Australian Government response: funding and resourcing for the CSIRO

Date published:
6 August 2026

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About the response 

On 26 November 2025, the Senate referred the matter of funding and resourcing for the Commonwealth Scientific and Industrial Research Organisation (CSIRO) to the Senate Economics References Committee for inquiry and report by 31 March 2026. 

The committee published its report, Funding and Resourcing for the CSIRO, on 28 April 2026. 

The government tabled this response in the Senate on 6 August 2026. 

Introduction

The Albanese Government acknowledges the work of the committee and the participation of stakeholders who contributed to the inquiry for Funding and Resourcing for the Commonwealth Scientific and Industrial Research Organisation (CSIRO) (the inquiry).

The government recognises that CSIRO, as the national science agency, is a cornerstone of Australia’s R&D ecosystem and sovereign science capability. CSIRO’s scientific research contributes to long-term productivity growth, industry competitiveness and emerging technology adoption, which are central to sustainable economic growth. Publicly funded science is critical to the national interest and to solving some of Australia’s biggest challenges. 

The government is backing CSIRO to deliver the research and technological breakthroughs Australian industries need and communities rely on. In the 2026–27 Budget, the government committed $387.4 million over 4 years from 2026–27 to ensure CSIRO remains fit for the modern age and continues delivering groundbreaking research aligned with Australia’s national science priorities and a Future Made in Australia. This investment is in addition to the $278 million in funding announced through 2025 and CSIRO’s approximately $1 billion annual government funding allocation. 

CSIRO is a corporate Commonwealth entity (CCE) constituted and operating under the Science and Industry Research Act 1949 (SIR Act) and governed by the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The CSIRO board and executive are responsible for CSIRO’s budget management and ensuring CSIRO operates in a financially sustainable way. The government recognises and supports the independence of the CSIRO board and executive in managing the operations of CSIRO.

The government provides the following responses to the committee’s recommendations and those presented in the dissenting views from the Australian Greens Senators and Senator David Pocock. 

Response to the recommendations

Recommendation 1

The committee recommends that CSIRO continues to engage with CSIRO staff who have provided evidence that they feel there is a lack of consultation and dialogue around job losses or when programs are to be discontinued or redirected.

Response

The Australian Government notes this recommendation.

Under the SIR Act, the Chief Executive of CSIRO and the CSIRO Board are responsible for internal management and ensuring the proper performance of CSIRO. As set out in clause 54 of the CSIRO Enterprise Agreement 2023–26, CSIRO is required to consult on major changes that have a significant effect on staff. The enterprise agreement provides that a consultation includes a period of more than 2 weeks of discussion with staff and their representatives on a proposed change. 

CSIRO implements this through a structured process comprising:

  • 2 weeks of early engagement 
  • followed by 3 weeks of formal consultation on a proposal before a decision is communicated. 

During this period, engagement and consultation occur through both townhall and individual meetings with potentially impacted staff, their peers and their representatives. Consistent with its enterprise agreement obligations, CSIRO will continue to consult with staff and union representatives on major workplace changes through well-established processes and policies.

Recommendation 2

The committee recommends that the Albanese Government clarify whether there will be any further funding cuts or jobs losses at CSIRO.

Response

The Australian Government notes this recommendation. 

The government has not cut funding for CSIRO. The government has committed an additional $387.4 million in the 2026–27 Budget for CSIRO, in addition to the $278 million investment in 2025–26. This investment is on top of CSIRO’s existing nearly $1 billion annual funding allocation.

This investment will support CSIRO in meeting the rising costs of operating critical science and research infrastructure, allowing it to stabilise its workforce. 

As a CCE, CSIRO is responsible for managing its budget to ensure it operates in a financially sustainable way. Under the direction of its board, CSIRO will continue to refine its research capability as needed, responding to evolving scientific and national needs to maximise the value of the public funding entrusted to it. 

Recommendation 3

The committee recommends that the Albanese Government publicly advise how Australia’s sovereign, public research capability will be protected in the face of funding cuts and jobs losses at CSIRO.

Response

The Australian Government notes this recommendation. 

The government has not cut funding to CSIRO – it has increased CSIRO’s funding by $665.4 million between 2025–26 and 2029–30.

A strong research, development and innovation (RD&I) system is central to a Future Made in Australia – a future that delivers national resilience, higher productivity, better jobs, stronger sovereign capability and improved living standards for Australians. 

The government is funding priority measures now, while positioning Australia’s RD&I system to be stronger, more effective and fit for purpose over the long term. CSIRO plays a central role in maintaining sovereign research capability. Each year, the government provides targeted funding to support CSIRO’s operations, sustain nationally significant research infrastructure, and maintain capability in areas aligned to national priorities.

The 2026–27 Budget included measures to strengthen Australia’s sovereign science capabilities, with $1.5 billion in additional investment. These measures included establishing a new National Resilience and Science Council to better coordinate and align public innovation investments, and the $387.4 million investment in CSIRO plus ongoing funding for the Australian Centre for Disease Preparedness. The additional investment in CSIRO will help it maintain the infrastructure and capability it needs to prioritise and deliver on the national challenges Australia faces.

This national science investment is complemented by efforts to strengthen Australia’s global research engagement. Australia is on track to become an associated country to the European Union’s Horizon Europe program in 2027, the final year of the current framework program (FP9). Horizon Europe is the world’s largest pooled research funding program, with FP9 valued at around $155 billion (AUD). Association will provide Australian researchers and research entities with access to Pillar II of Horizon Europe, opening opportunities to lead and participate in research projects in areas such as supply chain security, critical technologies, advanced computing, climate and clean energy, health, space and critical minerals. This will attract talented researchers to Australia and allow research projects at a scale that would be difficult for Australia to achieve alone. 

Recommendation 4

The committee recommends that the government continues to engage with CSIRO regarding financial sustainability of this important public institution and consider the impacts that reduced public and private funding have on Australian research capability.

Response

The Australian Government agrees in principle with this recommendation.

The government will continue to engage with CSIRO to ensure it is supported to deliver the research Australia needs.  

Australia’s sovereign science capability and R&D ecosystem underpin Australia’s economic security and resilience. In 2025–26, the Australian Government invested $15.1 billion in R&D, including through the R&D Tax Incentive, the Australian Research Council – National Competitive Grants Program and CSIRO. In the 2026–27 Budget, the government invested over $1.5 billion in new funding for Australia’s science and research institutions, allowing research agencies, including CSIRO, to continue contributing to Australia’s research capability and capacity. 

Recommendation 5

The committee recommends that the government continues to engage with CSIRO about its strategic direction in light of the final review report for Ambitious Australia: Strategic Examination of Research and Development (SERD Review report).

Response

The Australian Government agrees with this recommendation. 

The government welcomed the Strategic Examination of Research and Development (SERD) Ambitious Australia report as a comprehensive and ambitious assessment of Australia’s RD&I system and opportunities to improve it.

The government maintains engagement with CSIRO in several ways, including the Minister’s Statement of Expectations. These mechanisms support alignment between government priorities and CSIRO’s strategic direction, including how the organisation positions its capabilities to deliver on national priorities.

Recommendation 6

The committee recommends that the government address the recommendations within the Strategic Examination of Research and Development (SERD) Review report, particularly recommendations which will have either a direct or indirect impact on CSIRO, and publicly advise whether the government will implement the SERD recommendations.

Response

The Australian Government notes this recommendation.

The SERD final report, Ambitious Australia, recommends continuing to position CSIRO as a core contributor to the research, development and innovation system and Australia’s industrial objectives, supported by sustainable and targeted funding.

The 2026–27 Budget includes an additional $387.4 million investment in CSIRO, supporting the organisation to address its sustainability challenges and maintain critical research capability. 

Measures in the 2026–27 Budget, including establishing the National Resilience and Science Council to better coordinate and align public innovation investments with Australia’s economic objectives, are a first step in responding to the Ambitious Australia report.

The Australian Greens Senators’ dissenting report

Recommendation 1

The Australian Greens recommend the Australian Government immediately cease and reverse all recently determined and imminently expected ongoing funding and staffing cuts to the Commonwealth Scientific and Industrial Research Organisation (CSIRO).

Response

The Australian Government notes this recommendation.

The Albanese Government has not cut funding to CSIRO. The government has committed additional funding to CSIRO (on top of its annual appropriation of over $1 billion): $387.4 million in the 2026–27 Budget and $278 million in 2025–26. 

As publicly noted, CSIRO is undertaking a systematic reform of its research effort and sharpening its focus on what Australia needs now and into the future. The CSIRO board and executive are responsible for these decisions and ensuring the organisation can operate in a financially sustainable way. 

Recommendation 2

The Australian Greens recommend the Australian Government commit new, increased and ongoing funds to the CSIRO for ‘public good’ science. Further, the Australian Greens recommend that the Australian Government establish a forward funding trajectory for CSIRO that increases research capacity annually in real terms to meet the growing and emerging scientific challenges Australia faces. This trajectory should reflect international best practice in relation to the funding of equivalent bodies as a proportion of GDP.

Response 

The Australian Government notes this recommendation.

Publicly funded science is critical to the national interest and to solving some of Australia’s biggest challenges. The Albanese Government is backing CSIRO to deliver the research and technological breakthroughs Australian industries need and communities rely on. As part of the 2026–27 Budget, the government has committed $387.4 million over 4 years from 2026–27, and ongoing funding of approximately $38 million a year from 2030–31. This funding will help strengthen CSIRO and allow it to stabilise its workforce, so that it can continue to deliver research to help Australia meet new and emerging challenges.

The 2026–27 Budget included support for Australia’s association to Horizon Europe, subject to the completion of our treaty process. Association will provide Australian researchers and research entities with access to Pillar II of Horizon Europe’s 2027 funding calls. This will unlock opportunities for Australians to participate in the world’s largest pooled research funding program. 

Recommendation 3

The Australian Greens recommend the Australian Government urgently establishes a review to address and mitigate internal governance and cultural norms that require scientists to seek new sources of external revenue (clients) to fund ‘public good’ science (for example, but not limited to, climate and atmospheric monitoring and research, environmental research and public health research).

Note: The Australian Greens acknowledge that some areas of commercial endeavour, and any associated scientific or industrial research conducted by CSIRO (for example: mineral extraction or manufacturing), may reasonably and appropriately be underpinned by external revenue targets and that these targets may be reflected in funding structures and sources for these specific CSIRO research streams. 

Response

The Australian Government notes this recommendation.

CSIRO collaborates with an extensive range of industry and research partners to deliver research services and breakthroughs that Australia needs. As a CCE under the SIR Act, one of CSIRO’s primary purposes is to carry out scientific research to assist Australian industry. To enable this, CSIRO partners with Australian companies to build sovereign capability and resilience. External revenue generated through partnerships with government and industry, such as commercial ventures and co-investment arrangements, is reinvested into CSIRO’s research and operations. This allows CSIRO to capitalise and leverage its public funding to produce more research and make the most of its public funding. 

The CSIRO board and executive are responsible for deciding CSIRO’s strategic direction and operational arrangements to ensure sustainable operations and delivery against its obligations under the SIR Act.

Recommendation 4

The Australian Greens recommend the Australian Government urgently establish an audit of CSIRO, conducted by the Australian National Audit Office (ANAO), with particular focus on its capital funding situation and the impacts of previous management decisions on both past and projected organisational sustainability. 

Response

The Australian Government notes this recommendation.

CSIRO, as a CCE, is subject to the requirements of the SIR Act and the PGPA Act. CSIRO publishes corporate plans and annual reports that outline its strategies, priorities, performance and use of public resources. The CSIRO board, as the accountable authority, and the CSIRO executive, are responsible for ensuring these requirements are met in an accountable and transparent manner.

As an independent officer of the Parliament, the Auditor‑General determines the ANAO’s work program. As such, responses to parliamentary committee recommendations directed to the ANAO are not included as part of the government’s response.

Recommendation 5

The Australian Greens recommend the Australian Government urgently establishes a mechanism for the provision of low-or-no interest loans (off-balance sheet) or similar finance to fund capital works and infrastructure maintenance or upgrades as required by the CSIRO.

The intention of such mechanisms would be to alleviate the sustained budgetary pressures these works place on the CSIRO’s operating costs which have precipitated much of the current organisational requirement to find savings. 

Response

The Australian Government notes this recommendation.

Under the PGPA Act, the CSIRO board is the accountable authority and is therefore responsible for the financial sustainability of the organisation.

Senator David Pocock’s dissenting report

Recommendation 1

That the Federal Government provide an immediate uplift of $252.3 million to CSIRO’s appropriation in the 2026–27 Budget, ongoing, together with annual indexation top-ups sufficient to halt and progressively reverse the real-terms decline in CSIRO funding.

Response

The Australian Government notes this recommendation.

As part of the 2026–27 Budget, the Australian Government has committed $387.4 million over 4 years from 2026–27, and ongoing funding of approximately $38 million a year from 2030–31. This funding will help stabilise CSIRO’s workforce and meet the long-term costs of operating critical science and research infrastructure.

Recommendation 2

That the Federal Government act decisively on the recommendations of the Strategic Examination of Research and Development to establish a measurable, time-bound plan to increase total Australian R&D investment.

Response

The Australian Government notes this recommendation.

The SERD Ambitious Australia report presents a comprehensive and complex set of recommendations. The report highlights a lack of strategic direction and coordination, which limits impact in areas of national need and opportunity.

The government is establishing the National Resilience and Science Council to better coordinate and align public innovation investments with Australia’s economic objectives. A better coordinated RD&I system with clearer goals will improve productivity, crowd in private sector RD&I investment and enhance spillover effects in priority areas. 

This, alongside tax reforms as part of the 2026–27 Budget’s productivity package and investment in national science capability, is one of the first steps in responding to the Ambitious Australia report. Further reforms in response to the Ambitious Australia recommendations will be considered by government with input from the Council.

Recommendation 3

That the proposed redundancies in the Environment Research Unit be halted and reconsidered by the CSIRO, given the clear need for climate modelling capabilities within CSIRO to be maintained.

Response

The Australian Government notes this recommendation.

As a CCE, the CSIRO board and executive are responsible for managing CSIRO’s budget to ensure it is operating in a financially sustainable way, including through decisions on staffing, organisation structure and operations. The decisions CSIRO made about its research portfolio included a systematic review of CSIRO’s entire research portfolio and consultation process with staff. The changes reflect CSIRO’s commitment to deliver research aligned with national priorities, at scale and to maximise the value of the public funds entrusted to CSIRO. 

Recommendation 4

That the Federal Government index CSIRO’s depreciation appropriation, beginning in the 2026–27 Budget, and undertake a one-off reset to bring the depreciation appropriation into line with current capital and depreciation costs.  

Response

The Australian Government notes this recommendation.

As a CCE, CSIRO’s depreciation appropriation is not subject to indexation (RMG 124). Applying a general indexation method to the depreciation appropriation would not guarantee its alignment with the depreciation expense. 

The Commonwealth’s annual appropriation to CSIRO does increase year on year, and under the PGPA Act, CCEs are required to manage their budgets in a financially sustainable way. This includes balancing operational expenditure with capital costs.  

Recommendation 5

That the Federal Government update the Minister’s Statement of Expectations to the CSIRO, to substantially reduce the need for cost-recovery targets in research areas designated as public-good or as protected sovereign capabilities, and that this Statement of Expectations explicitly recognise the legitimate public-good purpose of certain research that cannot reasonably be commercialised. 

Response

The Australian Government notes this recommendation.

The Minister for Science issues Statements of Expectations to CSIRO to communicate the priorities of the government. The last Statement of Expectations was issued in October 2025. 

CSIRO seeks to recover costs for some areas of its research. These funds are reinvested into CSIRO’s research programs, leveraging the nearly $1 billion in annually appropriated public funds to continue producing the science Australia needs. 

Recommendation 6

That the CSIRO immediately release in full all documents, presentations and other outputs produced by McKinsey & Company under the 2022 Future Ways of Working engagement and the prior 2021–22 engagement. And that CSIRO contracts above $200,000 require open and competitive tendering on the Commonwealth tender model.

Response

The Australian Government notes this recommendation.

CSIRO provided copies of the requested documents to the committee Secretariat in response to a question from Senator Barbara Pocock during the inquiry hearing. 

As a CCE, CSIRO’s policies and procedures for procuring goods and services adhere to the Commonwealth Procurement Rules.