The federal government says it will inject $163 million into the Australian Institute of Marine Science (AIMS) in next month's budget, after it was revealed parts of the building were unusable due to mould-infested carpets and ceilings and rotting air-conditioning units.
The headquarters of the national institute have been operating out of a facility in Cleveland near Townsville for more than 50 years.
AIMS chief executive Paul Hardisty said the dilapidated conditions meant some of its scientists were currently working in makeshift offices.
"[The Townsville facility was] built back in the '70s … our infrastructure is now pretty old," he said.
"We basically ended up closing one wing of our main building."
Dr Hardisty said demand for the institute's research had increased drastically in recent years.
"We're at a point in our history where we have never had more demand for what we do," he said.
"We're still operating, we're still delivering great science, we're still ranked in the top three in the world.
"[But] it's pretty clear that we've kind of reached the limits of what we can do with what we have."
He said it had been more than a decade since there had been an increase in the institute's operating funding.
"We've had occasional short-term injections for specific things … [but] those things run out so it doesn't allow you to get ahead of the game," he said.
"The cost of everything is going up and has gone up."
The funding, spread across the next four years, will go towards repairs, updating laboratories, upgrading the critical electrical power supply and establishing an infrastructure program management office to oversee the works.
"The refurbishment and modernisation of AIMS's facilities at our Townsville head office will ensure we can continue to conduct cutting-edge research to protect our world heritage-listed coral reefs, including Ningaloo Reef and the Great Barrier Reef, from the effects of climate change," Dr Hardisty said.
Environment Minister Tanya Plibersek said the funding would also go towards a new research vessel.
The institute's research vessel, RV Apollo, is 18 years old and no longer meets its size or capability needs.
"Australia's marine scientists are the best in the world," Ms Plibersek said.
"Without their research, we wouldn't be able to protect the Great Barrier Reef or support our beautiful oceans."
