EXPLANATORY STATEMENT
Issued by the authority of the Minister for Human Services
Medicare Australia Act 1973
Medicare Australia (Functions of Chief
Executive Officer) Direction 2011 (No. 1)
Authority
- Under paragraph 5(1)(d) of Medicare Australia Act 1973 (the Act), the Minister may give the Chief Executive Officer (Medicare Australia CEO) of Medicare Australia a written direction to perform specified functions. The Medicare Australia CEO has a number of functions under subsection 5(1) of the Act.
Background
2. 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 the Chief Executive Officer) Direction (No. 1) (the Direction) is neither subject to disallowance by Parliament nor automatic sunsetting after 10 years.
3. Medicare Australia currently works closely with Centrelink and the Department of Human Services in relation to the delivery of benefits and services to the public. The Service Delivery Reform initiatives announced by the Minister for Human Services on 16 December 2009 are increasing the interaction and co-operation between these agencies. The Government has announced an intention to merge Medicare Australia and Centrelink into the Department of Human Services on
1 July 2011, subject to the passage of legislation.
Management services
4. To support the stronger links between the Department of Human Services, Medicare Australia and Centrelink, it is proposed to bring some parts of the Department of Human Services and Centrelink under the day to day management of the Medicare Australia CEO. Some parts of Medicare Australia will be brought under the day to day management of the Chief Executive Officer of Centrelink. This will enable similar functions undertaken by the Department of Human Services, Medicare Australia and Centrelink to be better co-ordinated and aligned. This is intended to improve efficiency and the quality of the services provided to the public.
5. The accountabilities of the Medicare Australia CEO and the Chief Executive Officer of Centrelink will not change. It is not proposed that the Medicare Australia CEO assume responsibility for the delivery of any program currently delivered by the Department of Human Services or Centrelink.
6. This Direction expands the statutory functions of the Medicare Australia CEO to enable her to assist the Secretary of the Department of Human Services and the Chief Executive Officer of Centrelink. It is intended that the specific assistance that will be provided will be the provision of management services.
7. This direction is intended to operate in parallel with the Commonwealth Services Delivery Agency (Functions of the Chief Executive Officer – Management Services) Direction 2010 which expands the statutory functions of the Chief Executive Officer of Centrelink to enable her to assist the Secretary of the Department of Human Services and the Commonwealth Services Delivery Agency (Functions of the Chief Executive Officer) Direction 2011 (No. 2), which expands the statutory functions of the Chief Executive Officer of Centrelink to enable her to assist the Medicare Australia CEO.
8. The Direction commences the day it is registered on the Federal Register of Legislative Instruments.
Consultation
9. It was not considered necessary to consult stakeholders external to the Government in relation to this Direction because the Direction deals solely with the internal governance arrangements for the Department of Human Services, Medicare Australia and Centrelink.
Overview
The Medicare Australia (Functions of Chief Executive Officer) Direction 2011 (No. 1) was enacted under the authority of the Minister for Human Services to expand the statutory functions of the Chief Executive Officer of Medicare Australia. This Direction was introduced to facilitate closer management and coordination between Medicare Australia, Centrelink, and the Department of Human Services, with the overarching policy objective of improving the efficiency and quality of services delivered to the public. The Direction was made under paragraph 5(1)(d) of the Medicare Australia Act 1973 and is not subject to disallowance or automatic sunsetting. It aims to support the government's Service Delivery Reform initiatives by enabling the Medicare Australia CEO to provide management services to the Secretary of the Department of Human Services and the Chief Executive Officer of Centrelink, thereby enhancing the coordination of similar functions across these agencies. This Direction operates in conjunction with other related directions that similarly expand the functions of the Chief Executive Officers of Centrelink and the Commonwealth Services Delivery Agency.
Scope and Application
The Medicare Australia (Functions of Chief Executive Officer) Direction 2011 (No. 1) extends the statutory functions of the Chief Executive Officer of Medicare Australia to facilitate closer coordination and alignment between the Department of Human Services, Medicare Australia, and Centrelink. This initiative aims to improve efficiency and the quality of services provided to the public by enabling the Medicare Australia CEO to assist the Secretary of the Department of Human Services and the Chief Executive Officer of Centrelink. It is important to note that this Direction does not alter the accountabilities of the Medicare Australia CEO or the Chief Executive Officer of Centrelink, nor does it propose that the Medicare Australia CEO assume responsibility for programs currently delivered by the Department of Human Services or Centrelink. Instead, the focus is on providing management services to support better coordination and alignment of similar functions across these entities. The Direction is designed to operate in tandem with other related directions that similarly expand the functions of the Chief Executive Officers of Centrelink and the Commonwealth Services Delivery Agency. As a legislative instrument, the Direction is not subject to disallowance by Parliament nor does it have an automatic sunset clause, in accordance with the provisions of the Medicare Australia Act 1973.
Key Provisions
The main operative sections of the Medicare Australia (Functions of Chief Executive Officer) Direction 2011 (No. 1) (the Direction) are established under paragraph 5(1)(d) of the Medicare Australia Act 1973 (the Act), which allows the Minister to issue written directions to the Chief Executive Officer (Medicare Australia CEO) to perform specified functions. The Direction expands the statutory functions of the Medicare Australia CEO to provide management services that support stronger links between the Department of Human Services, Medicare Australia, and Centrelink. This includes bringing some parts of the Department of Human Services and Centrelink under the day-to-day management of the Medicare Australia CEO, and similarly, bringing some parts of Medicare Australia under the management of the Chief Executive Officer of Centrelink.
The obligations imposed by the Direction on the Medicare Australia CEO are to provide management services that better coordinate and align similar functions undertaken by the Department of Human Services, Medicare Australia, and Centrelink. This is intended to improve efficiency and the quality of services provided to the public. The CEO is not to assume responsibility for the delivery of any program currently delivered by the Department of Human Services or Centrelink, and the accountabilities of the CEO and the Chief Executive Officer of Centrelink remain unchanged. The Direction is intended to operate in parallel with other directions that similarly expand the functions of the Chief Executive Officers of Centrelink and the Commonwealth Services Delivery Agency.
The Direction does not impose specific civil or criminal penalties for breaches of its provisions, as it primarily concerns internal governance arrangements and the provision of management services. However, non-compliance with the functions outlined in the Direction could potentially lead to administrative consequences, such as the need to rectify management arrangements or address service delivery issues. The Direction is neither subject to disallowance by Parliament nor automatic sunsetting after 10 years, as it is not covered by section 42 or Part 6 of the Legislative Instruments Act 2003. It is expected to operate continuously until it is repealed or amended by further legislation or direction.