NICTA has opened a bioelectronics laboratory to create new health technologies, including the development of a bionic eye and a microchip that can chemically analyse blood called a 'Lab on a chip'.
The Bioelectronics Lab will also further develop e-health systems to support remote patient health monitoring.
Professor Stan Skafidas, leader of NICTA's bionic eye research said that advanced electronics was critical in developing this breakthrough biomedical technology.
"We are excited that the Bioelectronics Lab will allow us to meet our commitment to our partners in the Bionic Vision Australia (BVA) consortium to develop a tiny, wireless retinal implant for the bionic eye," he said.
"The collaboration between biology and electronics is capable of developing new and disruptive technologies that will benefit everyone."
The Federal Government has so far allocated $42 million to the BVA to develop the bionic eye.
NICTA aims to develop a device containing over 1,000 electrodes that will operate wirelessly and be ready for first human implant in 2014.
The bioelectronics lab will further enhance skills development within the bioelectronics field.
"It will also train the future generation of bioengineers, who will help maintain Australia's leadership in medical research," said NICTA Victoria Research Laboratory Director Professor Rob Evans.
NICTA's new laboratory will be located at its existing Victoria Research Laboratory premises within the University of Melbourne.
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