The Federal Budget has unveiled key updates that will shape Australia’s innovation, sustainability, and research landscape. From continued support for the R&D Tax Incentive to significant investments in clean energy, advanced manufacturing, and medical research, businesses have new opportunities to leverage government funding and drive growth.
With notable shifts in R&D tax incentive forecasts and expanded grants for high-tech industries, it’s more important than ever to stay ahead of these changes and maximise available support.
- R&D Tax Incentive & Industry Innovation
- The R&D Tax Incentive remains unchanged, which is Iikely to remain that way until the completion and provision of recommendations from the Strategic Examination of R&D.
- $20 million for a new Front Door for investors – Streamlining access to grants and government support for businesses investing in high-tech industries in Australia.
- Future Made in Australia
- $22.7 billion Future Made in Australia Agenda continues – Fuelling growth by enabling businesses to harness opportunities in clean energy, advanced manufacturing, and technological innovation.
- Green Energy & Manufacturing Innovation
- $2 billion expansion of the Clean Energy Finance Corporation – Unlocking further investment in renewable energy and low-emissions technologies.
- $2 billion Green Aluminium Production Credit – Supporting Australian aluminium smelters in transitioning to renewable energy.
- $1 billion Green Iron Investment Fund – Driving development in Australia’s green metals sector.
- Future Made in Australia Innovation Fund has commenced and includes:
- $750 million for green metals
- $500 million for clean energy technology
- $250 million for low-carbon liquid fuels
- Agriculture, Regions, and Communities
- $45.2 million over three years (from 2025–26) – Supporting the Agriculture, Fisheries, and Forestry portfolios to reinforce trade, export capabilities, and the national food security strategy, underpinning critical community and regional development.
- Boosting Health & Medical Research
- $34 million in 2025-26 for the National Measurement Institute (NMI) – Addressing capital works to support operations and maintain sovereign capability.
- $55 million boost to the CSIRO – Including $45 million to maintain core research capabilities amid recent cuts, and an additional $10 million to kickstart new gene technology projects aimed at combating invasive species.
- $7.8 million reallocated from the Health Department to the National Health and Medical Research Council (NHMRC) – Reinforcing its role as the nation’s leading health research investment manager.
- Strengthening Tax Integrity
- $999 million over four years allocated to the ATO for expanded compliance activities. This additional funding will bolster several targeted programs. Consequently, tax practitioners should anticipate more regulation and stepped-up audit activity.
- These measures are estimated to increase tax receipts by $3.2 billion over five years, starting from 2024-25.
The 2025-2026 Federal Budget also indicated notable changes in Australia’s future research and development landscape. After an unprecedented spike in R&D tax incentives, forecasts now predict a drop of nearly $650 million in incentives over the next five years, with payments falling by $640.6 million by 2028-29. This unexpected decline, attributed to fewer claims than anticipated, marks a sharp departure from last year’s prediction of a $2.6 billion increase, signalling the end of the post-pandemic boost in R&D activity and highlights the importance of acting on the findings and recommendations that fall-out of the Strategic Examination of R&D.
Where The Gild Group’s R&D Incentives & Grants Team Can Help
Our team specialises in securing R&D tax incentives, grants, and industry-specific funding to help businesses benefit from available government support.
We can assist with:
✔ R&D Tax Incentive Claims – Ensuring businesses claim the benefits associated with their innovation activities.
✔ Clean Energy, Renewables & Manufacturing Grants – Helping businesses access funding through clean energy and renewable programs such as Australian Renewable Energy Agency (ARENA).
✔ Technology & Advanced Industry Funding – Supporting funding applications for quantum computing, AI, biotech, and defence innovation.
✔ Health & Medical Research Grants – Identifying funding opportunities for biotech, medical devices, and pharmaceutical advancements.
Want to learn more about the latest grants and incentives for your business? Contact The Gild Group’s R&D Incentives & Grants team today.
As always, we’re here to help—let’s unlock opportunities for your business together!
