The peak body representing Australia’s science and technology sectors has thrown its support behind major changes to how the federal government’s research funding is allocated.

The Australian Research Council Amendment (Review Response) Bill 2023, introduced to Parliament late last year, implements a number of recommendations from a review into the Australian Research Council (ARC) conducted last year by Professor Margaret Sheil, Professor Susan Dodds, and Professor Mark Hutchinson.

According to Education Minister Jason Clare, the changes will help to “modernise the ARC, strengthen it and build more trust in it so it can continue to spur innovation and catalyse productivity in the years ahead”.

ARC will oversee the allocation of $895 million in funding this financial year, across 5,900 new and ongoing grants for research projects and programs.

Under current rules, the Minister is responsible for making grant decisions, leading to long-running concerns about political interference.

Clare said the scheme has been “bedevilled by political interference and ministerial delays”.

“At least four of my predecessors have interfered on at least six occasions during the former government to upend the independent peer review process,” Clare said in Parliament in November last year.

“Interference and delays make it harder for universities to recruit and retain staff, and it damages our international reputation.”

The bill will facilitate the establishment of an ARC board to approve research grants, and the appointment of a CEO to guide its day-to-day operations, while the Minister will be given the ability to block or terminate funding on the basis of national security concerns.

The legislation will change the way research funding is distributed, giving responsibility to the new board to approve grants for research projects under the National Competitive Grants Program, except for those for designated research programs.

It is currently the subject of a Senate Committee on Education and Employment inquiry, which is due to report back in early February.

In a submission to the committee, Science and Technology Australia (STA) has backed the changes and pushed for further reforms.

“Australia’s science and technology sector strongly backs this bill and encourages Parliament to pass it, with a few small changes to strengthen the legislation,” Science and Technology Australia CEO Misha Schubert said.

“On behalf of the 115,000 scientists and technologists STA represents, we congratulate Education Minister Jason Clare for implementing the recommendations of the ARC review, encourage the Parliament to pass the Bill, and offer our deep gratitude to the expert panel for crafting such a considered report.”

Further suggestions

STA has called on the government to introduce amendments requiring ARC to notify successful grant applicants within 21 days of approval.

“Deadlines focus minds,” Schubert said.

“And they keep bureaucratic processes on track. Adding a requirement that successful grant applicants must be notified within 21 days of approval by the ARC board would give crucial certainty to both researchers and industry – and avoid being stuck in limbo amid lengthy delays – which has happened all too often in the past.

“Careers and jobs can hinge on these decisions – and lengthy delays in the past have caused needless stress.

“Having swift confirmation on a grant decision either way is crucial to enable both researchers and industry to plan their future and get on with their lives.”

STA also wants the legislation to require that a minimum of 70 per cent of the National Competitive Grant Program be allocated to the Discovery Program, and for all members of the ARC board to have substantial experience in research or the management of research.

“This is a golden opportunity to strengthen vital economy-boosting discovery research, ensure the ARC board is demographically diverse and has deep research expertise, and boost certainty for Australia’s research workforce,” Schubert said.

“The modest improvements we’ve proposed would be a win for everyone – ARC, the research community, Australian industry and the nation.

“They can make a good bill a great bill.”