Commonwealth Numbered Regulations - Explanatory Statements

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HEALTH INSURANCE COMMISSION REGULATIONS 1997 NO. 396

STATUTORY RULES 1997 No. 396

Issued by the authority of the Minister for Health and Family Services

Health Insurance Commission Act 1973

Health Insurance Commission Regulations

The attached Statutory Rules make regulations under section 44 of the Health Insurance Commission Act 1973 (the Act).

The regulations make amendments to regulation 4A of the Health Insurance Commission Regulations that are consequential on the Commonwealth Authorities and Companies Act 1997, They will come into operation on 1 January 1998.

The Commonwealth Authorities and Companies Act 1997 is one of a package of four Acts which will replace the Audit Act 1901, It will commence on 1 January 1999, the day fixed by Proclamation.

Details of the regulations are shown in the Attachment.

ATTACHMENT

DETAILS OF PROPOSED AMENDMENTS TO THE HEALTH INSURANCE COMMISSION (HIC) REGULATIONS

Regulation 4A of the HIC Regulations modifies Part V of the Health Insurance Commission Act 1973 (the HIC Act).

Amending regulation 1

This provision states that the amending regulations commence on 1 January 1998.

Amending regulation 2

This provision states that the HIC Regulations art amended as set out in the amending regulations.

Amending regulation 3

Amending subregulation 3.1 takes the opportunity to correct an earlier drafting error in paragraph 4A(a) of the HIC Regulations.

Amending subregulation 3.2 aligns paragraph 4A(b) of the HIC Regulations with section 14 of the CAC Act. Paragraph 4A(b) inserted subsection 34AA(1) in Part V of the HIC Act which requires the Commission to prepare "estimates of receipts and expenditure" for its pharmaceutical functions. Section 14 of the Commonwealth Authorities and Companies 1997 (the CAC Act), on the other hand, requires directors of Commonwealth authorities to prepare "budget estimates". Amending subregulation 3.2 aligns these provisions by, in effect, changing the reference to "estimates of receipts and expenditure" in subsection 34AA(1) to "budget estimates".

[The term "budget estimates" is wider than "estimates of receipts and expenditure." As explained in the Explanatory Memorandum to section 14 of the CAC Act, the Government has agreed in principle to a phased implementation of a financial framework for the Commonwealth based on accrual accounting. The term "budget estimates" is intended to accommodate both the current system of cash budgets (ie, estimates of receipts and expenditure) and any proposed system of accrual budgets].

Amending subregulation 3.3 aligns paragraph 4A(f) of the HIC Regulations with section 18 of the CAC Act. Paragraph 4A(f) inserted subsection 36(6AA) in Part V of the HIC Act which, in turn, confers investment powers on the Commission in relation to moneys held by it for the performance of its pharmaceutical functions. Subregulation 3.3 amends paragraph 4A(f) by repealing the investment powers conferred by subsection 36(6AA) and substituting the investment powers conferred on directors of Commonwealth authorities by subsection 18(3) of the CAC Act.