The Australian federal government has been accused of “robbing Peter to pay Paul” after it axed a $760 million research commercialisation program to fund other science initiatives, proving once again that government budgeting is just a fancy term for musical chairs with taxpayer money.

The budget includes a $387.4 million boost to support the “financial sustainability” of the beleaguered CSIRO, as well as $273 million for the National Measurement Institute. But to pay for these, the government is “returning uncommitted funding from the Australia’s Economic Accelerator (AEA) program,” which will decrease payments by $759.9 million over the five years to 2029 - 30.

The AEA, established in 2023 to “support the translation of research into real‑world economic and social benefits,” is now essentially dead for new projects after the 2025 - 26 financial year, though current grants remain unchanged. Researchers are not amused.

Prof Melanie Davern from RMIT University learned on Monday that she had wasted months preparing an AEA grant proposal for a round that closed in March. Her proposal involved AI in urban planning, a business case, and four industry partners including an ASX-listed developer. “It took us at least three months, if not more time, to prepare this,” she said. “I still haven’t actually been notified officially by the government.”

At RMIT alone, about 85 applications were submitted in the same round. The big problem, Davern notes, is that “there is not enough investment going in.” Australia’s R&D spending as a proportion of GDP is about 1.7%, well below the OECD average of 2.7%.

Universities Australia CEO Luke Sheehy said, “You cannot talk about building a Future Made in Australia while cutting one of the country’s key research commercialisation programs.” The Academy of Science’s Prof Chennupati Jagadish called the repurposing “disappointing,” while Science & Technology Australia’s Ryan Winn summed it up: “The budget gives with one hand but takes with the other.”