Medicare Guarantee (Transfers to the Health Special Account) Direction (No. 3) 2026
I, Jordan George, Acting First Assistant Secretary, Social Policy Division, Fiscal Group, Department of the Treasury, delegate of the Treasurer, make the following direction.
Dated 24 June 2026
Jordan George
Acting 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. 3) 2026.
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. 3) 2026 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Note: This table relates only to the provisions of this instrument as originally made.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 $1,000,000,000 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. 3) 2026 was enacted in 2026 by Jordan George, Acting First Assistant Secretary of the Social Policy Division in the Department of the Treasury, as a delegate of the Treasurer. This direction is made under the authority of the Medicare Guarantee Act 2017, and it seeks to address the need for efficient fund management within the Medicare system by facilitating the transfer of funds between specified special accounts. The primary objective of this instrument is to ensure that $1,000,000,000 is transferred from the Medicare Guarantee Fund (Treasury) Special Account to the Medicare Guarantee Fund (Health) Special Account as mandated by the Act. This transfer is crucial for maintaining the integrity and functionality of the Medicare system, ensuring that funds are appropriately allocated to meet health-related needs.
Scope and Application
The Medicare Guarantee (Transfers to the Health Special Account) Direction (No. 3) 2026 applies to the financial transactions of the Commonwealth of Australia, specifically the transfer of funds within the Medicare Guarantee Fund. The authority for this direction stems from the Medicare Guarantee Act 2017, and the definitions used align with those in the Act. This instrument directs a transfer of $1,000,000,000 from the Medicare Guarantee Fund (Treasury) Special Account to the Medicare Guarantee Fund (Health) Special Account, as per section 14 of the Act. The direction becomes effective on the later of the registration of the instrument or the occurrence of the crediting event specified in the Medicare Guarantee (2025-26 Credit to the Treasury Special Account) Determination (No. 3) 2026. The application of this direction is limited to the financial accounts specified within the Medicare Guarantee Act 2017 and does not extend to other entities or industries outside the scope of the Act.
Key Provisions
The Medicare Guarantee (Transfers to the Health Special Account) Direction (No. 3) 2026 outlines specific financial transfers within the Medicare Guarantee Fund. Section 5 of Part 2 mandates the transfer of $1,000,000,000 from the Medicare Guarantee Fund (Treasury) Special Account to the Medicare Guarantee Fund (Health) Special Account. This transfer is to occur on the day the Direction commences, aligning with section 14 of the Medicare Guarantee Act 2017.
The Direction imposes several obligations on relevant parties. First, it requires the Department of the Treasury to ensure that the specified amount is debited from the Medicare Guarantee Fund (Treasury) Special Account and credited to the Medicare Guarantee Fund (Health) Special Account as per section 5. This ensures the financial realignment is executed correctly and timely, in line with the Act’s provisions. Additionally, the Direction mandates that the transfer is to occur on the specified commencement date, which is the later of the registration of this Direction or the crediting event referred to in section 5 of the Medicare Guarantee (2025-26 Credit to the Treasury Special Account) Determination (No. 3) 2026.
Failure to comply with the Direction may result in various consequences. Although specific offences, penalties, or civil/criminal consequences are not outlined in the Direction itself, breaches of the Medicare Guarantee Act 2017 could lead to enforcement actions by the Department of the Treasury or other relevant authorities. The Act provides a framework for penalties that may apply in such cases, and these could include fines or other sanctions depending on the nature and severity of the breach. It is essential for parties governed by the Act to adhere to the Direction to avoid potential legal repercussions.