ADIA is the peak business organisation representing manufacturers and suppliers of dental products. Our vision is for an industry that empowers oral health professionals to advance the health and wellbeing of all Australians...................... — ADIA Strategic Plan

2014 Budget — Medical research future fund

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To support the sustainability of the health system into the future and drive further medical innovation, the Australian Government will establish the Medical Research Future Fund as of 1 January 2015. The budget papers state that the Australian Government believes medical research has a key role in improving health outcomes while at the same time making our health system sustainable in the decades ahead. Health and medical research, in our institutes, universities and increasingly, in our wards and practices, must be seen as part of the solution.

The new fund will help realise the huge opportunities for research to boost illness prevention and promote early intervention, reducing health costs while improving health outcomes and delivering better quality of life.

Amounts equal to the estimated value of health savings measures published in the 2014-15 Budget will be reinvested in the Fund until it reaches a target capital level of $20 billion from FY2014-15 to FY2019-20. The Medical Research Future Fund will receive $1 billion from uncommitted funds in the Health and Hospitals Fund (HHF).

The capital and any ongoing capital gains of the new Medical Research Future Fund will be preserved in perpetuity. The net earnings from the new Medical Research Future Fund for a given year will be available in the following year to fund medical research priorities, including through payments to the National Health and Medical Research Council. Payments will commence in 2015-16.

Medical Research Future Fund Payments —

The Government will provide $276.2 million over three years from 1 July 2015 in net earnings from the Medical Research Future Fund to fund critical medical research in the medium to long term. The Medical Research Future Fund will provide a sustained funding stream for medical research, with payments from the Medical Research Future Fund expected to reach around $1.0 billion per year from 2022-23. The outflows directed to medical research from the Medical Research Future Fund are expected to be as follows:

2013-14 2014-15 2015-16 2016-17 2017-18
...Department of Health $19.9Mil $77.4Mil $179.3Mil
...Total — Expense $19.9Mil $77.4Mil $179.3Mil

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Net interest earnings on Medical Research Future Fund capital will be available for drawdown the following financial year. The capital of the Fund will be preserved in perpetuity.

Investments in the MRFF will be managed by the Future Fund Board of Guardians in accordance with an Investment Mandate issued by the Treasurer and the Minister for Finance. The Minister for Finance has stated the guardians will have a proven track record in managing investment portfolios on behalf of the Government and maximising returns over the long term.

The HHF will cease operation on 31 December 2014. Committed HHF funds, at 31 December 2014, will be transferred to consolidated revenue, from which the remaining commitments of the HHF will be met.

The establishment of the MRFF will be subject to the passage of health savings legislation.

This update was issued on 1 May 2014 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy and also change tax compliance obligations. It is recommended that expert advice be sought before taking action based upon the information presented here.

Member Engagement —

ADIA provides leadership, strategy, advocacy and support. Our members set our agenda, fund our activities and directly benefit from the results. With respect to the Association's work to ensure that the initiatives within the 2015 Australian Government budget support the dental industry, the team in the ADIA national office receive advice and guidance from members serving on the ADIA-BAC Business Affairs Committee.

Further Information —

To keep up to date with how ADIA is working to ensure that the Australian Government budget supports the dental industry, subscribe to the Twitter feed @AusDental or follow us on Facebook at www.facebook.com/dental.industry. Alternatively, you can contact the Association via email at canberra@adia.org.au or by telephone on 1300 943 094.


This information is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated.

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