Health Legislation Amendment Act (No. 2) 1987

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No. 131 of 1987

An Act to amend the Health Insurance Act 1973 and the National Health Act 1953

[Assented to 16 December 1987]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

PART I—PRELIMINARY

Short title

1. This Act may be cited as the Health Legislation Amendment Act (No. 2) 1987.

Commencement

2. (1) Section 4 shall come into operation on 13 December 1987.

(2) Sections 5, 6 and 9 and paragraph 8 (a) shall come into operation on 1 January 1988.

(3) The remaining provisions of this Act shall come into operation on the day on which this Act receives the Royal Assent.

PART II—AMENDMENTS OF THE HEALTH INSURANCE ACT 1973

Principal Act

3. In this Part, “Principal Act” means the Health Insurance Act 19731.

Disadvantaged persons, being persons on low incomes

4. Section 5b of the Principal Act is amended by omitting sub-subparagraph (a) (iii) (b) of the definition of “allowable income” in subsection (12) and substituting the following sub-subparagraph:

“(b) $34 or such higher amount as is prescribed; or”.

Disadvantaged persons, being persons in receipt of unemployment benefit or job search allowance

5. Section 5d of the Principal Act is amended:

(a) by inserting in paragraph (1) (a) “or job search allowance” after “benefit”;

(b) by inserting in paragraph (1a) (b) “or job search allowance” after “benefit”;

(d) by inserting in paragraph (2) (b) “or the job search allowance, as the case may be,” after “the unemployment benefit”;

(e) by omitting subsection (8) and substituting the following subsection:

“(8) In this section:

‘job search allowance’ means job search allowance under Part XIII of the Social Security Act 1947;

‘unemployment benefit’ means unemployment benefit under that Part.”.

Other amendments

6. The Principal Act is amended as set out in the Schedule.

PART III—AMENDMENTS OF THE NATIONAL HEALTH ACT 1953

Principal Act

7. In this Part, “Principal Act” means the National Health Act 19532.

Interpretation

8. Section 4 of the Principal Act is amended:

(a) by inserting after paragraph (aa) of the definition of “pensioner” in subsection (1) the following paragraph:

“(ab) a person to whom or in respect of whom there is being paid a job search allowance under subsection 117a (2) of the Social Security Act 1947;”;

(b) by inserting after subsection (3) the following subsection:

“(3a) Where:

(a) a person was, immediately before 1 September 1987, receiving a widow’s pension as a class A widow, or a supporting parent’s benefit, under the Social Security Act 1947; and

(b) the person ceases to be qualified to receive that pension or benefit at any time before 1 January 1988 solely because of the amendment of that Act by paragraph 12 (b) or section 13, as the case may be, of the Social Security and Veterans’ Entitlements Amendment Act 1987;

the person shall be deemed to be a pensioner for the purposes of this Act during the period commencing on 1 September 1987 and ending on the expiration of 31 December 1988.”.

Interpretation

9. Section 84 of the Principal Act is amended by inserting after paragraph (a) of the definition of “concessional beneficiary” in subsection (1) the following paragraph:

“(aa) a person to whom or in respect of whom there is being paid a job search allowance under the Social Security Act 1947;”.

—————

SCHEDULE Section 6

OTHER AMENDMENTS OF THE HEALTH INSURANCE ACT 1973

Paragraph 5d (1) (b):

Omit “section 83ca”, substitute “section 69”.

Paragraph 5d (1a) (c):

Omit “section 83ca”, substitute “section 69”.

Subsection 5d (2):

Omit “section 83ca”, substitute “section 69”.

Paragraph 5d (2) (a):

Omit “Part VII”, substitute “Part XIII”.

Subsection 5d (3):

(a) Omit “subsection (3) of section 107”, substitute “subsection 116 (3)”.

(b) Omit “section 83ca”, substitute “section 69”.

Subsection 5d (5):

Omit “section 83ca”, substitute “section 69”.

NOTES

1. No. 42, 1974, as amended, For previous amendments, see No. 58, 1975; Nos. 59, 91, 101, 109 and 157, 1976; No. 75, 1977; Nos. 36, 89 and 133, 1978; Nos. 53 and 123, 1979; No. 132, 1980; Nos. 118 and 176, 1981; Nos. 49, 80 and 112, 1982; Nos. 54 and 139, 1983; Nos. 15, 46, 63, 120, 135 and 165, 1984; Nos. 24, 65, 70, 95 and 167, 1985; Nos. 28, 75 and 94, 1986; and No. 44, 1987.

2. No. 95, 1953, as amended, For previous amendments, see No. 68, 1955; Nos. 55 and 95, 1956; No. 92, 1957; No. 68, 1958; No. 72, 1959; No. 16, 1961; No. 82, 1962; No. 77, 1963; No. 37, 1964; Nos. 100 and 146, 1965; No. 44, 1966; Nos. 14 and 100, 1967; No. 100, 1968; No. 102, 1969; No. 41, 1970; No. 85, 1971; No. 114, 1972; Nos. 49 and 202, 1973; No. 37, 1974; Nos. 1, 13 and 93, 1975; Nos. 1, 60, 91, 99, 108, 157 and 177, 1976; Nos. 98 and 100, 1977; Nos. 36, 88, 132 and 189, 1978; Nos. 54, 91 and 122, 1979; Nos. 117 and 131, 1980; Nos. 40, 74, 92, 118, 163 and 176, 1981; Nos. 49, 80 and 112, 1982; Nos. 35, 54 and 139, 1983; Nos. 46, 63, 72, 120, 135 and 165, 1984; Nos. 24, 53, 65, 70, 95, 127 and 167, 1985; Nos. 28, 75, 94 and 115, 1986; and Nos. 22 and 44, 1987.

[Minister’s second reading speech made in—

House of Representatives on 4 November 1987

Senate on 19 November 1987]

Overview

The Health Legislation Amendment Act (No. 2) 1987 was enacted to address certain issues and fill gaps in the existing health legislation, specifically the Health Insurance Act 1973 and the National Health Act 1953. This Act was passed by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, aiming to provide better health coverage and benefits for disadvantaged individuals and those affected by changes in social security laws. The policy objective was to ensure that those on low incomes and recipients of unemployment benefits or job search allowances would continue to receive the necessary health benefits. This legislation amended definitions and provisions to include these individuals and ensure that the benefits provided under the Acts were fair and equitable.

Scope and Application

The Health Legislation Amendment Act (No. 2) 1987 is a Commonwealth Act that amends the Health Insurance Act 1973 and the National Health Act 1953 to enhance the coverage and benefits for disadvantaged persons and certain other groups. The Act applies to individuals and entities involved in health insurance and health-related services within Australia. It introduces changes to the definitions and criteria for determining eligibility for benefits under the amended Acts, particularly focusing on income thresholds and specific allowances. The Act also extends certain benefits to individuals receiving job search allowances under the Social Security Act 1947. The amendments come into effect at different times, with some provisions taking effect from 13 December 1987 and others from 1 January 1988. The Act does not explicitly state exclusions or exemptions, but it does specify the conditions under which certain benefits apply. The scope of the Act is limited to the Commonwealth jurisdiction, impacting national health policies and insurance schemes.

Key Provisions

The Health Legislation Amendment Act (No. 2) 1987 introduces several key amendments to the Health Insurance Act 1973 and the National Health Act 1953. These amendments are primarily aimed at updating the definitions and scope of eligibility for certain benefits and concessions. Section 4 of the Act, concerning the Health Insurance Act, modifies the definition of "allowable income" to adjust the threshold for disadvantaged persons on low incomes, now set at $34 or a higher prescribed amount. Additionally, it updates the categories of individuals eligible for benefits by including those receiving a job search allowance alongside those on unemployment benefits. This is achieved through amendments to Section 5d of the Principal Act, which now includes references to "job search allowance" in various subparagraphs. The Act imposes several obligations on the parties it governs, particularly those administering health insurance and national health provisions. For instance, under the Health Insurance Act, administrators must now consider the new income thresholds and categories when assessing eligibility for benefits. Similarly, under the National Health Act, administrators must update their records and systems to reflect the new definitions of "pensioner" and "concessional beneficiary" to ensure accurate classification and provision of services. These obligations are crucial for maintaining the integrity and fairness of the health insurance system. In terms of consequences for non-compliance, the Act does not explicitly detail specific offences or penalties for breaches of its provisions. However, given the nature of the amendments, failure to adhere to the updated definitions and eligibility criteria could result in improper distribution of benefits, potentially leading to administrative penalties or legal challenges. While the Act itself does not specify maximum penalties, any breaches of related provisions in the Health Insurance Act or the National Health Act could attract penalties under those Acts, which may include fines or other sanctions as prescribed by law. It is essential for administrators to ensure compliance with these updated provisions to avoid any potential legal or financial repercussions.

Area of Law: Health Law
Instrument: Act
Concepts: Commencement Provisions; Repeal & Amendment; Reporting & Disclosure Obligations; Rights & Protections

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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