This Act establishes the Medical Research Future Fund to provide grants of financial assistance to support medical research and medical innovation.

The Medical Research Future Fund consists of the Medical Research Future Fund Special Account and the investments of the Medical Research Future Fund. Initially, the Fund's investments are a portion of the investments of the Health and Hospitals Fund which was established under the repealed Nation - building Funds Act 2008 . Additional amounts may also be credited to the Medical Research Future Fund Special Account.

The Medical Research Future Fund Special Account can be debited for 3 main purposes:

  (a)   channelling grants to the Federation Reform Fund to make grants of financial assistance to States and Territories; and

  (b)   channelling grants to the MRFF Health Special Account to make grants of financial assistance to certain bodies; and

  (c)   making grants of financial assistance directly to corporate Commonwealth entities.

The Australian Medical Research Advisory Board is established to determine the Australian Medical Research and Innovation Strategy and the Australian Medical Research and Innovation Priorities. The Health Minister takes the Priorities into account in making decisions about the financial assistance that is provided from the Medical Research Future Fund Special Account.

There is a limit on the amount that can be debited from the Medical Research Future Fund Special Account each financial year. The limit, which is called the maximum annual distribution, is determined by the Future Fund Board for each financial year.

The Medical Research Future Fund is invested by the Future Fund Board in accordance with an Investment Mandate given by the responsible Ministers.