Mental Institution Benefits Act 1948

Legislation au C1948A00078 Not in force Act

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MENTAL INSTITUTION BENEFITS.

 

No. 78 of 1948.

An Act relating to Mental Institution Benefits.

[Assented to 17th December, 1948.]

BE it enacted by the Kings Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title.

1. This Act may be cited as the Mental Institution Benefits Act 1948.


Commencement.

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Agreements relating to mental institution benefits.

3. The execution, on behalf of the Commonwealth, of agreements with all or any of the States, relating to the provision of mental institution benefits, substantially in accordance with the heads of agreement set out in the Schedule to this Act, is hereby authorized.

Payments to be made from National Welfare Fund.

4. Payments for the purposes of any agreement the execution of which is authorized by this Act shall be made out of the Trust Account established under the National Welfare Fund Act 1943-1945 and known as the National Welfare Fund.

 

THE SCHEDULE. Section 3.

MENTAL INSTITUTION BENEFITS: HEADS OF AGREEMENT.

1. The agreement shall not have any force or effect unless and until authorized or approved by the Parliament of the State concerned.

2. The agreement shall be in force for a minimum period of five years and thereafter shall be subject to termination after (here specify a period of notice by either party of not less than one year).

3. The Commonwealth shall, subject to compliance by the State with the provisions of the agreement, pay to the State, by way of financial assistance, in respect of qualified persons in mental institutions, amounts determined in accordance with the agreement.

4. The amount to be paid by the Commonwealth to the State for any financial year or part thereof in respect of qualified persons shall be determined by multiplying the Commonwealth Mental Institution Benefit Rate by the number of patient-days in that financial year or part thereof.

5. The State shall ensure that no means test is imposed on, and that no fees are charged to or in respect of, qualified persons.

6. The State shall ensure that, except with the concurrence of the Commonwealth, no charge is made to or in respect of qualified persons for services or comforts for which it was not customary to make a charge as at the first day of November, 1948.

7. For the purposes of the agreement, the number of patient-days in a financial year or part thereof shall be the sum of the number of complete days on which each qualified person was a patient in a mental institution during that financial year or part thereof (the day of admission and the day of discharge being together counted as one day).

8. The agreement may contain such incidental and supplementary provisions as are necessary to give effect to the Commonwealth Mental Institution Benefits Scheme.

9. The agreement shall contain definitions substantially to the following effect and such other definitions as are necessary:—

the Commonwealth Mental Institution Benefit Rate means (here insert amount) or such other rate as is, from time to time, agreed upon between the Commonwealth and the State;

mental institution means a hospital for the insane, mental hospital, reception house, receiving house or similar institution which—

(a) is conducted by the State or is in receipt of a grant for maintenance from the State; and

(b) is for the time being approved by the Commonwealth for the purposes of the agreement;

qualified person means a patient in a mental institution who was ordinarily resident in Australia at the time of admission to the mental institution, but does not include a patient whose fees are borne by the Commonwealth or by another State.

Overview

The Mental Institution Benefits Act 1948 was enacted to address the need for a coordinated approach to the provision of mental health care benefits across the states and territories of Australia. This legislation authorises the Commonwealth to enter into agreements with individual states to provide financial assistance for qualified individuals in mental institutions, aiming to ensure that such individuals receive care without financial barriers. The payments for these benefits are to be made from the National Welfare Fund, established under the National Welfare Fund Act 1943-1945. The policy objective behind the Act is to standardise and support mental health care across the nation, ensuring that states can provide necessary services to those in need without imposing means tests or additional fees on patients. This Act was assented to by the King's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, and it came into operation immediately upon receiving Royal Assent.

Scope and Application

The Mental Institution Benefits Act 1948 applies to the execution of agreements between the Commonwealth and the States regarding the provision of financial assistance for qualified persons in mental institutions. These qualified persons must have been ordinarily resident in Australia at the time of their admission to the mental institution and must not have their fees borne by the Commonwealth or another State. The Act authorises the Commonwealth to make payments out of the National Welfare Fund to the States in accordance with these agreements, which are subject to parliamentary approval and can be terminated with at least one year's notice. The agreements specify that no means tests or additional fees can be imposed on qualified persons, and that any charges for services or comforts must align with customary practices as of 1 November 1948. The Act applies to the Commonwealth and each State that enters into an agreement, with the payments and conditions defined within the agreements themselves.

Key Provisions

The Mental Institution Benefits Act 1948 (hereinafter referred to as the "Act") sets forth the framework for agreements between the Commonwealth and the States regarding the provision of benefits to individuals in mental institutions. Under Section 3, the Act authorises the execution of agreements with all or any of the States that align with the heads of agreement outlined in the Schedule. The agreement's primary objective is to provide financial assistance to States for the care of qualified persons in mental institutions, ensuring that no means test is imposed on these individuals and that no fees are charged to or in respect of them (Schedule, Clause 5). Additionally, the agreement mandates that no charges are made to or in respect of qualified persons for services or comforts for which it was not customary to make a charge as of 1 November 1948, except with the concurrence of the Commonwealth (Schedule, Clause 6). The Act imposes several obligations on the parties involved. Firstly, the agreement must be authorised or approved by the Parliament of the State concerned to have any legal force or effect (Schedule, Clause 1). The agreement is in force for a minimum period of five years, and thereafter it can be terminated by either party with at least one year's notice (Schedule, Clause 2). Furthermore, the State is obligated to ensure that qualified persons, who are patients in mental institutions and were ordinarily resident in Australia at the time of admission, are not subjected to means tests or fees (Schedule, Clause 5). The State must also adhere to the terms of the agreement, including the definition of "qualified person" and "mental institution" as specified (Schedule, Clause 8). Breach of the terms of the agreement could result in the cessation of financial assistance from the Commonwealth to the State for the care of qualified persons in mental institutions. While the Act does not explicitly state offences or penalties for breaches, the potential consequences of non-compliance could include the termination of the agreement, leading to the loss of financial support. The Act does not provide specific maximum penalties for breaches but implies that failure to comply with the terms could result in the agreement being void, thereby impacting the financial assistance provided by the Commonwealth.

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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.