Medicare Australia (Functions of Chief Executive Officer - Commonwealth Services and Enabling Services) Direction 2010

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Human Services

Medicare Australia Act 1973

Medicare Australia (Functions of Chief Executive Officer — Commonwealth Services and Enabling Services) Direction 2010

Authority

1. Subsection 5 (1) of the Medicare Australia Act 1973 (the Act) directly confers some functions on the Chief Executive Officer (CEO) of Medicare Australia.
2. Under paragraph 5 (1) (d) of the Act, the CEO’s functions also include any functions that the Minister, by writing, directs the CEO to perform. 
3. Under section 4A of the Act, Medicare Australia’s function is to assist the CEO in the performance of the CEO’s functions.

Background

4.      Subsection 5 (2) of the Act provides that a direction under paragraph 5 (1) (d) is a legislative instrument, but neither section 42 nor Part 6 of the Legislative Instruments Act 2003 applies to the direction.  This means that the Medicare Australia (Functions of Chief Executive Officer — Commonwealth Services and Enabling Services) Direction 2010 (the Direction) is not subject to disallowance by Parliament and is not subject to automatic sunsetting after 10 years.

5.      Subsections 7 (1) and (2) of the Act confer on the CEO the function of providing ‘Commonwealth services’ in accordance with service arrangements that are entered into with the ‘principal officers’ of Commonwealth Departments and Commonwealth authorities with the written approval of the Minister. 

6.      The term ‘Commonwealth service’ is defined in section 3 of the Act to mean:

‘a service, benefit, program or facility for some or all members of the public that is provided for by the Commonwealth, whether under a law of the Commonwealth or otherwise.’

7.      On 16 December 2009, the Minister for Human Services announced that the Government plans to introduce legislation in 2011 to make Centrelink and Medicare Australia part of the Department of Human Services (Department).  This initiative is part of the Government’s strategy to improve service delivery to give Australians better access to social, health and welfare services. 

Commonwealth services

8.      The Department already has flexibility to deliver Commonwealth services.  The Direction gives Medicare Australia’s CEO the same flexibility to deliver Commonwealth services as that possessed by the Department. 

9.      The Direction provides a function to support the Medicare Australia CEO’s involvement in Commonwealth service delivery without needing a service arrangement to be entered into, with prior written Ministerial approval, before each Commonwealth service is commenced. 

Enabling services

10.  On 16 December 2009, the Minister also announced that various enabling services of the Department, Centrelink and Medicare Australia would be brought together. 

11.  Section 5 of the Direction confers on the CEO the function of providing ‘enabling services’ to any ‘Commonwealth authority’ (as defined in section 3 the Act).  The term ‘enabling services’ is defined in the Direction by reference to the services described in the Schedules to the Direction.

12.  By giving this function to the CEO, the Direction gives Medicare Australia’s CEO the same flexibility as that possessed by the Department.

Consultation

13.  The Department consulted with Centrelink and Medicare Australia.  It was not considered necessary to consult externally because the Direction deals solely with internal governance affecting the Department, Centrelink and Medicare Australia.

Details of Direction

Section 1 – Name of Direction

This section provides that the name of the Direction is the Medicare Australia (Functions of Chief Executive Officer — Commonwealth Services and Enabling Services) Direction 2010.

Section 2 – Commencement

Under this section, the Direction commences on 1 March 2010. 

Section 3 – Definitions

This section defines the terms ‘Act’, ‘Centrelink’, ‘enabling services’ and ‘Portfolio Department’. 

The term ‘enabling services’ is defined by reference to the services described in Schedules 1 to 8 of the Direction.

‘Portfolio Department’ is defined as meaning the ‘Department which administers the Act’.

Section 4 — Direction to perform function — Commonwealth services

Under paragraph 5 (1) (d) of the Act, the CEO is directed to perform the functions of:

• providing Commonwealth services;
• providing the related services mentioned in subparagraphs (b) (i) to (vi); and
• providing Commonwealth services together with the Portfolio Department, Centrelink or another Commonwealth authority.

In addition to directing the CEO to perform the function of providing Commonwealth services, section 4 of the Direction directs the CEO to provide related services including:

• making employees available to exercise powers or perform functions related to providing Commonwealth services;
• making payments in connection with the provision of Commonwealth services;
• disclosing information about individuals to whom the Commonwealth services relate;
• undertaking enforcement, compliance, investigation activities related to Commonwealth services.

Section 4 also enables the CEO to provide Commonwealth services together with the Portfolio Department, Centrelink or another Commonwealth authority.  This will enable the CEO and Medicare Australia to work together with the Department, Centrelink or another agency in providing Commonwealth services.  This will provide greater flexibility in delivering services to Australians.

A note at the end of section 4 informs readers that the terms ‘Chief Executive Officer’, ‘Commonwealth authority’ and ‘Commonwealth service’ are defined in the Act.

Section 5 — Direction to perform function — enabling services

Section 5 directs the CEO to perform the functions of:

• providing enabling services to Commonwealth authorities including the Portfolio Department and Centrelink;
• supervising the provision of enabling services by relevant employees of Medicare Australia, the Portfolio Department and Centrelink to the Portfolio Department and Centrelink; and
• providing Commonwealth services together with the Portfolio Department, Centrelink or another Commonwealth authority.

As noted above, the term ‘enabling services’ is defined by reference to the description of the services set out in Schedules 1 to 8 of the Direction.

Section 5 of the Direction enables the CEO to provide services including: audit and assurance services, communications and media services, human resources and personnel services to Commonwealth authorities including the Portfolio Department and Centrelink. 

Paragraph 5 (b) allows Medicare Australia employees to supervise employees of Centrelink and the Portfolio Department. 

Paragraph 5 (c) enables Medicare Australia to provide enabling services together with the Portfolio Department, Centrelink or another Commonwealth authority.  This gives the CEO, together with Medicare Australia, greater flexibility to provide enabling services across the Human Services Portfolio and to other Commonwealth authorities.

Schedules 1 to 8

Each of Schedules 1 to 8 of the Direction sets out a description of the services for the purposes of the definition of ‘enabling services’ in section 3.  The descriptions of the services in Schedules 1 to 8 of the Direction are broad.  This provides flexibility for Medicare Australia in providing the enabling services.

The services set out in the Schedules relate to:

• Audit and assurances services (Schedule 1);
• Communications and media services (Schedule 2);
• Corporate support services (Schedule 3);
• Human resources and personnel services (Schedule 4);
• Information and communications technology services (Schedule 5);
• Information collection, access and release services (Schedule 6);
• Legal services (Schedule 7); and
• Ministerial and parliamentary services (Schedule 8).