Health Insurance Commission Amendment Act 2002
No. 71, 2002
An Act to amend the Health Insurance Commission Act 1973, and for related purposes
Contents
1 Short title...................................
2 Commencement...............................
3 Schedule(s)..................................
Schedule 1—Amendments relating to finance
Health Insurance Commission Act 1973
Schedule 2—Amendments relating to the number of Commissioners
Health Insurance Commission Act 1973
Health Insurance Commission Amendment Act 2002
No. 71, 2002
An Act to amend the Health Insurance Commission Act 1973, and for related purposes
[Assented to 4 September 2002]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Health Insurance Commission Amendment Act 2002.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, on the day or at the time specified in column 2 of the table.
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 on which this Act receives the Royal Assent | 4 September 2002 |
2. Schedule 1 | The day on which this Act receives the Royal Assent | 4 September 2002 |
3. Schedule 2 | The later of: (a) the 28th day after the day on which this Act receives the Royal Assent; and (b) immediately after item 81 of Schedule 1 to the Health Insurance Commission (Reform and Separation of Functions) Act 1997 commences | 10 November 2002 (paragraph (b) applies) |
Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table is for additional information that is not part of this Act. This information may be included 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Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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—Amendments relating to finance
Health Insurance Commission Act 1973
1 Subsection 3(1)
Insert:
Finance Minister means the Minister who administers the Commonwealth Authorities and Companies Act 1997.
2 Section 9 (note)
Omit “Subject to section 9A, the”, substitute “The”.
3 Section 9A
Repeal the section.
4 Transitional—budget estimates
The requirement to prepare budget estimates for the Health Insurance Commission for a financial year in accordance with section 14 of the Commonwealth Authorities and Companies Act 1997, is taken to have been met if budget estimates have been prepared for that year in accordance with sections 33A and 34 of the Health Insurance Commission Act 1973 as in force before this item commences.
5 Subsection 32A(2)
Omit “Minister for Finance”, substitute “Finance Minister”.
6 Section 33
Omit “Minister for Finance”, substitute “Finance Minister”.
7 Sections 33A and 34
Repeal the sections.
8 Section 36
Repeal the section, substitute:
36 Borrowing
(1) The Commission may, with the written approval of the Finance Minister, borrow money from the Commonwealth or from persons other than the Commonwealth, for the purpose of all or any of the Commission’s functions.
(2) However, the Commission must not borrow money for the purpose of making payments in the course of carrying out the medicare functions of the Commission or any additional functions that are conferred on it under subsection 8AA(2).
Note: The money necessary to make those payments is provided by the Commonwealth under section 33.
(3) Section 38 does not apply in relation to the borrowing of money in accordance with this section.
36A Treatment of income derived from section 33 money
If:
(a) money is paid by the Commonwealth to the Commission under section 33 of this Act; and
(b) the money is invested under subsection 18(3) of the Commonwealth Authorities and Companies Act 1997;
then any income derived from the investment must be paid to the Commonwealth.
Note: For the Commission’s power to invest surplus money, see section 18 of the Commonwealth Authorities and Companies Act 1997.
9 Section 36AA
Repeal the section.
10 Subsection 38(3)
Repeal the subsection.
Schedule 2—Amendments relating to the number of Commissioners
Health Insurance Commission Act 1973
1 Paragraph 10(1)(c)
Omit “5”, substitute “7”.
[Minister’s second reading speech made in—
Senate on 21 March 2002
House of Representatives on 22 August 2002]
Overview
The Health Insurance Commission Amendment Act 2002 (No. 71) was enacted by the Parliament of Australia to make amendments to the Health Insurance Commission Act 1973. This legislation was introduced to address certain financial and administrative gaps within the existing framework of the Health Insurance Commission (HIC). Specifically, it aimed to refine the financial governance and borrowing powers of the HIC, while also adjusting the composition of the Commission by increasing the number of Commissioners from five to seven. The Act also includes provisions that redefine the term "Finance Minister" and adjust the borrowing and investment protocols of the HIC, ensuring that any income derived from investments of funds provided by the Commonwealth is returned to the Commonwealth.
The policy objective behind these amendments is to enhance the efficiency and accountability of the HIC's financial operations, as well as to ensure that the Commission's expanded role and responsibilities are adequately supported by a corresponding increase in its administrative capacity. By clarifying the borrowing powers and the treatment of income from investments, the Act aims to provide a more stable and transparent financial framework for the HIC, thereby supporting its broader objectives of managing health insurance schemes effectively.
Scope and Application
The Health Insurance Commission Amendment Act 2002 amends the Health Insurance Commission Act 1973 to modify the financial and administrative framework of the Health Insurance Commission. This Act applies to the Health Insurance Commission, its officers, and the Minister for Health, specifically affecting the financial operations and governance structure of the Commission. The changes introduced by the Act are applicable nationally, as the Health Insurance Commission operates under the Commonwealth of Australia. Certain provisions of the Act commence on the day of Royal Assent, while others are set to commence later, ensuring a phased implementation. The Act also introduces changes to the borrowing powers of the Commission and modifies the requirements for budget estimates, while repealing certain sections related to financial administration and the number of Commissioners, reflecting an adjustment in the governance structure by increasing the number of Commissioners from five to seven.
Key Provisions
The Health Insurance Commission Amendment Act 2002 introduces significant changes to the Health Insurance Commission Act 1973, primarily focusing on financial provisions and the number of commissioners. The key provisions of the Act are found in Schedule 1 and Schedule 2. Schedule 1 primarily deals with financial amendments, while Schedule 2 addresses the number of commissioners on the Health Insurance Commission.
Schedule 1 introduces changes to the borrowing powers of the Health Insurance Commission (section 36). The Act now allows the Commission to borrow money with the written approval of the Finance Minister, but explicitly prohibits borrowing for the purpose of making payments related to the Medicare functions or any additional functions conferred under subsection 8AA(2). It also mandates that any income derived from investments of money paid by the Commonwealth under section 33 must be returned to the Commonwealth. Furthermore, the Act repeals several sections related to budget estimates and financial approvals, simplifying the financial oversight process.
Schedule 2 adjusts the composition of the Health Insurance Commission by increasing the number of commissioners from five to seven. This change is intended to enhance the governance and oversight capabilities of the Commission, ensuring more comprehensive management and administration of its functions.
The obligations imposed by the Act on the Health Insurance Commission primarily revolve around financial management and governance. The Commission must now obtain written approval from the Finance Minister before borrowing any money, and it must adhere to the new restrictions on the use of borrowed funds. Additionally, the Commission is required to return any income derived from investments made with Commonwealth funds. The increase in the number of commissioners necessitates a restructuring of the Commission's governance framework, ensuring that the expanded body can effectively manage the Commission's functions.
Breaches of the Act can lead to various civil and criminal consequences. While the Act itself does not specify detailed penalties for non-compliance, violations of financial regulations and governance provisions could potentially attract penalties under other relevant legislation, such as the Crimes Act 1914 or the Public Governance, Performance and Accountability Act 2013. The maximum penalties for such breaches can vary significantly depending on the specific offence and the jurisdiction in which it is prosecuted. For instance, breaches involving fraudulent financial activities could lead to substantial fines and imprisonment terms, as outlined in the applicable criminal statutes.