Health Care (Appropriation) Act 1998

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Act No. 74 of 1998 as amended

[Note: This Act was repealed by Act No. 12 of 2009 on 1 July 2009]

This compilation was prepared on 1 July 2009
taking into account amendments up to Act No. 12 of 2009

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra

Contents

1 Short title [see Note 1]...........................

2 Commencement [see Note 1].......................

3 Definitions..................................

4 Grants of financial assistance.......................

5 Terms and conditions of grants of financial assistance.........

6 Grants to States conditional on adherence to specified principles..

7 Delegation..................................

Notes

An Act to provide financial assistance in respect of health care services

1 Short title [see Note 1]

This Act may be cited as the Health Care (Appropriation) Act 1998.

2 Commencement [see Note 1]

This Act commences on the day on which it receives the Royal Assent.

3 Definitions

In this Act:

appropriation period means:

(a) the period of 5 years starting on 1 July 1998; or

(b) the period of 6 years starting on 1 July 2003.

eligible person means:

(a) a person who is an eligible person as defined in subsection 3(1) of the Health Insurance Act 1973; or

(b) a person who is treated as an eligible person under section 6, 6A or 7 of that Act (but only to the extent to which the person is so treated).

State includes the Australian Capital Territory and the Northern Territory.

4 Grants of financial assistance

(1) The Minister may grant financial assistance to a State, or to a hospital or other person, for the purpose of:

(a) providing, or paying for, health and emergency services of a kind or kinds that are currently, or were historically, provided by hospitals; or

(b) funding projects or programs that are designed:

(i) to improve the efficiency and effectiveness of, or reduce the demand for, health and emergency services of a kind or kinds that are currently, or were historically, provided by hospitals; or

(ii) to improve patient outcomes in relation to the delivery of such services.

(2) Financial assistance under this section is only payable in respect of services provided, or projects or programs conducted, during an appropriation period.

(3) The total amount paid by way of financial assistance under this section must not exceed:

(a) in respect of the appropriation period starting on 1 July 1998—$31,800,000,000; and

(b) in respect of the appropriation period starting on 1 July 2003—$52,760,000,000.

(4) The Consolidated Revenue Fund is appropriated for the purpose of making payments of financial assistance under this section.

(5) The Minister must present to each House of the Parliament as soon as practicable after the end of an appropriation period a statement of the total amount paid by way of financial assistance under this section in respect of that appropriation period.

5 Terms and conditions of grants of financial assistance

(1) The following matters in relation to grants of financial assistance under section 4 are to be as determined by the Minister, or as worked out in accordance with a determination by the Minister:

(a) the amount of a grant;

(b) the method for payment of a grant (for example, whether it is to be paid in a lump sum or by instalments);

(2) A grant of financial assistance under section 4 to a State in relation to a particular appropriation period is (in addition to the condition specified in section 6) subject to:

(a) the conditions applicable to the grant that are specified in an agreement in force between the Commonwealth and the State for that appropriation period; or

(b) if there is no agreement in force specifying the conditions applicable to the grant—the conditions determined by the Minister.

(3) A grant of financial assistance under section 4 to a hospital or other person (not being a State) is subject to the conditions (if any) determined by the Minister.

(4) A determination under this section is to be in writing.

6 Grants to States conditional on adherence to specified principles

(1) A grant of financial assistance under section 4 is not payable to a State unless the Minister is satisfied that the State is adhering to the principles set out in subsection (2).

(2) The principles are as follows:

Principle 1

Eligible persons are to be given the choice to receive, free of charge as public patients, health and emergency services of a kind or kinds that are currently, or were historically, provided by hospitals.

Principle 2

Access to such services by public patients free of charge is to be on the basis of clinical need and within a clinically appropriate period.

Principle 3

Arrangements are to be in place to ensure equitable access to such services for all eligible persons, regardless of their geographic location.

7 Delegation

(1) The Minister may, by writing signed by him or her, delegate to an SES employee in the Department any of the Minister’s powers under:

(a) paragraph 4(1)(b); and

(b) subsections 5(1), 5(2) and 5(3), so far as they relate to financial assistance granted under paragraph 4(1)(b).

(2) The delegate is, in the exercise of a power delegated under subsection (1), subject to the directions of the Minister.

Notes to the Health Care (Appropriation) Act 1998

Note 1

The Health Care (Appropriation) Act 1998 as shown in this compilation comprises Act No. 109, 2002 amended as indicated in the Tables below.

For all relevant information pertaining to application, saving or transitional provisions see Table A.

Table of Acts

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions

Health Care (Appropriation) Act 1998	74, 1998	30 June 1998	30 June 1998
Health Care (Appropriation) Amendment Act 2002	109, 2002	2 Dec 2002	2 Dec 2002	—
Health Care (Appropriation) Amendment Act 2003	50, 2003	26 June 2003	26 June 2003	—
Health Care (Appropriation) Amendment Act 2008	52, 2008	25 June 2008	25 June 2008	—
Federal Financial Relations (Consequential Amendments and Transitional Provisions) Act 2009	12, 2009	26 Mar 2009	Schedule 2 (item 5): 27 Mar 2009 Schedule 3 and Schedule 4 (item 3): 1 July 2009	Sch. 4 (item 3)

Table of Amendments

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected	How affected
Title....................	am. No. 50, 2003
S. 3....................	am. No. 50, 2003; No. 52, 2008
S. 4....................	am. No. 109, 2002; No. 50, 2003; No. 52, 2008; No. 12, 2009
S. 5....................	am. No. 50, 2003
S. 7....................	ad. No. 50, 2003

Table A

Application, saving or transitional provisions

Federal Financial Relations (Consequential Amendments and Transitional Provisions) Act 2009 (No. 12, 2009)

Schedule 4

3 Grants paid under section 4 of the Health Care (Appropriation) Act 1998

Despite the repeal of the Health Care (Appropriation) Act 1998 by this Act, subsections 4(5), 5(2) and 5(3) of that Act, and any delegations under section 7 of that Act of powers under subsection 5(2) or (3) of that Act, continue to apply, in relation to grants of financial assistance paid during the appropriation period (within the meaning of that Act) starting on 1 July 2003, as if that repeal had not happened.

Overview

The Health Care (Appropriation) Act 1998, Act No. 74 of 1998, was enacted to address the need for financial assistance in respect of health care services, providing for the appropriation of funds for this purpose. The Act was introduced by the Parliament of Australia and its primary policy objective was to facilitate the provision of health and emergency services through grants to States, hospitals, or other entities. The Act was subsequently amended in 2002, 2003, and 2008, and was ultimately repealed by the Federal Financial Relations (Consequential Amendments and Transitional Provisions) Act 2009 on 1 July 2009. However, certain provisions related to grants paid during the appropriation period starting on 1 July 2003 continued to apply as if the repeal had not occurred.

Scope and Application

The Health Care (Appropriation) Act 1998, as amended, is a Commonwealth Act that provides financial assistance to states and territories for the provision of health and emergency services by hospitals, as well as for funding projects and programs designed to improve the efficiency and effectiveness of, or reduce the demand for, such services. The Act applies to financial assistance granted to states, hospitals, and other entities for health and emergency services provided during a specified appropriation period. The total amount of financial assistance is capped at $31.8 billion for the period starting on 1 July 1998, and $52.76 billion for the period starting on 1 July 2003. Grants to states are conditional on adherence to specified principles, including providing free health and emergency services to eligible persons based on clinical need and within a clinically appropriate period. The Act allows for the delegation of certain powers to senior executive service employees within the Department, subject to the Minister's directions. Despite its repeal, certain provisions continue to apply to grants paid during the appropriation period starting on 1 July 2003.

Key Provisions

The Health Care (Appropriation) Act 1998, as amended, primarily addresses the financial assistance granted by the Minister for Health and Ageing to states, hospitals, or other entities for health care services. Section 4(1) of the Act allows the Minister to grant financial assistance to a State, hospital, or other person for providing or funding health and emergency services, as well as projects or programs designed to improve the efficiency, effectiveness, or patient outcomes of such services. Section 4(2) specifies that financial assistance is only payable for services provided or projects conducted during an appropriation period, which is either a five-year period starting on 1 July 1998 or a six-year period starting on 1 July 2003. The total amount of financial assistance provided under this Act is capped at $31,800,000,000 for the first period and $52,760,000,000 for the second period, as outlined in Section 4(3). The Consolidated Revenue Fund is appropriated for making these payments, and Section 4(5) requires the Minister to present a statement of the total amount paid by way of financial assistance at the end of each appropriation period. The Act imposes specific obligations on the Minister and the entities receiving financial assistance. Section 5 outlines the terms and conditions of the grants, which include the amount, method, and timing of payments. Grants to States are subject to additional conditions specified in an agreement between the Commonwealth and the State or, in the absence of such an agreement, conditions determined by the Minister. Grants to hospitals or other entities not being States are subject to any conditions determined by the Minister. The Minister has the authority to delegate certain powers to an SES employee in the Department, as stipulated in Section 7(1). Furthermore, grants to States are conditional on the Minister being satisfied that the State adheres to specific principles regarding the provision of health and emergency services to eligible persons, as outlined in Section 6. Breaches of the obligations and requirements set out in the Act can lead to significant consequences. Although the Act itself does not explicitly state penalties for non-compliance, non-adherence to the specified principles for grants to States could potentially result in the withholding of financial assistance. Additionally, failure to comply with the terms and conditions of grants might result in legal actions or other administrative consequences. It is important to note that the Act was repealed by the Federal Financial Relations (Consequential Amendments and Transitional Provisions) Act 2009, but certain provisions continue to apply to grants paid during the appropriation period starting on 1 July 2003.

Area of Law: Health Law
Instrument: Act
Concepts: Definitions & Interpretation; Commencement Provisions; Delegation; Grants of financial assistance

Interactions

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.

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