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Australian Government Coat of Arms

Budget | 2014-15

Budget 2014-15
Australian Government Coat of Arms, Budget 2014-15

Medical Research Future Fund

The Government will establish a $20 billion Medical Research Future Fund to provide secure funding for medical research over the coming decades, keeping us at the forefront of medical research

From 1 January 2015, the Government will establish a Medical Research Future Fund (the Fund) that will grow to $20 billion — the largest of its kind in the world.

The Fund will facilitate Australia maintaining a world class medical research sector, with access to cutting edge innovation and clinical breakthroughs in our hospitals — the underpinnings of the health system of the future.

The Fund will provide significant new funding to medical research in addition to existing funding profiles. Every dollar of estimated savings from health reforms in this Budget will be reinvested in the Fund until it reaches $20 billion.

To establish the Fund, approximately $1 billion in uncommitted funds from the existing Health and Hospitals Fund will be transferred into the Fund at its inception.

The Fund is estimated to reach the $20 billion target capital level by 2020 and the capital base is set to be preserved in perpetuity.

From 2015‑16, the net earnings from the Fund will serve as a permanent revenue stream, primarily to the National Health and Medical Research Council (NHMRC). The Fund will distribute around $1 billion a year into medical research from 2022‑23.

The additional $1 billion a year in funding will roughly double the Government's direct funding to medical research.

The establishment of the Fund ensures that the Government meets its commitment to maintain health investment, while delivering a sustainable health system into the future.

This investment, to be managed by the Future Fund Board of Guardians, will help to ensure Australia can continue to advance world leading medical research projects, attract and retain first class researchers and deliver improved health and medical outcomes for all Australians.

Medical research funding increasing by around $1 billion ongoing from 2022-23
This chart shows funding for medical research increasing steadily from $20 million in 2015-16 to more than a billion in 2023-24.

*NHMRC funding is grown at 2.5 per cent per annum from 2018-19 onwards for illustrative purposes.