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Medical Research Future Fund (Consequential Amendments) Bill 2015

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2013-2014-2015

 

 

 

 

 

THE P A R L I A M ENT O F THE C O MM ON W E A L TH O F A U S T R A L I A

 

 

 

 

 

 

H OU S E OF R E P R E S E N T A T I VES

 

 

 

 

 

 

MEDICAL RESEARCH FUTURE FUND (CONSEQUENTIAL AMENDMENTS) B I L L 2015

 

 

 

 

 

EX P L A N AT O R Y M E M O R A NDUM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

( Ci rc u l a t e d b y t he a u t h or i t y of t he M i n i s t e r f o r F i n a n ce , S e n a t or t he H on M a t h i a s C o r m a nn)



T a b l e o f a bb r e v i a t io ns a nd c o mm o n ter m s

 

A bb re v i a t i on or

c o m m on te r m

Description

A g e n c y

means the F u t u r e F und M a n a g e m e n t A g e n c y established by section 74 of the Future Fund Act 2006

BAF

means the Building Australia Fund established by

section 12 of the Nation-building Funds Act 2008

BAF Special Account

means the Building Australia Fund Special Account established by section 13 of the Nation-building Funds Act 2008

COAG Reform Fund

means the Fund established by section 5(1) of the COAG Reform Fund Act 2008

CRF

  means the Consolidated Revenue Fund

DCAF

means the DisabilityCare Australia Fund established by

section 10 of the DisabilityCare Australia Fund Act 2013

DCAF Act

means the DisabilityCare Australia Fund Act 2013

DCAF Special Account

means the DisabilityCare Australia Fund Special Account established by section 11 of the DisabilityCare Australia Fund Act 2013

EIF

means the Education Investment Fund established by

section 131 of the Nation-building Funds Act 2008

EIF Special Account

means the Education Investment Fund Special Account established by section 132 of the Nation-building

Funds Act 2008

Finance Minister

has the same meaning as defined in the Public Governance, Performance and Accountability Act 2013

Future Fund

means the Future Fund established by section 11 of the Future Fund Act 2006

Future Fund Act

means the Future Fund Act 2006

Future Fund Special Account

means the Future Fund Special Account established by section 12 of the Future Fund Act 2006

Health Minister

means the Minister who administers the Health Insurance Act 1973

HHF

means the Health and Hospitals Fund established by

section 214 of the Nation-building Funds Act 2008

HHF Special Account

means the Health and Hospitals Fund Special Account established by section 215 of the Nation-building Funds Act 2008

Health Insurance Act

means the Health Insurance Act 1973

ITAA

means the Income Tax Assessment Act 1997

Legislative Instruments Act

means the Legislative Instruments Act 2003

MRFF

 

 

 

 

MRFF

means the Medical Research Future Fund

MRFF Act

means the Medical Research Future Fund Act 2015

 

MRFF Special Account

means the Medical Research Future Fund Special Account established by section 14 of the Medical Research Future Fund Bill 2015

MRFF Health Special Account

means the Medical Research Future Fund Health Special Account established by section 23 of the Medical Research Future Fund Bill 2015

Nation-building Funds

means the Nation-building Funds established by sections 12, 131 and 214 of the Nation-building Funds Act 2008

Nation-building Funds Act

means the Nation-building Funds Act 2008

PGPA Act

 

 

means the Public Governance, Performance and Accountability Act 2013

Responsible Ministers

means the following:

 

(a)       the Treasurer; and

(b)       the Finance Minister

The Board

means the Future Fund Board of Guardians established by

section 34 of the Future Fund Act 2006



O u t li ne

 

The Medical Research Future Fund ( C ons e qu e nti a l A m e n d m e nts) B ill 2015 ( the B i l l) m a k e s a nu m b e r of c on s e qu e n ti a l a m e nd m e n t s t o o t h e r p ie ce s of le g i s l a ti on re qu i r e d t o e n a b l e t he ef f ec ti ve op e ra ti on of the Medical Research Future Fund at commencement.

 

The MRFF Bill establishes the Medical Research Future Fund as a dedicated financial asset and an endowment that supports medical research and innovation (including in health disciplines). The Medical Research Future Fund will be established as the MRFF Special Account and the investments of the Medical Research Future Fund (made and managed by the Future Fund Board).

 

Th e c ons e q u e n ti a l a me nd m e n t s made in the Bill suppo r t the e st a blishm e nt of the Medical Research Future Fund in th a t th e y :

 

•   e n a b l e g r a n t s to the S t a t e s a nd T err ito r i e s t h r o u g h t he C OA G R ef o r m F und; and

 

•   extend the Future Fund Board’s duties to manage the Medical Research Future Fund; and

 

•   a ll ow f or a m oun t s t o be t ra ns f e rre d b e t wee n t h e Medical Research Future Fund a nd the F u t u r e F und t o a ll ow f or p r o p e r a pp o r ti on i ng of c o mm on e x p e ns e s i n c u rre d b y t he F u t u r e F und B o ar d i n m a n a g i n g t he Medical Research Future Fund , the Future Fund, the Nation-building Funds and the DCAF.

 

The B ill a m e nds the C O AG R e f orm Fund A c t 20 0 8 , t he Fu t ure Fund A c t 2 006 , sections of the N a ti on - bu il d i ng Funds A c t 2008 , the D i sab ilit y C are Aus t ra li a Fund A c t 2013, and the Health Insurance Act 1973.

 

The Bill also abolishes the Health and Hospitals Fund by repealing relevant sections of the Nation-building Funds Act 2008 . The closure of the Health and Hospitals Fund is a consequence of the decision to establish the Medical Research Future Fund with an initial balance equal to the balance of the Health and Hospitals Fund not already committed.

 

The Bill amends the Health Insurance Act 1973 to create a special appropriation to allow the Department of Health to meet ongoing financial commitments arising from Health and Hospitals Fund projects already committed before the closure of the Health and Hospitals Fund.

 

P r ov i d i ng f or a s e p a ra t e B il l f or t he c on s e qu e n ti a l a m e nd m e n t s c on f o r m s t o the C o mm on wea lt h p rac ti c e t o re du c e t he c o m p l e x i t y of p r i n c i p a l Ac t s.



F i n a n cial I mp a c t S t a t e m e nt

 

The B ill h a s no f in a n c i a l imp ac t.

 

 

S t a t e m e n t o f C o mp a t i b il i t y w i t h H um a n R i g h ts

 

The proposed amendments 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.

 

The proposed amendments do not limit any human rights, nor propose any offences or penalties.

 

This Bill 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 .



Medical Research Future Fund

( C o n se q u e n t ial A men d m e n t s) B ill 2015

 

N OT E S O N SECTIONS

 

Section 1 - Sh o r t Ti t l e

 

Section 1 p r ov i d e s f or t h e Ac t t o be c it e d a s t he Medical Research Future Fund ( C ons e qu e n ti al A me nd me n t s ) A c t 2015.

 

N ot e : The sections in the B ill w ill b ec ome s e c tionsof the Ac t on R o y a l A ss e nt.

 

Section 2 - Commencement

 

Section 2 i s t he c o mm e n ce m e nt p r ov i s i on f or t he B ill . The c o mm e n c e m e nt d a t e s f or t he sp ec i f i c p r ov i s i ons a r e p r ov i d e d i n t he t a b l e i n subs ec ti on 2 ( 1 ) .

 

Item 1 of t he t a b l e p r ov i d e s t h a t sections 1 t o 3 a nd a n y t h i ng not c ov e r e d in the t a b l e c o mm e n ce on t he d a y t he Ac t r e ce i v e s R o y a l A s s e n t .

 

Item 2 of t he t a b l e p r ov i d e s th a t S c h e dule 1 w ill c omm e n c e imm e di a t e l y af t e r t h e c o mm e n ce m e nt of t h e Medical Research Future Fund A c t 2 015 .

 

Item 3 of t he t a b l e p r ov i d e s th a t S c h e dule 2 w ill c omm e n c e on a day fixed by Proclamation or six months after Schedule 1 to this Act commences, whichever comes first.

 

Item 4 of t he t a b l e p r ov i d e s th a t S c h e dule 3 w ill c omm e n c e on the later of the c o mm e n ce m e nt of t h e Medical Research Future Fund A c t 2 015 or the commencement of the Acts and Instruments (Framework Reform) Act 2015 .

 

Section 3 - Schedules

 

Section 3 p r ov i d e s t h a t e ac h Ac t sp e c i f i e d i n a Sc h e du l e t o t h i s Ac t i s a me nd e d or re p ea l e d as s e t out i n t he S c h e du l e c on cer n e d.

 

S ch e d u l e 1 - Main A me nd me n t s

 

 

COAG Reform Fund Act 2008

 

I t e m 1 ins er t s N ote 2AA after Note 2A to subs ec ti on 5 ( 2) t o r e f l e c t th a t a n a mounto r i g in a ting in the MRFF m a y b e t ra ns f er r e d to the C OA G R ef o r m F u n d to mi rr or N ote 2 and Note 2A that refer to the a bili t y to t ra ns fe r a mountso r i g i n a ting in the BAF , EIF , HHF and DCAF t o t he C OAG R ef o r m F un d .

 

I t e m 2 inserts a new paragraph 7(1)(baa) after paragraph 7(1)(ba) to recognise th a t g r a nts fr om the MRFF to S t a t e s a nd T err ito r i e s are c h a n n e ll e d t h r o u g h t he C OA G R ef o r m F und. The MRFF Bill requires that payments to States and Territories through the COAG Reform Fund are bound by the terms and conditions of a written agreement.

 

I t e m 3 i ns er t s Note 1AA after Note 1A to subsection 7(3) t o r e f l ec t t h a t t he c h a n n e lli ng of g r a n t s t o St a t e s a nd T err it o r i e s f r om t he MRFF t h r ou g h t he C O A G R ef o r m F und issub j ec t t o t he p r ov i s i ons of t he MRFF Act.



DisabilityCare Australia Fund Act 2013

 

I t e m 4 repeals subparagraphs 16(a)(iii) to (vi) and replaces them with new subparagraphs 16(a)(iii) and (iv) to provide that expenses incurred by the Future Fund Board in establishing and operating bank accounts related to the DCAF can be met from the DCAF Special Account to the extent that such expenses do not relate to any other fund including the MRFF.

 

I t e m 5 repeals subparagraphs 16(b)(iii) to (vi) and replaces them with new subparagraphs 16(b)(iii) and (iv) to provide that the c ost of i nsu ra n c e i n c u rre d b y t he F u t u r e F u nd B o ar d i n re l a ti on t o t he DCAF ca n be m e t fr om the DCAF Special Account to the e x t e nt t h a t su c h i nsu ra n c e p re mi u m s do not re l a t e t o a n y o t h e r f und i n c l ud i n g t he MRFF .

 

I t e m 6 repeals subparagraphs 16(c)(iii) to (vi) and replaces them with new subparagraphs 16(c)(iii) and (iv) to provide that e x p e ns e s i n c u rre d b y t h e F u t u r e F u n d B o ar d i n re l a ti on t o m a n a g i n g the DCAF ca n be m e t f r om the DCAF Special Account to t he e x t e nt t h a t su c h e x p e ns e s do not re l a t e t o a n y o t h e r f und i n c l ud i n g t he MRFF .

 

Futu re F un d A c t 2006

 

I t e m 7 i ns er t s a re f er e n c e w it h i n t he n o t e to s ec t i on 4 t o c on f i r m t h a t t he F u t u r e F und B o a r d h a s a dd iti on a l f un c ti ons und e r the MRFF Act.

 

I t e m 8 ins er ts a d ef i n iti on of Medical Research Future Fund’ in section 5 b y r ef e re n c e t o s ec ti on 11 of t he MRFF Act.

 

I t e m 9 ins er ts a d ef initionof MRFF Special Account’ in section 5 by r e fe r e n c e t o s ec ti on 14 of t he MRFF Act.

 

I t e m 10 amends No t e 2A t o sec ti on 13 t o insert a reference to the MRFF.

 

I t e m s 11 a n d12 insert new subparagraphs 28(5)(bb) and 28(5)(h) which will a ll ow i n v e s tm e nt m a n a g er s e n g a g e d i n c onn ec ti on w it h t he m a n a g e m e nt of t he MRFF t o a l so be e n g a g e d f or t he pu r pos e s of ma n a g i n g t he F u t u r e F und, DCAF , BAF , EIF or HHF.

 

I t e m 13 i ns er t s a re f e r e n c e to the MRFF Act in t he n o t e a t s e c t i on 33. The note alerts the reader to the fact that the F u t u r e F und B o ar d h a s a dd iti on a l f u n c ti ons und e r other Acts which will now include the MRFF Act.

 

I t e m 14 adds a new paragraph 35(b)(iv) which will e x t e nd t he f un c ti ons of t he F u t u r e F und B o a r d t o it s f un c ti ons sp ec i f i e d und e r t he MRFF Act.

 

I t e m 15 adds a new paragraph 55(3)(c) t o provide t h a t t he F u t u r e F und B o a r d s re p o r ti ng ob l i g a ti on i n re l a ti on t o t he F u t u r e F u n d do not i n c l ude it s s e p a r a t e re p o r ti ng ob l i g a ti on t o t he r e spons i b l e M i n i s t er s und e r t he MRFF Act.

 

I t e m 16 inserts a new paragraph 63(1)(d) a n d item 17 inserts a new paragraph 63(2)(ac).  These changes will ensure that t h a t t he C h a i r or a m e m b e r of t he F u t u r e F und B o ar d does not b r eac h ci v i l a nd cr imi n a l ob li g a t i ons und e r t he F u t u r e F u n d Ac t b y performing a n ac t t h a t t h e y a r e re qu i re d t o perform under the MRFF Act.

 



 

I t e m 18 inserts a new heading and new subsection 81(1E) and item 19 inserts a new subsection 81(2E). These changes will re qu i r e t h a t t he a n n u a l r e po r t p re p a re d b y t h e C h a i r of t he F u t u r e F und B o ar d i n c l u de a re p o r t on t hep e r f o r m a n c e of i nv e s tm e n t s of t he MRFF a nd t he a m oun t s d e b it e d fr om t he MRFF f o r pu r pos e s a ll o we d und e r the MRFF Act. In addition, the annual report will also need to include b e n c h ma r ks i n re l a ti o n t o t he p erf o r m a n c e o f t he d e b it s fr om t he MRFF . This is consistent with the arrangements in relation to the other Funds which are the responsibility of the Future Fund Board.

I t e m 20 inserts new paragraph 83B(1)(db) which will a ll ow t he F u t u r e F u nd B o ar d t o d e le g a t e it s po we r t o e n g a ge i nv e s tm e nt m a n a g er s i n r e l a ti on t o t he MRFF t o t he C h a i r of t he F u t u r e F und B o ar d o r a SES E m p l o y e e o f t he F u t u r e F und M a n a g em e nt A g e n c y .

 

I t e m 21 inserts new subparagraph 84(1)(b)(iib) a n d item 22 inserts a new subparagraph 84(1)(b)(viii) to provide t h a t a n y a m ount of m on e y re c e i v e d b y t he B o a r d m ust be c r e d it e d t o t he F u t u r e F und S p ec i a l A c c ount i f i t i s not c ov ere d b y a re l e v a nt p r ov i s i on und e r t he F u t u r e F und, DCAF , N ation-building Funds or MRFF Acts.

 

I t e m 23 inserts a new heading and new subsection 84(4B) t o a ll ow t he no mi n a t e d M i n i s t e r und e r s ec ti on 83 t op r ov i de a wr itt e n d i rec ti on t o t he F u t u r e F und B o a r d re qu i r i ng a n a m ount cre d it e d t o t he F u t u r e F und S p ec i a l Account und e r subs e c ti on 84 ( 1) t o be subs e qu e n t l y d e b it e d fr om t h i s acc ount a nd cre d it e d t o t he MRFF Special Account.

 

I t e m 24 inserts a reference to new subsection 84(4B) in paragraph 84(5)(b) t o p r ov i de f u r t h e r g u i d a n c e on how a m o un t s t ra ns fer r e d t o t he MRFF und e r s ec ti on 8 4 ar e t o be d e t er mi n e d.

 

I t e m 25 inserts a reference to new subsection 84(4B) in subsection 84(6) to provide th a t a wr itt e n di r e c tion m a de und e r new subsection 84(4B) do e s not h a ve t he s t a t us of a le g i s l a ti ve i ns t r u m e n t . This is consistent with the status of other written directions that can be made by the nominated Minister under subsections 84(2), 84(3), 84(4) and 84(4A) in relation to the transfer of amounts to other Special Accounts as provided under those subsections.

 

I t e m s 26, 27 a n d 28 a me nd paragraphs 2(2)(a), 2(2)(b) and 2(2)(c) of S c h e du l e 2 t o include a reference to various provisions of the MRFF Act. These changes will provide t h a t b a nk a cc ount e x p e ns e s, i nsu ra n c e p r e mi u m s a nd c os t s re l a ti ng t o t he m a n a g em e nt of t he MRFF b y t he F u t u r e F und B o a r d ar e t o be c ons i d ere d to be for the p u r pos e s of t he F u t u r e F u n d S p ec i a l Acc oun t .

 

I t e m 29 inserts a reference to the MRFF in C l a use 1 of S c h e du l e 2A which provides a simplified outline of Schedule 2A which relates to inter-fund transfers. Schedule 2A will be amended by item 31 to include a reference to t he MRFF .

 

Item 30 makes a minor amendment to subclauses 2(2) and (3), 3(2) and (3), and 5(2) and (3), of Schedule 2A to ensure the consistent use of language and reflect contemporary drafting conventions.

 

I t e m 31 a dds a new c l a u s e 6 to the end of Sc h e du l e 2A t o a ll ow t he no mi n a t e d M i n i s t e r und e r t he F u t u r e F und Ac t t o p r ov i de a w r itt e n di rec tion re qui r i n g the r e v er s a l of a d e bit fr om the MRFF to m ee t b a nk acc oun t , i nsu ra n c e p r e mi um or o t h e r c os t s re l a ti ng t o t he MRFF . Th i s re v er s a l i s t o be ef f ec t e d b y d e b iti n g t he F u t u r e F u nd S p ec i a l Acc ount a nd c re d iti ng t he MRFF Special Account. The reversal amount cannot exceed the amount originally debited from the MRFF Special Account. The nominated Minist er’ s wr itt e n d i rec ti on i s not t o be r e g a r d e d a s a l e g isl a tive inst r um e nt.

 

 

N a ti o n - b u ild i n g F u n ds A c t 2008

 

I t e m 32 amends paragraph 20(a) to include a r e fe r e n c e t o t he MRFF to c o n f i r m t h a t e x p e ns e s i n c u rr e d b y t he F u t u r e F und B o ar d i n e s t a b li sh i ng a nd o p era ti n g b a nk a c c oun t s re l a t e d t o t he BAF ca n b e m e t from the BAF Special Account to the e x t e nt t h a t su c h e x p e ns e s do not re l a t e t o a n y o t h e r f und i n c l ud i ng t he MRFF .

 

I t e m 33 amends paragraph 20(b) to include a r e fe r e n c e t o t he MRFF to c o n f i r m t h a t the c ost of i nsu ra n c e i n c u r r e d b y t he F u t u r e F und B o ar d i n r e l a ti on t o t he BAF ca n b e m e t fr om the BAF Special Account to t he e x t e nt t h a t su c h i nsu ra n c e does not re l a t e t o a n y o t h e r f und i n c l ud i ng t he MRFF .

 

I t e m 34 amends paragraph 20(c) to include a r e fe r e n c e t o t he MRFF to c o n f i r m t h a t e x p e ns es i n c u rre d b y t he F u t u r e F u nd B o ar d i n re l a ti on t o m a n a g i n g t he BAF ca n be m e t fr om t he BAF Special Account, to the extent t h a t su c h e x p e ns e s do not re l a t e t o a n y o t h e r f und i n c l ud i ng t he MRFF .

 

I t e m 35 amends paragraph 138(a) to include a r e fe r e n c e t o t he MRFF to c o n f i r m t h a t e x p e ns e s i n c u rr e d b y t he F u t u r e F und B o ar d i n e s t a b li sh i ng a nd o p era ti n g b a nk a c c oun t s re l a t e d t o t he EIF ca n be m e t f r om the EIF Special Account to the e x t e nt t h a t su c h e xp e ns e s do not re l a t e t o a n y o t h e r f und i n c l ud i ng t he MRFF .

I t e m 36 amends paragraph 138(b) to include a r e fe r e n c e t o t he MRFF to c o n f i r m t h a t the c ost of i nsu ra n c e i n c u r r e d b y t he F u t u r e F und B o ar d i n r e l a ti on t o t he EIF c a n be m e t from the EIF Special Account to the e x t e nt t h a t su c h i nsu ra n c e does not re l a t e t o a n y o t h e r f und i n c l ud i ng t he MRFF .

 

I t e m 37 amends paragraph 138(c) to include a r e fe r e n c e t o t he MRFF to c o n f i r m t h a t e x p e ns es i n c u rre d b y t he F u t u r e F u nd B o ar d i n re l a ti on t o m a n a g i n g t he EIF c a n be m e t from the EIF Special Account, to the e x t e nt t h a t su c h e x p e ns e s do not re l a t e t o a n y o t h e r f und i n c l ud i n g t he MRFF .

 

I t e m 38 amends paragraph 219(a) to include a r e fe r e n c e t o t he MRFF to c o n f i r m t h a t e x p e ns e s i n c u rr e d b y t he F u t u r e F und B o ar d i n e s t a b li sh i ng a nd o p era ti n g b a nk a c c oun t s re l a t e d t o t he HHF ca n b e m e t from the HHF Special Account to the extent t h a t su c h e x p e ns e s do not re l a t e t o a n y o t h e r f und i n c l ud i ng t he MRFF .

 

I t e m 39 amends paragraph 219(b) to include a r e fe r e n c e t o t he MRFF to c o n f i r m t h a t the c ost of i nsu ra n c e i n c u r r e d b y t he F u t u r e F und B o ar d i n r e l a ti on t o t he HHF c a n be m e t from the HHF Special Account to t he e x t e nt t h a t su c h i nsu ra n c e does not re l a t e t o a n y o t h e r f und i n c l ud i ng t he MRFF .

 

I t e m 40 amends paragraph 219(c) to include a r e fe r e n c e t o t he MRFF to c o n f i r m t h a t e x p e ns es i n c u rre d b y t he F u t u r e F u nd B o ar d i n re l a ti on t o m a n a g i n g t he HHF c a n be m e t fr om the HHF Special Account, to the e x t e nt t h a t su c h e x p e ns e s do not re l a t e t o a n y o t h e r f und i n c l ud i ng t he MRFF .

 

 

 

 

 

 

 

S ch e d u l e 2 - Amendments relating to the abolition of the Health and Hospitals Fund

 

COAG Reform Fund Act 2008

 

Item 1 removes a reference to the HHF from the note to subsection 5(2), to reflect that credits to th e COAG Reform fund can no longer be made by debiting the HHF Special Account.

 

Item 2 amends subparagraph 7(1)(b)(v) as a result of item 3. Item 3 will repeal subparagraph 7(1)(b)(vi) to remove references to requirements for grants from the COAG Reform Fund to be covered by terms and condition relating to the HHF if the grants are being made using funds debited from the HHF Special Account.

 

Item 4 amends the Note 1 to subsection 7(3) to removes reference to the HHF .

 

DisabilityCare Australia Fund Act 2013

 

Items 5, 6 and 7 amend subparagraphs 16(a)(iii), 16(b)(iii) and 16(c)(iii) to remove references to the HHF . These subparagraphs prescribe certain expenses in relation to the HHF that can be met from the DCAF Special Account. These provisions will no longer be necessary following the abolition of the HHF.

 

Future Fund Act 2006

 

Item 8 repeals the definitions of the Health and Hospitals Fund and the HHF Special Account in section 5 as a consequence of subsequent provisions of the Bill that abolish the HHF through repealing relevant provisions of the Nation-building Funds Act.

 

Item 9 removes a reference to the HHF from Note 2A to section 13 as a consequence of item 18 that will amend Schedule 2A to remove references to the HHF from that Schedule. Note 2A currently reminds the reader that Schedule 2A of the Future Fund Act includes provisions to allow for transfers from the Future Fund to the HHF which will no longer be necessary .

 

Item 10 repeals paragraph 28(5)(f) as following abolition of the HHF it will no longer be necessary to allow for investment managers employed in relation to Future Fund assets to also be employed for the purposes of managing HHF assets.

 

Item 11 repeals subsections 81(1C) and (2C) to no longer require the annual report prepared by the Chair of the Future Fund Board to include information in relation to the HHF.

 

Item 12 repeals paragraph 83B(1)(d) as it will no longer be necessary to allow for the Future Fund Board to delegate powers in relation to the HHF Fund to the Chair, SES employee or acting SES employee of the Agency.

 

Item 13 repeals subpargraph 84(1)(b)(vi) which is a reference to the HHF Special Account which is being abolished. 

 

Item 14 repeals subsection 84(4) which relates to the transfer of amounts from the Future Fund to the HHF Special Account.   

 

Items 15 and 16 amend paragraph 84(5)(b) and subsection 84(6) to remove references to subsection 84(4).

 

 

 

 

 

Item 17 repeals subparagraphs 2(2)(a)(v), (b)(v) and (c)(v) of Schedule 2. This will remove references to certain expenses of the HHF which can be a purpose of the Future Fund Special Account.

 

Item 18 removes a reference to the HHF in clause 1 of Schedule 2A. Clause 1 provides a simplified outline to Schedule 2A.

 

Item 19 repeals clause 4 of Schedule 2A as it is no longer necessary to allow for transfers from the Future Fund to the HHF.

 

Health Insurance Act 1973

 

Item 20 inserts a new Part IVAA and new sections 46AA, 46AB and 46AC to the Health Insurance Act in relation to payments relating to the former HHF. New Part IVAA will allow the remaining HHF commitments to be met from the ‘general’ CRF, as a result of the transfer of the balance of the HHF Special Account (not transferred to the MRFF) to the ‘general’ CRF following abolition of the HHF. New section 46AA will allow the Health Minister to authorise (by written direction) payments to meet commitments made prior to the abolition of the HHF.

 

The direction can only be made if the payments relate to the creation or development of health infrastructure that met the requirements specified for approval of projects prior to the abolition of the HHF, namely:

 

·          a recommendation by the HHF Advisory Board that projects satisfied the HHF evaluation criteria;

 

·          the Health Minister had previously recommended payments in relation to the projects; and

 

·          the recipients of payments are not a State or Territory noting that remaining Health and Hospitals Fund payments to the States and Territories will be made under the Federal Financial Relations Act 2009 .

 

The Health Minister’s written direction(s) authorising payments following the abolition of the HHF will not be a legislative instrument and will not be subject to requirements under the Legislative Instruments Act This is in line with the written determinations authorising payments under the Nation-building Funds Act prior to the abolition of the HHF .

 

Under new section 46AB health infrastructure payments following the abolition of the HHF are to be bound by the terms and conditions of a written agreement between recipients and the Commonwealth.

 

New section 46AC establishes an appropriation for the purpose of amounts payable under new section 46AA.

 

New section 46AD details the Constitutional basis upon which payments made in relation to ongoing HHF projects rely.

 

Medical Research Future Fund 2015

 

Items 21, 22 and 23 amend subparagraphs 17(a)(iii), 17(b)(iii) and 17(c)(iii) to remove references to the HHF from the definition of the purposes of the Future Fund Special Account for which debits from this account are permissible.

 

 

Nation-Building Funds Act 2008

 

Item 24 removes a reference to the HHF from the Title of the Act.

 

Item 25 removes a reference to the HHF from section 3 of the Act which sets out a simplified outline of the Act.

 

Item 26 repeals a number of definitions in section 4 related to the HHF .

 

Item 27 amends the definition of person in section 4.

 

Item 28 makes a consequential amendment to paragraph (b) of the definition of value in section 4 as a consequences of item 29 .  

 

Item 29 repeals paragraph (c) which refers to the HHF in the definition of value of an investment.

 

Item 30 repeals subparagraphs 20(a)(iv), (b)(iv) and (c)(iv). This will remove references to the HHF in the definition of the purposes of the BAF Special Account for which debits from this account are permissible.

 

Item 31 repeals section 29 as it will no longer be necessary to provide for transfers from the BAF to HHF.

 

Items 32 and 33 amend subsections 122(1) and (3) as a consequence of the repeal of section 29 by item 31. It will no longer be necessary to include references to transfers between the BAF and HHF in the description of powers in relation to the BAF that can be delegated by the Finance Minister.

 

Item 34 repeals subparagraphs 138(a)(iv), (b)(iv) and (c)(iv) which will remove references to the HHF in the definitions of the purposes of the EIF Special Account for which debits from this account are permissible.

 

Item 35 repeals section 148 which provides for transfers from the EIF to the HHF.

 

Items 36 and 37 make consequential changes to subsections 207(1) and 207(3) as a result of item 35 repealing section 148. It will no longer be necessary to include a reference to transfers between the EIF and HHF in the description of powers in relation to the EIF that can be delegated by the Finance Minister.

 

Item 38 repeals Chapter 4. This will abolish the HHF by repealing the all provisions of the Act relating to the establishment and management of the HHF .

 

Item 39 is a transitional provision that ensures that agreements relating to payments from the HHF in force under section 261 of the Act immediately before the repeal of that section are taken immediately after repeal to be agreements for the purposes of new section 46AB of the Health Insurance Act as inserted by item 20 of Schedule 2.

 

 

 

 

 

 

 

 

 

S ch e d u l e 3 - Amendments contingent on the Acts and Instruments (Framework Reform) Act 2015

 

Medical Research Future Fund Act 2005

 

Items 1, 2 and 3 change any reference to Legislative Instruments Act 2003 to Legislation Act 2003 should the Acts and Instruments (Framework Reform) Bill 2015 pass Parliament.