Medical researchers fear a push by politicians to limit foreign donations could have adverse consequences for the sector.
The parliament's electoral matters committee has proposed a ban on donations from foreign citizens and entities to political parties, associated entities, third parties and other bodies involved in the political sphere.
The Association of Australian Medical Research Institutes, whose members have combined revenue of $1.3 billion and employ almost 16,000 staff and students, said in a submission to the inquiry there were "potential negative unintended consequences" in the reforms.
"Medical research institutes, as well as other research organisations such, as universities and hospitals, frequently receive research funding from foreign citizens, entities and governments," the organisation said.
Income from such bodies as the Wellcome Trust, the Bill and Melinda Gates Foundation, the World Health Organisation, Save the Children, and foreign governments amounted to at least $50 million a year to medical research institutes alone, not counting universities and hospitals.
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"AAMRI is concerned that depending on the definition used, and the regulations developed that medical research institutes, and others within the sector, could inadvertently be caught up as either 'third parties' or seen as 'other political actors'."
The ability to comment on public health and ethical issues could also be compromised.
AAMRI president Tony Cunningham said any electoral law changes should avoid regulations that restrict the sector from receiving international foreign research income, or from participating in the public policy process.
