Horizon Europe

Question

"1. Has Australia signed the treaty text for association to Horizon Europe, or have negotiations only concluded in principle? a. If not signed, on what date does the Government expect the agreement to be signed? 2. Will the agreement be referred to the Joint Standing Committee on Treaties? 3. Please confirm whether Australia’s association is limited to Pillar II only. 4. Will Australian entities have access to all six Pillar II clusters, including health, culture and inclusive society, civil security, digital/industry/space, climate/energy/mobility, and food/bioeconomy/agriculture/environment? a. If no, which Pillar II clusters will Australian entities be eligible to access? 5. Will Australian entities be eligible to lead consortia in all covered Pillar II calls? 6. Will Australian entities be eligible for direct EU funding on the same basis as EU Member State entities? 7. Are Australian entities eligible from 1 January 2027, or from another date? 8. Will Australian entities be able to apply before the treaty has formally entered into force under transitional arrangements? 9. Will Australia’s agreement be limited only to Horizon Europe Pillar II, or will it establish a broader framework for participation in other EU programs? 10. Are Australian entities eligible to participate in European Defence Fund, Euratom, or other associated EU research programs? a. If not, what specific programs are excluded? 11. What is the total estimated cost to the Commonwealth of associating to Horizon Europe in 2026–27? 12. What is the estimated cost in each year of the forward estimates? 13. What is the estimated total cost over the life of the agreement? 14. What formula will be used to calculate Australia’s financial contribution? 15. Will Australia pay an operational contribution, a participation fee, or both? 16. What is the expected annual operational contribution? 17. What is the expected annual participation fee? 18. Has Australia negotiated a fixed annual operational contribution schedule similar to New Zealand’s Horizon Europe agreement, or will Australia’s contribution be calculated using the standard GDP contribution key against EU programme appropriations? 19. Will Australia’s contribution be paid in euros? a. What exchange rate assumption has been used in the forward estimates? 20. Which budget line will fund Australia’s contribution? 21. Has any funding been appropriated for Australia’s contribution? 22. Noting New Zealand established a domestic overheads top-up scheme for successful Horizon Europe participants, will Australia establish a similar domestic top-up scheme? a. If so, what is the estimated cost over the forward estimates? b. What cap will apply per project? and; c. Which portfolio will fund it? 23. Will the contribution be funded from existing departmental resources or new money? 24. Will the treaty text, annexes, side letters, implementation arrangements or associated grant rules impose any flat rate, cap, ceiling or limit on the amount of EU funding that may be provided: a. per project involving Australian entities; b. per Australian participant; c. per Australian-led consortium; or d. per funding call or program area? 25. If yes, please identify: a. the amount or percentage of the cap, flat rate or limit; b. whether the limit applies to direct costs, indirect costs, overheads, personnel costs, equipment costs, subcontracting or total project funding; and c. whether the limit differs by project type, including Research and Innovation Actions, Innovation Actions, Coordination and Support Actions, partnerships, missions or other Horizon Europe instruments. 26. Will Australian participants receiving Horizon Europe funding be subject to Horizon Europe’s standard flat-rate indirect cost rule, under which indirect costs are reimbursed at 25 per cent of eligible direct costs? 27. If yes, has the Government assessed whether the 25 per cent flat-rate overhead allowance is sufficient for Australian universities, research agencies and businesses, or whether domestic top-up funding will be required? 28. If Horizon Europe funding is limited by flat-rate or capped indirect cost rules, will the Commonwealth provide any domestic top-up funding to Australian participants? 29. Will any Australian research, science, industry or innovation program be reduced, deferred or reallocated to fund the Horizon Europe contribution? 30. Has the Government calculated the net fiscal position if Australian entities receive less in grants than Australia contributes? 31. Is there a correction mechanism, rebate mechanism, clawback mechanism or balancing mechanism if Australia contributes more than Australian entities receive? 32. What safeguards are in place to protect Australian intellectual property generated through Horizon Europe projects? 33. Who owns IP created by Australian entities in Horizon Europe consortia? 34. Can European consortium partners obtain preferential access to Australian IP? 35. Are Australian entities required to share background IP with consortium partners? 36. What rights will EU institutions have to object to the transfer, sale or exclusive licensing of IP created by Australian entities using Horizon Europe funding? 37. Who will make the final decision on whether an Australian-led or Australian-participating Horizon Europe application receives funding? 38. Will the Australian Government have any role in approving, rejecting, ranking or prioritising Horizon Europe applications involving Australian participants? 39. Will any Australian minister, department or agency have a veto over Horizon Europe funding decisions involving Australian entities?40. Will Australia have any formal role in the evaluation panels or evaluation committees that assess Horizon Europe applications? 41. Are Horizon Europe applications assessed solely under European Commission rules and procedures? 42. Are successful applications selected by the European Commission or relevant EU granting authority after assessment by independent external experts? 43. Will Australia be involved in setting the evaluation criteria for Horizon Europe calls open to Australian participants? 44. Will the treaty provide reciprocal access for EU entities to access Australian domestic research programs? 45. Can the European Commission impose administrative penalties on Australian entities or individuals participating in Horizon Europe? 46. Will the Commonwealth be required to pay the European Commission if an Australian entity fails to pay a debt, penalty or recovery order arising from Horizon Europe?"

Answer

See attached response.

Documents

• Question with answer (PDF) (opens in a new tab)
• BI-284_Canavan_Horizon Europe questions combined_DISR.pdf (opens in a new tab)