medical research future fund act 2015

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Medical Research Future Fund

The Medical Research Future Fund (MRFF) was established on 26 August 2015 by the  Medical Research Future Fund Act 2015 (MRFF Act). It provides an ongoing funding stream for medical research and medical innovation into the future with the credits to the MRFF preserved in perpetuity. The capital of the MRFF is invested, with the earnings used to make grants of financial assistance for medical research and medical innovation over the long-term.

For information on the  Australian Medical Research and Innovation Strategy 2021-2026  and the accompanying  Australian Medical Research and Innovation Priorities 2022-2024 , and disbursements from the MRFF, refer to the  Department of Health and Aged Care website .

Legislation

The MRFF Act gives effect to the following:

• the Advisory Board is tasked with determining the Australian Medical Research and Innovation Strategy and related Priorities to inform Government decision making on MRFF disbursements.
• Investment Mandate:  the  responsible Ministers  are required to issue an Investment Mandate (detailed below).
• Crediting amounts to the MRFF:  the responsible Ministers can make credits to the MRFF. For information on the credits, refer to the Transfers (Credits) to Medical Research Future Fund table below.
• Maximum Annual Distribution Amount (MADA) : The Future Fund Board of Guardians (Future Fund Board) determines a MADA for the MRFF each financial year (detailed below).
• Debiting amounts from the MRFF:  the Finance Minister, on request from the Minister for Health, will authorise disbursements (debits) from the MRFF, subject to the MADA. The Treasurer is responsible for payments to States and Territories.

Investment Mandate

The  responsible Ministers issued the  Medical Research Future Fund Investment Mandate Direction 2015  to the Future Fund Board on 8 November 2015. It requires the Future Fund Board to adopt a benchmark return of the “average return of at least the Reserve Bank of Australia Cash Rate target + 1.5 per cent to 2.0 per cent per annum, net of investment fees, over a rolling 10-year term”.

In targeting this benchmark return, the Future Fund Board must determine an acceptable but not excessive level of risk for the MRFF measured in terms such as the probability of losses in a particular year. In determining the level of risk, the Future Fund Board must take into account; the principle that the nominal value of the credits to the MRFF be preserved over the long- term; and the need to moderate the volatility of the maximum annual distribution.

• Medical Research Future Fund Investment Mandate Direction 2015      
• 2015 Explanatory Statement .

Maximum Annual Distribution Amount

The Maximum Annual Distribution Amount (MADA) is an independent determination that is made each year by the Future Fund Board. The determination specifies the amount that can be drawn from the MRFF each financial year for medical research and medical innovation grants. In issuing each MADA determination, the Future Fund Board is required under the MRFF Act to take into account the principles that the value of credits to the MRFF be preserved over the long term and the volatility in MADAs from one year to the next be moderated.

MADA Determinations

Investment performance and financials.

The Future Fund Board publicly discloses the MRFF asset allocation and investment returns in its  quarterly portfolio updates .

Financial performance since inception to 31 March 2024

Notes: 1. Data may not sum due to rounding. 2. Earnings are net of investment and administration fees incurred by the Future Fund Board. 3. This amount represents debits made for policy purposes under the relevant Act.

Quarterly performance result to 31 March 2024

Notes: 1. The quoted benchmark rate of return follows the relevant investment mandate direction. 2. Annualised return since inception on 22 September 2015, when the Fund received its initial credit.

Annual performance results

Notes: 1. The quoted benchmark rate of return follows the relevant investment mandate direction. 2. The Medical Research Future Fund investment commenced from 22 September 2015. 3. Closing balances are sourced from Finance’s annual financial statements.

Transfers (Credits) to Medical Research Future Fund

The following table provides a history of financial transfers to MRFF, with links to the associated documentation.

Annual Disbursements (Debits) from the Medical Research Future Fund

Notes: 1. Totals may not add due to rounding 2. As of 31 March 2024.

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Cases & legislation, journals & scholarship, communities, new zealand, specific year, medical research future fund act 2015, table of provisions, part 1--preliminary.

• 1 Short title  
• 2 Commencement  
• 3 Object  
• 4 Simplified outline of this Act  
• 5 Definitions  
• 6 Crown to be bound  
• 7 Extension to external Territories  
• 8 Extra - territorial application  
• 9 Alternative constitutional basis  

PART 2--MEDICAL--RESEARCH FUTURE FUND

Division 1--introduction.

• 10 Simplified outline of this Part  

Division 2--Establishment of the Medical Research Future Fund and the Medical Research Future Fund Special Account

• 11 Establishment of the Medical Research Future Fund  
• 12 Determination of amount of Medical Research Future Fund  
• 13 Allocation of investments to the Medical Research Future Fund from the Health and Hospitals Fund  
• 14 Establishment of the Medical Research Future Fund Special Account  

Division 3--Credits of amounts to the Medical Research Future Fund Special Account

• 15 Credits of amounts  

Division 4--Debits of amounts from the Medical Research Future Fund

• 15A Health Minister may require the Finance Minister to debit amounts  
• 16 Limitation on total annual debits from the Medical Research Future Fund Special Account  
• 17 Purposes of the Medical Research Future Fund Special Account --main purposes  
• 18 Purposes of the Medical Research Future Fund Special Account --purposes related exclusively to the investments etc. of the Medical Research Future Fund  
• 19 Purposes of the Medical Research Future Fund Special Account --purposes not related exclusively to the Medical Research Future Fund  
• 20 Channelling State/Territory grants through the Federation Reform Fund  
• 21 Debits from the Federation Reform Fund  
• 22 Terms and conditions of grant to a State or Territory  
• 23 Establishment of the MRFF Health Special Account  
• 24 Purpose of the MRFF Health Special Account  
• 25 Channelling grants through the MRFF Health Special Account  
• 26 Debits from the MRFF Health Special Account  
• 27 Terms and conditions of grant to a person other than a State  
• 29 Making payments directly to corporate Commonwealth entities  
• 30 Terms and conditions of grants to corporate Commonwealth entities  
• 31 Future Fund Board must ensure that there is sufficient money in the Medical Research Future Fund Special Account to cover authorised debits etc.  

Division 5--Inter-fund transfers

• 32 Transfers from the Medical Research Future Fund to the Future Fund  

PART 2A--AUSTRALIAN--MEDICAL RESEARCH ADVISORY BOARD

Division 1--simplified outline of this part.

• 32A Simplified outline of this Part  

Division 2--Establishment of Australian Medical Research Advisory Board and functions

• 32B Australian Medical Research Advisory Board  
• 32C Functions of the Advisory Board  

Division 3--The Australian Medical Research and Innovation Strategy and Australian Medical Research and Innovation Priorities

• 32D The Australian Medical Research and Innovation Strategy  
• 32E The Australian Medical Research and Innovation Priorities  
• 32EA Consultation process before determining an Australian Medical Research and Innovation Strategy or Australian Medical Research and Innovation Priorities  

Division 4--Advisory Board members

• 32F Membership of the Advisory Board  
• 32G Appointment of members  
• 32H Remuneration and allowances  
• 32J Leave of absence  
• 32K Disclosure of interests  
• 32L Other terms and conditions  
• 32M Resignation  
• 32N Termination  

PART 3--MAXIMUM--ANNUAL DISTRIBUTIONS

• 33 Simplified outline of this Part  

Division 2--Maximum annual distributions

• 34 Maximum annual distributions  

PART 4--INVESTMENT--OF THE MEDICAL RESEARCH FUTURE FUND

• 35 Simplified outline of this Part  
• 36 Objects of investment of the Medical Research Future Fund  
• 37 Investment of the Medical Research Future Fund  
• 38 Management of investments of the Medical Research Future Fund  
• 39 Medical Research Future Fund Investment Mandate  
• 40 Obligation on Future Fund Board in performing investment functions  
• 41 Limitation on Medical Research Future Fund Investment Mandate  
• 42 Future Fund Board to be consulted on Medical Research Future Fund Investment Mandate  
• 43 Compliance with Medical Research Future Fund Investment Mandate  
• 44 Future Fund Board must not trigger the takeover provisions of the Corporations Act 2001  
• 45 Borrowing  
• 46 Medical Research Future Fund investment policies  
• 47 Derivatives  
• 48 Additional financial assets  
• 49 Securities lending arrangements  
• 50 Investment managers  
• 51 Refund of franking credits  
• 52 Realisation of non - financial assets  
• 53 Additional function of the Future Fund Board  

PART 5--REPORTING--OBLIGATIONS ETC.

• 54 Simplified outline of this Part  
• 55 Finance Minister may require Future Fund Board to prepare reports or give information  
• 56 Keeping the responsible Ministers informed etc.  
• 57 Finance Minister may give reports to other Ministers etc.  
• 57A Health Minister to report to Parliament on financial assistance  
• 58 Health Minister must publish information  

PART 6--MISCELLANEOUS

• 59 Simplified outline of this Part  
• 60 Delegation by the Finance Minister  
• 61 Delegation by the Treasurer  
• 61A Delegation by the Health Minister  
• 62 Review of operation of Act  
• 63 Rules  
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• Plain text (ASCII) (94.3 KB)
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    The Parliament of Australia recognises that the health and wellbeing of all Australians is essential to the future of Australia. Discoveries in medical research and important medical innovations in the future will contribute to improving the health and wellbeing of all Australians.

    In order for medical research and medical innovation to support a healthy and productive nation, long - term and large - scale funding is required. The Parliament believes that the establishment of a perpetual fund capable of generating income over the long term is the most appropriate mechanism for ensuring that this funding is available on an ongoing basis. The Commonwealth has a role in meeting this funding need as it is able to marshal and deploy resources not available through other means.

    Funding a system for medical research and medical innovation requires a national approach. The establishment of the Medical Research Future Fund and its administration will ensure that a coherent and consistent approach is adopted in the funding of medical research and medical innovation to ensure that such research and innovation benefits all Australians.

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