Environmental research leading government R&D spending

Government expenditure on research and development (R&D) was $4.4 billion in 2024-25, up 1 per cent from 2022-23, according to new data released today by the Australian Bureau of Statistics (ABS). 

Tom Lay, ABS head of business statistics, said: ‘This 1 per cent increase in government R&D expenditure is the lowest since 2018-19, when it grew 2 per cent.

‘When adjusted for the impacts of inflation, government spending on R&D declined by 4 per cent in 2024-25 in real terms.’ 

Government spending on R&D as a proportion of GDP fell from 0.17 per cent in 2022-23 to 0.16 per cent in 2024-25.

Environmental sciences recorded the largest dollar rise in R&D expenditure by fields of research, up $224 million (55 per cent). This makes Environmental sciences the leading field of research for government organisations, ahead of Biomedical and clinical sciences, which rose $78 million (14 per cent). 

‘We are continuing to see rises in spending towards environmental related R&D. Growth in this area aligns with government investment to promote renewable technologies aimed at reducing carbon emissions under the Net Zero Plan,’ Mr Lay said.

The largest decreases in R&D expenditure by fields of research were for Information and computing sciences, down $112 million (25 per cent) and Agricultural, veterinary and food sciences, down $67 million (11 per cent).

Commonwealth government expenditure on R&D fell by 1 per cent (to $2.8 billion) while state and territory spending rose by 3 per cent (to $1.6 billion). 

‘At the commonwealth level, R&D spending focused mainly on defence and environmental management. At the state and territory level, R&D spending was directed mainly toward health,’ Mr Lay said.