EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance
Medical Research Future Fund (Consequential Amendments) Act 2015
Medical Research Future Fund (Consequential Amendments) Act Commencement Proclamation 2015
Item 3 of the table in subsection 2(1) of the Medical Research Future Fund (Consequential Amendments) Act 2015 (the Act) provides that Schedule 2 to the Act is to commence on a day fixed by Proclamation. However, if any of the provisions in Schedule 1 do not commence within 6 months from the day on which Schedule 1 commences, then the provisions will commence on the day after the end of that 6 month period. The Act received Royal Assent on 26 August 2015.
The purpose of the Medical Research Future Fund (Consequential Amendments) Act Commencement Proclamation (the Proclamation) is to fix 29 October 2015 as the day on which provisions in Schedule 2 to the Act commence.
The Act makes a number of consequential amendments to other pieces of legislation required to enable the effective operation of the Medical Research Future Fund as established by the Medical Research Future Fund Act 2015. The Medical Research Future Fund will be credited with amounts equal to the uncommitted balance of the Health and Hospitals Funds (HHF) and the value of announced health saving measures.
Schedule 2 makes amendments to the COAG Reform Fund Act 2008, the DisabilityCare Australia Fund Act 2013, the Future Fund Act 2006, the Health Insurance Act 1973, the Medical Research Future Fund Act 2015 and the Nation-building Funds Act 2008 relating to the abolition of the HHF. Item 38 repeals Chapter 4 of the Nation-building Funds Act 2008. This will repeal the HHF by repealing all provisions in the Nation-building Funds Act 2008 relating to the establishment and management of the HHF.
Fixing a day by proclamation for the commencement of Schedule 2 of the Act gives certainty to the abolition date of the HHF. The date was determined in consultation with the Future Fund Management Agency.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003. However, the Proclamation is not subject to disallowance under item 42 of the table in subsection 44(2) of that Act.
A Statement of Compatibility with Human Rights was prepared for the Act. An additional Statement is not required for this Proclamation as it is not subject to disallowance.
In accordance with section 17 of the Legislative Instruments Act 2003, consultation has taken place with the Future Fund Management Agency.
Overview
The Medical Research Future Fund (Consequential Amendments) Act 2015 was enacted by the Australian Parliament to address the need for consequential amendments to various pieces of legislation required for the effective operation of the Medical Research Future Fund, as established by the Medical Research Future Fund Act 2015. This Act ensures that the Medical Research Future Fund is credited with amounts equal to the uncommitted balance of the Health and Hospitals Funds (HHF) and the value of announced health saving measures, facilitating the smooth transition and integration of these funds into the new framework. The Medical Research Future Fund (Consequential Amendments) Act Commencement Proclamation 2015, issued under the authority of the Minister for Finance, fixes 29 October 2015 as the commencement date for the provisions in Schedule 2 of the Act, which include amendments to several acts relating to the abolition of the HHF. This proclamation was made to provide certainty regarding the abolition date of the HHF, achieved through consultation with the Future Fund Management Agency.
Scope and Application
The Medical Research Future Fund (Consequential Amendments) Act 2015 applies to entities and persons impacted by the establishment and operation of the Medical Research Future Fund, including the Health and Hospitals Fund, and their interactions with various funds and legislation as detailed within the Act. The Act's scope extends to making consequential amendments to other legislative instruments such as the COAG Reform Fund Act 2008, the DisabilityCare Australia Fund Act 2013, the Future Fund Act 2006, the Health Insurance Act 1973, the Medical Research Future Fund Act 2015, and the Nation-building Funds Act 2008, particularly in relation to the abolition of the Health and Hospitals Fund. The Act is a Commonwealth instrument, thus its application and enforceability are within the jurisdiction of the Commonwealth of Australia. The Medical Research Future Fund (Consequential Amendments) Act Commencement Proclamation 2015 fixes 29 October 2015 as the commencement date for the provisions in Schedule 2, providing certainty regarding the abolition of the Health and Hospitals Fund. This Proclamation is a legislative instrument but is not subject to disallowance under the Legislative Instruments Act 2003.
Key Provisions
The Medical Research Future Fund (Consequential Amendments) Act 2015 (section 2(1)) sets out various provisions that amend other legislation to facilitate the effective operation of the Medical Research Future Fund. These provisions are detailed in Schedule 2, which includes amendments to the COAG Reform Fund Act 2008, the DisabilityCare Australia Fund Act 2013, the Future Fund Act 2006, the Health Insurance Act 1973, the Medical Research Future Fund Act 2015, and the Nation-building Funds Act 2008. Schedule 1 of the Act contains provisions that must commence within six months of the commencement of Schedule 1 or, if not, will commence on the day after the end of that six-month period. The commencement of the provisions in Schedule 2 is fixed by the Medical Research Future Fund (Consequential Amendments) Act Commencement Proclamation 2015 as 29 October 2015. This provides clarity on the date of abolition of the Health and Hospitals Fund (HHF) as all provisions in the Nation-building Funds Act 2008 relating to the establishment and management of the HHF will be repealed (section 38).
The Act imposes specific obligations on entities and parties involved with the Medical Research Future Fund and the Health and Hospitals Fund. For example, it requires the transfer of amounts equal to the uncommitted balance of the HHF and the value of announced health saving measures to the Medical Research Future Fund. Additionally, it mandates that any consequential amendments necessary to other legislation be made to ensure the smooth operation of the Medical Research Future Fund. The Act also imposes requirements on the Future Fund Management Agency to consult with relevant parties when making decisions affecting the funds. This ensures that the changes are implemented in a manner that is both effective and compliant with existing legislation.
In terms of offences, penalties, or consequences, the Act itself does not outline specific criminal or civil penalties for breaches of its provisions. However, the consequential amendments it makes to other legislation may impose penalties or consequences for non-compliance with those amended provisions. For example, the Health Insurance Act 1973 may include penalties for failure to comply with the amendments related to the Medical Research Future Fund. It is important for parties subject to these amendments to be aware of the specific requirements and potential consequences of non-compliance within the relevant amended Acts. The Medical Research Future Fund (Consequential Amendments) Act Commencement Proclamation 2015 does not impose any penalties or consequences as it is not subject to disallowance under the Legislative Instruments Act 2003.