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Health (Commonwealth State Funding
Arrangements) Bill 2012
Introduction Print
EXPLANATORY MEMORANDUM
General
The Health (Commonwealth State Funding Arrangements) Bill 2012
provides for the implementation of the funding, payment, accountability and
transparency arrangements under the National Health Reform Agreement.
The Bill includes provisions which have been agreed with the
Commonwealth and all other states and territories, as well as Victorian
specific provisions. The common provisions will appear in complementary
legislation in all jurisdictions.
Clause Notes
PART 1--PRELIMINARY
Clause 1 sets out the main purpose of the Bill, which is to provide for the
implementation of the National Health Reform Agreement
between the Commonwealth and the States and Territories that
was agreed to by COAG on 2 August 2011.
Clause 2 is the commencement provision.
The provisions will come into effect on a day or days to be
proclaimed. If a provision of this Act does not come into
operation before 22 May 2013, it comes into operation on that
day. This will allow time for the Commonwealth to modify
Commonwealth legislation by regulation in its application to the
Administrator.
571296 1 BILL LA INTRODUCTION 23/5/2012
Clause 3 provides for definitions and interpretation of terms used in the
Act.
Clause 3(5) provides that the Act is to be interpreted in
accordance with Schedule 7 to the Health Practitioner Regulation
National Law, as set out in the Schedule to the Health
Practitioner Regulation National Law Act 2009 of Queensland.
Consequently, clause 3(6) provides that the Interpretation of
Legislation Act 1984 does not apply in respect of this Act.
PART 2--ADMINISTRATOR OF THE NATIONAL HEALTH
FUNDING POOL
Clause 4 establishes the office of Administrator of the National Health
Funding Pool. It is intended that the Administrator will be an
independent statutory office holder, and that the same individual
will hold the office of Administrator under the corresponding
provisions of the law of the Commonwealth and the other States.
Clause 5 provides the terms for the appointment of the individual to the
office of the Administrator. The Minister for Health who is a
member of the Standing Council on Health will appoint an
individual to the office of Administrator. An appointment will
not be made unless all members of the Standing Council on
Health have agreed on the individual to be appointed.
Clause 6 provides the terms and grounds for the suspension of the
Administrator. The Chair of the Standing Council on Health
must suspend the Administrator from office at the request of
three State or Territory Ministers or the Commonwealth Minister.
Clause 6(2) sets out the grounds on which a request to suspend
the Administrator may be made.
Clause 7 provides for the removal and resignation of the Administrator.
The Commonwealth Minister is required to remove the
Administrator from office if a majority of the members of the
Standing Council on Health agree.
Clause 8 provides for the appointment of an acting Administrator when the
office is vacant or the holder of the office is suspended or absent
from duty.
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Clause 9 provides for staff and facilities to assist the Administrator in
exercising or performing his or her functions under this Act.
The staff and facilities will be provided by the National Health
Funding Body as constituted under the National Health Reform
Act 2011 of the Commonwealth.
Clause 9(2) provides that the Administrator is not entitled to
delegate a function conferred on the Administrator by this Act.
Clause 10 provides for the functions of the Administrator. The functions of
the Administrator include--
to calculate and advise the Treasurer of the
Commonwealth of the amounts required to be paid by
the Commonwealth into each State Pool Account;
to monitor State payments into each State Pool Account;
to make payments from each State Pool Account in
accordance with the directions of that State;
to report publicly on the payments made into and from
each State Pool Account;
to exercise or perform any other functions conferred on
the Administrator by this Act.
Clause 10(2) provides that the Administrator is not subject to the
control or direction of any Minister of the Commonwealth in
relation to the exercise or performance of the Administrator's
functions under this Act. However, clause 10(3) provides that
the Administrator is required to comply with any directions given
by COAG in relation to the manner in which the Administrator
exercises or performs his or her functions under this Act.
Clause 10(4) provides that directions by COAG are to be--
given in accordance with a written resolution passed in
accordance with COAG's procedures;
notified in writing to the Administrator; and
made publicly available by the Administrator.
Clause 10(5) provides that the Act is not intended to give the
Commonwealth ownership or control of money in a State Pool
Account.
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Clause 10(6) clarifies that the Administrator may consider
information obtained in the exercise of functions under the law of
another jurisdiction in the exercise of the Administrator's
functions under Part 4 of this Act.
PART 3--STATE POOL ACCOUNTS--THE NATIONAL
HEALTH FUNDING POOL
Clause 11 provides that the responsible Minister is to open and maintain a
separate bank account with the Reserve Bank of Australia for the
purpose of the National Health Reform Agreement. This account
is the State Pool Account.
Clause 12 sets out the money payable into the State Pool Account. This is
as follows--
money paid to the State by the Commonwealth for
payment into the State Pool Account under the National
Health Reform Agreement;
money made available by the State for the purposes of
funding in the State through the State Pool Account
under the National Health Reform Agreement;
money paid to the State by another State for payment
into the State Pool Account under the National Health
Reform Agreement;
interest paid on money deposited in the State Pool
Account;
money repaid to the State by a local hospital network.
Clause 13 sets out the money payable from the State Pool Account.
There is payable from the State Pool Account amounts to fund--
the services provided by the local hospital networks;
health teaching, training and research provided by local
hospital networks or other organisations;
any other matter that under the National Health Reform
Agreement is to be funded through the National Health
Funding Pool.
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Clause 13(2) provides that payments from the State Pool Account
are to be made by the Administrator in accordance with the
directions of the responsible Minister.
Clause 13(3) requires the Administrator to personally authorise
each payment made from the State Pool Account.
Clause 13(4) provides that the Administrator is to repay any
money paid by the State into the State Pool Account, that the
responsible Minister is satisfied constitutes an overpayment into
the State Pool Account.
Clause 13(5) clarifies that clause 13 does not affect the payment
from the State Pool Account of charges imposed by the Reserve
Bank of Australia for the operation of the State Pool Account.
Clause 13(6) provides that clause 13 does not require the
payment for services and matters referred to in clause 13(1) to be
made only from the State Pool Account.
Clause 13(7) clarifies that the funding of a local hospital network
includes funding another party on behalf of a local hospital
network for corporate or other services provided to the local
hospital network by that other party.
Clause 13(8) provides that if, when a payment from the State
Pool Account is required to be made and there is no
Administrator, or the Administrator is not available to make the
payment, the payment from the State Pool Account may be made
by a Victorian official pursuant to a direction of the responsible
Minister.
Clause 14 provides for the distribution of Commonwealth funding from the
State Pool Account. Clause 14(1) provides that directions by the
responsible Minister to the Administrator for payments of
Commonwealth funding from the State Pool Account must be
consistent with the advice provided by the Administrator to the
Treasurer of the Commonwealth.
Clause 14(2) clarifies that this section does not affect the
obligation that the Administrator must make payments from the
State Pool Account in accordance with the directions of the
responsible Minister.
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PART 4--FINANCIAL MANAGEMENT AND REPORTING
Clause 15 provides for the financial management obligations of the
Administrator. The Administrator must--
develop and apply appropriate financial management
policies and procedures;
keep proper records in relation to the administration of
the State Pool Account;
prepare financial statements and arrange for the audit of
those financial statements in accordance with this Part.
Clause 16 provides that the Administrator must provide monthly reports to
the Commonwealth and each State. The monthly reports will
contain information about--
the amounts paid into each State Pool Account and State
Managed Fund by the relevant State;
the amounts paid into each State Pool Account by the
Commonwealth;
the amounts paid from each State Pool Account to local
hospital networks, a State Managed Fund or other
organisations;
the amounts paid from each State Managed Fund to
local hospital networks or other organisations;
the number of public hospital services funded for each
local hospital network;
the number of other public hospital services and
functions funded from each State Pool Account or State
Managed Fund.
Clause 16(2) requires a monthly report to be provided to the
responsible Minister, or another body or office notified to the
Administrator by the Minister.
Clause 16(3) requires the Administrator to make monthly reports
publicly available.
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Clause 17 provides that the Administrator must provide to the responsible
Ministers an annual report on the exercise or performance of his
or her functions under this Act. The annual report must include
the information outlined in clause 17(2).
Clause 17(3) provides that the annual report is to be accompanied
by an audited financial statement for each State Pool Account
and a financial statement that combines the audited financial
statements for each State Pool Account.
Clause 17(4) requires the responsible Minister to table the annual
report in Parliament.
Clause 18 provides that the Administrator must prepare a financial
statement for each State Pool Account and a combined financial
statement that consists of the financial statements for each State
Pool Account.
Clause 19 provides that a financial statement under this Part for the State
Pool Account is to be audited by the Auditor-General of Victoria.
Clause 19(2) provides that the Audit Act 1994 applies to such a
financial statement as if a reference in that Act to "authority" in
relation to financial statements were a reference to the
Administrator.
Clause 20 provides for the conduct of performance audits of the functions
of the Administrator.
Clause 20(1) defines a performance audit as an audit by the
Auditor-General of the exercise or performance of the functions
of the Administrator in relation to Victoria to determine whether
the Administrator is acting effectively, economically, efficiently
and in compliance with all relevant laws.
Clause 20(2) requires the Auditor-General to notify the Auditors-
General of all other jurisdictions of his or her intention to conduct
a proposed audit.
Clause 20(3) requires Auditors-General conducting performance
audits at the same time to make arrangements to co-ordinate the
conduct of those audits in relation to any requirements imposed
on the Administrator.
Clause 20(4) clarifies that a performance audit is to be conducted
by the Auditor-General of Victoria.
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Clause 20(5) provides that the Audit Act 1994 will apply with
any necessary modifications to the conduct of a performance
audit as if a reference to "authority" in relation to performance
audits were a reference to the Administrator when acting in
relation to the State Pool Account.
Clause 21 provides that the responsible Minister must provide information
about the following matters relating to the State Managed Fund,
to the Administrator, which the Administrator requires to prepare
reports or financial statements--
the amounts paid by the State into the State Managed
Fund;
the amounts paid by the State from the State Managed
fund to local hospital networks or other organisations;
public hospital services and functions that are funded
from the State Managed Fund.
Clause 22 provides for the provision of information.
Clause 22(1) requires the Administrator to provide to the
responsible Minister any information requested by the
responsible Minister that relates to the jurisdiction. Clause 22(2)
requires the Administrator to provide the information by the time
requested by the responsible Minister.
Clause 22(3) requires the Administrator to provide to the
responsible Minister a copy of advice provided by the
Administrator to the Commonwealth about the basis on which the
Administrator has calculated the payments to be made into State
Pool Accounts by the Commonwealth.
Clause 22(4) allows the Administrator to provide any information
that relates to a jurisdiction to the responsible Minister for that
jurisdiction.
Clause 22(5) provides that any information relating to a
jurisdiction, that is provided by the Administrator to another
jurisdiction, may only be publicly released with the approval of
the responsible Minister for the jurisdiction to which the
information relates.
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PART 5--STATE FINANCIAL MANAGEMENT
OBLIGATIONS
Division 1--Interpretation
Clause 23 defines Health State Pool Fund for the purposes of Part 5.
Division 2--The Health State Pool Fund
Clause 24 provides that the State Pool Account opened by the Minister
under section 11(1) forms part of the Public Account and is part
of the Trust Fund and is to be known as the Health State Pool
Fund.
Clause 25 provides that the Audit Act 1994 applies to the Health State Pool
Fund to the extent that it is consistent with this Act.
Clause 26 provides that the Financial Management Act 1994 applies to the
Health State Pool Fund to the extent that it is consistent with this
Act.
Division 3--The State Managed Fund
Clause 27 establishes an account as part of the Public Account and as part
of the Trust Fund and as the State Managed Fund to be known as
the Health State Managed Fund. Clause 27(2) provides that the
money payable into the Health State Managed Fund is that
required under the National Health Reform Agreement. Clause
27(3) provides that payments out of the Health State Managed
Fund must be made in accordance with the National Health
Reform Agreement by the Minister.
Clause 28 provides that the Audit Act 1994 applies to the Health State
Managed Fund to the extent that it is consistent with this Act.
Clause 29 provides that the Financial Management Act 1994 applies to the
Health State Managed Fund to the extent that it is consistent with
this Act.
PART 6--MISCELLANEOUS
Clause 30 provides that the Administrator is not a public body for the
purposes of the Financial Management Act 1994. Further, the
Public Administration Act 2004 does not apply to the office of
the Administrator.
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Clause 31 excludes the application of specified Acts of this jurisdiction to
the Administrator or to any power exercised or function
performed by the Administrator. These Acts are--
the Freedom of Information Act 1982;
the Health Records Act 2001;
the Information Privacy Act 2000;
the Interpretation of Legislation Act 1984;
the Ombudsman Act 1973;
the Public Records Act 1973;
the Subordinate Legislation Act 1994.
Clause 32 applies specified Acts of the Commonwealth as laws of this
jurisdiction to or in respect of the Administrator and any function
exercised or performed by the Administrator. The Acts apply
subject to modifications made by regulations under the National
Health Reform Act 2011 of the Commonwealth.
Clause 33 provides for the extraterritorial operation of the Act.
Clause 34 provides that the Act binds the Crown in right of Victoria.
Clause 35 allows the Minister to delegate the Minister's powers under Parts
3, 4 or 5 of the Act.
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