The good news from Monday’s MYEFO statement is that there were no changes announced to the capitalisation of the MRFF, funding of the NHMRC or funding of the ARC, meaning the MRFF is on track to be fully capitalised by 2020-21. The bad news is that the Coalition announced cuts of $328.5 million to research funding meaning Government spending on research is at a 40-year low. Universities Australia Chief executive Catriona Jackson says direct Government spending on university research has dropped to just half a per cent of GDP – less than the level to which it was funded in 1978. Spending peaked at almost 0.75 of a per cent in 1991-92 and has been falling since that time. Professionals Australia CEO Chris Walton said the cuts were very disappointing. “The research community needs consistency and predictability in research funding. Our current level of investment seeing us falling behind other countries including the US, China and Israel. Overall the major nations combined invest around 2.3 per cent in university research – if we don’t invest now, we’ll sideline R&D as a central driver of the nation’s future prosperity and risk growing our STEM capability. It’s penny-wise, pound foolish.”