Medicare Guarantee (Transfer to the Health Special Account) Direction (No. 1) 2024
I, Anthea Long, First Assistant Secretary, Social Policy Division, Fiscal Group, Department of the Treasury, delegate of the Treasurer, make the following direction.
Dated 21 June 2024
Anthea Long
First Assistant Secretary
Social Policy Division
Department of the Treasury
Contents
Part 1—Preliminary
1 Name
2 Commencement
3 Authority
4 Definitions
Part 2—Transfer of amounts to the Medicare Guarantee Fund (Health) Special Account
5 Amount to be transferred to the Health Special Account
Part 1—Preliminary
1 Name
This instrument is the Medicare Guarantee (Transfer to the Health Special Account) Direction (No. 1) 2024.
2 Commencement
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. Sections 1 to 4 and anything in this instrument not elsewhere covered by this table | Immediately after this instrument is registered. | |
2. Section 5 | The later of: (a) immediately after the commencement of the provisions covered by table item 1; and (b) immediately after the crediting referred to in section 5 of the Medicare Guarantee (2024-25 Credit to the Treasury Special Account) Determination (No. 1) 2024 has occurred. | |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under the Medicare Guarantee Act 2017.
4 Definitions
Note: Expressions have the same meaning in this instrument as in the Medicare Guarantee Act 2017 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.
In this instrument:
the Act means the Medicare Guarantee Act 2017.
Part 2—Transfer of amounts to the Medicare Guarantee Fund (Health) Special Account
5 Amount to be transferred to the Health Special Account
Under section 14 of the Act, an amount of $46,000,000,000 is directed to be debited from the Medicare Guarantee Fund (Treasury) Special Account and the same amount is directed to be credited to the Medicare Guarantee Fund (Health) Special Account on the day this section commences.
Note: The Medicare Guarantee Fund (Treasury) Special Account is established by section 6 of the Act. The Medicare Guarantee Fund (Health) Special Account is established by section 12 of the Act.
Overview
The Medicare Guarantee (Transfer to the Health Special Account) Direction (No. 1) 2024 was enacted under the Medicare Guarantee Act 2017 to facilitate the transfer of a significant amount from the Medicare Guarantee Fund (Treasury) Special Account to the Medicare Guarantee Fund (Health) Special Account. This notifiable instrument was issued by Anthea Long, First Assistant Secretary of the Social Policy Division in the Department of the Treasury, acting as a delegate of the Treasurer. The primary objective of this direction is to ensure the efficient allocation of funds within the Medicare system, addressing any potential gaps or delays in the transfer of funds that could impact healthcare funding. The direction is intended to take effect immediately after registration, with specific provisions for the timing of the transfer contingent on the occurrence of related crediting events as outlined in the Medicare Guarantee (2024-25 Credit to the Treasury Special Account) Determination (No. 1) 2024.
Scope and Application
The Medicare Guarantee (Transfer to the Health Special Account) Direction (No. 1) 2024 applies to the transfer of funds between specified special accounts under the Medicare Guarantee Act 2017. This direction is made under the authority of the First Assistant Secretary of the Social Policy Division in the Department of the Treasury, who is acting as a delegate of the Treasurer. The Act governs the management of funds within the Medicare Guarantee Fund, particularly concerning the transfer of funds between the Medicare Guarantee Fund (Treasury) Special Account and the Medicare Guarantee Fund (Health) Special Account. This direction specifies the amount to be transferred and the timing of the transfer, ensuring compliance with the legislative framework established by the Act. The direction applies to the Commonwealth of Australia and is effective from the date it is registered, with certain provisions taking effect immediately and others contingent on specific conditions, such as the crediting of funds as outlined in the Medicare Guarantee (2024-25 Credit to the Treasury Special Account) Determination (No. 1) 2024. There are no stated exclusions, exemptions, or thresholds within the direction itself, though the broader application and interpretation of the Act may include such provisions. The direction does not extend or restrict the application of the Act through subordinate instruments but rather operationalises specific provisions within the legislative framework.
Key Provisions
The Medicare Guarantee (Transfer to the Health Special Account) Direction (No. 1) 2024 primarily addresses the transfer of funds from one special account to another. Specifically, section 5 of the instrument directs that an amount of $46 billion be debited from the Medicare Guarantee Fund (Treasury) Special Account and credited to the Medicare Guarantee Fund (Health) Special Account (section 5). This transfer is to take place on the day this section commences, which is determined according to the table in section 2 (2) of the instrument. The commencement of this section is contingent on both the instrument being registered and the crediting of funds as specified in the Medicare Guarantee (2024-25 Credit to the Treasury Special Account) Determination (No. 1) 2024 (section 2 (2) (b)).
The obligations imposed by this direction are primarily administrative and financial. The Department of the Treasury, through the First Assistant Secretary, Social Policy Division, is mandated to ensure that the transfer of $46 billion from the Medicare Guarantee Fund (Treasury) Special Account to the Medicare Guarantee Fund (Health) Special Account is accurately executed on the specified date. This involves coordinating with relevant financial entities to ensure the debit and credit operations are completed as directed. The instrument also implies an obligation for proper record-keeping and reporting to ensure transparency and accountability in the financial management of these funds.
There are no specific offences, penalties, or consequences outlined within this instrument for failing to comply with its provisions. However, given the statutory context under the Medicare Guarantee Act 2017, any failure to comply with the direction could potentially lead to legal consequences under the Act itself. The Act may include provisions for penalties or other enforcement mechanisms for non-compliance, although these are not explicitly detailed in this particular direction. The reliance on the Medicare Guarantee Act 2017 suggests that any breaches could be subject to the penalties and enforcement measures stipulated in that broader legislative framework.