Medicare Australia (Functions of Chief Executive Officer — Repeal) Direction 2011

Administered by Services Australia

Legislation au F2011L01317 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Medicare Australia (Functions of Chief Executive Officer — Repeal) Direction 2011

 

Authority

Under paragraph 5(1)(d) of Medicare Australia Act 1973 (the Act), the Minister may give the Chief Executive Officer of Medicare Australia (Medicare Australia CEO) a written direction to perform specified functions.  The Medicare Australia CEO has a number of functions under subsection 5(1) of the Act.

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 — Repeal) Direction 2011 (the Direction) is neither subject to disallowance by Parliament nor automatic sunsetting after 10 years.

 

Purpose of the Direction

The Human Services Legislation Amendment Act 2011 (the HSLA Act) renames the Act as the Human Services (Medicare) Act 1973 (Medicare Act), and substantially amends the Act.  In particular, the Medicare Australia CEO position is abolished and replaced by a position called the Chief Executive Medicare, to which only an SES officer in the Department of Human Services can be appointed.  Medicare Australia is also abolished, and its functions subsumed into the Department of Human Services.

The HSLA Act received Royal Assent on 25 May 2011, and the relevant amendments to the Act will commence on 1 July 2011.

The HSLA Act amends section 5 of the Act.  Item 28B in Part 1 of Schedule 1 to the HSLA Act repeals paragraph 5(1)(d) of the Act. 

As a result of this amendment, the Minister for Human Services ceases to be empowered to direct the Medicare Australia CEO to perform functions. Accordingly, Ministerial Directions that have been made under paragraph 5(1)(d) of the Act will cease to be effective when the HSLA Act commences.

To ensure that there can be no doubt that the Ministerial Directions cease to be in effect, the Direction repeals the Ministerial Directions specified.

New section 5 of the Act, as amended by the HSLA, provides that the Chief Executive Medicare has ‘any functions that are prescribed by regulations’ (see paragraph 5(1)(e) of the Act). 

A number of the functions that the Medicare Australia CEO was previously directed to perform are included in the Medicare Australia Regulations 1975 as amended by the Human Services Legislation Amendment Regulations 2011.  However, many of the functions that the Medicare Australia CEO had been directed to perform are not prescribed as functions of the Chief Executive Medicare.

This is because:

  • the Chief Executive Medicare’s functions, particularly the service delivery functions in section 7 of the Medicare Act, are already very broad; and
  • the Department of Human Services, which will deliver programs and services for the Chief Executive, has the full powers of the Executive.

 

Consultation

As the Direction is repealing instruments that would otherwise cease to have effect on 1 July 2011, no public consultation was considered necessary.

 

The Direction commences at the end of 30 June 2011, immediately before the HSLA Act commences.

No statutory preconditions needed to be satisfied prior to the making of the Direction.

 

Overview

The Medicare Australia (Functions of Chief Executive Officer — Repeal) Direction 2011 was issued under the authority of paragraph 5(1)(d) of the Medicare Australia Act 1973. The purpose of this Direction was to repeal Ministerial Directions that would otherwise cease to be effective upon the commencement of the Human Services Legislation Amendment Act 2011, which was enacted to bring significant changes to the Medicare Australia Act, renaming it the Human Services (Medicare) Act 1973. This amendment abolished the Chief Executive Officer of Medicare Australia position and replaced it with the Chief Executive Medicare, a role restricted to Senior Executive Service officers within the Department of Human Services. Additionally, the Act subsumed the functions of Medicare Australia into the Department of Human Services. The Direction was issued to ensure there was no ambiguity regarding the cessation of Ministerial Directions once the Human Services Legislation Amendment Act 2011 took effect on 1 July 2011. The Direction, which is neither subject to disallowance by Parliament nor automatic sunsetting, was made without the need for public consultation, as it only addressed the repeal of existing instruments that would already be nullified by the commencement of the new Act. The Direction came into effect at the end of 30 June 2011, ensuring a seamless transition in the management and functions related to Medicare services.

Scope and Application

The Medicare Australia (Functions of Chief Executive Officer — Repeal) Direction 2011 applies to the functions previously assigned to the Chief Executive Officer (CEO) of Medicare Australia under the Medicare Australia Act 1973, prior to its amendment by the Human Services Legislation Amendment Act 2011. The Direction specifically targets the repeal of certain Ministerial Directions that would otherwise cease to be effective when the amendments to the Act commence on 1 July 2011. The Act itself, as amended, applies to the Commonwealth of Australia and involves the restructuring of the administrative functions of Medicare Australia within the Department of Human Services. The Direction ensures that there is no ambiguity regarding the cessation of the specified Ministerial Directions by explicitly repealing them. This legislative instrument is a response to the renaming and substantial amendments of the Medicare Australia Act, which now operates as the Human Services (Medicare) Act 1973. The Direction does not introduce new functions or impose any exclusions, exemptions, or thresholds, but rather aligns with the new legislative framework by ensuring that outdated directions are formally repealed.

Key Provisions

The primary operative sections of the Medicare Australia (Functions of Chief Executive Officer — Repeal) Direction 2011, as outlined in the explanatory statement, pertain to the repeal of certain Ministerial Directions (paragraphs 1-6). Under the original Medicare Australia Act 1973, the Minister could issue written directions to the Chief Executive Officer of Medicare Australia (Medicare Australia CEO) to perform specified functions (section 5(1)(d)). However, the Human Services Legislation Amendment Act 2011 (HSLA Act) has abolished the Medicare Australia CEO position and replaced it with the Chief Executive Medicare, who is appointed from the Department of Human Services (section 5(1)(e)). Consequently, Ministerial Directions that were previously issued under section 5(1)(d) are no longer effective as of the commencement of the HSLA Act on 1 July 2011. The obligations imposed by this Direction are primarily administrative and procedural. It ensures that the Ministerial Directions previously issued under section 5(1)(d) of the Medicare Australia Act are explicitly repealed and do not continue to apply after the HSLA Act comes into effect. The Direction also acknowledges that some of the functions previously assigned to the Medicare Australia CEO have been prescribed by regulations and are now functions of the Chief Executive Medicare (section 5(1)(e)). However, not all functions are transferred, as the Chief Executive Medicare's functions are already broad and the Department of Human Services possesses the necessary executive powers to deliver programs and services. The repeal of the Ministerial Directions and the explicit mention of the ceasing of their effectiveness are critical to prevent any ambiguity or continued application post-1 July 2011. The Direction is designed to align with the legislative changes brought about by the HSLA Act and ensure a smooth transition in the operational functions within the Department of Human Services. In terms of offences and consequences, the Direction itself does not establish new offences or penalties. However, any failure to adhere to the repealed Ministerial Directions or misunderstanding of the new functions prescribed for the Chief Executive Medicare could potentially lead to administrative issues or service delivery problems. The HSLA Act, by abolishing the Medicare Australia CEO position and redefining the functions of the Chief Executive Medicare, implicitly places the responsibility on the new Chief Executive Medicare to ensure that all necessary functions are performed within the regulatory framework. Non-compliance with the new legislative requirements could result in administrative oversight or legal scrutiny, although specific penalties are not detailed in this Direction.

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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.