Australia to invest $20 billion in Medical Research Future Fund

Medical research in Australia receives an allocation of AU$20 billion by the Abbott government. Medical Research Future Fund is finally cleared in the Senate and has become the largest of its kind in the world. The Abbott government believes the move will establish Australia as a leader on medical research.

Medical Research Future Fund has gone through 20 amendments to its legislation before being passed in the Senate. That included greater control over the manner in which distribution of the fund will take place, which indicates the bill will require approval at the House of Representatives.

According to a Sydney Morning Herald report, the fund was announced by the Abbott government to balance the criticisms it had been facing as result of a few changes it introduced to the medical field. These changes included higher fees for prescription drugs, higher fees for GP visits, X-ray and blood tests and cuts to hospital funding, which all implied that people who are not insured under health insurance schemes will have to pay Medical Levy Surcharge whereas qualifying for private health insurance rebate would become more difficult.

A joint statement made by the Health and Finance Ministers and the Treasurer states that the program will receive an initial funding of AU$1 billion from the uncommitted balance of the Health and Hospitals fund under the previous government led by the Labor party. The rest of the fund will come from the savings in the field of health that have either passed or is due to pass in the parliament. The first AU$10 million from the fund will be distributed within the current budget year.

Labor has alleged that as many as 40 amendments has been made by the government to the legislation in both upper and lower houses of the parliament. Sky News reported Opposition spokesperson Catherine King said that the original legislation included no independent oversight of where the money would be distributed. This left a possibility of the money being used for coalition election projects. “Labor welcomes the passage of the bills through the Senate but remains concerned that they still do not appropriately ensure significant funding decisions are not politicised,” King said.

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