The universities in Australia have warned due to government spending on research falling to its lowest on record. According to new predictions, the expenditure is expected to be 0.49 percent of GDP by 2022/23. This is a significant drop since records began in 1978 when it has never gone below 0.5 percent. Catriona Jackson, the chief of Universities Australia, pointed out the federal budget as an opportunity to tackle the country’s research issue. Even though the government cannot invest in everything in these tough economic situations, Jackson believes that research will make the nation wealthier and stronger. The universities in Australia employ about 81,000 researchers, who undertake 45 percent of applied research and 87 percent of basic research. However, the sector is highly dependent on international student fees that is vulnerable to COVID and other shocks. They estimate that every dollar invested in research returns $5 to the economy. Jackson noted that a one percent increase in spending on research could expand the economy by $24 billion over a decade. Vicki Thomson, chief of Group of Eight, stated that the new free trade deal between Australia and the UK would boost investment in innovation and research collaboration. The deal is the first to include an innovation chapter and is hoped to drive productivity and growth in both nations.