Posted: 15 May 2024
With the delivery of last night’s Federal Budget, below is a summary of the key announcements impacting our industry. This is the third Budget delivered by the Albanese Government, and their final before the election cycle begins again.
Whilst predominantly pre-announced, some announcements were new and AusBiotech looks forward to working with Government and understanding the details beneath the top-level notice. The multi-portfolio nature of biotech is reflected in the noted items below.
Headlines included the reiteration of Government’s commitment to invest up to $5 million in grants through the Industry Growth Program, as part of its ‘Future made in Australia’ agenda; $18.8 million into the National One Stop Shop (NOSS) for clinical trials; $1.4 billion in MRFF missions, including a new 10-year low survival cancers mission and new 10-year reducing health inequities mission; $62 million in research grants to 26 clinical trials across the country, as part of the MRFF’s Clinical Trials Activity initiative; and $411m to support 229 researchers via the NHMRC. The Albanese Government also announced the development of a National Health and Medical Research Strategy (National Strategy) to build on our national strengths and fill any gaps, while attracting researchers and investors. The need for a National Strategy has been one of the consistent messages the Government has heard from the health and medical research sector (read AusBiotech’s submission here); the National Strategy will cover the entire sector and include all levels of government, industry, philanthropy, academia and consumers.
New announcements announced through the Federal Budget included the implementation of a new National Innovation visa, thereby replacing the current Global Talent visa; $9 million for increased operational costs for the NHMRC, $15.7 million to support industry analytical capability and coordination of AI policy development, regulation and engagement activities across government, including to review and strengthen existing regulations including in the area of health care, and $15.7 million for Treasury to strengthen and streamline Australia’s foreign investment framework.
Additionally, $68 million over four years has been announced to establish “a single front door for major investors”, thereby attracting investment in key industries to support a Future Made in Australia. Of this, $54.7 million over two years will administer, coordinate and promote the Government’s agenda, including the development of legislation that establishes a ‘National Interest Framework’ and consultation with industry, investors and major stakeholders on the development of a ‘single front door’ that improves the attraction and facilitation of major investment proposals. AusBiotech looks forward to engaging with Government further to understand what areas are included as ‘key industries’.
As the national voice of the biotechnology sector for more than 38 years, AusBiotech has been committed to communicating industry’s concerns, reducing barriers and amplifying opportunities. It is pleased to deliver a wrap-up of announcements for life sciences.
The Federal Budget papers note:
Medical Research
The Government has committed an additional $1.4 billion over 13 years from 2024–25 through the Medical Research Future Fund (MRFF) to continue to invest in life saving medical research in Australia, for a total commitment through the MRFF of $6.4 billion over 13 years in research funding across the following themes:
- an additional $377.5 million (for a total contribution of $2.0 billion over 10 years from 2024–25) to translate research outcomes into medical practice
- an additional $411.6 million (for a total contribution of $1.6 billion over 13 years from 2024–25) to continue existing research missions and introduce two new 10 year research mission from 2027–28 for low survival cancers and reducing health inequities.
Funding includes:
- an additional $329.6 million (for a total contribution of $1.4 billion over 10 years from 2024–25) for patient centred research including emerging priorities in areas such as women’s health, and supporting innovative treatments, clinical trials, and more advanced healthcare
- an additional $269.6 million (for a total contribution of $1.3 billion over 10 years from 2024–25) for medical researchers to make breakthrough discoveries, develop their skills and progress their careers in Australia.
Provisions for disbursement from the MRFF have already been provided for by the Government.
The Government will also provide $18.8 million over two years from 2024–25 to continue the development of the National One Stop Shop for Clinical Trials and Human Research (National One Stop Shop) and support current systems. The National One Stop Shop will streamline work to manage clinical trials and human research, including management of cross jurisdictional ethics approvals. Funding includes:
- $17.2 million in 2024–25 to continue the development of the National One Stop Shop for Clinical Trials and Human Research
- $1.6 million over two years from 2024–25 to continue support for the Australian New Zealand Clinical Trials Registry until this data function can be included in the National One Stop Shop.
The Government will also negotiate an intergovernmental agreement to support the cooperative governance and development of the National One Stop Shop and relevant policies.
Investing in the Future of Industry and Science
The Government will provide $46.9 million over four years from 2024–25 to support the development of industries in Australia and maintain the affordability of nuclear medicines for Australians. Funding includes:
- $18.0 million in 2024–25 to continue to build the capability of the National Reconstruction Fund Corporation to undertake investments and deliver on its policy outcomes
The Government has already provided partial funding for this measure. This measure builds on the 2023–24 Budget measure titled National Reconstruction Fund Corporation – establishment, and the 2022–23 October Budget measure titled Supporting Australian Industry.
Future Made in Australia – Attracting Investment in Key Industries
The Government will provide $68.0 million over four years from 2024–25 (and $3.1 million per year ongoing) to attract investment in key industries to support a Future Made in Australia. Funding includes:
- $54.7 million over two years from 2024–25 to administer, coordinate and promote the Government’s Future Made in Australia agenda, including the development of legislation that establishes a National Interest Framework and consultation with industry, investors and major stakeholders on the development of a ‘single front door’ that improves the attraction and facilitation of major investment proposals
- $11.4 million over four years from 2024–25 (and $3.1 million per year ongoing from 2028–29) to establish and manage a domestic National Interest Account with Export Finance Australia, supporting domestic projects in the national interest, consistent with the Future Made in Australia National Interest Framework
The cost of this measure will be partially met from savings identified in the Department of Infrastructure, Transport, Regional Development, Communications and the Arts.
Future Made in Australia – Investing in Innovation, Science and Digital Capabilities
The Government will provide $1.7 billion funding over ten years from 2024–25 for investments in innovation, science and digital capabilities to support a Future Made in Australia. Funding includes:
- $466.4 million for a financing package of equity and loans provided by Export Finance Australia on the National Interest Account to PsiQuantum Pty Ltd to support the construction and operation of quantum computing capabilities and associated investment in industry and research development in Brisbane, as part of a joint investment with the Queensland Government.
The cost of this measure will be partially met from savings identified in the Department of Industry, Science and Resources.
Future Made in Australia – Strengthening Approvals Processes
The Government will provide $182.7 million over eight years from 2023–24 (and $4.5 million ongoing from 2031–32) to strengthen approval processes to support the delivery of the Government’s Future Made in Australia agenda, including Australia’s transition to a net zero economy. Funding includes:
- $15.7 million over four years from 2024–25 (and $4.1 million per year ongoing from 2028–29) for Treasury to strengthen and streamline Australia’s foreign investment framework, through more effective monitoring, enforcement of conditions and timely review of foreign investment applications. This includes refunding 75 per cent of fees for foreign investment applications that do not proceed because the applicant was unsuccessful in a competitive bid process.
The Government has already provided partial funding for this measure.
R&D Tax Incentive
Major increases in payments from parameter and other variations since MYEFO include:
- payments related to the Research and Development Tax Incentive are expected to increase by $499.0 million in 2024–25 and $2.6 billion over five years from 2023–24 to 2027–28. This is due to increases in the overall number and value of expected claims, with higher-than-expected growth in claims by companies in the ‘Professional, Scientific and Technical Services’ sector.
Supporting Safe and Responsible AI
The Government will provide $39.9 million over five years from 2023–24 for the development of policies and capability to support the adoption and use of artificial intelligence (AI) technology in a safe and responsible manner, including:
- $21.6 million over four years from 2024–25 to establish a reshaped National AI Centre (NAIC) and an AI advisory body within the Department of Industry, Science and Resources
- $15.7 million over two years from 2024–25 to support industry analytical capability and coordination of AI policy development, regulation and engagement activities across government, including to review and strengthen existing regulations in the areas of health care, consumer and copyright law
- $2.6 million over three years from 2024–25 to respond to and mitigate against national security risks related to AI.
The cost of this measure will be partially met from within the existing resourcing of the Department of Home Affairs and the Department of Industry, Science, and Resources.
Innovation Visa
The Government will implement a new National Innovation visa, replacing the current Global Talent visa (subclass 858) from late 2024, to target exceptionally talented migrants who will drive growth in sectors of national importance. The Business Innovation and Investment visa program (BIIP) will cease, with refunds of the visa application charge provided from September 2024 for those who wish to withdraw their BIIP application. The measure includes $1.4 million in 2024–25 for necessary system changes for the implementation of a new visa and closure of the BIIP.
The Government will also reduce the work experience requirement for the Temporary Skill Shortage (subclass 482) visa from two years to one year for all applicants from 23 November 2024 onwards, with an unquantifiable increase in receipts and payments over four years from 2024–25.
The measure is estimated to decrease receipts by $155.0 million over four years from 2024–25, predominantly from the closure of BIIP.
Portfolio Administrative Matters
The Government will provide $28.0 million over five years from 2023–24 (and $2.8 million per year ongoing) to maintain and improve transparent, efficient and effective administration of the Health and Aged Care Portfolio. Funding includes:
- $11.0 million over four years from 2024–25 (and $2.8 million per year ongoing) to support operations of the National Blood Authority
- $9.0 million in 2023–24 for increased operational costs for the National Health and Medical Research Council, including implementation of the Sapphire Grants Management system
The Government will also provide $18.0 million over three years from 2023–24 in additional departmental capital with the costs to be met from savings identified over two years from 2026–27 within the Department of Health and Aged Care’s future operating expenses.
Engaging with Southeast Asia– additional funding
The Government will provide $505.9 million over five years from 2023–24 (and $118.3 million per year ongoing) to deepen Australia’s engagement with Southeast Asia, including measures to implement the next phase of the Government’s response to ‘Invested: Australia’s Southeast Asia Economic Strategy to 2040’. Funding includes:
- $4.8 million over four years from 2023–24 to establish two additional ‘Landing Pads’ in Jakarta and Ho Chi Minh City through the Austrade Landing Pads program to support Australian technology exports and startups to expand in the region.
Preventive Health
The Government will provide $514.8 million over four years from 2024–25 to support preventive and other health initiatives. Funding includes:
- $303.9 million over two years from 2024–25 to ensure the National Medical Stockpile can continue to respond to health emergencies and improve pandemic preparedness
- $25.0 million over four years from 2024–25 to continue work to increase the number and consistency of conditions screened through the newborn bloodspot screening programs
- $22.3 million over four years from 2024–25 to continue funding for the Antimicrobial Use and Resistance in Australia project which monitors antimicrobial use and resistance
This measure builds on the 2023–24 Budget measure titled Preventive Health Reform.
Mental Health
The Government will provide $888.1 million over 8 years from 2024–25 (and $139.8 million per year ongoing) to respond to the Better Access evaluation and to strengthen Australia’s mental health and suicide prevention system.
The Government has already provided partial funding for this measure.
Read the Budget Measures: Budget Paper No. 2 2024-25 with full details here.
