By an Executive Council Order of 17 September 1936, the Federal Health Council was abolished, and in its place a body with wider functions and representation, the National Health and Medical Research Council, was established. 

The Council was constituted to consist of fifteen members:

The Director-General of Health, Commonwealth, Chairman;
Two other officers of the Department of Health, to be appointed from time to time by the Minister of Health;
The Director-General of Public Health, New South Wales;
The Chairman of the Health Commission, Victoria;
The Director-General of Health and Medical Services, Queensland; 
The President of the Central Board of Health, South Australia; 
The Commissioner of Public Health, Western Australia;
The Director of Public Health, Tasmania;
(The relevant Minister of Health was to appoint a substitute for attendance at any meeting in the case of the absence of any Official Member)
A person nominated by the Federal Council of the British Medical Association;
A person nominated by the Royal Australasian College of Surgeons; 
A person nominated by the Association of Physicians;
A person nominated jointly by the Australian Universities having Medical Schools;
A prominent layman appointed by the Commonwealth Government;
A prominent laywoman appointed by the Commonwealth Government. 

The tenure of office of the non-official members was to be three years.

The functions of the Council were set out as follows:

To advise the Commonwealth and State Governments on all matters of public health legislation and administration, on matters concerning the health of the public and on medical research;
To advise the Commonwealth Government as to the expenditure of money specifically appropriated as money to be spent on the advice of the Council;
To advise the Commonwealth Government as to the expenditure of money upon medical research and as to projects of medical research
generally;
To advise Commonwealth and State Governments upon the merits of reputed cures or methods of treatment which are from time to time brought forward for recognition.

The first session of the Council was opened at Hobart in February 1937 by the Right Honorable W.M. Hughes, then Minister for Health. On 3 July 1937, assent was given to the Medical Research Endowment Act, 1937 which established a fund to finance the National Health and Medical Research Council. In its first years the Council received $30,000 annually from the fund.

The Council has maintained three advisory committees for Medical Research, Medicine and Public Health.

Source:
Commonwealth of Australia Gazette, No. 79 of 1936, 24 September 1936, pp 1727-1728

Historical agency address
c/- Department of Health, Canberra, ACT
Legislation administered
Federal Executive Council Order of 17 September 1936; Commonwealth of Australia Act No. 6 of 1937, Medical Research Endowment Act, 1937.