Sustainable Research Excellence Background Information

The Sustainable Research Excellence (SRE) initiative was announced by the Australian Government in the 2009-10 Budget as part of a suite of measures to enhance university research. The SRE program will support universities in meeting the indirect costs of their Australian Competitive Grant (ACG) research activities.   Over the five years 2009-10 to 2013-14, an additional $862 million has been committed to the program.

The SRE program responds to key recommendations made in Powering Ideas: An Innovation Agenda for the 21st Century, the Government's policy for the reform of the Australian Innovation System.

A commitment was made to implement the SRE program in consultation with the higher education sector. 

Program Objectives

The dual objectives of the SRE program are to:

• help address an identified shortfall in the funding available to meet the indirect costs associated with ACG research; and
• support universities to build and maintain research excellence.

The first of these objectives reflects a need for additional support to universities to meet the project related infrastructure costs associated with ACG research and enhance the development and support of university research infrastructure more broadly.

The second objective, which distinguishes SRE from the Research Infrastructure Block Grants (RIBG) and other research block grant programs, recognises that achieving research excellence on a sustainable basis is dependent on universities' capacity to strategically manage their resources to meet costs associated with research activities. It also recognises a need for mechanisms and incentives to support universities to stretch their research performance over time.

The most significant activity in 2010 was the development of the Transparent Costing (TC) funding methodology to be applied from 2011.  This was developed in consultation with the sector and in particular through the HERDAC Technical Working Group.

A consultation paper was released in May 2010 exploring the eligibility criteria and allocation mechanisms applying to Threshold 2 in the 2011 funding allocation model and, amongst other topics, the extent to which Transparent Costing (TC) - from 2011 - and Excellence in Research for Australia (ERA) - from 2012 - might function as moderators for SRE funding, and the role of Compacts in negotiating future SRE allocations with universities.

To facilitate the development of the 2011 allocation process, universities participated in a trial of TC comprising a collection of staff hours data and financial information that gave a measure of indirect costs associated with ACG research at each institution.

Feedback from the sector on the consultation paper was considered when establishing the design principles for the 2011 funding model. Visits were made with each university in November/December 2010 to discuss the calculation methodology for Threshold 2 and provide preliminary results.

Universities were advised of 2011 funding allocation for SRE in November 2010, including preliminary Threshold 2 funding allocations for eligible institutions, which were confirmed following the end of the Compact discussions in April 2011.

SRE Program Development and Implementation in 2011

Following the successful trial of TC in 2010, the methodology developed for the TC Moderator was used again in the 2012 allocation process. 

The Staff Hours Survey was again conducted in 2011. The survey and return formats were similar to those used in 2010. The main differences related to the Instructions and FAQs. These were updated to ensure a consistent approach across the sector. In particular, the FAQs consolidated those developed by universities during 2010. The response rate was made mandatory, set at 67%.

Institutions were also required to submit an Indirect Costs Financial Return. In 2011, a single financial return method was be used rather than the two methodologies (Alternative and Preferred) trialled in 2010.

The department also undertook a consultation process with the higher education sector to incorporate a Excellence Index (Ei) derived from the results of the 2010 Excellence in Research for Australia (ERA) exercise conducted by the Australian Research Council (ARC). The paper outlined a range of issues regarding the incorporation of ERA into the SRE funding methodology for 2012 and 2013. Workshops were also held in most captial cities.

Timeline for 2011

SRE Program Development and Implementation in 2012

Universities will not be required to undertake the Staff Hours Survey exercise in 2012.

Universities will be required to submit the SRE Financial Data Collection - due 30 June 2012. Further refinement of the template may be undertaken by the department. The SRE Technical Working Group will provide advice on any development undertaken in 2012.

Further Information

• SRE Current Documents and Information
• SRE Historical Documents