The Abbott Government is focused on ensuring Australia’s best and brightest medical researchers remain at the forefront of developing treatments and cures that will improve the lives of Australians and millions of people around the world.
Today, we introduce legislation to create the $20 billion Medical Research Future Fund – the biggest endowment fund of its kind in the world.
The Medical Research Future Fund is a landmark Coalition Government initiative. This is a game-changer for Australia and for Australians.
Subject to the passage of the legislation, the Medical Research Future Fund will be established from 1 August 2015.
The Fund will receive an initial contribution of $1 billion from the uncommitted balance of the Health and Hospitals Fund. In addition, 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 first $10 million in additional medical research funding is to be distributed in 2015-16 and over $400 million is estimated for distribution over the next four years.
The Fund will be invested and managed by the Future Fund Board of Guardians, which has a proven track record in managing investment portfolios on behalf of the Government and maximising returns over the long term.
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 Medical Research Future Fund are to be spent.