The world's peak science body has put the Australian Government on notice, warning it could lose out on lucrative contracts following cuts to science in the federal budget.

In Hobart, the CSIRO's staff numbers are being cut and the Australian Antarctic Division is being forced to find efficiency measures.

Medical researchers are also bracing for an indirect impact as the structure of PhDs change.

"I would be worried about the cuts to basic grant funding to the Australian Research Council and to some of the world-renowned organisations like the CSIRO," the International Council for Science head Steven Wilson told 7.30 Tasmania.

The council lobbies on the interests of 141 countries and said Australia was going against the worldwide trend of boosting investment in research and development.

A total of 18 staff at the CSIRO's Hobart offices have already been cut and more job losses are expected following last month's federal budget.

The Australian Antarctic division is also facing efficiency dividends, and cuts to the Australian Research Council could affect biomedical research at Hobart's Menzies institute.

"Many of the traditional science powers, the US, UK, Germany have, during these difficult financial times, absolutely recognised the value of science in the economy," Mr Wilson said.

"They've continued and they've strengthened their investment in science, because they've felt that it's absolutely essential that the brightest and the best want to stay in their countries and be available to their economies.

"So in broad terms, I would be a little concerned that Australia may be jeopardising some of that."

Hobart has the highest number of scientists per capita of any Australian capital and the union is worried that cuts to the sector could therefore have a wider fallout in the city.

'People being asked to reapply for their jobs', union says

Following the federal budget, Environment Minister Greg Hunt travelled to Hobart to spruik the Government's commitment to replace Australia's ageing ice-breaker, the Aurora Australis, by 2019.

"It is the largest single investment in Australia's Antarctic research and logistics venture, in Australian history," Mr Hunt said.

But the commonwealth branch of the Community and Public Sector Union said that investment doesn't reflect what's happening with jobs at the Australian Antarctic Division.

"The department itself, at one particular staffing level is going through a process whereby people are being asked to reapply for their jobs," union spokeswoman Jessica Munday said.

"There is a bit of a disconnect between some of the funding measures that have been announced by Antarctic Research and what they are actually doing with staffing numbers on the ground."

Steven Wilson from the International Council for Science has warned the cuts could jeopardise Hobart's economically-lucrative status as a gateway port to Antarctica.

"There is a risk of making the logistics difficult for getting into the Antarctic through Hobart," he said.

"Countries have alternative choices.

"Australia needs to be really careful here."

The Australian Antarctic Division works collaboratively on scientific research with a number of other countries, but Mr Wilson has warned more needs to be done to attract new partnerships.

"The nature is changing - you have countries like China, India, Brazil investing, they are going to be the new science powers," he said.

"This is the moment to make sure that Australian science can collaborate with those nations, particularly in Asia."

Indirect cuts through Australian Research Council

The Government has also reduced funding to the Australian Research Council (ARC).

The council part-funds biomedical science at the Menzies Research Institute in Hobart.

"We're concerned that that may have an impact in the future for us," Menzies head Tom Marwick said.

The International Council for Science's Mr Wilson says ARC supports basic science across all the major disciplines.

"Reducing funding to an organisation of that type, I put it equivalent to weakening the basic scientific foundations," he said.

However, the real challenge for Menzies is the proposed changes to higher education that would see PhD students paying an extra contribution for their courses.

"This is a very significant structural change for PhD scholars," Professor Marwick said.

"That they are expected to pay fees ... adds an additional cost burden to doing a PhD and that is something we are worried about."

The number of PhD students doing research for the Menzies Institute has almost doubled in the past three years to record numbers.

"The worst-case scenario is that the numbers of PhD scholars falls and that's a bad thing," Professor Marwick said.

"It's an issue for our own research productivity."

The institute is planning for the changes and hopes it will not have a wide impact on biomedical research in the state.

Scientists welcome Medical Research Future Fund

While austerity measures could affect multiple scientific disciplines in Hobart, the local sector and the International Council for Science is cautiously optimistic about the Federal Government's plans to develop a $20 billion Medical Research Future Fund.

"It's also important to recognise there have been some cuts, but there has been some good news," Mr Wilson said.

"You know, there's been a promise for an increase in investment in medical research."

The Future Fund would be financed by savings to Medicare, such as the introduction of a $7 GP co-payment.

It still needs to get approved by the Australian Senate, but the Government anticipates it could double the investment in medical research by 2022.

"We don't think that there will be changes for a few years," Professor Marwick said.

"I think if you look at the projections that significant increments of medical research funding would come in three years' time and as you say five years for the whole process to work completely."

Professor Marwick said while the money would not flow immediately, it was reassuring to get recognition of the contribution biomedical research brings to the Australian economy.

"The recognition publicly and in the parliament and in the budget about how much Australian biomedical research contributes to the economy, the figures are very compelling that the return for investment in biomedical research is second to only mining, in Australia," he said.