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In June 1999, ‘New knowledge, new opportunities: a discussion paper on higher education research and research training’ outlined the Australian Government?s vision for the future of higher education research in Australia. The paper proposed a policy and funding framework for research and research training. Since its release, the Government has announced further initiatives to enhance Australia?s research capabilities. This policy statement, released in December 1999, announces major changes to the current arrangements for funding of higher education research in Australia with the aim of achieving the objectives outlined in ‘New knowledge, new opportunities’. These changes make the best use of available resources to ensure that the research and research training undertaken in Australian universities continues to be world class and that the new knowledge it generates is effectively linked to innovation in Australian industry. The new framework provides for: (1) a strengthened Australian Research Council and an invigorated national competitive grants system; (2) performance-based funding for research student places and research activity in universities, with allocative formulae and transitional arrangements designed to ensure that all universities are able to compete effectively under the new arrangements; (3) the establishment of a broad quality verification framework supported by Research and Research Training Management Plans; and (4) a collaborative research program to address the needs of rural and regional communities. An evaluation of these reforms was initiated in May 2003 as part of the higher education reform package, ‘Our universities: backing Australia’s future’. An issues paper that identifies key issues for consideration as part of the evaluation is indexed at TD/TNC 74.292.