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2013-2014-2015
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
MEDICAL RESEARCH FUTURE FUND BILL 2015
MEDICAL RESEARCH FUTURE FUND (CONSEQUENTIAL
AMENDMENTS) BILL 2015
SUPPLEMENTARY EXPLANATORY MEMORANDUM
Amendments and New Sections to be Moved on Behalf of the Government
(Circulated by authority of the Minister for Finance,
Senator the Hon Mathias Cormann)
MEDICAL RESEARCH FUTURE FUND BILL 2015
MEDICAL RESEARCH FUTURE FUND (CONSEQUENTIAL
AMENDMENTS) BILL 2015
OUTLINE
The Medical Research Future Fund Bill 2015 (the Bill) and the Medical Research
Future Fund (Consequential Amendments) Bill 2015 gives effect to the Government's
decision (announced as a 2014-15 Budget measure) to establish a dedicated financial
asset, the Medical Research Future Fund (MRFF), as an endowment that supports
medical research and innovation (including in health disciplines).
The Government wishes to accumulate assets that can be invested to create earnings
and used to fund additional medical research and innovation over the long term. All
Australians stand to benefit from additional, well-targeted investments in medical
research and innovation and the additional national funding provided through the
MRFF is expected to translate into improvements in the health, life expectancy and
quality of life of all Australians.
The Bills were introduced to the House of Representatives on 27 May 2015 and
passed on 22 June 2015 after the Government introduced amendments to the Bills,
which incorporated the Government's robust decision-making and accountability
mechanisms for the disbursement of funds from the MRFF into the Bill.
On 16 June 2015, the Bills were referred to the Senate Community Affairs Legislation
Committee (the Senate Committee). The Senate Committee held a public hearing on
4 August 2015 and is due to report on 10 August 2015.
The further amendments proposed by the Government, incorporate provisions and
changes in the Bill that address the proposals by medical research community and
organisations as outlined through the Senate Committee's inquiry. These amendments
will further clarify and strengthen the MRFF decision making and accountability
framework.
The key amendments will include and vary provisions for:
consultation requirements during the formulation of the Australian Medical
Research and Innovation Strategy (Strategy), and Australian Medical Research
and Innovation Priorities (Priorities);
experience and knowledge requirements of the Advisory Board;
the definition of Medical Innovation;
ability to seek expert advice in relation to proposals for debits from the MRFF
Special Account;
expansion of reporting requirements and the publication of information
relating to debits from the MRFF Special Account;
the funding of international partnerships; and
expansion of the requirements for the review of the Act.
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The Government is committed to boosting health and medical research. This must not
just do more of the same, but demonstrate greater value and returns to the Australian
people. The MRFF will give particular impetus to the translation of medical research
into health and economic benefits.
The amendments also include a contingent amendment to the Medical Research
Future Fund (Consequential Amendments) Bill 2015 regarding the Acts and
Instruments (Framework Reform) Act 2015, which updates references to the
Legislation Act 2003.
Financial impact statement
The amendments to the Bills have no financial impact.
Statement of compatibility with Human Rights
The amendments to the Bills do not:
engage any of the applicable rights or freedoms outlined in the Human Rights
(Parliamentary Scrutiny) Act 2011, such as encompassed in the International
Covenant on Civil and Political Rights; or
limit any human rights, nor propose any offences or penalties.
These Bills, including the amendments, is therefore compatible with the human rights
and freedoms recognised or declared in the international instruments listed in
subsection 3(1) of the Human Rights (Parliamentary Scrutiny) Act 2011.
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MEDICAL RESEARCH FUTURE FUND BILL 2015
SUPPLEMENTARY EXPLANATORY NOTES
Section 62 - Review of operation of Act
Section 62 of the Bill, as outlined in the Explanatory Memorandum, requires that the
responsible Ministers undertake a review of the Act before 30 June 2023 or on a date
that the responsible Ministers deem appropriate.
The review mechanism at section 62 is intended to provide the opportunity to assess
and review the MRFF framework to ensure that the Act and the administrative
arrangements are providing the intended outcomes.
The review must also consider options for further efficiencies and synergies in the
MRFF governance arrangements, which is not limited to, but can include
consideration of the following:
the composition and functions of the Advisory Board, which is to be
consistent with the Australian Government Governance Policy that applies to
all Government bodies;
consultation arrangements when developing the Strategy and Priorities;
reporting and publishing of information requirements; and
the requirement for future MRFF framework reviews.
NOTES ON AMENDMENTS
Item 1 amends section 5 of the Bill to revise the definition of medical innovation to
clarify that medical innovation is broader than just the application and
commercialisation of medical research and the translation of medical research into
new or improved medical treatments.
This amendment will make clear that medical innovation covers a broad spectrum of
activities from prevention, to diagnosis and treatment, and places an emphasis on the
intended outcome rather than being limited to technologies, devices, enabling sciences
and improvements to existing interventions and systems. The definition is not
intended to restrict the type of activity necessary to achieve the outcome of improving
the health and wellbeing of Australians. It includes individual as well as population
health.
Item 2 amends section 15A(1)(Note 1) of the Bill to clarify that the report provided
by the Health Minister is on a range of matters relating to the grants of financial
assistance provided from the MRFF Special Account, rather than just the financial
assistance itself, as provided by section 57A.
Item 3 amends section 15A of the Bill to remove Note 2 to allow for the movement of
Note 2 to follow section 15A(3) as outlined at item 5.
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Item 4 amends section 15A(2) of the Bill to include a requirement that the Health
Minister must take into account the Priorities, and has the power to seek expert
advice. The Health Minister may also consider any other relevant matter when
requiring the Finance Minister to debit an amount from the MRFF for a grant of
financial assistance.
It would be usual to seek advice to inform decisions regarding expenditure on medical
research or medical innovation.
Item 5 amends section 15A of the Bill to add Note 2 that clarifies that the Health
Minister may delegate this power under section 61A.
Item 6 amends section 21 of the Bill by including a note after subsection (1) that
clarifies that the Health Minister must publish information about a grant of financial
assistance on the internet, as provided by section 58.
Item 7 amends section 24 of the Bill to update the 'Note' to 'Note 1' due to the
inclusion outlined at item 8.
Item 8 amends section 24 of the Bill to include a note that clarifies that a body that
receives a grant from the MRFF may be in partnership with an overseas or other body
in relation to the medical research or medical innovation activity funded.
This amendment is to clarify that grants of financial assistance from the MRFF to
Australian recipients do not preclude the recipients from forming partnerships with
international organisations.
Item 9 amends section 29 of the Bill by including a note after subsection (1) that
clarifies that the Health Minister must publish information about a grant of financial
assistance on the internet, as provided by section 58.
Item 10 amends section 32D(3) of the Bill to include a note outlining that the
Advisory Board is required to provide a consultation process, which is open to a range
of organisations and individuals, when determining the Strategy, as outlined in section
32EA.
Item 11 amends section 34E(3) of the Bill to include a note outlining that the
Advisory Board is required to provide a consultation process, which is open to a
range of organisations and individuals, when determining the Priorities, as outlined in
section 32EA.
Item 12 makes a new section 32EA after section 32E. The new section requires that
when the Advisory Board develops the Strategy and Priorities it must provide a
consultation process, which is open to organisations with expertise in medical
research or medical innovation, organisations that represent consumers who would
benefit from medical research or innovation, and any other person or organisation.
This amendment has been included to ensure that a consumer perspective as well as
additional expert perspectives are provided in the formulation of the Strategy and
Priorities.
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The section also articulates that the section does not limit section 17 of the Legislative
Instruments Act 2003.
Item 13 amends section 32G(2)(c) of the Bill to broaden that field by inserting 'or
delivery' of health services. This ensures that the field can cover both the
management and delivery of health services.
Item 14 amends section 32G(2)(f) of the Bill to update the formatting to enable the
inclusion outlined at item 15.
Item 15 amends section 32G(2) of the Bill by including 'philanthropy' and 'consumer
issues relating to health' into the list of fields from which Advisory Board members
can be drawn.
This addition is to ensure that the Advisory Board collectively has, among the other
listed skills, expertise and knowledge from the philanthropy and medical consumer
sectors. By including expertise in philanthropy and consumer issues relating to health
the Advisory Board will be able to more effectively consider how the grants of
financial assistance provided under this Bill complements and enhance other sources
of financial assistance such as philanthropy, and the intended health and wellbeing
outcomes for consumers, when setting the Strategy and Priorities.
It is expected that members of the Advisory Board would have experience or
knowledge in more than one field. For example, a member with expertise in policy
relating to health systems may also have experience or knowledge in the management
of health services. Similarly, a member with expertise in financing and investment
may also have philanthropic experience.
In particular the amendment will improve the ability of the Advisory Board to
consider the burden of disease on the Australian community and the delivery of
practical benefits from medical research and innovation to as many Australians as
possible, when setting the Priorities. This will lead to a more informed Strategy and
Priorities.
Item 16 amends section 54 of the Bill to clarify that the report provided to the
Parliament by the Health Minister is on a range of matters relating to the grants of
financial assistance provided from the MRFF Special Account, rather than just the
financial assistance itself.
Item 17 amends section 57A(2)(a) of the Bill to require that the report to Parliament
provided by the Health Minister on grants of financial assistance must include a
description of the processes for determining financial assistance from the MRFF.
Item 18 replaces section 58 of the Bill by outlining in further detail that the
information the Health Minister is required to publish on the internet in relation to
MRFF funding is to include funding provided through the COAG Reform Fund, the
MRFF Health Special Account or the MRFF Special Account.
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The amendment outlines the requirements for what information must be included in
the information published on the internet under 58(1), which includes the amount of
the grant and the person or body to whom the grant was paid and any other relevant
matter. The Government grant reporting requirements, which require all
Commonwealth entities to publish grant information, will also apply to grants from
the MRFF. The relevant Portfolio Budget Statements will provide detail on any
linkages of grants to relevant portfolio programmes, whether it is the Health portfolio
or another portfolio such as the Treasury.
Items 19 and 20 amend section 62 of the Bill, to include a requirement that the
scheduled review of the proposed MRFF Act must include consideration of whether
financial assistance from the MRFF has complemented and enhanced other financial
assistance provided by the Commonwealth for medical research and medical
innovation and how the MRFF funding has affected the total amount of other
financial assistance provided by the Commonwealth for medical research and medical
innovation.
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MEDICAL RESEARCH FUTURE FUND (CONSEQUENTIAL AMENDMENTS)
BILL 2015
NOTE ON AMENDMENT
Item 1 amends Schedule 3 of the Bill to include a section '1B Subsection 32EA(3)'
that replaces the reference to the 'Legislative Instruments Act 2003' with to the
'Legislation Act 2003', as a result of changes from the Acts and Instruments
(Framework Reform) Act 2015.
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