Overview

The Medical Research Future Fund (Crediting of Amounts) Determination 2019 was enacted to address the need for a secure and ongoing revenue stream for medical research and innovation in Australia. This determination was issued by the Treasurer and the Minister for Finance, as per the authority granted under the Medical Research Future Fund Act 2015. The Act was passed by the Parliament of Australia with the objective of improving the health and wellbeing of Australians through the establishment of the Medical Research Future Fund (MRFF), which provides grants to support medical research and medical innovation. The determination credits $7,830,490,000.00 to the MRFF Special Account on 23 July 2019, aligning with current budget forecasts and representing the estimated value of health function savings from the 2014-15 Budget, adjusted for subsequent policy decisions. This crediting of funds is intended to support the object of the Act by contributing to a reliable revenue stream for the MRFF.

Scope and Application

The Medical Research Future Fund (Crediting of Amounts) Determination 2019 applies to the transfer of a specified amount of $7,830,490,000.00 from the Consolidated Revenue Fund to the Medical Research Future Fund (MRFF) Special Account on 23 July 2019. This determination is made under the authority of the Medical Research Future Fund Act 2015, specifically pursuant to section 15(1)(a), and is intended to provide a secure ongoing revenue stream to the MRFF. The Act itself is a Commonwealth legislation that seeks to improve the health and wellbeing of Australians by establishing the MRFF to support medical research and medical innovation. The determination is a legislative instrument for the purposes of the Legislation Act 2003 but is not subject to disallowance. The application of the Act extends to the relevant Ministers responsible for making the determination and the entities involved in the crediting of amounts, such as the Future Fund Management Agency and the Australian Office of Financial Management. The consultation process included relevant departments and agencies as per section 17 of the Legislation Act 2003. No regulatory impact on business, community organisations or individuals is expected, and thus, a Regulation Impact Statement was not required.

Key Provisions

The Medical Research Future Fund (Crediting of Amounts) Determination 2019 (sections 1 to 4) provides specific details on how an amount will be credited to the Medical Research Future Fund (MRFF) Special Account. Section 1 names the determination, while section 2 sets the commencement date as the day after its registration on the Federal Register of Legislation. Section 3 references the authority under the Medical Research Future Fund Act 2015, allowing the responsible Ministers to credit a specified amount to the MRFF Special Account on a specified date. Section 4 itself credits $7,830,490,000.00 to the MRFF Special Account on 23 July 2019. This amount aligns with current budget forecasts and is adjusted based on subsequent policy decisions. The obligations imposed by this determination on the parties involved are primarily administrative. The responsible Ministers must ensure that the crediting of the specified amount to the MRFF Special Account occurs as determined. This involves coordinating with relevant financial and government entities to facilitate the transfer from the Consolidated Revenue Fund to the MRFF Special Account. The consultation process with the Department of the Treasury, Future Fund Management Agency, the Australian Office of Financial Management, and the Reserve Bank of Australia ensures that the transfer is conducted in an orderly and compliant manner. The determination itself does not explicitly state any offences or penalties for breach; however, non-compliance with the Act's requirements could potentially lead to legal repercussions. Under the Medical Research Future Fund Act 2015, breaches of legislative instruments or failure to adhere to the specified procedures could result in legal actions being taken against the responsible parties. Although the specific penalties are not outlined in this determination, they could involve civil or administrative penalties as prescribed under the relevant legislation. The determination is a legislative instrument under the Legislation Act 2003 but is not subject to disallowance under section 42 of the same act. This means that while it carries legal force, it does not require parliamentary approval to be in effect. The Office of Best Practice Regulation has assessed that the proposal is unlikely to have a regulatory impact on businesses, community organisations, or individuals, thus deeming a Regulation Impact Statement unnecessary. This determination aims to support the object of the Act, which is to improve the health and wellbeing of Australians by providing ongoing revenue through the MRFF.