EXPLANATORY STATEMENT
Issued by the Authority of the Treasurer and the Minister for Finance
Medical Research Future Fund Act 2015
Medical Research Future Fund (Crediting of Amounts) Determination 2017
Outline
Section 15 (1) (a) of the Medical Research Future Fund Act 2015 (the Act) provides that the responsible Ministers may determine by writing that a specified amount is to be credited to the Medical Research Future Fund Special Account on a specified day. Section 15 (2) of the Act provides that in making a determination, the responsible Ministers must (subject to section 15 (4)) have regard to the object of the Act. The object of the Act, set out in section 3 of the Act, is to improve the health and wellbeing of Australians by establishing the Medical Research Future Fund (MRFF) to provide grants of financial assistance to support medical research and medical innovation.
The purpose of this Medical Research Future Fund (Crediting of Amounts) Determination 2017 is to require that $2,242,200,000.00 be credited to the Medical Research Future Fund Special Account on 3 July 2017. This amount consists of savings from the Health portfolio. The Government announced the establishment of the MRFF and the estimated value of Health portfolio savings that would be credited to the MRFF in the 2014-15 Budget. In the 2017-18 Budget, the Government announced that it would not proceed with two 2014-15 unlegislated Health Portfolio Budget savings measures – Pharmaceutical Benefits Scheme – increase in co-payments and safety net thresholds and Simplifying Medicare safety net arrangements.
Section 15 (3) of the Act provides that the determination is a legislative instrument for the purpose of the Legislation Act 2003 but is not subject to disallowance under section 42 of the Legislation Act 2003.
The determination commences on the day it is registered on the Federal Register of Legislation.
Consultation
In accordance with section 17 of the Legislation Act 2003, consultation has taken place with the Department of the Treasury and the Australian Office of Financial Management.
The Office of Best Practice Regulation (OBPR) has advised that the proposal is not likely to have a regulatory impact on business, community organisations or individuals, therefore a Regulation Impact Statement is not required (OBPR ID: 22410).
The Hon Scott Morrison MP
Treasurer
Senator the Hon Mathias Cormann
Minister for Finance
Overview
The Medical Research Future Fund Act 2015 was enacted by the Parliament of Australia to establish the Medical Research Future Fund (MRFF) with the objective of improving the health and wellbeing of Australians by providing grants for medical research and innovation. The Act mandates that the responsible Ministers, namely the Treasurer and the Minister for Finance, may determine the crediting of specified amounts to the MRFF Special Account, as stipulated in Section 15 of the Act. The Medical Research Future Fund (Crediting of Amounts) Determination 2017, issued under the authority of the Treasurer and the Minister for Finance, requires the crediting of $2,242,200,000.00 to the MRFF Special Account on 3 July 2017, representing savings from the Health portfolio. This determination follows the 2014-15 Budget announcement of the MRFF and the estimated value of Health portfolio savings to be credited. The determination is a legislative instrument under the Legislation Act 2003 but is exempt from disallowance, and it commences upon registration on the Federal Register of Legislation.
Scope and Application
The Medical Research Future Fund (Crediting of Amounts) Determination 2017 applies to the process of crediting specified amounts to the Medical Research Future Fund Special Account, as per Section 15(1)(a) of the Medical Research Future Fund Act 2015. This Act applies to the responsible Ministers who are tasked with determining the specified amount to be credited to the fund on a designated day. The fund itself is established under the Act with the primary objective of improving the health and wellbeing of Australians by providing grants for medical research and innovation. The determination is applicable across the Commonwealth of Australia, and it is made pursuant to the Act, which is subject to the Legislation Act 2003, though it is not subject to disallowance. The determination does not extend or restrict application through subordinate instruments but is a direct legislative instrument under the Act. There are no exclusions or exemptions specified in this determination, and it applies to the crediting of the specific amount of $2,242,200,000.00, which consists of savings from the Health portfolio, on 3 July 2017.
Key Provisions
The Medical Research Future Fund (Crediting of Amounts) Determination 2017 (sections 15(1)(a) and 15(2)) specifies that a sum of $2,242,200,000.00 should be credited to the Medical Research Future Fund Special Account on 3 July 2017. This amount originates from savings identified within the Health portfolio. The Act mandates that the responsible Ministers, when making such a determination, must consider the overarching objective of the Medical Research Future Fund Act 2015, which is to enhance the health and wellbeing of Australians through the provision of grants for medical research and medical innovation. In accordance with the Act, the determination is a legislative instrument under the Legislation Act 2003, yet it is exempt from disallowance as per section 42 of the same Act. It becomes effective upon registration on the Federal Register of Legislation.
The Act imposes specific obligations on the responsible Ministers, requiring them to credit the specified amount to the Medical Research Future Fund Special Account on the stipulated date. This obligation is in line with the broader goal of the Medical Research Future Fund Act 2015 to support medical research and medical innovation. The Act further requires the responsible Ministers to consider the Act's objectives when making the determination. The process of consultation and advice from the Office of Best Practice Regulation (OBPR) has been undertaken to ensure that the determination does not have an adverse regulatory impact on businesses, community organisations, or individuals.
Regarding potential breaches, the Act does not explicitly outline specific offences or penalties for non-compliance with the crediting determination. However, general legislative principles apply, and any failure to comply with legislative instruments could potentially lead to administrative or legal repercussions. The Act, however, does not specify any particular penalties for breaches of the crediting determination. The legislative instrument is subject to the general provisions of the Legislation Act 2003, which may encompass various enforcement mechanisms if necessary.