Australian Institute of Health and Welfare Regulations 1997 No. 231
EXPLANATORY STATEMENT
STATUTORY RULES 1997 NO. 231
Issued by authority of the Minister for Health and Family Services
Australian Institute of Health and Welfare Act 1987
Australian Institute of Health and Welfare Regulations
Section 32 of the Australian Institute of Health and Welfare Act 1987 ("the Act") provides that the Governor-General may make Regulations for the purposes of the Act.
Paragraph 273(a) of the Act requires Ministerial approval for the Australian Institute of Health and Welfare (Institute) to enter into a contract involving the payment or receipt of an amount exceeding $200,000 or such higher amount as may be prescribed. The purpose of amending the Regulation is to increase the amount to $500,000.
Information released in the Institute's 1995-96 Annual Report shows that the Institute received some $6.93 million for the Year in respect of 39 separate grants, reflecting an average grant of $177,000. The grants varied in size considerably, but nine exceeded the $200,000 threshold prescribed by the Act.
Two grants from the Department of Health and Family Services were intended for the Institute's collaborating centres in Adelaide and Darwin. The requirements of the Act and the Audit Act 1901 are such that separate Ministerial approvals must be obtained for the Institute to accept the grant from the Department and then to pass it to the collaborating centre.
With average grants to the Institute now approaching the threshold Emit, it is considered timely to increase the amount prescribed under section 23 of the Act to provide for a higher limit.
The limit has not been varied since the Act was first drafted almost ten years ago. An increase in limit to $500,000 is considered administratively more efficient and more in keeping with the original intent of the Act.
The Regulations commenced on Gazettal.
Overview
The Australian Institute of Health and Welfare Regulations 1997 No. 231 were enacted to amend the threshold amount for Ministerial approval required for the Australian Institute of Health and Welfare to enter into contracts exceeding specified monetary amounts, as stipulated in the Australian Institute of Health and Welfare Act 1987. Initially, Ministerial approval was required for contracts exceeding $200,000, a limit set almost a decade prior to the regulation's enactment. Given the average size of grants received by the Institute and the administrative burden of obtaining separate approvals for multiple grants, the need for an adjustment was apparent. The objective of this regulation was to increase the threshold amount to $500,000, thereby aligning with the original intent of the Act and enhancing administrative efficiency. This change was made under the authority of the Minister for Health and Family Services, as per the Act's provisions.
Scope and Application
The Australian Institute of Health and Welfare Regulations 1997 establish the framework for the operation of the Australian Institute of Health and Welfare (AIHW), a statutory authority that provides essential information and statistics on Australia's health and welfare. The Regulations are made under the authority of the Australian Institute of Health and Welfare Act 1987 and are applicable to the AIHW, its officers, and its activities. The primary purpose of these Regulations is to specify the financial thresholds that require Ministerial approval for certain contractual agreements, aligning with the provisions of the Act. In particular, these Regulations amend the threshold for Ministerial approval of contracts involving payments or receipts exceeding a specified amount, which is increased from $200,000 to $500,000. This adjustment aims to accommodate the increasing size and complexity of grants received by the AIHW, facilitating smoother administrative processes and ensuring compliance with legislative requirements.
Key Provisions
The Australian Institute of Health and Welfare Regulations 1997, pursuant to section 32 of the Australian Institute of Health and Welfare Act 1987, establish key provisions that govern the financial transactions of the Institute. Specifically, the regulations address the threshold for Ministerial approval required for the Institute to enter into contracts involving payments or receipts exceeding a certain amount. Under paragraph 273(a) of the Act, the current threshold for requiring Ministerial approval is set at $200,000. However, the Regulations amend this threshold to $500,000, allowing for greater flexibility and administrative efficiency in the Institute's financial dealings.
These Regulations impose obligations on the Institute to obtain Ministerial approval before entering into contracts that exceed the new threshold amount of $500,000. This approval process ensures that significant financial transactions are properly authorised and compliant with the Act. The Institute must adhere to these requirements to maintain the integrity and transparency of its financial operations. Additionally, the Regulations necessitate that separate approvals be obtained for grants intended for collaborating centres, as mandated by the Act and the Audit Act 1901, ensuring that all financial transactions are properly documented and authorised.
Failure to comply with the provisions of these Regulations could result in serious consequences for the Institute. While the Regulations themselves do not explicitly detail specific offences or penalties, breaches of the Act's requirements could potentially lead to civil or criminal liability. Under the Act, non-compliance with prescribed thresholds and approval processes could be considered an administrative breach, potentially leading to legal action against the Institute or its officials. Additionally, the Act and related legislation may impose penalties for non-compliance, although the exact penalties are not specified in the Regulations.
The increased threshold amount from $200,000 to $500,000 aims to streamline the approval process and better align with the Institute's current financial practices, as evidenced by the grants received in the 1995-96 financial year. Given the average grant size of approximately $177,000, with nine grants exceeding the previous threshold, the amendment reflects a practical approach to managing the Institute's financial obligations while ensuring compliance with legislative requirements. The Regulations came into effect upon their publication in the Gazette, thereby immediately applying the new threshold to the Institute's financial transactions.