EXPLANATORY STATEMENT
Federal Financial Relations (National Health RefOrm Payments) Determination 2016-17
Under the Intergovernmental Agreement on Federal Financial Relations (the IGA) and the Federal Financial Relations Act 2009 (the Act), the Commonwealth provides National Health Reform payments to the States and Territories as a financial contribution to support State and Territory service delivery in the area of healthcare.
The Act (s 15A(1)) provides for the Minister to determine for each financial year, the total amount and the manner in which National Health Reform payments are distributed between the States and Territories. The Act also requires the Minister have regard to the IGA and the National Health Reform Agreement when making a determination for National Health Reform payments.
Advance payments in respect of National Health Reform are made throughout the financial year based on estimates of each jurisdiction’s anticipated entitlement for that year. Any adjustment between the advances paid to a jurisdiction and the jurisdiction’s determined entitlement is made in the first practicable payment after the determination is made.
This determination in respect of National Health Reform payments is a legislative instrument and will be registered on the Federal Register of Legislation.
In accordance with the functions of the Administrator of the National Health Funding Pool under paragraph 238(1)(a) of the National Health Reform Act 2011, the Administrator has calculated and advised the amounts required to be paid by the Commonwealth into each State Pool Account of the National Health Funding Pool under the National Health Reform Agreement. The Treasurer has accepted the Administrator’s advice.
Consultation
The IGA and National Health Reform Agreement were subject to extensive consultation with the States and Territories and were signed by all jurisdictions. Both agreements are publicly available on the website for the Council on Federal Financial Relations. Consultation with the States and Territories on National Health Reform funding also occurs regularly, principally through meetings between Heads of Treasuries.
Commencement
This Determination commences on the day it is made.
Disallowance of the legislative instrument
This Determination is exempt from disallowance in accordance with subsection 15A(2) of the Federal Financial Relations Act 2009 and paragraph 44(2)(a) of the Legislation Act 2003.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
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 the Legislative Instrument
In accordance with the IGA and the Act, the Commonwealth provides National Health Reform payments to the States and Territories as a financial contribution for the purpose of expenditure in accordance with the National Health Reform Agreement.
This Legislative Instrument determines the total amounts payable in respect of National Health Reform funding for 2016‑17, and the manner in which these amounts are divided between the States and Territories.
Human rights implications
This instrument provides for payments to be made to States and Territories to facilitate the provision of public health services, supporting individuals’ rights to the highest attainable standard of physical and mental health (art 12(1), the International Covenant on Economic, Social and Cultural Rights; art 24, Convention on the Rights of the Child and art 25, the Convention on the Rights of Persons with Disabilities). The services funded in this instrument also support individuals with disabilities right to habilitation and rehabilitation (art 26, CRPD) and the right of children with disabilities to health care (art 23, CRC and art 7, CRPD).
States and Territories’ entitlements to National Health Reform funding increased by $1,582 million from 2015-16 to 2016-17.
Conclusion
This Legislative Instrument is compatible with human rights as it does not adversely engage any human rights issues.
Overview
The Federal Financial Relations (National Health Reform Payments) Determination 2016-17 was enacted under the Federal Financial Relations Act 2009 and the Intergovernmental Agreement on Federal Financial Relations. It was introduced to address the need for a structured and transparent method of distributing National Health Reform payments to the States and Territories. These payments are intended to support the delivery of healthcare services in alignment with the National Health Reform Agreement. The determination is made by the Minister for Health and is subject to consultation with the States and Territories, reflecting a commitment to collaborative governance in healthcare funding. The policy objective is to ensure that healthcare services are adequately funded across jurisdictions, thereby supporting the provision of public health services and the rights of individuals, including those with disabilities and children, to health care.
The determination outlines the total amount of National Health Reform funding for the financial year 2016-17 and the distribution of these funds among the States and Territories. It was enacted by the Commonwealth and is consistent with the National Health Reform Agreement, which was developed through extensive consultation with all jurisdictions. This legislative instrument facilitates the flow of funds into the National Health Funding Pool and ensures that any adjustments in payments are made in a timely manner. The determination is exempt from disallowance, reflecting the legislative framework's intent to provide a stable and predictable funding mechanism for health services. The compatibility with human rights is affirmed as the payments support the provision of health services that align with international human rights obligations.
Scope and Application
The Federal Financial Relations (National Health RefOrm Payments) Determination 2016-17 applies to the Commonwealth Government, the States and Territories, and is concerned with the distribution of National Health Reform payments. These payments are provided to the States and Territories under the Federal Financial Relations Act 2009 and the Intergovernmental Agreement on Federal Financial Relations as a financial contribution to support the delivery of healthcare services. The Act mandates that the Minister determines the total amount and the distribution method of these payments each financial year, taking into account the Intergovernmental Agreement on Federal Financial Relations and the National Health Reform Agreement. The payments are made throughout the financial year based on estimates, with adjustments occurring in subsequent payments after the determination is made. This legislative instrument is exempt from disallowance and is compatible with human rights as it supports the provision of public health services, aligning with international human rights obligations regarding health care access and quality.
Key Provisions
The Federal Financial Relations (National Health Reform Payments) Determination 2016-17, under the Federal Financial Relations Act 2009 (the Act), outlines the distribution of National Health Reform payments for the 2016-17 financial year. Section 15A(1) of the Act mandates the Minister to determine the total amount and the manner in which these payments are distributed among the States and Territories. The determination is based on estimates of each jurisdiction's anticipated entitlement, with adjustments made in subsequent payments. The payments are calculated by the Administrator of the National Health Funding Pool, with the Treasurer accepting these calculations. The determination follows extensive consultation with the States and Territories, as outlined in the Intergovernmental Agreement on Federal Financial Relations and the National Health Reform Agreement.
The Act imposes specific obligations on the Minister, who must consider the Intergovernmental Agreement on Federal Financial Relations and the National Health Reform Agreement when making a determination (s 15A). The Administrator's calculation and the Treasurer's acceptance of these calculations are key components of the process. Furthermore, the determination reflects ongoing consultation with the States and Territories, primarily through meetings between Heads of Treasuries. This determination also ensures that payments are made in accordance with the National Health Reform Agreement, supporting the provision of public health services across the nation.
The legislation does not explicitly outline specific offences or penalties for breaches within the determination itself. However, non-compliance with the obligations under the Act or the agreements could potentially lead to legal repercussions under other sections of the Act or related agreements. The determination is exempt from disallowance, as per subsection 15A(2) of the Federal Financial Relations Act 2009 and paragraph 44(2)(a) of the Legislation Act 2003. This means that while the determination is subject to scrutiny, it does not require parliamentary approval to come into effect.
The determination is also compatible with human rights as it facilitates the provision of public health services, supporting individuals' rights to the highest attainable standard of physical and mental health, as well as the rights of individuals with disabilities to habilitation and rehabilitation. The payments are intended to enhance the ability of States and Territories to deliver healthcare services, thereby supporting broader human rights obligations under international agreements such as the International Covenant on Economic, Social and Cultural Rights, the Convention on the Rights of the Child, and the Convention on the Rights of Persons with Disabilities.