CANBERRA - Australia's science, technology, engineering and mathematics (STEM) sector is facing a severe crisis as a result of stagnating funding, the industry's peak body warned on Tuesday.

Science and Technology Australia (STA) said in a pre-budget submission to the federal government that immediate action is needed to avoid the loss of critical research capabilities and a mass exodus of talent.

It said that investment in research and development (R&D) in Australia in recent years has stagnated or declined when adjusted for inflation, while the cost of research has increased in the same period.

To address the crisis, STA has called for the government to link funding to inflation, strengthen STEM education and invest in the nation's STEM workforce.

STA President Jas Chambers said in a statement that every dollar invested in R&D returns up to five dollars to Australia's economy.

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"STEM research must stop being viewed as a cost to the public purse and instead as an investment in Australia's future economic security and resilience," she said.

A survey undertaken by STA in 2025 found that 47 percent of Australia's STEM professionals were considering leaving their current role, with 33 percent planning to leave the sector altogether.