MRFF legislation introduced into parliament

The federal government today introduced legislation to establish its much-anticipated Medical Research Future Fund (MRFF).

Subject to the passage of the legislation, the fund will be established from 1 August 2015. It will go on to distribute $10 million in medical research funding in 2015-16 and at around $400 million over the next four years.

The fund will receive an initial contribution of $1 billion from the uncommitted balance of the Health and Hospitals Fund. The estimated value of savings from the Health portfolio will be contributed until the fund reaches a target capital level of $20 billion, projected to be in 2019-20.

The fund will be invested and managed by the Future Fund Board of Guardians, which has a track record in managing investment portfolios on behalf of the government. The government will separately establish an expert advisory board to provide advice on the medical research strategy and priorities to inform how annual distributions from the MRFF are to be spent.

According to the Australian Private Equity and Venture Capital Association Limited (AVCAL), the Medical Research Future Fund Bill 2015 marks a critically important milestone for innovation and medical research in Australia. AVCAL CEO Yasser El-Ansary said the fund has “the potential to deliver significant economic gains for Australia”.

AVCAL has, for some time, advocated the case for the MRFF to be focused not only on research outcomes, but on the translation and commercialisation of that research through new home-grown Australian businesses that can go on to lead the world. El-Ansary noted, “In the Treasurer’s second reading speech in parliament today, he made the case for the fund supporting significant new investment into research outcomes which deliver economic gains for the whole community through translation and commercialisation of medicines and medical devices.

“There should be bipartisan support for the establishment of the MRFF,” El-Ansary continued. He claimed the Australian economy is “transitioning into the development and expansion of new innovative industries which can create major employment and growth opportunities for the future”, making now the ideal time to the make the fund a reality.

To view the Medical Research Future Fund Bill 2015, visit the Parliament of Australia website.

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