EXPLANATORY STATEMENT

Issued by authority of the Assistant Minister for Productivity, Competition, Charities and Treasury

Federal Financial Relations Act 2009

Federal Financial Relations (National Health Reform Payments for 2024-25) Determination 2025

Section 15A of the Federal Financial Relations Act 2009 (the Act) provides that the Minister may determine that an amount specified in the determination is to be paid to a State, the Australian Capital Territory or the Northern Territory as 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.

The purpose of the Federal Financial Relations (National Health Reform Payments for 2024-25) Determination 2025 (the Determination) is to specify amounts to be paid to each State, the Australian Capital Territory and Northern Territory for the 2024-25 financial year.

Under the Intergovernmental Agreement on Federal Financial Relations (the IGA) and the Act, the Commonwealth provides national health reform payments to the States, the Australian Capital Territory and the Northern Territory, as a financial contribution to support state service delivery in the area of healthcare, particularly public hospitals. The details of the funding arrangements are set out in the National Health Reform Agreement.

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. In accordance with the National Health Reform Agreement, any adjustment between the advances paid to a jurisdiction and the jurisdiction’s determined entitlement will be spread equally across payments for a subsequent quarter, or appropriate period where the Administrator deems necessary.

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 in respect of 2024-25 into each State Pool Account of the National Health Funding Pool under the National Health Reform Agreement. The Minister has accepted the Administrator’s advice in making the Determination.

Details of the amounts to be paid to each State, the Australian Capital Territory and the Northern Territory for the 2024-25 financial year are outlined in Table 1 in Attachment C. This payment is for the Commonwealth’s share of funding for public hospital services under the National Health Reform Agreement which is calculated on an activity basis.

The IGA and the National Health Reform Agreement were subject to extensive consultation with the States and Territories and were signed by all jurisdictions and are publicly available on the Federal Financial Relations website. Consultation with the States and Territories on national health reform funding also occurs regularly, through the Administrator’s Jurisdictional Advisory Committee meetings.

Details of the Determination are set out in Attachment A.

The Determination is a legislative instrument for the purposes of the Legislation Act 2003. In accordance with subsections 44(1) and 54(1) of the Legislation Act 2003, the Determination is not subject to disallowance or sunsetting on the grounds that the instrument is part of an intergovernmental scheme and gives effect to agreements between the Commonwealth and each of the States, the Australian Capital Territory and the Northern Territory. The instrument’s operation is effectively mechanical in that it simply details financial assistance to be provided to a State or Territory based on that State or Territory having satisfied the necessary agreed criteria.

A Policy Impact Analysis is not required as the Determination is machinery in nature (OIA24-07548).

The Determination commenced the day after it was registered on the Federal Register of Legislation.

A statement of Compatibility with Human Rights is at Attachment B.

ATTACHMENT A

Details of the Federal Financial Relations (National Health Reform Payments for 2024-25) Determination 2025

This Attachment sets out further details of the Federal Financial Relations (National Health Reform Payments for 2024-25) Determination 2025.

Section 1 – Name of the instrument

This section provides that the name of the instrument is the Federal Financial Relations (National Health Reform Payments for 2024-25 Determination 2025 (the Determination).

Section 2 – Commencement

This section provides that the Determination commences on the day after it is registered on the Federal Register of Legislation.

Section 3 – Authority

This section provides that the Determination is made under the Federal Financial Relations Act 2009.

Section 4 – Definitions

This section provides definitions for the purposes of the Determination.

Section 5 – National health reform payments for the 2024-25 financial year

This section sets out the amounts required to be paid by the Commonwealth in respect of the 2024-25 financial year into each State Pool Account of the National Health Funding Pool under the National Health Reform Agreement.

Details of the amounts to be paid to each State, the Australian Capital Territory and the Northern Territory for the 2024-25 financial year are outlined in Table 1 in Attachment C. This payment is for the Commonwealth’s share of funding for public hospital services under the National Health Reform Agreement which is calculated on an activity basis.

The Administrator of the National Health Funding Pool (Administrator) has calculated and advised the amounts required to be paid to each State, the Australian Capital Territory and the Northern Territory, in accordance with paragraph 238(1)(a) of the National Health Reform Act 2011. The Minister has accepted the Administrator’s advice in making the Determination.

ATTACHMENT B

Statement of Compatibility with Human Rights

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

Federal Financial Relations (National Health Reform Payments for 2024-25) Determination 2025

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

The purpose of the Federal Financial Relations (National Health Reform Payments for 2024-25) Determination 2025 is to specify the amount to be paid to each State, the Australian Capital Territory and the Northern Territory for the 2024-25 financial year.

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.

ATTACHMENT C

Table 1: Details of the amounts to be paid to each State, the Australian Capital Territory and the Northern Territory for the 2024-25 financial year