Medicare Guarantee (Transfers to the Health Special Account) Direction (No. 1) 2025
I, Anthea Long, First Assistant Secretary, Social Policy Division, Fiscal Group, Department of the Treasury, delegate of the Treasurer, make the following direction.
Dated 27 March 2025
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 (Transfers to the Health Special Account) Direction (No. 1) 2025.
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. The whole of this instrument | The later of: (a) immediately after this instrument is registered; and (b) immediately after the crediting referred to in section 5 of the Medicare Guarantee (2025-26 Credit to the Treasury Special Account) Determination (No. 1) 2025 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Note: This table relates only to the provisions of this instrument as originally made.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 $52,000,000,000 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 (Transfers to the Health Special Account) Direction (No. 1) 2025 was enacted to facilitate the transfer of funds from the Medicare Guarantee Fund (Treasury) Special Account to the Medicare Guarantee Fund (Health) Special Account as authorised by the Medicare Guarantee Act 2017. This legislative instrument addresses the need for a clear mechanism to manage the financial flows associated with the Medicare Guarantee Fund, ensuring that the funds are appropriately allocated to the Medicare Guarantee Fund (Health) Special Account to support healthcare services. The enactment of this direction is a measure to ensure that the funds are managed efficiently and in accordance with the provisions of the Medicare Guarantee Act 2017. The policy objective of this direction is to streamline the financial administration of the Medicare Guarantee Fund, enhancing the efficiency and effectiveness of healthcare funding in Australia.
Scope and Application
The Medicare Guarantee (Transfers to the Health Special Account) Direction (No. 1) 2025 applies to the transfer of funds between two special accounts within the framework established by the Medicare Guarantee Act 2017. This direction pertains to financial transactions managed by the Department of the Treasury, specifically involving the Medicare Guarantee Fund (Treasury) Special Account and the Medicare Guarantee Fund (Health) Special Account. The direction is issued under the authority of the Treasurer and executed by the First Assistant Secretary of the Social Policy Division within the Department of the Treasury. The instrument specifies the transfer of a significant amount, $52 billion, to be moved from the Medicare Guarantee Fund (Treasury) Special Account to the Medicare Guarantee Fund (Health) Special Account upon the commencement of this direction. The instrument is designed to ensure compliance with the legislative provisions outlined in the Medicare Guarantee Act 2017, with definitions and terms referenced in that Act. The direction's commencement is tied to the crediting event specified in another determination, ensuring a coordinated implementation within the legislative framework.
Key Provisions
The Medicare Guarantee (Transfers to the Health Special Account) Direction (No. 1) 2025 outlines the transfer of a specific amount from one special account to another. According to section 5, the Direction mandates the transfer of $52 billion from the Medicare Guarantee Fund (Treasury) Special Account to the Medicare Guarantee Fund (Health) Special Account, effective on the commencement date specified in section 2. This transfer is governed by section 14 of the Medicare Guarantee Act 2017. The Direction is effective immediately after registration and after the crediting event mentioned in the Medicare Guarantee (2025-26 Credit to the Treasury Special Account) Determination (No. 1) 2025, as detailed in section 2(1).
The Direction imposes specific obligations on the Department of the Treasury and related entities to ensure the timely and accurate transfer of funds as outlined. It mandates the completion of this financial transfer within the specified timeframes, ensuring that the funds are moved from the Treasury account to the Health account without delay. The Direction also ensures that all related records and documentation are maintained in accordance with the requirements of the Medicare Guarantee Act 2017.
There are no explicit offences or penalties stated within the Direction itself; however, any failure to comply with the requirements of the Medicare Guarantee Act 2017 or the Direction could result in legal consequences. Such consequences could include administrative penalties, legal actions, or other sanctions as prescribed by the Act. The severity of these consequences would depend on the nature and extent of the breach, with potential maximum penalties varying based on the specific provisions of the Act that are contravened.