The R&D investment picture
The R&D Tax Incentive redesign doesn't stand alone — it sits within a broader R&D investment position. At the 2026–27 Budget, the Government states it is investing $1.5 billion over the forward estimates to support research and Australia's scientific institutions, and that more than $39 billion is committed to support R&D over the forward estimates. (Productivity Package factsheet, p. 7)
A new governance body — in response to the review
The headline structural change is a new council, created specifically in response to the Denholm review:
The Budget is "establishing a new National Resilience and Science Council in response to the Ambitious Australia: Strategic Examination of Research and Development final report, which will help ensure the Government's more than $39 billion committed to research and development is better aligned with its economic objectives." — Productivity Package factsheet, p. 7
This closes a loop. The same review that drove the R&D Tax Incentive redesign also prompted a governance body to steward the broader R&D investment — reflecting the review's central theme of shifting R&D support from inputs toward economic outcomes.
Where the money goes
| Investment | Amount |
|---|---|
| Total committed to R&D (forward estimates) | **more than $39 billion** |
| Research and scientific institutions | **$1.5 billion** |
| CSIRO | **$387.4 million** |
| National Measurement Institute (sovereign measurement/testing) | **$273.0 million** |
| Medical Research Future Fund disbursement increase (over 4 years) | **$508.5 million** |
Source: Productivity Package factsheet, p. 7. The Budget also funds enabling infrastructure for the Square Kilometre Array and pursues access to Horizon Europe.
What it means for R&D-active businesses
Two signals matter for companies that do R&D:
- R&D is being positioned as an economic-growth lever, not just a research-sector concern — which is the same logic behind concentrating the R&D Tax Incentive on core experimental activity.
- Governance is tightening around outcomes. A council charged with aligning R&D spend to economic objectives reinforces the broader move toward demonstrating that R&D produces genuine, defensible results — the same standard that documentation has to meet under examination.
Sources
- Australian Government — Productivity Package factsheet (p. 7)
- Ambitious Australia: Strategic Examination of R&D, Final report
- Department of Industry, Science and Resources — R&D Tax Incentive