National Health Act 1961

Legislation au C1961A00016 Not in force Act

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NATIONAL HEALTH.

 

No. 16 of 1961.

An Act to amend the National Health Act 1953-1959, and for other purposes.

[Assented to 11th May, 1961.]

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

Short title and citation.

1.—(1.) This Act may be cited as the National Health Act 1961.

(2.) The National Health Act 1953-1959 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the National Health Act 1953-1961.

Commencement.

2.—(1.) Subject to the next succeeding sub-section, this Act shall come into operation on the day on which it receives the Royal Assent.

(2.) Sections three, six, seven and ten of this Act shall come into operation on the first day of July, One thousand nine hundred and sixty-one.

Interpretation.

3. Section thirteen of the Principal Act is amended by omitting from sub-section (1.) the definition of “contributor” and inserting in its stead the following definition:—

“‘contributor’ means a person who pays contributions, or on whose behalf contributions are paid, to the medical benefits fund conducted by a registered medical benefits organization, being a person—

(a) who is, if there is rendered to him any one of all the professional services specified in the First Schedule to this Act, entitled, subject to the rules of the registered organization—

(i) to receive from the registered organization a fund benefit of an amount equal to, or greater than, the amount specified in that Schedule in relation to the professional service; or

(ii) to have the professional service provided without charge under a contract arrangement; or


(b) by whom or on whose behalf contributions to that medical benefits fund have been continuously payable from a date as at which he was a contributor within the meaning of the definition of ‘contributor’ that was in force for the purposes of this Part at that date,

and, except in relation to the payment of contributions, includes a dependant of such a person;”.

Amount of Commonwealth benefit payable where two or more operations are performed.

4. Section sixteen of the Principal Act is amended by omitting paragraph (e) of sub-section (1.) and inserting in its stead the following paragraph:—

“(e) where more than two operations are so performed and the amounts specified in relation to those operations in either of those Schedules are not all the same—the maximum amount that can be obtained by aggregating—

(i) the amount so specified in relation to any one of those operations;

(ii) one-half of the amount so specified in relation to any other of those operations; and

(iii) one-quarter of the amount so specified in relation to each remaining operation,

or Twenty-two pounds ten shillings, whichever is the less.”.

Conditions to be complied with by proprietor of private hospital.

5. Section forty-five of the Principal Act is amended by inserting in paragraph (b) of sub-section (2.), before the word “if”, the words “whether or not the Director-General has given a direction under the last preceding paragraph,”.

Interpretation.

6. Section sixty-six of the Principal Act is amended by inserting in sub-section (1.), after the definition of “contributor”, the following definition:—

“‘extra charges’ means charges made by a hospital, in addition to fees for hospital treatment, by way of theatre fees or charges for drugs, dressings (including plaster), special nursing or laundry services;”;

Rules of organization establishing special account to contain certain provisions.

7. Section eighty-two e of the Principal Act is amended by omitting paragraph (i) of sub-section (1.) and inserting in its stead the following paragraph:—

“(i) in the case of a registered hospital benefits organization, the amount of hospital fund benefit payable in respect of the period covered by any claim in respect of a special account contributor does not exceed the amount (if any) by which the sum of the gross


fees and extra charges incurred in respect of the contributor during that period exceeds the sum of—

(i) an amount calculated at the rate of Eight shillings for each day of that period;

(ii) the amount of additional benefit payable by the Commonwealth under Part V. of this Act in respect of that period;

(iii) the amount of hospital fund benefit (if any) paid or payable in respect of the contributor by any other registered hospital benefits organization in respect of that period; and

(iv) any amount paid or payable by the registered hospital benefits organization, by any other registered hospital benefits organization or by any registered medical benefits organization in respect of the extra charges incurred in respect of the contributor during that period;”.

Pharmaceutical Benefits Advisory Committee.

8. Section one hundred and one of the Principal Act is amended by omitting sub-sections (1.) and (2.) and inserting in their stead the following sub-sections:—

“(1.) There shall be a committee, called the Pharmaceutical Benefits Advisory Committee, which shall, subject to the next succeeding sub-section, consist of—

(a) an officer, being a pharmacist, of the Commonwealth Department of Health appointed by the Director-General;

(b) six medical practitioners appointed by the Minister from among ten medical practitioners nominated by the Federal Council of the British Medical Association in Australia; and

(c) a pharmaceutical chemist appointed by the Minister from among three pharmaceutical chemists nominated by the Federated Pharmaceutical Service Guild of Australia.

“(2.) The Minister may also appoint a pharmacologist to be a member of the Committee.

“(2a.) The exercise or performance of the powers or functions of the Committee is not affected by reason only of there being a vacancy in the office of a member of the Committee.”.

9. After section one hundred and twenty of the Principal Act the following section is inserted:—

Vacancies in Committees.

“120a. The exercise or performance of the powers or functions of a Committee is not affected by reason only of there being a vacancy in the office of a member of the Committee.”.

Repeal of s. 3 of National Health Act 1959.

10. Section three of the National Health Act 1959 is repealed.

Overview

The National Health Act 1961 was enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia to amend the National Health Act 1953-1959, addressing certain gaps and updating provisions within the healthcare framework. The legislation introduced several amendments, including changes to the definition of a "contributor," adjustments to the amount of Commonwealth benefit payable for multiple operations, modifications to the conditions required by proprietors of private hospitals, and the establishment of the Pharmaceutical Benefits Advisory Committee to provide expert advice on pharmaceutical benefits. These amendments aimed to refine and enhance the existing health legislation, ensuring that it met the evolving needs of the Australian population. The policy objective was to improve the administration and delivery of health services within the national framework, ensuring better healthcare outcomes for all Australians.

Scope and Application

The National Health Act 1961 applies to the entities and individuals involved in the administration and provision of health services in Australia, including registered medical and hospital benefits organizations, contributors to these organizations, and hospitals providing treatment. This Act amends the National Health Act 1953-1959, thereby extending its application to new provisions concerning the payment of benefits, the conduct of hospitals, and the establishment of advisory committees. The Act operates at the Commonwealth level, impacting the entire nation. Certain exclusions and conditions are specified within the text, particularly regarding the payment of benefits and the establishment of special accounts by hospital benefits organizations. The Act also allows for the creation of subordinate instruments to further define and regulate its application, thereby extending or restricting its scope as necessary to achieve its objectives.

Key Provisions

The National Health Act 1961 (C1961A00016) amends the National Health Act 1953-1959, incorporating significant changes to various provisions. One of the main changes involves the definition of "contributor" under section 3, which now refers to individuals who pay or have contributions paid on their behalf to a medical benefits fund, ensuring they are entitled to specific benefits or services as outlined in the Act (section 3). Another significant amendment is the alteration of the amount of Commonwealth benefit payable for multiple operations, now allowing the maximum amount to be obtained by aggregating certain specified fractions of the operation costs, or Twenty-two pounds ten shillings, whichever is the least (section 4). The Act imposes several obligations on the parties it governs. For instance, proprietors of private hospitals must comply with certain conditions, particularly when the Director-General issues a direction under a specific paragraph (section 5). Additionally, registered hospital benefits organisations must ensure that the amount of hospital fund benefits payable for special account contributors does not exceed a calculated amount, considering various factors such as gross fees, extra charges, and any other payable benefits (section 7). Furthermore, the Act mandates the establishment of the Pharmaceutical Benefits Advisory Committee, comprising specific members appointed by relevant authorities, to advise on pharmaceutical benefits (section 8). Failure to comply with the provisions of the Act may result in various consequences. Although the Act does not explicitly state penalties, non-compliance with the defined obligations could potentially lead to administrative or legal actions. For example, if a private hospital proprietor fails to comply with the conditions set forth in section 5, they may face enforcement actions by the relevant authorities. Similarly, hospitals that do not adhere to the stipulated limits on fund benefits for special account contributors could be subject to financial penalties or other corrective measures. Moreover, any vacancies in the committees established by the Act do not impede the exercise of their powers or functions (section 120a). In summary, the National Health Act 1961 introduces amendments to the existing National Health Act 1953-1959, focusing on the redefinition of contributors, altering benefit calculations for multiple operations, imposing specific conditions on private hospital proprietors, and establishing a new advisory committee on pharmaceutical benefits. The Act outlines clear obligations for compliance but does not explicitly state penalties, leaving potential enforcement to be handled through other legal or administrative measures.

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Health Law
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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.