The Australian Government has released the final report of the Australian Research Council's (ARC) National Competitive Grants Program (NCGP) Policy Review, outlining the most significant reform of Australia's competitive research funding system in recent years. The reforms are designed to simplify funding pathways, strengthen support for collaboration, and better connect early-stage research with Australia's broader innovation ecosystem.
Many WaterRA members will be familiar with ARC initiatives such as Linkage Projects, Fellowships, Research Hubs and Training Centres, which have played an important role in advancing research and innovation across the water sector.
Key changes for researchers and industry partners
The review proposes a simpler and more cohesive funding model that will reduce the number of schemes while supporting research across a range of scales, from exploratory projects through to major collaborative investments. The report also places greater emphasis on industry engagement, support for early-career and Indigenous researchers, and alignment with national priorities.
Some of the key headlines include:
- A streamlined grants program with fewer schemes and clearer pathways for researchers and partners.
- Reduced administrative barriers to collaboration, including a focus on easing participation requirements for industry and end-user organisations.
- Increased support for Aboriginal and Torres Strait Islander researchers and research.
- Stronger alignment between early-stage research and Australia's broader research, development and innovation ecosystem.
A new funding structure
Under the proposed model, the NCGP will transition from 15 schemes to seven, creating a more accessible funding framework for researchers, universities and industry partners.
Three schemes will focus on supporting research capability and people, including:
- Early Career Researchers
- Indigenous Researchers
- Research leadership and mentoring
Four project-focused schemes will support research at different scales:
Explore
Supports high-risk, high-reward research projects with the potential to generate transformative new knowledge and significant future impact. The first Explore funding round is expected to open in March 2027.
Breakthrough
Designed to support ambitious research that addresses significant problems or major knowledge gaps with the potential to advance understanding in important fields.
Collaborate
A large-scale funding scheme aimed at building research alliances across universities, industry, government and end-user organisations. The scheme will support multi-institutional programs and require significant partner contributions.
Prioritise
Supports major long-term research initiatives addressing emerging opportunities and national priorities, helping build Australia's strategic capabilities and international competitiveness.
What it means for WaterRA members
WaterRA welcomes the proposed reforms, particularly the increased focus on collaboration, reduced barriers for industry participation, and stronger connections between research and real-world outcomes.
These changes align closely with WaterRA's Partnership Program pathway, which connects members with major collaborative research initiatives and helps maximise the impact of industry investment through leveraged funding opportunities. Our Partnership Program brings together the collective expertise of the water sector, ensures industry priorities are reflected in research agendas, and supports member participation in ARC, CRC and other large-scale research initiatives.
Members can learn more about WaterRA's research pathways through the Research Discovery Portal.
Transition to commence from 2027
Subject to government approval, implementation of the new NCGP will commence gradually from 2027. Existing funded projects and programs will continue through to completion, while current schemes are progressively phased out and new schemes introduced.
The ARC has confirmed that a final round of Discovery Projects is expected to open in February 2027, providing continuity during the transition period. The new Explore scheme is expected to follow in March 2027.
While further implementation details are still to be released, the reforms signal a significant shift in Australia's research funding landscape and create new opportunities for industry-focused collaboration and innovation.
Interested in developing a collaborative research proposal?
If you are considering an ARC, CRC or other major collaborative research initiative, WaterRA encourages members to engage early to maximise sector participation and funding opportunities.
Submit a research idea via WaterRA's Research Discovery Portal or contact the WaterRA Research Team at [email protected].