Resources (DISR) (2025), Science, Research and Innovation Budget Tables 2025–26

Year Government investment ($bn) Share of GDP (%)
2016-17 9.49 0.54
2017-18 10.19 0.55
2018-19 10.04 0.52
2019-20 10.24 0.52
2020-21 12.07 0.58
2021-22 12.46 0.54
2022-23 13.17 0.51
2023-24 13.86 0.52
2024-25 14.92 0.54
2025-26 15.14 0.53

Funding supports a range of programs and activities 

The government’s R&D investment supports 160 programs and activities across 14 government portfolios. In 2025–26, the Industry, Science and Resources; Education; and Health and Aged Care portfolios have the highest allocated investment. 

Most of the R&D investment (93%) supports the 20 largest programs. More than half of total R&D spending is directed towards the higher education (31%) and business sectors (30%). Funding in these sectors are directed to programs including the Research Training Program, Research Support Program, Australian Research Council (ARC) and R&D Tax Incentive.

In 2025–26, the government is investing a further $1.1 billion in other (non-R&D) science, research and innovation programs and activities. This includes funding for programs and activities that are explicitly intended to support science, research or innovation but do not meet the OECD’s R&D definition. For example, this figure includes $298 million of the government's funding to Geoscience Australia in 2025–26.

New data on Australia’s National Science and Research Priorities

The 2025–26 SRI Budget Tables help us to better understand how government investments in R&D relate to priorities in science and research. In August 2024, the government announced new National Science and Research Priorities:

  • transitioning to a net zero future
  • supporting healthy and thriving communities
  • elevating Aboriginal and Torres Strait Islanders knowledge systems
  • protecting and restoring Australia’s environment
  • building a secure and resilient nation.

Most government R&D programs relate to at least one priority, and every priority has linked programs and funding. 

The priorities are broad, 72 (45%) of the government’s R&D programs relate to just one priority, while 117 (73%) relate to more than one priority. Programs that relate to a single priority collectively account for a small part of total expenditure (16%). 

There are 11 programs that relate to all 5 priorities. Programs in this category are some of the largest in the SRI Budget Tables in terms of R&D funding, and contribute 50% of total R&D spending. These include:

  • R&D Tax Incentive ($4.6 billion)
  • Australian Research Council (ARC) – National Competitive Grants Program ($1 billion)
  • Commonwealth Scientific and Industrial Research Organisation (CSIRO) ($1 billion).

However, many of these programs pre-date the announcement of the priorities they are mapped to. Because of this they may not reflect the intended priority or outcome at the time of development. In addition, not all funding for a program necessarily relates to the priorities they are mapped to.

National Science & Research Priorities for Australian Government R&D investments 2025–26

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Source: Department of Industry, Science and Resources (2025)

Priority Expenditure (all programs) Number of programs (all programs) Number of programs (one priority)
One priority 2.45 72  
Two to four priorities 2.39 34  
Five priorities 7.57 11  
Other research area 2.73 43  
Net zero     5
Healthy communities     31
Knowledge systems     4
Australia’s environment     11
Secure and resilient nation     21

For more detailed data, including National Science and Research Priorities for the government other (non-R&D) science, research and innovation investments, please see the SRI Budget Tables webpage.

Sources

DISR (2025), Science, Research and Innovation Budget Tables 2025-26, DISR website 

OECD (2015), Frascati Manual 2015, OECD website. 

OECD (2025), Main Science and Technology Indicators, OECD website.