Australia's first review into cancer research funding has shown work to battle lung cancer is underfunded compared to the damage it causes to society.

The review by Cancer Australia showed that between 2006 and 2011, breast, colon and prostate cancer all received funding greater than their proportional toll on society — measured in years of healthy life lost.

By the same measure, research into lung cancer, along with lymphoma, pancreatic cancer and cancer of the brain were underfunded.

Lung cancer, which takes the heaviest toll on years of healthy life, received less than a quarter of the funding given to breast and colon cancer research.

Cancer Australia chief executive Helen Zorbas said the results would be used to better target future money.

"Cancer is the major cause of burden of disease in Australia," Professor Zorbas said.

"One in two Australians will develop cancer before the age of 85, and the number of people diagnosed is predicted to continue to increase.

"Australia is an international leader in cancer research.

"For the first time, we have evidence to inform strategic, more-targeted investment in cancer research."

The review also found total funding for cancer research projects increased by 85 per cent from $116 million in 2006 to $215 million in 2011.

Overall, $1.77 billion was provided to Australian cancer researchers between 2006 and 2011, with the Commonwealth Government the largest contributor, providing more than $1 billion in funding.

Cancer Australia was established by the Commonwealth Government in 2006.