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This is a Bill, not an Act. For current law, see the Acts databases.
2013-2014-2015
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Medical Research Future Fund Bill 2015
No. , 2015
(Finance)
A Bill for an Act to establish the Medical Research
Future Fund, and for related purposes
No. , 2015
Medical Research Future Fund Bill 2015
i
Contents
Part 1--Preliminary
2
1
Short title ........................................................................................... 2
2
Commencement ................................................................................. 2
3
Object ................................................................................................. 3
4
Simplified outline of this Act ............................................................. 3
5
Definitions ......................................................................................... 4
6
Crown to be bound ............................................................................. 8
7
Extension to external Territories ........................................................ 8
8
Extra-territorial application ................................................................ 8
9
Alternative constitutional basis .......................................................... 8
Part 2--Medical Research Future Fund
12
Division 1--Introduction
12
10
Simplified outline of this Part .......................................................... 12
Division 2--Establishment of the Medical Research Future Fund
and the Medical Research Future Fund Special
Account
13
11
Establishment of the Medical Research Future Fund ...................... 13
12
Determination of amount of Medical Research Future Fund ........... 13
13
Allocation of investments to the Medical Research Future
Fund from the Health and Hospitals Fund ....................................... 13
14
Establishment of the Medical Research Future Fund Special
Account ............................................................................................ 14
Division 3--Credits of amounts to the Medical Research Future
Fund Special Account
15
15
Credits of amounts ........................................................................... 15
Division 4--Debits of amounts from the Medical Research
Future Fund
16
Subdivision A--Limitation on total annual debits from the
Medical Research Future Fund Special Account
16
16
Limitation on total annual debits from the Medical Research
Future Fund Special Account ........................................................... 16
Subdivision B--Purposes
16
17
Purposes of the Medical Research Future Fund Special
Account--main purposes ................................................................. 16
18
Purposes of the Medical Research Future Fund Special
Account--purposes related exclusively to the investments
etc. of the Medical Research Future Fund ....................................... 17
ii
Medical Research Future Fund Bill 2015
No. , 2015
19
Purposes of the Medical Research Future Fund Special
Account--purposes not related exclusively to the Medical
Research Future Fund ...................................................................... 17
Subdivision C--Channelling State/Territory grants through
COAG Reform Fund
19
20
Channelling State/Territory grants through the COAG
Reform Fund .................................................................................... 19
21
Debits from the COAG Reform Fund .............................................. 20
22
Terms and conditions of grant to a State or Territory ...................... 20
Subdivision D--Channelling grants through the MRFF Health
Special Account
20
23
Establishment of the MRFF Health Special Account ...................... 20
24
Purpose of the MRFF Health Special Account ................................ 21
25
Channelling grants through the MRFF Health Special
Account ............................................................................................ 21
26
Debits from the MRFF Health Special Account .............................. 22
27
Terms and conditions of grant to a person other than a State .......... 22
28
Delegation by the Health Minister ................................................... 22
Subdivision E--Making payments directly to corporate
Commonwealth entities
23
29
Making payments directly to corporate Commonwealth
entities .............................................................................................. 23
30
Terms and conditions of grants to corporate Commonwealth
entities .............................................................................................. 23
Subdivision F--Obligation to ensure sufficient money
24
31
Future Fund Board must ensure that there is sufficient
money in the Medical Research Future Fund Special
Account to cover authorised debits etc. ........................................... 24
Division 5--Inter-fund transfers
25
32
Transfers from the Medical Research Future Fund to the
Future Fund ...................................................................................... 25
Part 3--Maximum annual distributions
26
Division 1--Introduction
26
33
Simplified outline of this Part .......................................................... 26
Division 2--Maximum annual distributions
27
34
Maximum annual distributions ........................................................ 27
Part 4--Investment of the Medical Research Future Fund
29
35
Simplified outline of this Part .......................................................... 29
36
Objects of investment of the Medical Research Future Fund .......... 29
No. , 2015
Medical Research Future Fund Bill 2015
iii
37
Investment of the Medical Research Future Fund ........................... 29
38
Management of investments of the Medical Research Future
Fund ................................................................................................. 30
39
Medical Research Future Fund Investment Mandate ....................... 30
40
Obligation on Future Fund Board in performing investment
functions .......................................................................................... 32
41
Limitation on Medical Research Future Fund Investment
Mandate ........................................................................................... 32
42
Future Fund Board to be consulted on Medical Research
Future Fund Investment Mandate .................................................... 33
43
Compliance with Medical Research Future Fund Investment
Mandate ........................................................................................... 33
44
Future Fund Board must not trigger the takeover provisions
of the Corporations Act 2001 .......................................................... 34
45
Borrowing ........................................................................................ 34
46
Medical Research Future Fund investment policies ........................ 35
47
Derivatives ....................................................................................... 36
48
Additional financial assets ............................................................... 37
49
Securities lending arrangements ...................................................... 37
50
Investment managers ....................................................................... 38
51
Refund of franking credits ............................................................... 38
52
Realisation of non-financial assets ................................................... 39
53
Additional function of the Future Fund Board ................................. 39
Part 5--Reporting obligations etc.
40
54
Simplified outline of this Part .......................................................... 40
55
Finance Minister may require Future Fund Board to prepare
reports or give information .............................................................. 40
56
Keeping the responsible Ministers informed etc. ............................. 41
57
Finance Minister may give reports to other Ministers etc. ............... 41
58
Health Minister must publish information ....................................... 41
Part 6--Miscellaneous
42
59
Simplified outline of this Part .......................................................... 42
60
Delegation by the Finance Minister ................................................. 42
61
Delegation by the Treasurer ............................................................. 42
62
Review of operation of Act .............................................................. 43
63
Rules ................................................................................................ 43
No. , 2015
Medical Research Future Fund Bill 2015
1
A Bill for an Act to establish the Medical Research
1
Future Fund, and for related purposes
2
Preamble
3
The Parliament of Australia recognises that the health and
4
wellbeing of all Australians is essential to the future of Australia.
5
Discoveries in medical research and important medical innovations
6
in the future will contribute to improving the health and wellbeing
7
of all Australians.
8
In order for medical research and medical innovation to support a
9
healthy and productive nation, long-term and large-scale funding is
10
required. The Parliament believes that the establishment of a
11
perpetual fund capable of generating income over the long term is
12
the most appropriate mechanism for ensuring that this funding is
13
available on an ongoing basis. The Commonwealth has a role in
14
Part 1 Preliminary
Section 1
2
Medical Research Future Fund Bill 2015
No. , 2015
meeting this funding need as it is able to marshal and deploy
1
resources not available through other means.
2
Funding a system for medical research and medical innovation
3
requires a national approach. The establishment of the Medical
4
Research Future Fund and its administration will ensure that a
5
coherent and consistent approach is adopted in the funding of
6
medical research and medical innovation to ensure that such
7
research and innovation benefits all Australians.
8
The Parliament of Australia enacts:
9
Part 1--Preliminary
10
11
1 Short title
12
This Act may be cited as the Medical Research Future Fund Act
13
2015.
14
2 Commencement
15
(1) Each provision of this Act specified in column 1 of the table
16
commences, or is taken to have commenced, in accordance with
17
column 2 of the table. Any other statement in column 2 has effect
18
according to its terms.
19
20
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. Sections 1 and
2 and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Sections 3 to
63
The later of the following days:
(a) the day after this Act receives the Royal
Assent;
Preliminary Part 1
Section 3
No. , 2015
Medical Research Future Fund Bill 2015
3
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
(b) the day after the Medical Research
Future Fund (Consequential
Amendments) Act 2015 receives the
Royal Assent.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Object
7
The object of this Act is to improve the health and wellbeing of
8
Australians by establishing the Medical Research Future Fund to
9
provide grants of financial assistance to support medical research
10
and medical innovation.
11
4 Simplified outline of this Act
12
This Act establishes the Medical Research Future Fund to provide
13
grants of financial assistance to support medical research and
14
medical innovation.
15
The Medical Research Future Fund consists of the Medical
16
Research Future Fund Special Account and the investments of the
17
Medical Research Future Fund. Initially, the Fund's investments
18
are a portion of the investments of the Health and Hospitals Fund
19
which was established under the Nation-building Funds Act 2008.
20
Additional amounts may also be credited to the Medical Research
21
Future Fund Special Account.
22
The Medical Research Future Fund Special Account can be debited
23
for 3 main purposes:
24
Part 1 Preliminary
Section 5
4
Medical Research Future Fund Bill 2015
No. , 2015
(a)
channelling grants to the COAG Reform Fund to make
1
grants of financial assistance to States and Territories;
2
and
3
(b)
channelling grants to the MRFF Health Special Account
4
to make grants of financial assistance to certain bodies;
5
and
6
(c)
making grants of financial assistance directly to
7
corporate Commonwealth entities.
8
There is a limit on the amount that can be debited from the Medical
9
Research Future Fund Special Account each financial year. The
10
limit, which is called the maximum annual distribution, is
11
determined by the Future Fund Board for each financial year.
12
The Medical Research Future Fund is invested by the Future Fund
13
Board in accordance with an Investment Mandate given by the
14
responsible Ministers.
15
5 Definitions
16
In this Act:
17
acquire includes acquire by way of issue.
18
Agency means the Future Fund Management Agency.
19
Appropriation Act means an Act appropriating money for
20
expenditure out of the Consolidated Revenue Fund.
21
asset has the same meaning as in the Future Fund Act 2006.
22
balance of the Medical Research Future Fund means the sum of:
23
(a) amounts standing to the credit of the Medical Research
24
Future Fund Special Account; and
25
(b) the value of investments of the Medical Research Future
26
Fund.
27
bank has the same meaning as in the Public Governance,
28
Performance and Accountability Act 2013.
29
Preliminary Part 1
Section 5
No. , 2015
Medical Research Future Fund Bill 2015
5
business entity means:
1
(a) a company; or
2
(b) a partnership; or
3
(c) a trust; or
4
(d) a body politic.
5
COAG Reform Fund means the COAG Reform Fund established
6
by section 5 of the COAG Reform Fund Act 2008.
7
corporate Commonwealth entity has the same meaning as in the
8
Public Governance, Performance and Accountability Act 2013.
9
derivative means a derivative (within the meaning of Chapter 7 of
10
the Corporations Act 2001) that is a financial asset.
11
Finance Department means the Department administered by the
12
Finance Minister.
13
Finance Minister has the same meaning as in the Public
14
Governance, Performance and Accountability Act 2013.
15
financial asset has the same meaning as in the Future Fund Act
16
2006.
17
Future Fund Board means the Future Fund Board of Guardians
18
established by section 34 of the Future Fund Act 2006.
19
Future Fund Special Account means the Future Fund Special
20
Account established by section 12 of the Future Fund Act 2006.
21
Health and Hospitals Fund means the Health and Hospitals Fund
22
that was established by section 214 of the Nation-building Funds
23
Act 2008 before that section was repealed.
24
Health and Hospitals Fund Special Account means the Health
25
and Hospitals Fund Special Account that was established by
26
section 215 of the Nation-building Funds Act 2008 before that
27
section was repealed.
28
Health Department means the Department administered by the
29
Health Minister.
30
Part 1 Preliminary
Section 5
6
Medical Research Future Fund Bill 2015
No. , 2015
Health Minister means the Minister administering the National
1
Health Act 1953.
2
investment means any mode of application of money or financial
3
assets for the purpose of gaining a return (whether by way of
4
income, capital gain or any other form of return).
5
investment manager means a person or body (other than the
6
Agency) who undertakes to do any or all of the following:
7
(a) invest amounts on behalf of the Future Fund Board;
8
(b) manage the investment of funds on behalf of the Future Fund
9
Board;
10
(c) acquire derivatives on behalf of the Future Fund Board;
11
(d) manage derivatives on behalf of the Future Fund Board;
12
(e) enter into securities lending arrangements on behalf of the
13
Future Fund Board;
14
(f) realise financial assets on behalf of the Future Fund Board;
15
(g) perform custodial functions in relation to the financial assets
16
of the Future Fund Board.
17
investment of the Medical Research Future Fund means a
18
financial asset that, under a provision of this Act, is taken to be an
19
investment of the Medical Research Future Fund.
20
maximum annual distribution for a financial year means the
21
maximum amount that may be debited from the Medical Research
22
Future Fund Special Account during the financial year.
23
medical innovation means the application and commercialisation
24
of medical research, and the translation of medical research into
25
new or improved medical treatments, for the purpose of improving
26
the health and wellbeing of individuals.
27
medical research includes research into health.
28
Medical Research Future Fund means the Medical Research
29
Future Fund established by section 11.
30
Medical Research Future Fund investment function of the Future
31
Fund Board means:
32
Preliminary Part 1
Section 5
No. , 2015
Medical Research Future Fund Bill 2015
7
(a) a function or power conferred on the Future Fund Board by
1
section 37, 38, 45, 47, 49 or 50; or
2
(b) a right or power conferred on the Future Fund Board in its
3
capacity as the holder of an investment of the Medical
4
Research Future Fund.
5
Medical Research Future Fund Investment Mandate has the
6
meaning given by subsection 39(3).
7
Medical Research Future Fund Special Account means the
8
Medical Research Future Fund Special Account established by
9
section 14.
10
medical research institute means an institute (however described)
11
that:
12
(a) has a primary purpose of conducting medical research; and
13
(b) is an entity that is registered under the Australian Charities
14
and Not-for-profits Commission Act 2012 as the type of
15
entity mentioned in column 1 of item 1 of the table in
16
subsection 25-5(5) of that Act.
17
MRFF Health Special Account means the MRFF Health Special
18
Account established by section 23.
19
NHMRC means the National Health and Medical Research
20
Council established by section 5B of the National Health and
21
Medical Research Council Act 1992.
22
person includes a partnership.
23
Note:
See also subsection 2C(1) of the Acts Interpretation Act 1901.
24
realise includes redeem or dispose of.
25
responsible Ministers means:
26
(a) the Treasurer; and
27
(b) the Finance Minister.
28
rules means rules made under section 63.
29
Treasury Department means the Department administered by the
30
Treasurer.
31
Part 1 Preliminary
Section 6
8
Medical Research Future Fund Bill 2015
No. , 2015
value of an investment of the Medical Research Future Fund
1
means the market value of the investment. For this purpose,
2
disregard anything that would prevent or restrict conversion of a
3
financial asset to money.
4
6 Crown to be bound
5
(1) This Act binds the Crown in each of its capacities.
6
(2) This Act does not make the Crown liable to be prosecuted for an
7
offence.
8
7 Extension to external Territories
9
This Act extends to every external Territory.
10
8 Extra-territorial application
11
This Act extends to acts, omissions, matters and things outside
12
Australia.
13
9 Alternative constitutional basis
14
(1) Without limiting its effect apart from this section, this Act also has
15
effect with respect to the making of grants provided by this section.
16
Grants under section 96 or 122 of the Constitution
17
(2) This Act also has the effect it would have if its operation with
18
respect to making grants were expressly confined to making grants
19
of financial assistance to a State or Territory.
20
Medical and dental services
21
(3) This Act also has the effect it would have if its operation with
22
respect to making grants were expressly confined to making grants
23
relating to the provision of medical and dental services.
24
Preliminary Part 1
Section 9
No. , 2015
Medical Research Future Fund Bill 2015
9
Pharmaceutical, sickness and hospital benefits
1
(4) This Act also has the effect it would have if its operation with
2
respect to making grants were expressly confined to making grants
3
relating to the provision of pharmaceutical, sickness and hospital
4
benefits.
5
Benefits to students
6
(5) This Act also has the effect it would have if its operation with
7
respect to making grants were expressly confined to making grants
8
for the purposes of supporting medical research and medical
9
innovation through the provision of benefits to students.
10
Communication
11
(6) This Act also has the effect it would have if its operation with
12
respect to making grants were expressly confined to making grants
13
for the purposes of supporting medical research and medical
14
innovation through postal, telegraphic, telephonic or other like
15
services.
16
Territories
17
(7) This Act also has the effect it would have if its operation with
18
respect to making grants were expressly confined to making grants
19
for the purposes of supporting medical research and medical
20
innovation in or with respect to a Territory.
21
Trade and commerce
22
(8) This Act also has the effect it would have if its operation with
23
respect to making grants were expressly confined to making grants
24
for the purposes of supporting medical research and medical
25
innovation with respect to trade or commerce:
26
(a) between Australia and other countries; or
27
(b) among the States; or
28
(c) between Territories or between a Territory and a State.
29
Part 1 Preliminary
Section 9
10
Medical Research Future Fund Bill 2015
No. , 2015
Corporations
1
(9) This Act also has the effect it would have if its operation with
2
respect to making grants were expressly confined to making grants
3
to a corporation to which paragraph 51(xx) of the Constitution
4
applies for the purposes of carrying out the corporation's activities.
5
Race
6
(10) This Act also has the effect it would have if its operation with
7
respect to making grants were expressly confined to making grants
8
for the purposes of supporting medical research and medical
9
innovation with respect to the people of any race for whom it is
10
deemed necessary to make special laws.
11
Quarantine
12
(11) This Act also has the effect it would have if its operation with
13
respect to making grants were expressly confined to making grants
14
for the purposes of supporting medical research and medical
15
innovation with respect to quarantine.
16
External affairs
17
(12) This Act also has the effect it would have if its operation with
18
respect to making grants were expressly confined to making grants
19
with respect to:
20
(a) Australia's rights and obligations under an agreement with
21
one or more countries; or
22
(b) matters that are of international concern.
23
Patents of invention
24
(13) This Act also has the effect it would have if its operation with
25
respect to making grants were expressly confined to making grants
26
for the purposes of supporting medical research and medical
27
innovation with respect to the development of patents of invention.
28
Preliminary Part 1
Section 9
No. , 2015
Medical Research Future Fund Bill 2015
11
Incidental to powers of the Parliament
1
(14) This Act also has the effect it would have if its operation with
2
respect to making grants were expressly confined to making grants
3
for purposes relating to matters incidental to the exercise of any of
4
the legislative powers of the Parliament.
5
Executive power
6
(15) This Act also has the effect it would have if its operation with
7
respect to making grants were expressly confined to making grants
8
for purposes relating to matters incidental to the exercise of any
9
power vested in the Executive Government.
10
Part 2 Medical Research Future Fund
Division 1 Introduction
Section 10
12
Medical Research Future Fund Bill 2015
No. , 2015
Part 2--Medical Research Future Fund
1
Division 1--Introduction
2
10 Simplified outline of this Part
3
The Medical Research Future Fund consists of the Medical
4
Research Future Fund Special Account and the investments of the
5
Medical Research Future Fund. Initially, its investments are a
6
portion of the investments of the Health and Hospitals Fund which
7
was established under the Nation-building Funds Act 2008.
8
Additional amounts may also be credited to the Medical Research
9
Future Fund Special Account.
10
The Medical Research Future Fund Special Account can be debited
11
for 3 main purposes:
12
(a)
channelling grants to the COAG Reform Fund to make
13
grants of financial assistance to States and Territories;
14
and
15
(b)
channelling grants to the MRFF Health Special Account
16
to make grants of financial assistance to certain bodies;
17
and
18
(c)
making grants of financial assistance directly to
19
corporate Commonwealth entities.
20
The Medical Research Future Fund Special Account can also be
21
debited in relation to costs and other obligations incurred by the
22
Future Fund Board in managing the Fund.
23
Medical Research Future Fund Part 2
Establishment of the Medical Research Future Fund and the Medical Research Future
Fund Special Account Division 2
Section 11
No. , 2015
Medical Research Future Fund Bill 2015
13
Division 2--Establishment of the Medical Research Future
1
Fund and the Medical Research Future Fund
2
Special Account
3
11 Establishment of the Medical Research Future Fund
4
(1) The Medical Research Future Fund is established by this section.
5
(2) The Fund consists of:
6
(a) the Medical Research Future Fund Special Account; and
7
(b) the investments of the Medical Research Future Fund.
8
12 Determination of amount of Medical Research Future Fund
9
(1) The day after this section commences, the Finance Minister must:
10
(a) determine, by writing, an amount to be transferred from the
11
Health and Hospitals Fund to the Medical Research Future
12
Fund; and
13
(b) give the determination to the Future Fund Board on that day.
14
(2) A determination under subsection (1) is a legislative instrument,
15
but section 42 (disallowance) of the Legislative Instruments Act
16
2003 does not apply to the determination.
17
13 Allocation of investments to the Medical Research Future Fund
18
from the Health and Hospitals Fund
19
(1) Before the end of the 28th day after the determination is made
20
under subsection 12(1), the Future Fund Board must:
21
(a) determine, by writing, sufficient financial assets that were,
22
immediately before that time, investments of the Health and
23
Hospitals Fund that are to be allocated from that Fund to the
24
Medical Research Future Fund, to ensure that the portion of
25
the balance of the Medical Research Future Fund allocated
26
from the Health and Hospitals Fund will equal the amount
27
determined under subsection 12(1); and
28
Part 2 Medical Research Future Fund
Division 2 Establishment of the Medical Research Future Fund and the Medical
Research Future Fund Special Account
Section 14
14
Medical Research Future Fund Bill 2015
No. , 2015
(b) ensure that the value of the remaining financial assets of the
1
Health and Hospitals Fund remains in the Health and
2
Hospitals Fund Special Account.
3
(2) Immediately after the determination under paragraph (1)(a) is
4
made, the financial assets specified in the determination are taken
5
to cease to be investments of the Health and Hospitals Fund and to
6
become investments of the Medical Research Future Fund.
7
(3) A determination made under paragraph (1)(a) is not a legislative
8
instrument.
9
14 Establishment of the Medical Research Future Fund Special
10
Account
11
(1) The Medical Research Future Fund Special Account is established
12
by this section.
13
(2) The Medical Research Future Fund Special Account is a special
14
account for the purposes of the Public Governance, Performance
15
and Accountability Act 2013.
16
Note:
An Appropriation Act may contain a provision to the effect that, if any
17
of the purposes of a special account is a purpose that is covered by an
18
item in the Appropriation Act (whether or not the item expressly refers
19
to the special account), then amounts may be debited against the
20
appropriation for that item and credited to that special account.
21
Medical Research Future Fund Part 2
Credits of amounts to the Medical Research Future Fund Special Account Division 3
Section 15
No. , 2015
Medical Research Future Fund Bill 2015
15
Division 3--Credits of amounts to the Medical Research
1
Future Fund Special Account
2
15 Credits of amounts
3
(1) The responsible Ministers may, by writing, determine that:
4
(a) a specified amount is to be credited to the Medical Research
5
Future Fund Special Account on a specified day; or
6
(b) a specified amount is to be credited to the Medical Research
7
Future Fund Special Account in specified instalments on
8
specified days.
9
Note 1:
For variation and revocation, see subsection 33(3) of the Acts
10
Interpretation Act 1901.
11
Note 2:
Amounts must also be credited to the Medical Research Future Fund
12
Special Account under sections 38, 49 and 51.
13
(2) In making a determination under subsection (1), the responsible
14
Ministers must (subject to subsection (4)) have regard to the object
15
of this Act.
16
(3) A determination under subsection (1) is a legislative instrument,
17
but section 42 (disallowance) of the Legislative Instruments Act
18
2003 does not apply to the determination.
19
(4) To avoid doubt, the responsible Ministers are not required to
20
determine that any amounts are to be credited to the Medical
21
Research Future Fund Special Account under this section (even if
22
the amounts referred to in paragraph 34(4)(a) are not preserved
23
over the long-term).
24
Part 2 Medical Research Future Fund
Division 4 Debits of amounts from the Medical Research Future Fund
Section 16
16
Medical Research Future Fund Bill 2015
No. , 2015
Division 4--Debits of amounts from the Medical Research
1
Future Fund
2
Subdivision A--Limitation on total annual debits from the
3
Medical Research Future Fund Special Account
4
16 Limitation on total annual debits from the Medical Research
5
Future Fund Special Account
6
(1) The total amount debited from the Medical Research Future Fund
7
Special Account in a financial year must not be more than the
8
maximum annual distribution determined under section 34 for the
9
year.
10
(2) An amount must not be debited from the Medical Research Future
11
Fund Special Account before 1 July 2015.
12
Subdivision B--Purposes
13
17 Purposes of the Medical Research Future Fund Special
14
Account--main purposes
15
Each of the following is a purpose of the Medical Research Future
16
Fund Special Account:
17
(a) to transfer amounts to the COAG Reform Fund in accordance
18
with section 20 for the purpose of making grants of financial
19
assistance to the States and Territories;
20
(b) to transfer amounts to the MRFF Health Special Account in
21
accordance with section 25 for the purpose of making grants
22
to bodies referred to in section 24;
23
(c) to make grants to corporate Commonwealth entities in
24
accordance with section 29.
25
Medical Research Future Fund Part 2
Debits of amounts from the Medical Research Future Fund Division 4
Section 18
No. , 2015
Medical Research Future Fund Bill 2015
17
18 Purposes of the Medical Research Future Fund Special
1
Account--purposes related exclusively to the investments
2
etc. of the Medical Research Future Fund
3
Each of the following is a purpose of the Medical Research Future
4
Fund Special Account:
5
(a) paying the costs of, or incidental to, the acquisition of
6
financial assets under section 37;
7
(b) paying expenses of an investment of the Medical Research
8
Future Fund;
9
(c) paying the costs of, or incidental to, the acquisition of
10
derivatives under section 47;
11
(d) paying or discharging the costs, expenses and other
12
obligations incurred by the Future Fund Board under a
13
contract between the Board and an investment manager
14
engaged under subsection 50(1);
15
(e) paying or discharging the costs, expenses and other
16
obligations incurred in connection with the establishment,
17
maintenance or operation of a bank account of the Future
18
Fund Board, if the bank account relates exclusively to the
19
Medical Research Future Fund;
20
(f) paying a premium in respect of a contract of insurance
21
entered into by the Future Fund Board exclusively in
22
connection with the Medical Research Future Fund;
23
(g) paying or discharging any other costs, expenses, obligations
24
or liabilities incurred by the Future Fund Board exclusively
25
in connection with the Medical Research Future Fund.
26
Note:
See section 80 of the Public Governance, Performance and
27
Accountability Act 2013 (which deals with special accounts).
28
19 Purposes of the Medical Research Future Fund Special
29
Account--purposes not related exclusively to the Medical
30
Research Future Fund
31
Each of the following is a purpose of the Medical Research Future
32
Fund Special Account:
33
(a) paying or discharging the costs, expenses and other
34
obligations incurred in connection with the establishment,
35
Part 2 Medical Research Future Fund
Division 4 Debits of amounts from the Medical Research Future Fund
Section 19
18
Medical Research Future Fund Bill 2015
No. , 2015
maintenance or operation of a bank account of the Future
1
Fund Board, if those costs, expenses or obligations are not
2
covered by:
3
(i) paragraph 18(e); or
4
(ii) paragraph 2(1)(g) of Schedule 2 to the Future Fund Act
5
2006; or
6
(iii) paragraph 18(1)(j), 136(1)(j), 137(e) or 218(1)(f) of the
7
Nation-building Funds Act 2008; or
8
(iv) paragraph 16(a) of the DisabilityCare Australia Fund
9
Act 2013;
10
(b) paying a premium in respect of a contract of insurance
11
entered into by the Future Fund Board, if the premium is not
12
covered by:
13
(i) paragraph 18(f); or
14
(ii) paragraph 2(1)(h) of Schedule 2 to the Future Fund Act
15
2006; or
16
(iii) paragraph 18(1)(k), 136(1)(k), 137(f) or 218(1)(g) of the
17
Nation-building Funds Act 2008; or
18
(iv) paragraph 16(b) of the DisabilityCare Australia Fund
19
Act 2013;
20
(c) paying or discharging any other costs, expenses, obligations
21
or liabilities incurred by the Future Fund Board, if the costs,
22
expenses, obligations or liabilities are not covered by:
23
(i) a paragraph of section 18; or
24
(ii) a paragraph of subclause 2(1) of Schedule 2 to the
25
Future Fund Act 2006; or
26
(iii) a paragraph of subsection 18(1), 136(1) or 218(1) or of
27
section 137 of the Nation-building Funds Act 2008; or
28
(iv) paragraph 16(c) of the DisabilityCare Australia Fund
29
Act 2013;
30
(d) paying remuneration and allowances of Future Fund Board
31
members;
32
(e) paying remuneration, and other employment-related costs
33
and expenses, in respect of members of the staff of the
34
Agency;
35
Medical Research Future Fund Part 2
Debits of amounts from the Medical Research Future Fund Division 4
Section 20
No. , 2015
Medical Research Future Fund Bill 2015
19
(f) paying or discharging the costs, expenses and other
1
obligations incurred by the Commonwealth or the Future
2
Fund Board:
3
(i) under a contract entered into under section 78 or 82 of
4
the Future Fund Act 2006; or
5
(ii) in connection with the operation of the Agency; or
6
(iii) before section 214 of the Nation-building Funds Act
7
2008 is repealed, in connection with the management of
8
the Health and Hospitals Fund.
9
Note:
See section 80 of the Public Governance, Performance and
10
Accountability Act 2013 (which deals with special accounts).
11
Subdivision C--Channelling State/Territory grants through
12
COAG Reform Fund
13
20 Channelling State/Territory grants through the COAG Reform
14
Fund
15
(1) The Finance Minister may, by writing, direct that, on a specified
16
day, a specified amount is to be:
17
(a) debited from the Medical Research Future Fund Special
18
Account; and
19
(b) credited to the COAG Reform Fund.
20
(2) The direction must be expressed to be given in order to enable the
21
amount to be debited from the COAG Reform Fund for the
22
purpose of making a specified grant of financial assistance to a
23
State or Territory for the purposes of medical research and medical
24
innovation.
25
(3) Two or more directions under subsection (1) may be set out in the
26
same document.
27
(4) A direction under subsection (1) is not a legislative instrument.
28
(5) The Finance Minister must give a copy of a direction under
29
subsection (1) to the Treasurer and the Health Minister.
30
Part 2 Medical Research Future Fund
Division 4 Debits of amounts from the Medical Research Future Fund
Section 21
20
Medical Research Future Fund Bill 2015
No. , 2015
21 Debits from the COAG Reform Fund
1
(1) As soon as practicable after an amount has been credited under
2
paragraph 20(1)(b) to the COAG Reform Fund, the Treasurer must
3
ensure that the COAG Reform Fund is debited for the purposes of
4
making the grant.
5
(2) However, if the grant cannot be made, an amount equal to the
6
credited amount is to be:
7
(a) debited from the COAG Reform Fund; and
8
(b) credited to the Medical Research Future Fund Special
9
Account.
10
22 Terms and conditions of grant to a State or Territory
11
(1) The terms and conditions on which a grant referred to in
12
subsection 20(2) is made to a State or Territory are to be set out in
13
a written agreement between the Commonwealth and the State or
14
Territory.
15
(2) The State or Territory must comply with the terms and conditions.
16
(3) The agreement may be entered into by a Minister on behalf of the
17
Commonwealth.
18
Subdivision D--Channelling grants through the MRFF Health
19
Special Account
20
23 Establishment of the MRFF Health Special Account
21
(1) The MRFF Health Special Account is established by this section.
22
(2) The MRFF Health Special Account is a special account for the
23
purposes of the Public Governance, Performance and
24
Accountability Act 2013.
25
Note:
An Appropriation Act may contain a provision to the effect that, if any
26
of the purposes of a special account is a purpose that is covered by an
27
item in the Appropriation Act (whether or not the item expressly refers
28
to the special account), then amounts may be debited against the
29
appropriation for that item and credited to that special account.
30
Medical Research Future Fund Part 2
Debits of amounts from the Medical Research Future Fund Division 4
Section 24
No. , 2015
Medical Research Future Fund Bill 2015
21
24 Purpose of the MRFF Health Special Account
1
(1) The purpose of the MRFF Health Special Account is (subject to
2
subsection (2)) to make grants, for the purposes of supporting
3
medical research and medical innovation, to any one or more of the
4
following bodies:
5
(a) a medical research institute;
6
(b) a university;
7
(c) a corporate Commonwealth entity;
8
(d) a corporation.
9
Note:
See section 80 of the Public Governance, Performance and
10
Accountability Act 2013 (which deals with special accounts).
11
(2) A grant referred to in subsection (1) may be made only if the grant
12
has been specified under subsection 25(2).
13
25 Channelling grants through the MRFF Health Special Account
14
(1) The Finance Minister may, by writing, direct that, on a specified
15
day, a specified amount is to be:
16
(a) debited from the Medical Research Future Fund Special
17
Account; and
18
(b) credited to the MRFF Health Special Account.
19
(2) The direction must be expressed to be given in order to enable the
20
specified amount to be debited from the MRFF Health Special
21
Account for the purpose of making a grant to a specified body of a
22
kind referred to in section 24.
23
(3) Two or more directions under subsection (1) may be set out in the
24
same document.
25
(4) A direction under subsection (1) is not a legislative instrument.
26
(5) The Finance Minister must give a copy of a direction under
27
subsection (1) to the Treasurer and the Health Minister.
28
Part 2 Medical Research Future Fund
Division 4 Debits of amounts from the Medical Research Future Fund
Section 26
22
Medical Research Future Fund Bill 2015
No. , 2015
26 Debits from the MRFF Health Special Account
1
(1) As soon as practicable after an amount has been credited to the
2
MRFF Health Special Account under paragraph 25(1)(b) for the
3
purposes of making a specified grant, the Health Minister must
4
ensure that the MRFF Health Special Account is debited for the
5
purposes of making the grant.
6
Note:
The Health Minister must publish on the internet information about
7
the grant to which the debit relates--see section 58.
8
(2) However, if the grant cannot be made, an amount equal to the
9
credited amount is to be:
10
(a) debited from the MRFF Health Special Account; and
11
(b) credited to the Medical Research Future Fund Special
12
Account.
13
27 Terms and conditions of grant to a person other than a State
14
(1) The terms and conditions on which a grant referred to in
15
subsection 25(2) is made are to be set out in a written agreement
16
between the Commonwealth and the person who is to receive the
17
grant under the agreement.
18
(2) The person must comply with the terms and conditions.
19
(3) The agreement may be entered into by the Health Minister on
20
behalf of the Commonwealth.
21
28 Delegation by the Health Minister
22
(1) The Health Minister may, by writing, delegate any or all of his or
23
her powers under section 26 or 27 to:
24
(a) the Secretary of the Health Department; or
25
(b) an SES employee, or acting SES employee, in the Health
26
Department; or
27
(c) the CEO (within the meaning of section 4 of the National
28
Health and Medical Research Council Act 1992) of the
29
NHMRC; or
30
(d) an SES employee, or acting SES employee, of the NHMRC.
31
Medical Research Future Fund Part 2
Debits of amounts from the Medical Research Future Fund Division 4
Section 29
No. , 2015
Medical Research Future Fund Bill 2015
23
Note 1:
The expressions SES employee and acting SES employee are defined
1
in section 2B of the Acts Interpretation Act 1901.
2
Note 2:
This section allows the Health Minister to delegate powers to the
3
CEO, or an SES employee or acting SES employee, of the NHMRC.
4
This allows the Minister to benefit from the NHMRC's expertise in
5
funding medical research and to allow the NHMRC to manage
6
distributions from the MRFF Health Special Account (for example,
7
for payments in relation to competitive grants or other programs
8
administered by the NHMRC).
9
(2) In exercising powers under a delegation under subsection (1), the
10
delegate must comply with any directions of the Health Minister.
11
Subdivision E--Making payments directly to corporate
12
Commonwealth entities
13
29 Making payments directly to corporate Commonwealth entities
14
(1) The Finance Minister may, by writing, direct that, on a specified
15
day, a specified amount is to be debited from the Medical Research
16
Future Fund Special Account to make a grant to a corporate
17
Commonwealth entity for the purposes of supporting medical
18
research and medical innovation.
19
(2) Two or more directions under subsection (1) may be set out in the
20
same document.
21
(3) A direction under subsection (1) is not a legislative instrument.
22
(4) The Finance Minister must give a copy of a direction under
23
subsection (1) to the Treasurer and the Health Minister.
24
30 Terms and conditions of grants to corporate Commonwealth
25
entities
26
(1) The terms and conditions on which a grant referred to in
27
subsection 29(1) is made to a corporate Commonwealth entity are
28
to be set out in a written agreement between the Commonwealth
29
and the entity.
30
(2) The entity must comply with the terms and conditions.
31
Part 2 Medical Research Future Fund
Division 4 Debits of amounts from the Medical Research Future Fund
Section 31
24
Medical Research Future Fund Bill 2015
No. , 2015
(3) The agreement may be entered into by a Minister on behalf of the
1
Commonwealth.
2
Subdivision F--Obligation to ensure sufficient money
3
31 Future Fund Board must ensure that there is sufficient money in
4
the Medical Research Future Fund Special Account to
5
cover authorised debits etc.
6
The Future Fund Board must take all reasonable steps to ensure
7
that the amount of money standing to the credit of the Medical
8
Research Future Fund Special Account is sufficient to cover the
9
debit of amounts specified, or proposed to be specified, under this
10
Division.
11
Note:
This may require the Future Fund Board to realise an investment of
12
the Medical Research Future Fund in accordance with section 38.
13
Medical Research Future Fund Part 2
Inter-fund transfers Division 5
Section 32
No. , 2015
Medical Research Future Fund Bill 2015
25
Division 5--Inter-fund transfers
1
32 Transfers from the Medical Research Future Fund to the Future
2
Fund
3
(1) If an amount is debited from the Future Fund Special Account for a
4
purpose mentioned in subclause 2(2) of Schedule 2 to the Future
5
Fund Act 2006, the Finance Minister may, by writing, direct that,
6
on a specified day, a specified amount is to be:
7
(a) debited from the Medical Research Future Fund Special
8
Account; and
9
(b) credited to the Future Fund Special Account.
10
(2) The specified amount must not exceed the amount debited from the
11
Future Fund Special Account as mentioned in subsection (1).
12
(3) A direction under subsection (1) is not a legislative instrument.
13
Part 3 Maximum annual distributions
Division 1 Introduction
Section 33
26
Medical Research Future Fund Bill 2015
No. , 2015
Part 3--Maximum annual distributions
1
Division 1--Introduction
2
33 Simplified outline of this Part
3
There is a limit on the amount that can be debited from the Medical
4
Research Future Fund Special Account each financial year. The
5
limit, which is called the maximum annual distribution, is
6
determined under this Part by the Future Fund Board for each
7
financial year. The determination is given to the Finance Minister.
8
Maximum annual distributions Part 3
Maximum annual distributions Division 2
Section 34
No. , 2015
Medical Research Future Fund Bill 2015
27
Division 2--Maximum annual distributions
1
34 Maximum annual distributions
2
(1) The Future Fund Board must determine, in writing, the maximum
3
annual distribution for each financial year.
4
When maximum annual distribution determination must be given
5
(2) The Finance Minister may give the Future Fund Board a notice
6
specifying a single day, or a day in each year, by which the Board
7
must give the Finance Minister the determination of the maximum
8
annual distribution for the next financial year.
9
(3) The Finance Minister must give the notice to the Future Fund
10
Board at least 90 days before the specified day.
11
Matters to be taken into account
12
(4) In determining the maximum annual distribution for a financial
13
year, the Future Fund Board must take into account the following:
14
(a) the principle that the following amounts (in nominal terms)
15
should be preserved over the long-term:
16
(i) the amount determined under subsection 12(1);
17
(ii) the total amount that has been credited to the Medical
18
Research Future Fund Special Account under
19
section 15;
20
(b) the principle that the volatility of the maximum annual
21
distributions be moderated from financial year to financial
22
year (to the extent possible);
23
(c) the requirement to maintain the Future Fund Board's ability
24
to comply with the Medical Research Future Fund
25
Investment Mandate;
26
(d) any costs, expenses, obligations or liabilities likely to be
27
incurred by the Future Fund Board in respect of the financial
28
year for the purposes of section 18 or 19;
29
(e) any additional matters specified for the financial year under
30
subsection (5).
31
Part 3 Maximum annual distributions
Division 2 Maximum annual distributions
Section 34
28
Medical Research Future Fund Bill 2015
No. , 2015
Additional matters to be taken into account
1
(5) Subject to subsection (6), the Finance Minister may (whether in the
2
notice given under subsection (2) or otherwise) specify, in writing,
3
additional matters that the Future Fund Board must take into
4
account in determining the maximum annual distribution for one or
5
more financial years.
6
(6) The additional matters must not be inconsistent with:
7
(a) the matters to be taken into account under subsection (4); or
8
(b) the Medical Research Future Fund Investment Mandate; or
9
(c) any other provision of this Act.
10
(7) The Finance Minister must specify the additional matters at least
11
90 days before the day the Future Fund Board is required to
12
determine the maximum annual distribution for the next financial
13
year.
14
Requirement of Future Fund Board to give determination
15
(8) The Future Fund Board must:
16
(a) give a determination under subsection (1) for a financial year
17
to the Finance Minister by the day specified under
18
subsection (2); and
19
(b) ensure that, in addition to specifying the amount of the
20
maximum annual distribution for the financial year, the
21
determination describes:
22
(i) the method used for working out that amount; and
23
(ii) the considerations taken into account in working out
24
that amount.
25
Publishing the determination
26
(9) The Finance Minister may publish a determination under
27
subsection (1) on the internet.
28
Determination and notice are not legislative instruments
29
(10) A determination under subsection (1), and a notice under
30
subsection (2), are not legislative instruments.
31
Investment of the Medical Research Future Fund Part 4
Section 35
No. , 2015
Medical Research Future Fund Bill 2015
29
Part 4--Investment of the Medical Research Future
1
Fund
2
3
35 Simplified outline of this Part
4
The Future Fund Board is responsible for deciding how to invest
5
the Medical Research Future Fund.
6
Investments of the Medical Research Future Fund consist of
7
financial assets, and are held in the name of the Future Fund Board.
8
The Future Fund Board is bound by a Medical Research Future
9
Fund Investment Mandate given to it by the responsible Ministers.
10
36 Objects of investment of the Medical Research Future Fund
11
(1) The main objects of the acquisition by the Future Fund Board of a
12
financial asset as an investment of the Medical Research Future
13
Fund are to enhance the Commonwealth's ability to transfer
14
amounts in accordance with section 17.
15
(2) The ancillary objects of the acquisition by the Future Fund Board
16
of a financial asset as an investment of the Medical Research
17
Future Fund are to enhance the ability of the Commonwealth and
18
the Future Fund Board to discharge the costs, expenses, obligations
19
and liabilities mentioned in sections 18 and 19.
20
37 Investment of the Medical Research Future Fund
21
(1) The Future Fund Board may invest amounts standing to the credit
22
of the Medical Research Future Fund Special Account in any
23
financial assets.
24
(2) Investments under subsection (1) are to be made in the name of the
25
Future Fund Board.
26
Part 4 Investment of the Medical Research Future Fund
Section 38
30
Medical Research Future Fund Bill 2015
No. , 2015
(3) Investments under subsection (1) are taken to be investments of the
1
Medical Research Future Fund.
2
(4) This section does not authorise the acquisition of a derivative.
3
Note:
For acquisition of derivatives, see section 47.
4
38 Management of investments of the Medical Research Future
5
Fund
6
(1) Income derived from an investment of the Medical Research
7
Future Fund is to be credited to the Medical Research Future Fund
8
Special Account.
9
(2) A return of capital, or any other financial distribution, relating to
10
an investment of the Medical Research Future Fund is to be
11
credited to the Medical Research Future Fund Special Account.
12
(3) The Future Fund Board may realise an investment of the Medical
13
Research Future Fund.
14
(4) Upon realisation of an investment of the Medical Research Future
15
Fund, the proceeds of the investment are to be credited to the
16
Medical Research Future Fund Special Account.
17
(5) At any time before an investment of the Medical Research Future
18
Fund matures, the Future Fund Board may authorise the
19
re-investment of the proceeds upon maturity in a financial asset
20
investment with the same entity. The new investment is taken to be
21
an investment of the Medical Research Future Fund.
22
(6) Section 58 of the Public Governance, Performance and
23
Accountability Act 2013 (which deals with investment by the
24
Commonwealth) does not apply to an investment of the Medical
25
Research Future Fund.
26
39 Medical Research Future Fund Investment Mandate
27
(1) The responsible Ministers may (subject to section 41) give the
28
Future Fund Board written directions about the performance of its
29
Medical Research Future Fund investment functions, and must
30
give at least one such direction.
31
Investment of the Medical Research Future Fund Part 4
Section 39
No. , 2015
Medical Research Future Fund Bill 2015
31
Note 1:
Medical Research Future Fund investment function is defined in
1
section 5.
2
Note 2:
For variation and revocation, see subsection 33(3) of the Acts
3
Interpretation Act 1901.
4
(2) In giving a direction under subsection (1), the responsible
5
Ministers must have regard to:
6
(a) the need to maximise the return earned on the Medical
7
Research Future Fund over the long term, consistent with
8
international best practice for institutional investment; and
9
(b) the need to enhance the Commonwealth's ability to provide
10
grants of financial assistance to support medical research and
11
medical innovation; and
12
(c) such other matters as the responsible Ministers consider
13
relevant.
14
(3) Directions under subsection (1) are to be known collectively as the
15
Medical Research Future Fund Investment Mandate.
16
(4) Without limiting subsection (1), a direction under that subsection
17
may set out the policies to be pursued by the Future Fund Board in
18
relation to:
19
(a) matters of risk and return; and
20
(b) the allocation of financial assets.
21
A policy relating to the allocation of financial assets must not be
22
inconsistent with a policy relating to matters of risk and return.
23
Relationship between directions and other provisions of this Act
24
(5) A direction under subsection (1):
25
(a) prevails over section 40 to the extent of any inconsistency;
26
and
27
(b) must not otherwise be inconsistent with this Act.
28
When direction takes effect
29
(6) A direction under subsection (1) must not take effect before the
30
15th day after the day on which it is given.
31
Part 4 Investment of the Medical Research Future Fund
Section 40
32
Medical Research Future Fund Bill 2015
No. , 2015
Direction is a legislative instrument
1
(7) A direction under subsection (1) is a legislative instrument.
2
Note 1:
Section 42 (disallowance) of the Legislative Instruments Act 2003
3
does not apply to the direction--see section 44 of that Act.
4
Note 2:
Part 6 (sunsetting) of the Legislative Instruments Act 2003 does not
5
apply to the direction--see section 54 of that Act.
6
40 Obligation on Future Fund Board in performing investment
7
functions
8
In performing its Medical Research Future Fund investment
9
function, the Future Fund Board must (subject to this Act and a
10
direction under subsection 39(1)) seek to:
11
(a) maximise the return earned on the Medical Research Future
12
Fund over the long term, consistent with international best
13
practice for institutional investment; and
14
(b) enhance the Commonwealth's ability to provide grants of
15
financial assistance to support medical research and medical
16
innovation.
17
41 Limitation on Medical Research Future Fund Investment
18
Mandate
19
(1) The responsible Ministers must not give a direction under
20
subsection 39(1) that has the purpose, or has or is likely to have the
21
effect, of directly or indirectly requiring the Future Fund Board to:
22
(a) invest an amount standing to the credit of the Medical
23
Research Future Fund Special Account in a particular
24
financial asset; or
25
(b) acquire a particular derivative; or
26
(c) allocate financial assets to:
27
(i) a particular business entity; or
28
(ii) a particular activity; or
29
(iii) a particular business.
30
(2) Paragraphs (1)(a) and (b) do not limit paragraph (1)(c).
31
Investment of the Medical Research Future Fund Part 4
Section 42
No. , 2015
Medical Research Future Fund Bill 2015
33
42 Future Fund Board to be consulted on Medical Research Future
1
Fund Investment Mandate
2
(1) Before giving the Future Fund Board a direction under
3
subsection 39(1), the responsible Ministers must:
4
(a) send a draft of the direction to the Future Fund Board; and
5
(b) invite the Future Fund Board to make a submission to the
6
responsible Ministers on the draft direction within a
7
reasonable time limit specified by the responsible Ministers;
8
and
9
(c) consider any submission that is received from the Future
10
Fund Board within that time limit.
11
(2) Any submission made by the Future Fund Board on a draft
12
direction in accordance with paragraph (1)(b) must be tabled in
13
each House of the Parliament with the direction.
14
Note:
As the direction is a legislative instrument, it is also tabled in each
15
House of the Parliament under section 38 of the Legislative
16
Instruments Act 2003.
17
43 Compliance with Medical Research Future Fund Investment
18
Mandate
19
(1) The Future Fund Board must take all reasonable steps to comply
20
with the Medical Research Future Fund Investment Mandate.
21
(2) If the Future Fund Board becomes aware that it has failed to
22
comply with the Medical Research Future Fund Investment
23
Mandate, the Board must give the responsible Ministers a written
24
statement, as soon as practicable after becoming so aware:
25
(a) informing the responsible Ministers of the failure to comply
26
with the Investment Mandate; and
27
(b) setting out the action that the Board proposes to take in order
28
to comply with the Investment Mandate.
29
(3) If the responsible Ministers are satisfied that the Future Fund
30
Board has failed to comply with the Medical Research Future Fund
31
Investment Mandate, the responsible Ministers may, by written
32
notice given to the Board, direct the Board:
33
Part 4 Investment of the Medical Research Future Fund
Section 44
34
Medical Research Future Fund Bill 2015
No. , 2015
(a) to give the responsible Ministers, within a period specified in
1
the notice, a written explanation for the failure to comply
2
with the Investment Mandate; and
3
(b) to take action specified in the notice, within a period
4
specified in the notice, in order to comply with the
5
Investment Mandate.
6
(4) The Future Fund Board must comply with a direction under
7
subsection (3).
8
(5) A failure to comply with:
9
(a) the Medical Research Future Fund Investment Mandate; or
10
(b) a direction under subsection (3);
11
does not affect the validity of any transaction.
12
(6) A direction under subsection (3) is not a legislative instrument.
13
44 Future Fund Board must not trigger the takeover provisions of
14
the Corporations Act 2001
15
(1) Subsections 606(1A) and (2A) and section 611 of the Corporations
16
Act 2001 do not apply to an acquisition by the Future Fund Board
17
if the acquisition is the result of the performance by the Future
18
Fund Board of its Medical Research Future Fund investment
19
functions.
20
(2) A failure by the Future Fund Board to comply with section 606 of
21
the Corporations Act 2001 (as modified by this section) does not
22
affect the validity of any transaction.
23
Note:
See also section 39 of the Future Fund Act 2006 (application of the
24
Corporations Act 2001).
25
45 Borrowing
26
(1) The Future Fund Board must not borrow money for a purpose in
27
connection with the Medical Research Future Fund unless the
28
borrowing is authorised by subsection (2) or (3).
29
(2) The Future Fund Board is authorised to borrow money for a
30
purpose in connection with the Medical Research Future Fund if:
31
Investment of the Medical Research Future Fund Part 4
Section 46
No. , 2015
Medical Research Future Fund Bill 2015
35
(a) the purpose of the borrowing is to enable the Board to cover
1
settlement of a transaction for the acquisition of one or more
2
financial assets; and
3
(b) at the time the relevant acquisition decision was made, it was
4
likely that the borrowing would not be needed; and
5
(c) the period of the borrowing does not exceed 7 days; and
6
(d) if the borrowing were to take place, the total amount
7
borrowed by the Board would not exceed 10% of the balance
8
of the Fund.
9
(3) The Future Fund Board is authorised to borrow money for a
10
purpose in connection with the Medical Research Future Fund if
11
the borrowing takes place in such circumstances (if any) as are
12
specified in the rules.
13
46 Medical Research Future Fund investment policies
14
(1) The Future Fund Board must formulate written policies to be
15
complied with by it in relation to the following matters in
16
connection with the Medical Research Future Fund:
17
(a) the investment strategy for the Fund;
18
(b) benchmarks and standards for assessing the performance of
19
the Fund;
20
(c) risk management for the Fund;
21
(d) a matter relating to international best practice for institutional
22
investment;
23
(e) a matter specified in the rules.
24
Note:
For variation and revocation, see subsection 33(3) of the Acts
25
Interpretation Act 1901.
26
(2) The Future Fund Board must ensure that policies formulated under
27
subsection (1) are consistent with the Medical Research Future
28
Fund Investment Mandate.
29
Publication of policies
30
(3) The Future Fund Board must cause copies of policies formulated
31
under subsection (1) to be published on the internet.
32
Part 4 Investment of the Medical Research Future Fund
Section 47
36
Medical Research Future Fund Bill 2015
No. , 2015
(4) The Future Fund Board must ensure that a copy of the first set of
1
policies formulated under subsection (1) is published on the
2
internet as soon as practicable after the commencement of this
3
section.
4
Review of policies
5
(5) The Future Fund Board must conduct periodic reviews of policies
6
formulated under subsection (1).
7
(6) If there is a change in the Medical Research Future Fund
8
Investment Mandate, the Future Fund Board must review any
9
relevant policies formulated under subsection (1).
10
Compliance with policies
11
(7) The Future Fund Board must take all reasonable steps to comply
12
with policies formulated under subsection (1).
13
(8) A failure to comply with a policy formulated under subsection (1)
14
does not affect the validity of any transaction.
15
Policies
16
(9) A policy formulated under subsection (1) is not a legislative
17
instrument.
18
47 Derivatives
19
(1) The Future Fund Board may acquire a derivative for the purpose
20
of:
21
(a) protecting the value of an investment of the Medical
22
Research Future Fund (other than a derivative); or
23
(b) protecting the return on an investment of the Medical
24
Research Future Fund (other than a derivative); or
25
(c) achieving indirect exposure to financial assets (other than
26
derivatives) for a purpose in connection with the Medical
27
Research Future Fund; or
28
(d) achieving transactional efficiency for a purpose in connection
29
with the Medical Research Future Fund;
30
Investment of the Medical Research Future Fund Part 4
Section 48
No. , 2015
Medical Research Future Fund Bill 2015
37
but must not acquire a derivative for the purpose of speculation or
1
leverage.
2
(2) The acquisition of a derivative under subsection (1) of this section
3
must be consistent with the investment strategy embodied in a
4
policy formulated by the Future Fund Board under
5
subsection 46(1).
6
(3) A derivative acquired under subsection (1) of this section is to be
7
held in the name of the Future Fund Board.
8
(4) A derivative acquired under subsection (1) is taken to be an
9
investment of the Medical Research Future Fund.
10
48 Additional financial assets
11
An asset is taken to be an investment of the Medical Research
12
Future Fund if the Future Fund Board becomes the holder of the
13
financial asset as a result of:
14
(a) the Board's holding of an investment of the Fund; or
15
(b) the exercise of any rights or powers conferred on the Board
16
in its capacity as the holder of an investment of the Fund.
17
49 Securities lending arrangements
18
(1) The Future Fund Board may enter into securities lending
19
arrangements for a purpose in connection with the Medical
20
Research Future Fund.
21
(2) Any money received by the Future Fund Board under a securities
22
lending arrangement entered into under subsection (1) is to be
23
credited to the Medical Research Future Fund Special Account.
24
(3) To avoid doubt, a securities lending arrangement entered into
25
under subsection (1) may provide for the Future Fund Board to
26
realise an investment of the Medical Research Future Fund.
27
(4) A financial asset is taken to be an investment of the Medical
28
Research Future Fund if, as the result of the operation of a
29
securities lending arrangement entered into under subsection (1),
30
the Future Fund Board becomes the holder of the financial asset.
31
Part 4 Investment of the Medical Research Future Fund
Section 50
38
Medical Research Future Fund Bill 2015
No. , 2015
50 Investment managers
1
(1) The Future Fund Board may engage one or more investment
2
managers for purposes in connection with the Medical Research
3
Future Fund.
4
(2) The Future Fund Board must not:
5
(a) invest amounts under subsection 37(1); or
6
(b) acquire derivatives under subsection 47(1); or
7
(c) enter into a securities lending arrangement under
8
subsection 49(1); or
9
(d) realise financial assets that are investments of the Medical
10
Research Future Fund;
11
unless the Board does so:
12
(e) through an investment manager engaged by the Board under
13
subsection (1); or
14
(f) in a manner approved, in writing, by the responsible
15
Ministers.
16
(3) The Future Fund Board must ensure that any investment manager
17
engaged by the Board under subsection (1) operates within this
18
Act.
19
(4) The Future Fund Board must ensure that any investment manager
20
engaged by the Board under subsection (1) reports to the Board
21
and the Agency on the state of the investments of the Medical
22
Research Future Fund at such times and in such manner as the
23
Board determines.
24
51 Refund of franking credits
25
A refund of a tax offset under the Income Tax Assessment Act 1997
26
is to be credited to the Medical Research Future Fund Special
27
Account if:
28
(a) the Future Fund Board receives the refund; and
29
(b) the tax offset is attributable to an investment of the Medical
30
Research Future Fund.
31
Note 1:
See also section 84B of the Future Fund Act 2006.
32
Investment of the Medical Research Future Fund Part 4
Section 52
No. , 2015
Medical Research Future Fund Bill 2015
39
Note 2:
For refunds of tax offsets, see Division 63 of the Income Tax
1
Assessment Act 1997.
2
52 Realisation of non-financial assets
3
(1) This section applies if the Future Fund Board becomes aware of
4
the fact that:
5
(a) an asset held by the Board as an investment of the Medical
6
Research Future Fund has ceased to be a financial asset; or
7
(b) an asset acquired by the Board, purportedly as an investment
8
of the Medical Research Future Fund, is not a financial asset.
9
(2) The Future Fund Board must realise the asset as soon as
10
practicable after the Board becomes aware of the fact.
11
(3) This Act (other than this section) applies in relation to the asset
12
(including in relation to the realisation of the asset) as if the asset
13
had been a financial asset, and an investment of the Medical
14
Research Future Fund, from the time of its acquisition by the
15
Future Fund Board until the realisation.
16
53 Additional function of the Future Fund Board
17
The functions of the Future Fund Board include the function of
18
investing amounts in accordance with this Act.
19
Part 5 Reporting obligations etc.
Section 54
40
Medical Research Future Fund Bill 2015
No. , 2015
Part 5--Reporting obligations etc.
1
2
54 Simplified outline of this Part
3
The Finance Minister may provide reports, documents and other
4
information to Ministers.
5
The Future Fund Board must keep the responsible Ministers
6
informed of its operations under this Act. It may also be required
7
by the Finance Minister to provide reports and provide
8
information.
9
55 Finance Minister may require Future Fund Board to prepare
10
reports or give information
11
Reports and information
12
(1) The Finance Minister may, by written notice given to the Future
13
Fund Board, require the Board to:
14
(a) prepare a report or document about one or more specified
15
matters relating to the performance of the Board's functions
16
under this Act; and
17
(b) give copies of the report or document to the Finance Minister
18
within the period specified in the notice.
19
Compliance
20
(2) The Future Fund Board must comply with a requirement under
21
subsection (1).
22
Publication of reports and documents
23
(3) The Finance Minister may cause a report or document under
24
subsection (1) to be published (whether on the internet or
25
otherwise).
26
Reporting obligations etc. Part 5
Section 56
No. , 2015
Medical Research Future Fund Bill 2015
41
Reports and documents
1
(4) A report or document under subsection (1) is not a legislative
2
instrument.
3
56 Keeping the responsible Ministers informed etc.
4
(1) The Future Fund Board must keep the responsible Ministers
5
informed of the operations of the Board under this Act.
6
(2) The Future Fund Board must give the Finance Minister such
7
reports, documents and information in relation to those operations
8
as are appropriate.
9
57 Finance Minister may give reports to other Ministers etc.
10
The Finance Minister may give a Minister any of the following:
11
(a) a report or document under subsection 55(1) or 56(2);
12
(b) any other information or document obtained by the Finance
13
Minister under this Act.
14
58 Health Minister must publish information
15
As soon as practicable after an amount has been debited from the
16
MRFF Health Special Account under subsection 26(1), the Health
17
Minister must publish on the internet information about the grant to
18
which the debit relates.
19
Part 6 Miscellaneous
Section 59
42
Medical Research Future Fund Bill 2015
No. , 2015
Part 6--Miscellaneous
1
2
59 Simplified outline of this Part
3
This Part deals with miscellaneous matters, such as delegations and
4
rules.
5
60 Delegation by the Finance Minister
6
(1) The Finance Minister may, by writing, delegate any or all of his or
7
her powers under section 15, 20, 25 or 29 to:
8
(a) the Secretary of the Finance Department; or
9
(b) an SES employee, or acting SES employee, in the Finance
10
Department.
11
Note:
The expressions SES employee and acting SES employee are defined
12
in section 2B of the Acts Interpretation Act 1901.
13
(2) The Finance Minister may, by writing, delegate any or all of his or
14
her powers under section 32 to:
15
(a) the Secretary of the Finance Department; or
16
(b) an SES employee, or acting SES employee, in the Finance
17
Department; or
18
(c) the Chair (within the meaning of section 5 of the Future
19
Fund Act 2006); or
20
(d) an SES employee, or acting SES employee, in the Agency.
21
Note:
The expressions SES employee and acting SES employee are defined
22
in section 2B of the Acts Interpretation Act 1901.
23
(3) In exercising powers under a delegation under subsection (1), the
24
delegate must comply with any directions of the Finance Minister.
25
61 Delegation by the Treasurer
26
(1) The Treasurer may, by writing, delegate any or all of his or her
27
functions under section 15 or subsection 21(1) to:
28
(a) the Secretary of the Treasury Department; or
29
Miscellaneous Part 6
Section 62
No. , 2015
Medical Research Future Fund Bill 2015
43
(b) an SES employee, or acting SES employee, in the Treasury
1
Department.
2
Note:
The expressions SES employee and acting SES employee are defined
3
in section 2B of the Acts Interpretation Act 1901.
4
(2) In exercising powers under a delegation under subsection (1), the
5
delegate must comply with any directions of the Treasurer.
6
62 Review of operation of Act
7
The responsible Ministers must cause a review of the operation of
8
this Act to be undertaken before:
9
(a) unless paragraph (b) applies--30 June 2023; or
10
(b) if the responsible Ministers consider that another date is
11
appropriate--that date.
12
63 Rules
13
The Finance Minister may, by legislative instrument, make rules
14
prescribing matters:
15
(a) required or permitted by this Act to be prescribed by the
16
rules; or
17
(b) necessary or convenient to be prescribed for carrying out or
18
giving effect to this Act.
19