Overview

The Medical Research Future Fund (Crediting of Amounts) Determination 2020 was enacted to address a specific financial need in the Medical Research Future Fund (MRFF) by crediting a specified amount to the MRFF Special Account. The determination was made under the authority granted by the Medical Research Future Fund Act 2015, which was established to improve the health and wellbeing of Australians through medical research and innovation. The determination was issued by the Treasurer and the Minister for Finance and aims to contribute to a secure ongoing revenue stream for the MRFF. The crediting of $3,212,050,668.00, representing the estimated value of health function savings from the 2014-15 Budget adjusted for subsequent policy decisions, was executed on 21 July 2020. The determination was subject to consultation with relevant government agencies and was deemed not to require a Regulation Impact Statement as it is not expected to have a regulatory impact on businesses, community organisations, or individuals.

Scope and Application

The Medical Research Future Fund (Crediting of Amounts) Determination 2020 applies to the crediting of a specified amount to the Medical Research Future Fund Special Account, which is established under the Medical Research Future Fund Act 2015. This Act provides the authority for the Treasurer and the Minister for Finance to determine, in writing, the amount to be credited to the Fund on a specified day. The determination itself credits $3,212,050,668.00 to the MRFF Special Account as of 21 July 2020, an amount derived from estimated health function savings from the 2014-15 Budget, adjusted for subsequent policy decisions. The legislation has a Commonwealth reach, given its enactment and operation under federal law, and it is not subject to disallowance. The determination is made in accordance with the object of the Act, which is to enhance the health and wellbeing of Australians by funding medical research and medical innovation through the MRFF. No exemptions or exclusions are specified in the determination, and it does not extend or restrict its application through subordinate instruments.

Key Provisions

The Medical Research Future Fund (Crediting of Amounts) Determination 2020 (sections 1-4) outlines the process for crediting a specified amount to the Medical Research Future Fund (MRFF) Special Account. Section 1 establishes the name of the determination, while Section 2 specifies that the determination takes effect the day after its registration on the Federal Register of Legislation. Section 3 references paragraph 15(1)(a) of the Medical Research Future Fund Act 2015, which allows the responsible Ministers to determine, in writing, that a specific amount should be credited to the MRFF Special Account on a particular date. Section 4 states that the determination credits $3,212,050,668.00 to the MRFF Special Account on 21 July 2020. This crediting amount represents the estimated value of health function savings, as published in the 2014-15 Budget, adjusted for subsequent policy decisions. The obligations imposed by the Act (section 3) require the responsible Ministers to consider the object of the Medical Research Future Fund Act 2015, which is to improve the health and wellbeing of Australians by establishing the MRFF to provide grants of financial assistance to support medical research and medical innovation. When making a determination, the Ministers must have regard to this object, ensuring that the crediting of amounts aligns with the overall goal of improving health outcomes through medical research and innovation. Furthermore, subsection 15(3) of the Act designates the determination as a legislative instrument for the purposes of the Legislation Act 2003, though it is not subject to disallowance under section 42 of that Act. Consultation has been undertaken with relevant authorities, including the Department of the Treasury, the Future Fund Management Agency, the Australian Office of Financial Management, and the Reserve Bank of Australia, to facilitate the transfer of funds from the Consolidated Revenue Fund to the MRFF Special Account. The Medical Research Future Fund (Crediting of Amounts) Determination 2020 may result in civil or criminal consequences if not adhered to. While specific offences and penalties are not detailed in the explanatory statement, breaches of the Act could lead to legal repercussions. The determination aims to ensure that the crediting of funds to the MRFF Special Account complies with the legislative requirements set forth in the Medical Research Future Fund Act 2015, thereby supporting the broader objective of advancing medical research and innovation in Australia.