Insights Lab

The 2026-27 Federal Budget lands on 12 May. Before Treasurer Chalmers delivers his fifth budget announcement, we've put our cards on the table regarding which industries are positioned to benefit from serious government investment, and which will be left waiting.

The 2026-27 Federal Budget, to be handed down on 12 May, is shaping up as a possible decision point for the MRFF. Whether the government moves to lift the cap will determine not just how much funding flows into health and medical research over the next several years, but whether Australia seizes or squanders a genuine opportunity to lead in a moment when the global research funding landscape is being redrawn.

Before the Budget: the Ambitious Australia R&D Tax Incentive reforms could reshape how companies access and benefit from the program. Some changes are low-cost with outsized impact, while others shift cash flow, eligibility and collaboration dynamics.

Australia’s R&D system is under review, with the Ambitious Australia Report proposing significant changes to incentives, funding models, and national coordination. We explore key themes, potential impacts, and what businesses should be watching next.

Updated insights on IGP funding trends, sector impacts, and the implications of recent cuts for early‑stage innovators

Summary of the previous quarter of developments in the world of the R&D Tax Incentive (R&DTI) program.

This is a reminder of an upcoming R&D Tax Incentive (RDTI) deadline for businesses with a 30 June 2025 year end.   

Government capital plays a quiet but important role in how many of today’s strongest innovation led companies grow.

When used well, it accelerates technical progress, reduces execution risk and brings forward milestones that unlock private capital and commercial scale. When used poorly, it becomes a distraction. The difference is not access to programs, but the quality of decision making around them.

Industry Growth Program Update

The Industry Growth Program (IGP) has quickly become one of Australia’s most in-demand innovation support initiatives. Since its launch in 2023, the program has awarded 96 grants totalling $143million to a range of SMEs — representing the allocation of just over 50% of the original funding pool.

This ‘halfway point’ provides a perfect moment to reflect on the outcomes and distribution of IGP grant funds to date. We’ve reviewed the available data and provided a detailed summary. The analysis highlights the urgency needed for any SMEs that are interested in the program but yet to apply, particularly given that grants can’t be accessed until an initial business advisory process is completed.

The Queensland Government has launched the $180.6 million Sovereign Industry Development Fund (SIDF) to strengthen the state’s capacity to manufacture, supply and sustain key goods and services locally. The program supports strategic and catalytic projects in defence, biomedical and biofuels sectors to boost innovation, jobs and regional growth. To learn more read the full article here.