Commonwealth Numbered Regulations - Explanatory Statements

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NATIONAL HEALTH REGULATIONS (AMENDMENT) 1994 NO. 256

STATUTORY RULES 1994 No. 256

Issued by authority of the Minister for Human Services and Health

National Health Act 1953

National Health Regulations (Amendment)

Section 140 of the National Health Act 1953 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.

Amendments to the National Health Act 1953 (the "Act"), effective from 1 July 1993 were introduced to provide greater protection of Commonwealth nursing home benefit.

One of the amendments provides that, at the time the Department is notified of the proposed sale of a nursing home, an investigation of nursing home records and expenditure is commenced. Any moneys estimated at investigation to be owing to the Commonwealth are collected from the nursing home purchaser prior to the sale. (The Act provides that they are taken to have been paid by the purchaser to the vendor as consideration, or part consideration, under the contract of sale). These moneys are held in trust pending completion of the sale.

on completion of the sale, the Department finalises the investigation, enabling the precise amount owing to the Commonwealth to be determined. In some instances, moneys held in trust will be greater than the amount actually owing to the Commonwealth. This amount must be repaid to the vendor.

On advice from the Attorney-General's Department, an amendment was introduced which provides that the Commonwealth is liable to pay interest on these excess moneys. Sections 65SA and 65SB provide that the interest is payable at a rate determined in regulations.

The rate of interest payable is the rate payable by the Commonwealth Bank of Australia on a term deposit, made on the day on which the relevant payment was made, of an amount equal to the relevant payment. The Department of Finance have no problems with this rate.

Regulation 3 determines the rate to be a commercial rate employed by the Commonwealth in certain circumstances, and describes the rate. The Regulations are taken to have commenced on 1 July 1993.