Health Insurance Commission Regulations 1997 No. 396
EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 396
Issued by the authority of the Minister for Health and Family Services
Health Insurance Commission Act 1973
Health Insurance Commission Regulations
The attached Statutory Rules make regulations under section 44 of the Health Insurance Commission Act 1973 (the Act).
The regulations make amendments to regulation 4A of the Health Insurance Commission Regulations that are consequential on the Commonwealth Authorities and Companies Act 1997, They will come into operation on 1 January 1998.
The Commonwealth Authorities and Companies Act 1997 is one of a package of four Acts which will replace the Audit Act 1901, It will commence on 1 January 1999, the day fixed by Proclamation.
Details of the regulations are shown in the Attachment.
ATTACHMENT
DETAILS OF PROPOSED AMENDMENTS TO THE HEALTH INSURANCE COMMISSION (HIC) REGULATIONS
Regulation 4A of the HIC Regulations modifies Part V of the Health Insurance Commission Act 1973 (the HIC Act).
Amending regulation 1
This provision states that the amending regulations commence on 1 January 1998.
Amending regulation 2
This provision states that the HIC Regulations art amended as set out in the amending regulations.
Amending regulation 3
Amending subregulation 3.1 takes the opportunity to correct an earlier drafting error in paragraph 4A(a) of the HIC Regulations.
Amending subregulation 3.2 aligns paragraph 4A(b) of the HIC Regulations with section 14 of the CAC Act. Paragraph 4A(b) inserted subsection 34AA(1) in Part V of the HIC Act which requires the Commission to prepare "estimates of receipts and expenditure" for its pharmaceutical functions. Section 14 of the Commonwealth Authorities and Companies 1997 (the CAC Act), on the other hand, requires directors of Commonwealth authorities to prepare "budget estimates". Amending subregulation 3.2 aligns these provisions by, in effect, changing the reference to "estimates of receipts and expenditure" in subsection 34AA(1) to "budget estimates".
[The term "budget estimates" is wider than "estimates of receipts and expenditure." As explained in the Explanatory Memorandum to section 14 of the CAC Act, the Government has agreed in principle to a phased implementation of a financial framework for the Commonwealth based on accrual accounting. The term "budget estimates" is intended to accommodate both the current system of cash budgets (ie, estimates of receipts and expenditure) and any proposed system of accrual budgets].
Amending subregulation 3.3 aligns paragraph 4A(f) of the HIC Regulations with section 18 of the CAC Act. Paragraph 4A(f) inserted subsection 36(6AA) in Part V of the HIC Act which, in turn, confers investment powers on the Commission in relation to moneys held by it for the performance of its pharmaceutical functions. Subregulation 3.3 amends paragraph 4A(f) by repealing the investment powers conferred by subsection 36(6AA) and substituting the investment powers conferred on directors of Commonwealth authorities by subsection 18(3) of the CAC Act.
Overview
The Health Insurance Commission Regulations 1997, enacted by the Parliament of Australia, address the need to update and align the regulatory framework governing the Health Insurance Commission (HIC) with new legislative changes introduced by the Commonwealth Authorities and Companies Act 1997. This legislative update aims to ensure consistency and coherence across the financial management and reporting requirements of Commonwealth authorities. Specifically, the regulations amend existing provisions in the Health Insurance Commission Regulations to reflect changes in terminology and administrative requirements set forth in the new Act, thereby facilitating a smoother integration of financial practices within the Commonwealth. The regulations were designed to commence on 1 January 1998, reflecting the intent to swiftly adapt to the new legislative environment and maintain operational continuity for the HIC.
Scope and Application
The Health Insurance Commission Regulations 1997, made under the Health Insurance Commission Act 1973, apply to the Health Insurance Commission and its functions as stipulated in the Act. The regulations primarily modify the Commission’s financial reporting and investment practices in alignment with the Commonwealth Authorities and Companies Act 1997. They apply nationally across Australia and affect the conduct and financial management of the Health Insurance Commission. The regulations came into operation on 1 January 1998, with consequential amendments made to Regulation 4A to ensure consistency with the financial framework established by the Commonwealth Authorities and Companies Act 1997. These amendments correct earlier drafting errors and align the Commission's financial estimates and investment powers with the broader requirements for Commonwealth authorities and companies, ensuring the Commission's practices are in line with the new financial framework. The application of these regulations is further extended and specified through subordinate instruments which detail the precise modifications and alignments required.
Key Provisions
The main operative sections of the Health Insurance Commission Regulations 1997 (No. 396) amend and update the Health Insurance Commission (HIC) Regulations, particularly Regulation 4A, in light of the Commonwealth Authorities and Companies Act 1997 (CAC Act). Amending regulation 1 sets the commencement date of these regulations as 1 January 1998. Amending regulation 2 explicitly states that the HIC Regulations are amended as outlined in the attached regulations. Amending regulation 3 consists of three subregulations, each addressing specific changes to the existing regulations. Subregulation 3.1 corrects a drafting error in an earlier version of the regulations. Subregulation 3.2 modifies the terminology from "estimates of receipts and expenditure" to "budget estimates" to align with the CAC Act, accommodating both cash and accrual budgeting systems. Subregulation 3.3 replaces the investment powers outlined in the HIC Act with those provided under the CAC Act, ensuring consistency across Commonwealth authorities.
The regulations impose several obligations and requirements on the Health Insurance Commission (HIC). Firstly, the HIC must prepare "budget estimates" as required by the CAC Act, reflecting a broader financial framework based on accrual accounting. This shift from "estimates of receipts and expenditure" to "budget estimates" is crucial for aligning the HIC's financial planning with the new financial framework. Secondly, the HIC's investment powers are now governed by the CAC Act, which provides a standardised approach to investment for all Commonwealth authorities. These amendments necessitate that the HIC adjust its financial and investment practices to comply with the updated regulatory requirements.
There are no explicit mentions of offences, penalties, or consequences for breaches in the provided text. However, it is reasonable to infer that non-compliance with these regulatory changes could lead to administrative or legal repercussions. Given the nature of the amendments, which are primarily procedural and align with broader legislative reforms, breaches might result in administrative penalties or require corrective actions to ensure compliance with the updated regulatory framework. The exact penalties or consequences would likely be determined by the HIC Act and other relevant legislation, which are not detailed in the provided text.