2025 Research Block Grant Allocations: Insights, Trends, and Strategic Impacts

Dec 15, 2024

4 min read

The Australian Government Department of Education announced the Research Block Grant (RBG) allocations for 2025 last week, marking another step in shaping the nation’s research ecosystem. With funding reaching $2.3 billion—a 4.1% increase from 2024—the RBG continues to provide critical support for universities, funding the indirect costs of research. This support enables Australia’s universities to sustain high-quality research environments, train HDR students, and foster impactful collaborations. (Blog Data Source: Department of Education Consolidated Time Series Data)

Over time, the research-intensive Go8’s share of the total pool has declined modestly, from 63.19% in 2017 to 61.87% in 2025, with gains flowing primarily to the Australian Technology Network (ATN), although there is still a significant gap between the funds flowing to the research-intensive Go8 universities and Australia’s other universities.

However, the smaller and regional universities are finding innovative ways to grow their funding base. The current formula for RBG allocations is relatively straightforward—based on varying contributions of research income and HDR completions dependent on whether it’s the Research Support Program (RSP) or the Research Training Program (RTP)—but the strategies for achieving growth are anything but homogeneous. Institutions are carving out distinct niches that align with their strengths and strategic priorities.

RBG Allocations 2017-2025 — RBG Allocations 2017 - 2025 Go8 (left); selected non-Go8 (right)

Go8 Leadership Dynamics: Monash University has overtaken the University of Melbourne as the top recipient of RBG funds within the Go8. Monash’s rise is fuelled by its ability to consistently increase research income and HDR completions, reinforcing its position as a leader in research excellence. University of Melbourne's dominance is being challenged as its research income plateaus and HDR completions decline, from a peak of 1,021 in 2018 to 860 in 2023. This underscores the importance of maintaining balanced performance across multiple metrics.
Non-Go8 Innovators: Outside the Go8, Deakin University exemplifies the power of diversification. By focusing on Category 2–4 research income from industry and government collaborations, Deakin has risen from 19th in 2017 to 9th in 2025 in RBG allocations. Its income from 'for-profit' organisations alone has grown from $8.7 million in 2017 to $37 million in 2023, and it has increased in several other sub-categories as well. Flinders University, on the other hand, has pursued a different approach with a steady increase in competitive Category 1 research income and a modest increase in HDR student completions, demonstrating the viability of a more traditional approach.

Note that there are further graphs at the bottom of this post: RBG by program, HERDC Research Income, and HDR Student Completions.

What Does This Mean for the Sector?

The latest data underscores that there is no one-size-fits-all strategy for success. RBG funding is not merely an incentive; it is a necessity. It enables universities to cover the indirect costs of research—expenses that are often invisible but crucial, such as maintaining state-of-the-art laboratories, ensuring compliance with ethical standards, and supporting administrative processes. These costs are the foundation on which research excellence is built.

However, the variation in how universities achieve RBG success highlights a fundamental truth: there is no single formula for a thriving research environment. Institutions are finding different ways to support the infrastructure and environments required for high-quality research. From leveraging industry partnerships to focusing on HDR pipelines or government-funded projects, the diversity of strategies mirrors the complexity of the research landscape itself.

For a deeper dive into the numbers, including detailed data on research income and HDR completions, refer to the graphs provided at the bottom of this post.

Looking Ahead

As the landscape evolves, universities must navigate a complex mix of traditional and innovative funding sources. Whether leveraging industry partnerships, engaging with government research priorities, or bolstering HDR pipelines, institutions have multiple avenues to grow their share of funding.

The RBG allocations for 2025 highlight that while scale offers a distinct advantage, success in research funding is increasingly driven by strategic focus and adaptability. Smaller institutions are demonstrating that targeted initiatives aligned with their unique strengths can deliver significant impact. Meanwhile, Monash’s success through deliberate and sustained efforts showcases how even dominant players like UMelb. can be challenged and surpassed through perseverance and innovation.