Anxiety is rapidly growing about further funding cuts to the Australian Space Agency ahead of Federal Budget 2026, while industry weighs whether the agency has provided value for money to date.
The conversation was recently kicked off when Space Industry Association of Australia chief executive officer Dan Lloyd, speaking publicly earlier this week, advocated for a sustained baseline of funding to be set aside to keep the Australian Space Agency functional and help develop industry.
“The Australian Space Agency is facing a 70 per cent cumulative funding cut over two years. Thirty per cent last year and another 40 per cent coming. For an agency that returns $7 for every $1 invested in leading-edge research and industrial capacity, it’s a strange place to find savings, and the timing could not be worse,” he said in an online opinion piece.
“The agency’s funding cliff has arrived just as the system is working, just as many opportunities which Australia has spent years working toward are finally within reach.
“The Australian sector now employs more than 19,000 people, generates $4.6 billion in annual turnover, and gives Australia a near-100 per cent market share of payload returns from space to commercial spaceports.
“Companies such as Gilmour Space, now supported with major investments by the National Reconstruction Fund, were developed through determination and innovation, and in part through early Agency grants.
“The pipeline is working and weakening the agency now risks undermining the system that created it.”
The Australian space sector reportedly generates $4.6 billion each year and employs 17,000 full-time workers across more than 620 organisations nationwide, according to information released in July last year. In addition, the Australian Space Agency has reportedly delivered $171 million in grant funding to 91 projects involving more than 200 Australian organisations; including a 42 million program is supporting the development of Australia’s lunar rover, Roo-ver.
With this in mind, Space Connect recently reached out to industry representatives to assess the benefits and challenges of working with the Australian Space Agency in regards to funding, communication and engagement.
One chief executive officer of an Australian space company, speaking with Space Connect, confirmed that industry still has concerns about the value for money being provided by the agency.
“No (the ASA hasn’t provided meaningful support to us), we have asked but the best they have provided is words of encouragement,” he said.
Gold Coast-based Gilmour Space Technologies, who are developing Australian-made Eris orbital rockets and expect to conduct a second test flight later this year, also confirmed that the agency may require more central coordination to be effective.
“Our main engagement with the Australian Space Agency in recent years has been through the Office of the Space Regulator around our launch activities. This has included the granting of Australia’s first orbital launch facility licence and an Australian launch permit, important milestones not just for our company, but for the broader industry,” according to a Gilmour Space spokesperson.
“With two launches planned this year, we continue to work closely with the Agency on approvals for our upcoming launches, and our experience has been that they are committed to enabling safe and responsible access to space from Australia.
“The global space market is growing rapidly and demand for launch is increasing… To realise this opportunity, it will be important that the regulatory team is better resourced to keep pace with industry growth and enable more timely, efficient approvals.
“There is also an opportunity for the Agency to play a stronger whole-of-government coordination role across civil space priorities. Right now, civil space capability is spread across different departments on an ad hoc basis, often without a clear view of the local industry and what it can deliver. Better central coordination could help align priorities, reduce duplication, strengthen sovereign capability, and get more value from public investment.
“More broadly, the Agency has played a valuable role in helping establish Australia’s credibility in the global space sector. That reputation supports international partnerships, attracts investment, and gives confidence to customers looking to launch from Australia.”
***Space Connect is updating this story with further details from industry. If you have any comments about possible funding cuts facing the Australian Space Agency, please contact [email protected] or comment them below***
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