EXPLANATORY STATEMENT
Issued by the authority of the Minister for Mental Health and Ageing
National Health Act 1953
Continence Aids Payment Scheme Variation 2012 (No. 1)
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.
Paragraph 12(3)(c) of the Act states ‘…the legislative instrument may provide for … the amount of the contribution [payment] that is payable in each financial year in relation to a person who is participating in the scheme’.
Continence Aids Payment Scheme Variation 2012 (No.1) (the Variation)
The Continence Aids Payment Scheme 2010 (CAPS) 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 CAPS intended to contribute toward the purchase of continence aids.
The purpose of the Variation is to increase the contribution [payment] in line with agreed indexation arrangements for this payment.
The difference between the Determinations is that the daily amount of CAPS has been increased in accordance with movements in the Consumer Price Index.
Consultation
Indexation of the CAPS uses a formula based on the indexation figures supplied by the Department of Finance and Deregulation. As this is in accordance with policy upon which consultation was undertaken, no specific consultation was undertaken with respect to this variation.
This Variation commences on 1 July 2012.
The Variation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Continence Aids Payment Scheme Variation 2012 (No.1)
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of Legislative Instrument
The Continence Aids Payment Scheme 2010 (CAPS) 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 CAPS intended to contribute toward the purchase of continence aids.
The purpose of the Variation is to increase the contribution [payment] in line with agreed indexation arrangements for this payment.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Mark Butler
Minister for Mental Health and Ageing
Overview
The National Health Act 1953, enacted by the Australian Parliament, governs the provision of various health services, including pharmaceutical, sickness and hospital benefits, and medical and dental services. Section 12 of this Act allows the Minister to establish the Continence Aids Payment Scheme (CAPS) to assist eligible persons in managing incontinence by providing payments towards the cost of purchasing continence aids. The Continence Aids Payment Scheme Variation 2012 (No. 1) was introduced to align the payment amounts with inflation as determined by the Consumer Price Index, thereby maintaining the purchasing power of the subsidy. This legislative instrument, issued under the authority of the Minister for Mental Health and Ageing, aims to ensure that the payments provided under CAPS remain effective and relevant, supporting the ongoing needs of participants in managing incontinence.
Scope and Application
The Continence Aids Payment Scheme Variation 2012 (No. 1) amends the Continence Aids Payment Scheme 2010, which was established under the National Health Act 1953 to provide financial assistance to eligible individuals for the purchase of continence aids. This scheme applies to Australian citizens and permanent residents who require assistance with managing incontinence, replacing the previous Continence Aids Assistance Scheme that provided subsidised continence aids directly. The Variation increases the payments under the Scheme in line with the Consumer Price Index, ensuring that the financial assistance keeps pace with inflation. This legislative instrument operates nationally across Australia, administered by the Commonwealth government. The Variation does not introduce any new exclusions or exemptions; it simply adjusts the amount of the contribution based on inflation. The scheme's application is extended through subordinate instruments as necessary to reflect changes in the cost of living.
Key Provisions
The Continence Aids Payment Scheme Variation 2012 (No. 1) modifies the existing Continence Aids Payment Scheme (CAPS) by altering the amount of the payment that the Commonwealth makes to eligible persons (section 12(3)(c) of the National Health Act 1953). The variation is designed to adjust the monetary contribution to reflect changes in the Consumer Price Index (CPI), ensuring that the payments remain in line with inflation. This adjustment is meant to maintain the real value of the assistance provided to those managing incontinence.
Under this legislation, eligible individuals who were previously receiving subsidised continence aids through the Continence Aids Assistance Scheme (CAAS) are now provided with a monetary payment under CAPS. This scheme requires the Commonwealth to contribute towards the cost of purchasing continence aids, as opposed to supplying the aids directly. The variation ensures that the financial assistance provided to these individuals is regularly updated to account for inflation, as determined by the CPI figures supplied by the Department of Finance and Deregulation.
The obligations imposed by this Act on the parties involved are primarily concerned with the administration and payment of the updated contributions. The Commonwealth is obligated to calculate the payments based on the new indexation figures and ensure that eligible recipients receive the appropriate amount. Recipients, on the other hand, are required to use the payment for the intended purpose of purchasing continence aids, as specified by the Act.
There are no specific offences outlined in the Variation itself; however, breaches of the terms under which the payments are made could lead to civil or administrative consequences. For example, misuse of funds intended for continence aids could result in the revocation of eligibility for the scheme. The penalties for such breaches are not explicitly stated in this particular legislative instrument but would be governed by the general provisions of the National Health Act 1953 and other relevant legislation. The focus of the Variation is on ensuring the payments are appropriately indexed rather than on punitive measures for non-compliance.