Australian universities’ research and development spending has increased by one-sixth over just two years, signalling a resumption of “normal” activity following the coronavirus pandemic – but highlighting one of the downsides of a government crackdown on international education.
Higher education expenditure on R&D reached A$16.4 billion (£8.7 billion) in 2024, 17 per cent more than in 2022 and 51 per cent more than in 2016, according to newly released Australian Bureau of Statistics (ABS) figures.
Over half of the outlay, some A$8.6 billion, was derived from “general university funds” sourced primarily from the sector’s A$13 billion international education earnings.
Tom Lay, ABS head of business statistics, said higher education spending constituted 0.59 per cent of Australia’s gross domestic product in 2024, up from 0.54 per cent in 2022 – the first such rise since before the pandemic, reflecting “a return to more normal operations”.
Lay said the recovery had been supported by the return of international students, which had increased universities’ revenue streams and staffing levels.
