Dental Benefits Amendment Rules (No. 1) 2021

Administered by Department of Health, Disability and Ageing

Legislation au F2021L01035 Rules Not in force Legislative Instrument

Legislation content

Explanatory Statement

 

 

Dental Benefits Act 2008

 

Dental Benefits Amendment Rules (No. 1) 2021
 

 

Authority

Subsection 60(1) of the Dental Benefits Act 2008 (the Act) provides that the Minister may, by legislative instrument, make Dental Benefits Rules providing for matters required, or permitted by the Act to be provided, or necessary or convenient to be provided in order to carry out or give effect to the Act.

 

Subsection 33(3) of the Acts Interpretation Act 1901, provides that where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

 

Purpose

The Dental Benefits Amendment Rules (No. 1) 2021 (the Amendment Rules) amends the Dental Benefits Rules 2014 (the Rules) to reflect indexation of the amount of dental benefit payable for dental service items in Schedule 1, and the benefit limits cap amount in Schedule 3 of the Rules, effective from 1 January 2022.

 

The Rules provide for the Child Dental Benefits Schedule (CDBS), which sets out items specifying dental services, the amount of dental benefit payable, and method for determining the amount, in respect of a dental service. The Rules also set out a specified monetary limit on the amount of dental benefit payable in respect of specified dental services provided to specified eligible dental patients during specified periods.   The CDBS commenced on 1 January 2014 and provides benefits for basic dental services for eligible children.

 

The original intent at the commencement of the CDBS in 2014 was to index the program annually, however this did not occur because of the policy decision to pause indexation.  On 31 December 2020 the indexation pause ceased enabling the scheme to be indexed for the first-time commencing 1 January 2021.  Indexation is now applied annually at a rate that is provided to the Department of Health by the Department of Finance at economic updates.

 

Schedule 3 of the Rules lists the benefit limits cap amount for each two year calendar period.  On 1 January 2022, indexation is to be applied to the benefit cap amount increasing the benefit cap amount from $1,013 to $1,026.

 

Schedule 1 of the Rules lists the dental items covered under the CDBS and the amount of benefit payable for each item.  On 1 January 2022, indexation is to be applied to each item listed.

 

The indexed cap rate will apply from 1 January 2022 until 31 December 2022.  However, the cap amount for the two year calendar period commences in the year in which the child first accesses services.  For example, if a child first accessed benefits in 2021 the 2021-2022 cap of $1,013 applies.  If a child first accesses benefits in 2022 the 2022-2023 cap of $1,026 applies.

 

Consultation

Consultation was undertaken with Services Australia to ensure administration of the changes occur once the Amendment Rules come into effect. Services Australia administers the program including management of payments.  Consultation with Services Australia ensures that the implementation of the indexed items and cap is available from 1 January 2022.  No further consultation was undertaken. The level of consultation reflects the administrative nature of the changes and the underlying principle that indexation will be applied annually.

 

This instrument commences on 1 January 2022.

 

This instrument is a legislative instrument for the purposes of the Legislation Act 2003.

 

Details of this instrument are set out in the Attachment.

 

 

 

 


Attachment

 

Details of the Dental Benefits Amendment Rules (No. 1) 2021

 

Section 1 Name

This section provides that the name of the instrument is the Dental Benefits Amendment Rules (No. 1) 2021.

 

Section 2 Commencement

This section provides that the instrument commences on 1 January 2022.

 

Section 3 Authority

This section provides that the instrument is made under subsection 60(1) of the Dental Benefits Act 2008.

 

Section 4 Schedules

This section provides that changes are made to the instrument as specified in the Schedule to the instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the instrument has effect according to its terms. 

 

Schedule 1—Amendments

 

Item 1 – Schedule 1  Dental Benefits Schedule

Item 1 repeals Schedule 1 and substitutes it with a new Schedule 1, which amends the amount of benefit payable for each dental service item to reflect the application of indexation which is calculated according to a formula supplied by the Department of Finance.

 

Item 2 – Schedule 3  Benefit limits

Item 2 repeals Schedule 3 and substitutes it with a new Schedule 3, which amends the benefit limits cap amount to reflect the application of indexation which is calculated according to a formula supplied by the Department of Finance.  Children who commence their two year cap period in 2022 will now have access to $1,026 over the two year calendar period instead of $1,013. 

 

 


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Dental Benefits Amendment Rules (No.1) 2021

 

This Disallowable 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 the Disallowable Legislative Instrument

The Dental Benefits Rules 2014 (the Rules) provide for the Child Dental Benefits Schedule (CDBS), which sets out items specifying dental services, the amount of dental benefit payable, and method for determining the amount, in respect of a dental service.  The Rules also set out a specified monetary limit on the amount of dental benefit payable in respect of specified dental services provided to specified eligible dental patients during specified periods. The CDBS commenced on 1 January 2014 and provides benefits for basic dental services for eligible children.

 

The Dental Benefits Amendment Rules (No. 1) 2021 (the Amendment Rules) amends the Rules to reflect indexation of the amount of dental benefit payable for dental service items in Schedule 1, and the benefit limits cap amount in Schedule 3 of the Rules, effective from 1 January 2022.

The original intent at the commencement of the CDBS in 2014 was to index the program annually.  This did not occur because of the policy decision to pause indexation.  The indexation pause ended on 31 December 2020 allowing the scheme to be indexed commencing 1 January 2021, and on an annual basis thereafter. 

Schedule 1 of the Rules lists the dental items covered under the CDBS and the amount of benefit payable for each item.  On 1 January 2022 the updated indexation rate, as specified by the Department of Finance in the May 2021 economic update, is to be applied to the items.

 

Schedule 3 of the Rules lists the benefit limits cap amount for each two year calendar period.  On 1 January 2022 the updated indexation rate, as specified by the Department of Finance in the May 2021 economic update, is to be applied to the benefit cap amount increasing the benefit cap amount from $1,013 to $1,026.

 

Human rights implications

The Amendment Rules engage the right to health and the right to social security.  Article 12(1) of the International Covenant on Economic, Social and Cultural Rights (ICESCR) defines the right to health as “the right to the enjoyment of the highest attainable standard of physical and mental health.”  Article 9 of the ICESCR contains the right to social security, including social insurance.

 

The application of indexation, which is calculated according to a formula supplied by the Department of Finance, reverts to the original intent to index the CDBS annually. CDBS promotes and improves oral health of children by improving access to dental services.  Indexing the scheme helps maintain the value of benefits in line with inflation and maintains access to services and rates of bulk-billing.

 

Conclusion

This Disallowable Legislative Instrument is compatible with human rights because it promotes the protection of human rights.

SIMON COTTERELL

First Assistant Secretary

Primary Care Division

Primary and Community Care Group

Department of Health

 

Overview

The Dental Benefits Amendment Rules (No. 1) 2021 were enacted to amend the Dental Benefits Rules 2014, reflecting the indexation of dental benefit amounts and the benefit limits cap amount effective from 1 January 2022. This legislative instrument was made under subsection 60(1) of the Dental Benefits Act 2008, with the primary objective of updating the benefit amounts in line with inflation and ensuring the sustainability and effectiveness of the Child Dental Benefits Schedule (CDBS). The CDBS, which commenced on 1 January 2014, provides benefits for basic dental services for eligible children, and the rules ensure the scheme is indexed annually as originally intended. The rules were updated to reflect the latest indexation rate provided by the Department of Finance in the May 2021 economic update, which increased the benefit cap amount from $1,013 to $1,026 and adjusted the dental benefit payable for each item listed in Schedule 1 of the Rules. This amendment ensures that the scheme maintains its value and continues to support access to essential dental services for children.

Scope and Application

The Dental Benefits Amendment Rules (No. 1) 2021 amends the Dental Benefits Rules 2014 to reflect the indexation of the amount of dental benefit payable for dental service items in Schedule 1, and the benefit limits cap amount in Schedule 3 of the Rules, effective from 1 January 2022. The Act applies to individuals and entities involved in the provision of dental services and the administration of the Child Dental Benefits Schedule (CDBS), which provides benefits for basic dental services for eligible children. The rules apply nationally in Australia, as they are made under the Dental Benefits Act 2008, which is a Commonwealth Act. The Amendment Rules index the benefit amounts annually to maintain the value of benefits in line with inflation and ensure access to services and rates of bulk-billing. The indexation is calculated according to a formula supplied by the Department of Finance. The Amendment Rules are compatible with human rights as they promote and improve the oral health of children and engage the right to health and the right to social security as defined in the International Covenant on Economic, Social and Cultural Rights. The Amendment Rules extend the application of the Dental Benefits Act 2008 through subordinate instruments, specifically the Dental Benefits Rules 2014. The Amendment Rules repeal and substitute the Dental Benefits Rules 2014 with updated indexation rates for the benefit amounts. The instrument is a legislative instrument for the purposes of the Legislation Act 2003. The instrument commenced on 1 January 2022 and is made under subsection 60(1) of the Dental Benefits Act 2008. The instrument is a disallowable legislative instrument that is compatible with human rights.

Key Provisions

The main operative sections of the Dental Benefits Amendment Rules (No. 1) 2021 pertain to the indexation of the amount of dental benefit payable for dental service items and the benefit limits cap amount. Specifically, Section 1 amends Schedule 1, which lists the dental items covered under the Child Dental Benefits Schedule (CDBS) and adjusts the amount of benefit payable for each item to reflect indexation. Similarly, Section 2 modifies Schedule 3, which sets the benefit limits cap amount for each two-year calendar period, updating it to account for the indexation rate. These amendments are effective from 1 January 2022, aligning with the annual indexation policy that was paused previously and has now resumed. The obligations and requirements imposed by the Amendment Rules primarily concern the recalculation and adjustment of the dental benefits and caps in accordance with the indexation rates provided by the Department of Finance. The rules necessitate that Services Australia, which administers the CDBS, implement these changes to ensure that the benefits and caps are updated and accurately reflect the inflation adjustments. The rules also require that these updates be communicated effectively to stakeholders, including dental service providers and eligible beneficiaries, to ensure compliance and proper administration of the scheme. Breaching the provisions of these Amendment Rules could result in non-compliance with the updated benefit amounts and caps, potentially leading to financial discrepancies and disputes over the correct amount of benefits payable. While the rules themselves do not explicitly outline specific penalties for non-compliance, failure to adhere to the updated indexation rates could be considered an administrative oversight. In broader terms, non-compliance with legislative instruments can attract penalties under the Legislation Act 2003, which may include fines and other corrective measures. The maximum penalties for such breaches would be commensurate with the severity and impact of the non-compliance, but specific penalties are not detailed within the Amendment Rules themselves.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.