PGPA Act Determination (Biomedical Translation Fund Special Account 2023)

Administered by Department of Finance

Legislation au F2023L00712 In force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance

Public Governance, Performance and Accountability Act 2013

PGPA Act Determination (Biomedical Translation Fund Special Account 2023)

Purpose of this determination

This determination is made under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to establish the Biomedical Translation Fund Special Account 2023 (the special account) for the Department of Health and Aged Care.

The purpose of the special account is to facilitate the provision of capital by the Commonwealth through the Biomedical Translation Fund (BTF). The BTF program was established in 2016 as an equity co-investment venture capital program, to support the development of biomedical ventures in Australia. Despite the use of the term ‘investment’ and related terms to describe aspect of the BTF in this explanatory statement, this provision of capital under the BTF program would not constitute an investment within the meaning of section 58 of the PGPA Act.

The Department of Industry, Science and Resources administers the program on behalf of the Department of Health and Aged Care in accordance with the BTF Programme Guidelines (which can be found on business.gov.au website), although the Department of Health and Aged Care retains administrative responsibility for the special account. The BTF Program aims to help translate biomedical discoveries into high growth potential companies that will improve long term health benefits and national economic outcomes.

The Australian Government licenses one or more private sector fund managers and provides funding, to be at least matched by private capital raised by private sector fund managers, to establish Licensed Funds to invest in and support the development and commercialisation of Australian Biomedical Discoveries. At inception $501.25 million was available through the BTF with a total capital commitment by the Commonwealth of $250 million and $251.25 million from private sector capital.

As of January 2023, the BTF had invested approximately $338 million of the $501.25 million available in 28 companies. As part of the measure ‘Life Saving and Job Creating Medical Research – investing in medical research and technology’ announced in the 2022-23 March Budget, the BTF initial investment period was extended by a further 3 years, from 30 June 2023 to 30 June 2026. Beyond June 2026, only top-up investments to existing projects are eligible for funding. From 2016 the BTF was funded through annual appropriations. After commencement of the special account, the remaining balance of the Commonwealth’s capital commitment (approximately $80 million) will be credited to the special account and remain available for the life of the BTF program, which is expected to end in 2031.

If any investments are made from the special account, then under subsection 58(5) of the PGPA Act the proceeds from those investments must be credited to the special account. However, this does not apply to proceeds from the Commonwealth’s provision of capital in accordance with the BTF Programme Guidelines. That is because that provision of capital in accordance with those guidelines is not an investment within the meaning of the PGPA Act. The determination does not permit those proceeds to be credited to the special account, as they are not intended to be reinvested in the BTF. They will instead be returned to the general consolidated revenue fund (CRF).

Item 162 in Part 4 to Schedule 1AB of the Financial Framework (Supplementary Powers) Regulations 1997 provides legislative authority for the BTF program.

The operating context of special accounts

A special account may be established by a determination made by the Minister for Finance (under section 78 of the PGPA Act) or by an Act (see section 80 of the PGPA Act).

A special account is an appropriation mechanism that sets aside amounts within the CRF for spending on specified purposes. The purposes of a special account are set out in the establishing determination or Act.

In accordance with section 81 of the Constitution, all revenues or moneys raised or received by the Commonwealth Executive Government form one CRF. Section 83 of the Constitution provides that such money may not be drawn from the Treasury except under an appropriation made by law.

A special account enables revenues or moneys raised or received to be set aside for the purposes of that special account.
Expenditure for the purposes of a special account is supported by an appropriation in the PGPA Act: subsection 78(4) for a special account established by a determination or subsection 80(1) for a special account established by an Act.

Special account determinations

Special account determinations are legislative instruments for the purposes of the Legislation Act 2003. Special account determinations may be varied or revoked by a subsequent determination made under subsection 78(3) of the PGPA Act.

In accordance with subsection 79(3) of the PGPA Act, the Finance Minister must table a copy of such determinations in each House of the Parliament. Subsection 79(4) of the PGPA Act provides that special account determinations are subject to disallowance by either House of the Parliament.

The disallowance period starts on the day a special account determination is tabled in the House and ends on the fifth sitting day of the House after the determination was tabled in that House.

If neither House passes a resolution to disallow a special account determination, under subsection 79(5) it commences on the day immediately after the last day on which it could have been disallowed, or on a later day if specified in the determination. This determination specifies that it will commence on the later of the day immediately after the last day on which it could have been disallowed, and 1 July 2023. The Secretary of the Department of Health and Aged Care will be the accountable authority responsible for the special account on commencement of this determination.

Human Rights

A Statement of Compatibility with Human Rights is not required for this determination. Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires a Statement of Compatibility with Human Rights for all legislative instruments subject to disallowance under section 42 of the Legislation Act 2003. While determinations made or varied under subsections 78(1) or 78(3) of the PGPA Act are subject to disallowance under section 79 of the PGPA Act, subsection 79(2) provides that they are not subject to disallowance under section 42 of the Legislation Act 2003. As such, a Statement of Compatibility with Human Rights is not required.

Consultation

The Department of Health and Aged Care was consulted in the preparation of this determination.

Overview

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) Determination (Biomedical Translation Fund Special Account 2023) was enacted to establish the Biomedical Translation Fund Special Account 2023 for the Department of Health and Aged Care. This special account facilitates the provision of capital by the Commonwealth through the Biomedical Translation Fund (BTF), an equity co-investment venture capital program established in 2016 to support the development of biomedical ventures in Australia. Despite the use of investment terminology in the explanatory statement, the capital provided under the BTF program does not constitute an investment within the meaning of section 58 of the PGPA Act. The BTF Program aims to translate biomedical discoveries into high growth potential companies that benefit both long-term health and national economic outcomes. Administered by the Department of Industry, Science and Resources on behalf of the Department of Health and Aged Care, the program involves licensing private sector fund managers who match the Commonwealth's funding with private capital to invest in and support the development and commercialisation of Australian biomedical discoveries.

Scope and Application

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) Determination (Biomedical Translation Fund Special Account 2023) pertains to the establishment of the Biomedical Translation Fund Special Account 2023, which is intended to facilitate the provision of capital by the Commonwealth through the Biomedical Translation Fund (BTF). This special account is administered by the Department of Health and Aged Care, with the Department of Industry, Science and Resources managing the program in accordance with the BTF Program Guidelines. The BTF aims to support the development and commercialisation of Australian biomedical discoveries, thereby fostering high-growth potential companies that enhance health benefits and national economic outcomes. The special account will hold the remaining balance of the Commonwealth's capital commitment after the initial funding phase, ensuring that approximately $80 million remains available for the duration of the BTF program, expected to conclude in 2031. This determination ensures that any proceeds from investments made from the special account are credited back to it, while proceeds from the Commonwealth's capital provision under the BTF Program Guidelines are not reinvested in the BTF and are instead returned to the general Consolidated Revenue Fund. The special account determination, subject to disallowance by either House of the Parliament, will commence on the later of the day immediately after the last day it could have been disallowed or 1 July 2023.

Key Provisions

This determination, made under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), establishes the Biomedical Translation Fund Special Account 2023 (subsection 1). This special account facilitates the provision of capital by the Commonwealth through the Biomedical Translation Fund (BTF), which supports the development of biomedical ventures in Australia (subsection 1). The Department of Health and Aged Care retains administrative responsibility for the special account, while the Department of Industry, Science and Resources administers the program (subsection 1). The BTF Program aims to translate biomedical discoveries into high growth potential companies, improving long term health benefits and national economic outcomes (subsection 1). The special account is an appropriation mechanism that sets aside amounts within the consolidated revenue fund (CRF) for spending on specified purposes (subsection 1). The purpose of the special account is to facilitate the provision of capital by the Commonwealth through the BTF (subsection 1). The operating context of special accounts is that they may be established by a determination made by the Minister for Finance under section 78 of the PGPA Act or by an Act under section 80 of the PGPA Act (subsection 1). The Finance Minister must table a copy of such determinations in each House of the Parliament and they are subject to disallowance by either House of the Parliament (subsections 79(3) and 79(4)). If neither House passes a resolution to disallow a special account determination, it commences on the day immediately after the last day on which it could have been disallowed, or on a later day if specified in the determination (subsection 79(5)). This determination specifies that it will commence on the later of the day immediately after the last day on which it could have been disallowed, and 1 July 2023 (subsection 1). There are no specific obligations or requirements imposed by this determination on the parties or entities it governs, as it primarily establishes the special account and outlines its purpose. However, the Department of Health and Aged Care will be responsible for the special account, and the Department of Industry, Science and Resources will administer the program (subsection 1). The BTF Program aims to help translate biomedical discoveries into high growth potential companies that will improve long term health benefits and national economic outcomes (subsection 1). There are no specific offences, penalties, or civil/criminal consequences for breach outlined in this determination. However, the proceeds from any investments made from the special account must be credited to the special account under subsection 58(5) of the PGPA Act (subsection 1). This does not apply to proceeds from the Commonwealth’s provision of capital in accordance with the BTF Programme Guidelines, as that provision of capital is not an investment within the meaning of the PGPA Act (subsection 1). The proceeds from the Commonwealth’s provision of capital will instead be returned to the general consolidated revenue fund (CRF) (subsection 1).

Area of Law: Finance & Banking Law
Instrument: Legislative Instrument
Concepts: Commencement Provisions; Regulatory Standards; Reporting & Disclosure Obligations; Licensing & Registration; Enforcement Powers

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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