EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
National Health Act 1953
Continence Aids Payment Scheme Variation 2011 (No.4)
The National Health Act 1953 (the Act) is an Act relating to the provision of pharmaceutical, sickness and hospital benefits, and of medical and dental services.
Section 12 of the Act provides that the Minister may, by legislative instrument, formulate a Continence Aids Payment Scheme, under which the Commonwealth makes payments as a contribution towards the cost of buying products that help manage incontinence.
Background
The Continence Aids Payment Scheme 2010 (the Scheme) was introduced on 1 July 2010, replacing the former Continence Aids Assistance Scheme (CAAS). Assistance for eligible persons changed from the physical supply of subsidised continence aids under CAAS to a monetary payment under the Scheme intended to contribute toward the purchase of continence aids.
Payments to participants of the Scheme are facilitated through Medicare Australia via terms set out in a Memorandum of Understanding between the agencies and the delegation of certain powers under the Continence Aids Payment Scheme legislative instrument.
The Human Services Legislation Amendment Act 2011
The purpose of the Variation is to include amendments to the Scheme, consequential to the Human Services Legislation Amendment Act 2011. The Human Services Legislation Bill passed through Parliament on 23 May 2011 and implemented a new service delivery approach to significantly improve the efficiency and effectiveness of service delivery to the Australian people.
As part of this Service Delivery Reform initiative, the Human Services portfolio agencies (the Department of Human Services, including the Child Support Program and CRS Australia, Centrelink and Medicare Australia) have been integrating back-office support services and some customer‑contact areas including introduction of some co-located shopfronts.
The Human Services Legislation Amendment Act 2011 formalises the changes already under way and enables further integration of the service delivery agencies in the portfolio by:
- the abolition of the statutory offices of Chief Executive Officer of Medicare Australia and Chief Executive Officer of Centrelink; and
- the creation of the statutory offices of Chief Executive Medicare and Chief Executive Centrelink within the Department; and
- the abolition of Medicare Australia and Centrelink as statutory agencies;
- providing for service related functions currently delivered by Medicare Australia and Centrelink in support of their Chief Executives to be delivered by Departmental employees; and
- providing for new functions taken on by the Chief Executive Medicare and the Chief Executive Centrelink in the future to be delivered by Departmental employees.
Continence Aids Payment Scheme Variation 2011 (No.4) (the Variation)
The variations contained in Schedule 1 reflect the abolition of the Medicare Australia CEO role and introduction of the Chief Executive Medicare role and remove references to Centrelink in the Continence Aids Payment Scheme legislative instrument.
These changes are machinery in nature and will have no impact on the operation of the Scheme.
Retrospectivity
The Variation will commence retrospectively on 1 July 2011, to align with the commencement of amendments made under the Human Services Legislation Amendment Act 2011.
Subsection 12(2) of the Legislative Instruments Act 2003 provides that if a legislative instrument is expressed to take effect from a time before it is registered, but the instrument would adversely affect the rights of, or impose liabilities on, a person at a time before the instrument is registered, the instrument has no such effect in relation to the period before the instrument is registered.
The retrospective commencement of Schedule 1 of the Continence Aids Payment Scheme Variation 2011 (No.4) does not contravene subsection 12(2) of the Legislative Instruments Act 2003, because it is an administrative amendment reflecting the changing roles from Medicare into the Department of Human Services. As a result, retrospective application of these provisions does not impose any disadvantage on any person other than the Commonwealth.
The Office of Best Practice Regulation has advised that a Regulation Impact Statement is not required for the Continence Aids Payment Scheme Variation 2011 (No.4)) (OBPR ID Number 12787).
Notes on clauses
Further details of all amendments to the Instrument are attached.
The Variation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation
No specific consultation was undertaken in regard to this Variation as the variations proposed are machinery in nature and are consequential upon the changes made by the Human Services Legislation Amendment Act 2011.
ATTACHMENT
NOTES ON CLAUSES
Clause 1 – Name of Instrument
This clause states that the name of the Instrument is the Continence Aids Payment Scheme Variation 2011 (No.4).
Clause 2 – Commencement
This clause states that the Instrument commences on 1 July 2011.
Clause 3 – Amendment of the Continence Aids Payment Scheme 2010
This clause states that Schedule 1 varies the Continence Aids Payment Scheme 2010.
Schedule 1 – Variations
Item 1
This item amends the definition of ‘approved form’ by replacing the reference to ‘Medicare Australia CEO’ with a reference to ‘Chief Executive Medicare’. Item 419 of Schedule 4 to the Human Services Legislation Amendment Act 2011 inserts a definition of ‘Chief Executive Medicare’ into subsection 4(1) of the National Health Act 1953. The definition of ‘Chief Executive Medicare’ in the National Health Act 1953 has the same meaning as in the Human Services (Medicare) Act 1973. As the Continence Aids Payment Scheme is formulated under section 12 of the National Health Act 1953, the same definition will apply.
Item 2
This item amends references to Centrelink and its programs contained in one of the eligibility criteria for a person to participate in the Scheme. The previous criterion provided that a person was eligible if they suffered from permanent and severe incontinence caused by an eligible other condition and had a Centrelink Pensioner Concession Card or entitlement, whether as a primary cardholder a dependent of a cardholder, providing the person did not fall into one of the categories of people not eligible to participate in the Scheme. This item provides that a person is eligible if they suffer from permanent and severe incontinence caused by an eligible other condition; and the person has or is eligible to have a pensioner concession card issued under Division 1 of Part 2A.1 of the Social Security Act 1991 or is the dependant of the holder of a pensioner concession card, as defined in section 6A of the Social Security Act 1991. It is not intended that the eligibility criteria will operate any differently from its previous operation. It will continue to cover the same group of people as it previously covered.
Item 3 to Item 11
These items amend various sections, subsections, Notes, headings and Examples by replacing references to ‘Medicare Australia CEO’ with references to ‘Chief Executive Medicare’.
Item 12
This item amends the section by replacing the reference to ‘CEO’ with a reference to ‘Chief Executive Medicare’.
Items 13 to 23
These items amend various subsections, paragraphs and Notes by replacing references to ‘Medicare Australia CEO’ with references to ‘Chief Executive Medicare’.
Item 24
This item amends references to the ‘assisted person’s Centrelink correspondence nominee, as recognised by Centrelink for the purposes of the social security law (see Part 3A of the Social Security (Administration) Act 1999)’ to the ‘assisted person’s correspondence nominee appointed under section 123C of the Social Security (Administration) Act 1999’. As with Item 2, it is not intended that this provision will operate any differently to how it has operated in the past. It will continue to cover the same people as it previously covered.
Items 25 to 35
These items amend various sections, subsections and Notes by replacing references to ‘Medicare Australia CEO’ with references to ‘Chief Executive Medicare’.