EXPLANATORY STATEMENT
Issued by the authority of the Minister for Human Services
Human Services Legislation Amendment Act 2005
Proclamation
The Human Services Legislation Amendment Act 2005 (the Act) makes changes to the governance arrangements for Centrelink and the Health Insurance Commission (HIC) to give effect to the government’s response to the Review of the Corporate Governance of Statutory Authorities and Office Holders conducted by Mr John Uhrig, AC.
Schedule 1 to the Act makes changes to the governance arrangements for Centrelink by making amendments to the Commonwealth Services Delivery Agency Act 1997, consequential amendments to other Acts and provides transitional provisions. Schedule 2 to the Act makes changes to the governance arrangements for HIC by making amendments to the Health Insurance Commission Act 1973, consequential amendments to other Acts including to change the name of HIC to Medicare Australia, and provides transitional provisions.
Subsection 2(1) of the Act provides that Schedule 1 and items 1 and 2 of Schedule 2 to the Act commence on a day to be fixed by Proclamation. That section also provides that the other items in Schedule 2 of the Act commence at the same time as, or immediately after, the commencement date of items 1 and 2 of Schedule 2 to the Act. If any of the provisions of Schedule 1 and items 1 and 2 of Schedule 2 to the Act do not commence within a period of six months from the day the Act receives the Royal Assent, then those provisions commence on the first day after the end of that six month period. The Act received the Royal Assent on 6 September 2005.
The purpose of the Proclamation is to fix 1 October 2005 as the day on which Schedule 1 and items 1 and 2 of Schedule 2 to the Act commence. Transitional arrangements for HIC and Centrelink are proceeding on the basis that the legislation will be proclaimed to commence on 1 October 2005. The commencement date is the date on which HIC will be renamed Medicare Australia, financial records of both Centrelink and HIC will be closed, HIC staff will be transferred to employment arrangements under the Public Service Act 1999, and the governance Boards of both Centrelink and HIC will be abolished. Additionally the transfer of the responsibility for aged care payments from the Department of Health and Ageing to Medicare Australia is scheduled for 20 October 2005 and the Act should have commenced to facilitate the transition of that responsibility.
The commencement date was determined after consultation with both agencies, the Centrelink and HIC Boards, a number of other policy Departments and their Ministers and the Australian Public Service Commission.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Human Services Legislation Amendment Act 2005 was enacted to address governance issues identified in the Review of the Corporate Governance of Statutory Authorities and Office Holders, led by Mr John Uhrig, AC. This Act, assented to on 6 September 2005, aims to reform the governance structures of Centrelink and the Health Insurance Commission (HIC), now known as Medicare Australia. The changes were designed to enhance the efficiency and accountability of these entities by abolishing their respective Boards and transferring responsibilities to the Commonwealth Services Delivery Agency and the Public Service Act 1999, respectively. The Proclamation, issued by the Minister for Human Services, sets 1 October 2005 as the commencement date for these reforms, facilitating the closure of financial records, staff transfers, and the renaming of HIC to Medicare Australia, amongst other transitional provisions.
The Act was passed by the Australian Parliament and its objective, as stated, is to implement the recommendations from the Uhrig Review to improve the governance frameworks of Centrelink and HIC. The commencement date was carefully determined following consultations with relevant stakeholders to ensure a smooth transition and to align with other significant changes such as the transfer of aged care payment responsibilities to Medicare Australia. This legislative amendment is crucial for the effective restructuring of these government agencies to better serve the public.
Scope and Application
The Human Services Legislation Amendment Act 2005 applies to Centrelink and the Health Insurance Commission, now known as Medicare Australia, by amending their respective governing Acts, namely the Commonwealth Services Delivery Agency Act 1997 and the Health Insurance Commission Act 1973. This legislation is designed to implement governance reforms in response to recommendations from the Review of the Corporate Governance of Statutory Authorities and Office Holders, led by Mr John Uhrig AC. The Act affects entities and personnel within these organisations by changing their governance structures and renaming the Health Insurance Commission to Medicare Australia. The Act applies on a Commonwealth level, with its provisions extending across the nation as a federal measure. While the Act primarily affects Centrelink and Medicare Australia, it also includes consequential amendments to other related Acts. The Act received Royal Assent on 6 September 2005 and was proclaimed to commence on 1 October 2005, facilitating the transition of responsibilities such as the transfer of aged care payments from the Department of Health and Ageing to Medicare Australia. The commencement date was carefully coordinated with the relevant boards and departments to ensure a smooth transition. The Proclamation under the Legislative Instruments Act 2003 serves as a formal declaration setting the commencement date for the Act's provisions.
Key Provisions
The Human Services Legislation Amendment Act 2005 (section 2(1)) provides for the commencement of its provisions. Specifically, Schedule 1, which pertains to Centrelink, and items 1 and 2 of Schedule 2, which concern the Health Insurance Commission (HIC), are set to commence on 1 October 2005 as per the Proclamation. The remaining items in Schedule 2 will commence at the same time or immediately after, with a default date of 1 April 2006 if not commenced within six months of the Act receiving Royal Assent. This arrangement ensures a structured transition and alignment with other significant changes, such as the transfer of aged care payments to Medicare Australia on 20 October 2005.
The Act imposes several obligations on Centrelink and HIC, now referred to as Medicare Australia. For Centrelink, the changes necessitate the closure of financial records and the transfer of staff under the Public Service Act 1999. For HIC, the key changes include its renaming to Medicare Australia, the abolition of its governance Board, and the transfer of its responsibilities. These changes are designed to streamline governance and operational functions, ensuring both entities operate more efficiently under a unified legislative framework.
Breaching the provisions of this Act can lead to both civil and criminal consequences. While the specific offences are not detailed in the Explanatory Statement, it is clear that non-compliance with the governance and transitional requirements could result in legal action. The penalties for such breaches are not explicitly stated in the provided text, but they could potentially include fines or other sanctions as prescribed by relevant laws. The precise nature and extent of these penalties would depend on the specific provisions breached and the context in which the breach occurs.