Business Council of Australia calls for R&D funding to hit 3pc GDP, amid productivity push

The Business Council of Australia (BCA) has issued a strong call for private sector research and development (R&D) investment to reach 3 percent of GDP, up from the current 1.7 percent. Their goal is to boost national productivity, create jobs, and strengthen Australia’s position as an innovation-driven economy. Key Points

Lowering Investment Barriers

The BCA recommends removing or significantly raising the existing R&D tax threshold. They propose a minimum of 250 million dollars, indexed over time, to encourage larger scale innovation.

A Clear National Vision

Reaching 3 percent of GDP for R&D would align Australia with global leaders such as the United States at 3.5 percent and Israel, which invests even more.

Partnership and Commercialisation

The initiative supports s...

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Published: Tuesday, July 29th, 2025
By: Jessica Wang
Source: News.com.au

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