Chapter 1Introduction
1.1The Commonwealth Scientific and Industrial Research Organisation (CSIRO) sits at the heart of Australia’s national science and research ecosystem, driving the research and development that Australia needs to address our most important scientific challenges.
1.2As this report sets out, CSIRO’s research, including in partnership with industry, helps foster innovation and technological advancement, which in turn underpins Australia’s long-term economic growth and productivity. At the same time, CSIRO is uniquely positioned to deliver ‘public good science’—specifically, research that provides essential benefits to the community and environment that might not otherwise be undertaken by industry or other private interests. CSIRO also plays a critical role in building Australia’s sovereign capability, ensuring that the nation maintains the independent scientific and technical expertise and critical infrastructure necessary to respond to national challenges and global shocks in an increasingly complex and uncertain world.
1.3However, this inquiry also highlighted how CSIRO is confronting an increasingly difficult operational and financial landscape. The costs of undertaking world-class, complex scientific research are rising, placing pressure on CSIRO’s internal budget within a context of broader constraints on the Federal Budget. This inquiry was in part prompted by, and concerned with, a series of recent and newly announced reductions in CSIRO’s workforce, which have raised serious concerns about the long-term financial viability of the organisation. Central to this report is the question of whether current resourcing arrangements are sufficient to maintain Australia’s sovereign scientific capability and address increasingly complex national challenges. There are significant concerns that CSIRO’s funding, when measured in real terms, has not kept pace with the requirements of a modern, effective national science agency.
1.4Central to CSIRO’s work and mission are its people, from early- and mid-career researchers to the most experienced scientists, and the dedicated and capable support staff who enable their work. The committee received compelling evidence suggesting that this workforce is currently experiencing deep levels of frustration and distress. These sentiments stem not only from concerns staff have about their own job security and the wellbeing of their colleagues, but also a very genuinely felt view that the importance of their work is often misunderstood and discounted by CSIRO’s leadership. Time and again, the committee was told that staff feel they are not being adequately consulted or heard regarding CSIRO’s direction and future. CSIRO can not afford to alienate the very people it relies on to deliver its mandate. The expertise held by CSIRO’s staff in strategically important areas is often very difficult or impossible to replace; once this capability is lost, it cannot be easily replicated or ‘picked up’ by other research organisations, here or overseas.
1.5As this report makes clear, it is essential that CSIRO’s decision-making processes, particularly those concerning strategic research directions and cost-saving measures, are properly informed by the views of all stakeholders. In addition to more effective engagement with its own staff, CSIRO must ensure that its strategic path, while set independently, is nonetheless guided by the insights of industry partners and the broader Australian research and development community. This engagement, and careful consideration of the capacity and capabilities of the broader Australian Research and Development (R&D) landscape, will ensure CSIRO’s priorities remain aligned with the national interest and its resource allocation supports a sustainable and resilient scientific future for Australia.
Referral of the inquiry
1.6On 26 November 2025, the Senate referred the question of the funding and resourcing of CSIRO to the Senate Economics References Committee (‘the committee’) for inquiry and report by 31 March 2026.
1.7The reporting date was subsequently extended to 21 April 2026 and then 28April 2026.
Conduct of the inquiry
1.8The committee published details of the inquiry on its website and called for written submissions by 30 January 2026. The committee also wrote to relevant stakeholders to invite them to make a submission.
1.9The committee published 88 submissions, as well as answers to questions on notice, as listed in Appendix 1.
1.10The committee held one public hearing in Canberra on 13 March 2026. Details of witnesses who appeared at the public hearing are listed in Appendix 2.
Acknowledgements
1.11The committee thanks the many inquiry participants who provided evidence, both in submissions and at the public hearing, on the range of issues relevant to funding and resourcing of the CSIRO.
Structure of this report
1.12In addition to this chapter, this report contains the following chapters:
Chapter 2 provides an overview of CSIRO’s legislated purposes, views put during the inquiry regarding its funding and decision-making about strategic research directions, including the extent to which its decision-making processes are supported by appropriate consultation mechanisms and properly accounts for staff and other stakeholder concerns.
Chapter 3 outlines the challenges for CSIRO leadership in addressing funding limitations, and impacts of recent resourcing decisions.
Chapter 4 considers the importance of R&D in and for Australia, the role of public good science and need for sovereign scientific capabilities, sector capabilities and priorities, and broader funding consideration for scientific research.
Chapter 5 presents the committee view and recommendations.
Notes on references
1.13In this report, references to Committee Hansard are to proof transcripts. Page numbers may vary between proof and official transcripts.