Federal Financial Relations Amendment (National Health Reform) Act 2012

Administered by Department of the Treasury

Legislation au C2012A00061 In force Act

Legislation content

 

 

 

 

 

 

Federal Financial Relations Amendment (National Health Reform) Act 2012

 

No. 61, 2012

 

 

 

 

 

An Act to amend the Federal Financial Relations Act 2009, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Aged care and disability services

Federal Financial Relations Act 2009

Schedule 2—National health reform payments

Federal Financial Relations Act 2009

Schedule 3—Determinations of amounts affecting GST revenue

Federal Financial Relations Act 2009

 

 

 

Federal Financial Relations Amendment (National Health Reform) Act 2012

No. 61, 2012

 

 

 

An Act to amend the Federal Financial Relations Act 2009, and for related purposes

[Assented to 25 June 2012]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Federal Financial Relations Amendment (National Health Reform) Act 2012.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

25 June 2012

2.  Schedule 1, item 1

The day after this Act receives the Royal Assent.

26 June 2012

2A.  Schedule 1, item 2

The day this Act receives the Royal Assent.

25 June 2012

2B.  Schedule 1, items 3 and 4

The day after this Act receives the Royal Assent.

26 June 2012

2C.  Schedule 1, items 5 and 6

The day this Act receives the Royal Assent.

25 June 2012

3.  Schedule 2

The day this Act receives the Royal Assent.

25 June 2012

4.  Schedule 3

The day after this Act receives the Royal Assent.

26 June 2012

Note:  This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Aged care and disability services

 

Federal Financial Relations Act 2009

1  Section 4 (at the end of the definition of Intergovernmental Agreement)

Add “, as amended from time to time”.

2  Section 4

Insert:

National Health Reform Agreement means the National Health Reform Agreement agreed to by the Council of Australian Governments on 2 August 2011, as amended from time to time.

3  Paragraph 13(2)(c)

Omit “indexed”, substitute “adjusted”.

4  Subsection 13(4)

Omit “indexed”, substitute “adjusted”.

5  After paragraph 21(a)

Insert:

 (aa) if the determination relates to financial assistance under section 13 or 15A—the National Health Reform Agreement; and

6  Application

The amendments made by this Schedule apply in relation to financial assistance for the financial year starting on 1 July 2011 and each later financial year.


Schedule 2—National health reform payments

 

Federal Financial Relations Act 2009

1  After paragraph 3(b)

Insert:

 (ba) national health reform payments, to be spent by the States in accordance with the National Health Reform Agreement; and

2  Section 10

Repeal the section.

3  After Part 3

Insert:

Part 3A—National health reform payments

 

15A  National health reform payments

 (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of financial assistance for the purpose of expenditure in accordance with the National Health Reform Agreement.

 (2) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to the determination.

 (3) Financial assistance is payable to a State under this section on condition that the financial assistance is spent in accordance with the National Health Reform Agreement.

4  Paragraphs 17(b) and 18(1)(b) and (2)(b)

After “3”, insert “or 3A”.

6  Section 22

After “Part 3”, insert “, Part 3A”.

7  Application

The amendments made by this Schedule apply in relation to financial assistance for the financial year starting on 1 July 2012 and each later financial year.


Schedule 3—Determinations of amounts affecting GST revenue

 

Federal Financial Relations Act 2009

1  Subsections 6(1), (2), (3) and (4)

Repeal the subsections, substitute:

 (1) The Minister must determine the amounts described in subsections (3) and (4) for a payment year.

 (2) The GST revenue for a payment year is the difference between:

 (a) the sum of all the amounts described in subsection (3) and determined for the payment year; and

 (b) the amount described in subsection (4) and determined for the payment year.

 (3) For the purposes of paragraph (2)(a) the amounts are:

 (a) the amount that is the total of the following:

 (i) the GST that was collected;

 (ii) the payments made to the Commissioner of Taxation representing amounts of GST that would have been payable if the Constitution did not prevent tax from being imposed on property of any kind belonging to a State and section 5 of the GST Imposition Acts had not been enacted;

 (iii) the additional GST that would have been collected if the Commonwealth and Commonwealth entities could be made subject to taxation by a Commonwealth law and section 177‑1 of the GST Act made those entities actually liable rather than notionally liable; and

 (b) the amount of general interest charge that was collected to the extent that it is attributable to:

 (i) unpaid GST; or

 (ii) unpaid general interest charge payable in respect of unpaid GST; and

 (c) the amount, determined in a manner agreed by the Commonwealth and all of the States, that represents amounts of voluntary GST payments that should have, but have not, been paid by local government bodies.

 (4) For the purposes of paragraph (2)(b) the amount is the total of the following, so far as each of them is attributable to GST:

 (a) payments under the GST refund provisions;

 (b) what was payable under the GST refund provisions and was (rather than being paid directly under those provisions) allocated, applied or refunded in accordance with Part IIB of the Taxation Administration Act 1953.

2  Application

The amendment made by this Schedule applies to determinations for the 2011‑12 payment year and later payment years.

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 22 March 2012

Senate on 18 June 2012]

(21/12)

 

Overview

The Federal Financial Relations Amendment (National Health Reform) Act 2012 was enacted by the Parliament of Australia to address the need for national health reform by amending the Federal Financial Relations Act 2009. The Act was assented to on 25 June 2012 and it aims to facilitate the implementation of the National Health Reform Agreement, which was agreed upon by the Council of Australian Governments on 2 August 2011. This agreement sought to reform the health system in Australia by ensuring that Commonwealth payments to states for health services are adjusted rather than indexed, and by providing for national health reform payments to be made to states in accordance with the National Health Reform Agreement. The Act also revises the methodology for determining the amounts affecting GST revenue, to include voluntary GST payments that should have been made by local government bodies. The policy objective of the Act is to support the efficient and effective delivery of health services in Australia by ensuring that Commonwealth payments to states are appropriately adjusted and that states are provided with the necessary funding to meet the health needs of their populations. The Act also seeks to promote cooperation and coordination between the Commonwealth and the states in the provision of health services. By amending the Federal Financial Relations Act 2009, the Act provides a legal framework for the implementation of the National Health Reform Agreement and ensures that the necessary funding is provided to support the reform of the health system in Australia.

Scope and Application

The Federal Financial Relations Amendment (National Health Reform) Act 2012 is an Act of the Australian Parliament designed to amend the Federal Financial Relations Act 2009, addressing aspects of national health reform. This Act applies to the financial arrangements between the Commonwealth of Australia and the states and territories, particularly in relation to health care services and financial assistance. The amendments introduced by this Act affect financial assistance provided under the National Health Reform Agreement and include provisions for the calculation and payment of national health reform payments, which must be spent in accordance with the terms of the Agreement. The Act also revises the mechanism for determining amounts affecting GST revenue, ensuring that these calculations take into account specific elements of GST and related charges. The provisions of this Act commenced on various dates starting from the day the Act received Royal Assent on 25 June 2012, with some provisions applying to financial years beginning on 1 July 2011 and 1 July 2012, and to payment years from 2011-12 onwards. This legislation primarily affects the Commonwealth, states, and territories, with its amendments extending to agreements and financial transactions within the health sector.

Key Provisions

The Federal Financial Relations Amendment (National Health Reform) Act 2012 amends the Federal Financial Relations Act 2009 to incorporate recent agreements and policy changes in health reform. Key sections of this Act pertain to aged care and disability services (Schedule 1), national health reform payments (Schedule 2), and determinations affecting GST revenue (Schedule 3). Specifically, Schedule 1 modifies the definition of "Intergovernmental Agreement" to include amendments over time, and introduces the term "National Health Reform Agreement." This agreement will govern financial assistance and adjustments in these services. Schedule 2 introduces national health reform payments, which are to be spent in accordance with the National Health Reform Agreement, and removes previous sections that are no longer applicable. Schedule 3 revises the method of determining GST revenue by altering the amounts considered for calculations, including GST collected, hypothetical payments, and voluntary payments by local government bodies. The Act imposes several obligations on the parties it governs. For example, financial assistance provided under this Act must be spent in accordance with the National Health Reform Agreement. The Minister is tasked with determining the amounts to be paid to states for national health reform payments, and these determinations are considered legislative instruments. Additionally, the Act requires the Minister to calculate GST revenue by considering various GST-related amounts and payments. All these provisions apply to financial years starting from specific dates, ensuring that the changes are implemented in a timely manner. Violations of the provisions in this Act can lead to significant penalties and consequences. While the Act does not explicitly state the penalties for breaches, it is understood that failure to comply with financial assistance conditions or incorrect determinations of GST revenue could result in financial penalties or legal action. The penalties could vary depending on the severity and intent of the breach, but they may include fines or other financial sanctions. The precise nature of the penalties would be determined by the courts or relevant authorities based on the specific circumstances of the breach.

Legal classification tags

Area of Law
Administrative Law
Federal Financial Relations
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Repeal & Amendment
Financial Assistance
Conditions of Assistance
GST Revenue

Interactions

Authorises

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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.