What do the latest ABS figures show about Australian government R&D spending?

According to the Australian Bureau of Statistics, total government expenditure on research and development reached $4.4 billion in 2024–25. While this represents a nominal 1% increase from 2022–23, it marks the lowest growth rate recorded since 2018–19.

How did inflation impact Australia's government R&D investment in 2024–25?

When adjusted for inflation, Australia's government R&D spending actually plummeted by 4% in real terms. This real-term decline dragged total R&D expenditure down from 0.17% of GDP in 2022–23 to just 0.16% of GDP in 2024–25.

Which research sector received the most funding from the Australian government?

Environmental sciences emerged as the leading field of government research, dethroning biomedical and clinical sciences. The sector experienced a 55% surge, which added an extra $224 million in funding to the discipline.

Why is the Australian government shifting its R&D budget toward environmental sciences?

The strategic funding pivot is driven by the federal government's Net Zero Plan. According to the ABS, the capital injection aims to promote renewable technologies and actively reduce carbon emissions across the country.

How did Commonwealth versus State and Territory R&D spending compare?

Commonwealth government R&D spending fell by 1% to $2.8 billion, focusing primarily on defence and environmental management. Conversely, state and territory R&D spending rose by 3% to $1.6 billion, with the capital largely directed toward health initiatives.

Economy

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Environment leads R&D spending despite real funding drops

Written by Mahathir BayenaPublished Jun 10, 2026, 2:45 AM

Australia's government expenditure on research and development crawled to $4.4 billion in 2024–25, marking a 1% increase from 2022–23, according to new data released by the Australian Bureau of Statistics.

However, the nominal rise masks a harsher economic reality; when adjusted for inflation, government R&D investment actually plummeted by 4% in real terms, driving R&D spending down to just 0.16% of GDP.

ABS data on government research spending

ABS head of business statistics, Tom Lay, noted this represents the lowest growth since 2018–19.

Despite the overarching fiscal squeeze, environmental research emerged as the nation's clear priority.

Environmental sciences recorded a massive 55 per cent surge—an increase of $224 million—dethroning biomedical and clinical sciences as the leading field of government research.

Lay attributed this strategic shift to targeted funding under the federal government's Net Zero Plan to promote renewable technologies and reduce carbon emissions.

Commonwealth R&D spending focused heavily on defence and environmental management, while state and territory investments—which rose 3% to $1.6 billion—largely targetted health initiatives.

Other critical sectors suffered sharp declines. Commonwealth government R&D spending fell overall by 1% to $2.8 billion, hit hard by a $112 million (25%) drop in information and computing sciences.

Agricultural, veterinary, and food sciences also faced a $67 million setback.