National Health Amendment Act 1980

Administered by Department of Health, Disability and Ageing

Legislation au C2004A02318 Not in force Act

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No. 117 of 1980

An Act to amend the National Health Act 1953

[Assented to 8 September 1980]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the National Health Amendment Act 1980.

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

Commencement

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

Approval of nursing home

3. Section 40aa of the Principal Act is amended by inserting after sub-section (5a) the following sub-section:

“(5b) For the purposes of the operation of the condition set out in paragraph (b) of sub-section (5a), any Commonwealth benefit or nursing home fund benefit that would be payable to the proprietor of a nursing home but for the suspension of the approval of the nursing home shall be deemed to be payable to that proprietor.”.

Approval of admission of a person to an approved nursing home

4. Section 40ab of the Principal Act is amended by inserting after sub-section (4) the following sub-section:

“(4a) The Permanent Head may refuse to approve an application for the admission of a person to an approved nursing home if the admission is to take place during a period of suspension of the approval of the nursing home.”.

5. After section 43 of the Principal Act the following section is inserted:

Furnishing of audited accounts by proprietors of certain approved nursing homes

“43a. (1) The Permanent Head may, by notice in writing served by post on the proprietor of an approved nursing home (other than a Government nursing home), request the proprietor of the nursing home to prepare, from the records kept by him in accordance with section 61, such accounts with respect to the nursing home as are specified in the notice and to furnish a copy of the accounts so prepared, together with the report referred to in sub-section (3), to the Permanent Head.

“(2) A notice under sub-section (1) shall specify the manner in which, and the period in respect of which, the accounts to which the notice relates are to be prepared.

“(3) Before furnishing to the Permanent Head under sub-section (1) a copy of accounts prepared with respect to a nursing home, the proprietor of the nursing home shall cause a person having the prescribed qualifications to audit those accounts and to report whether, in his opinion, the accounts were properly drawn up so as to give a true and fair view of the income and expenditure of the nursing home in respect of the period to which the accounts relate.

“(4) Where, at the expiration of a period of 3 months, or of such longer period as the Permanent Head allows, after the service on the proprietor of a nursing home of a notice under sub-section (1), the proprietor of the nursing home has not complied with the notice, the Permanent Head may, by notice in writing served by post on the proprietor of the nursing home—

(a) suspend the approval of the nursing home for such period as is specified in the notice (not being a period that commences before the date of service of the notice); or

(b) revoke the approval of the nursing home.”.

Variation, revocation or suspension of approval by Permanent Head

6. Section 44 of the Principal Act is amended—

(a) by inserting in sub-section (2) “or suspend” after “revoke”; and

(b) by adding at the end thereof the following sub-section:

“(4) A variation of the nature of, or a revocation or suspension of, an approval of a nursing home under this section shall be effected by notice in writing served by post on the proprietor of the nursing home, and, in the case of a notice suspending an approval, the notice shall set out the period of the suspension (not being a period that commences before the date of service of the notice).”.

Review by Minister

7. Section 45 of the Principal Act is amended—

(a) by omitting paragraph (b) of sub-section (2) and substituting the following paragraph:

“(b) approval as an approved nursing home has been revoked or suspended, or a period of suspension of that approval has been extended, by the Permanent Head,”; and

(b) by omitting from sub-section (3) “grant such approval” and substituting “take such other action with respect to the approval of the nursing home”.

8. After section 45 of the Principal Act the following sections are inserted in Part V:

Revocation or extension of suspension

“45a. (1) Where, at any time during a period of suspension of the approval of a nursing home, the Permanent Head is satisfied that, by reason of action taken by the proprietor, or other change of circumstance, with respect to the nursing home, the suspension should be terminated, the Permanent Head shall, by notice in writing served by post on the proprietor of the nursing home, terminate the suspension accordingly.

“(2) Subject to sub-section (1), the Permanent Head, at any time during the period of suspension of the approval of a nursing home, may, by notice in writing served by post on the proprietor of the nursing home, revoke the approval or extend the period of suspension of the approval to a date specified in the notice.

Effect of suspension of approval of nursing home

“45b. Notwithstanding the suspension of the approval of a nursing home under this Act, that approval, subject to the operation of the following provisions, remains in force for all purposes:

(a) sub-section (5b) of section 40aa;

(b) sub-section (4a) of section 40ab;

(d) sub-section (1a) of section 73c”.

9. After section 49 of the Principal Act the following section is inserted:

Commonwealth benefit not payable if approval of nursing home suspended

“49a. The proprietor of an approved nursing home is not entitled to Commonwealth benefit in respect of any day that is included in a period of suspension of the approval of the nursing home.”.

10. Sections 61 and 62 of the Principal Act are repealed and the following sections substituted:

Records to be kept by proprietors of approved nursing homes

“61. (1) The proprietor of an approved nursing home shall keep such records as will enable claims for Commonwealth benefits to be verified and enable compliance with the conditions to which the approval of the nursing home is subject to be verified.

Penalty: $1,000.

“(2) Where the Permanent Head considers that it would facilitate the administration of this Act in relation to a particular approved nursing home (not being a Government nursing home) if the proprietor of the approved nursing home were required to keep further records with respect to the nursing home in addition to the records referred to in sub-section (1), the Permanent Head may, by notice in writing served by post on the proprietor of that approved nursing home, require the proprietor, on and after a date specified in the notice (not being a date earlier than the date of service of the notice), to keep such further records accordingly.

“(3) A notice under sub-section (2) shall specify—

(a) the particulars of the further records required to be kept by the proprietor of the approved nursing home concerned; and

(b) the manner in which those further records are to be kept.

“(4) The proprietor of an approved nursing home shall comply with any notice served on him under sub-section (2).

Penalty: $1,000.

“(5) The proprietor of an approved nursing home shall permit any records kept by him in accordance with sub-section (1), or with a notice under sub-section (2), to be inspected at any reasonable time by an officer or person authorized to make inspections of those records.

Penalty for any contravention of this sub-section: $1,000.

Offences

“62. (1) A person shall not make a statement, either orally or in writing, or issue or present a document containing information, that is false or misleading in a material particular and is capable of being used in, in connection with or in support of—

(a) an application under section 40aa for approval of premises as an approved nursing home;

(b) an application under section 40ae to alter the conditions applicable to a nursing home;

(d) an application under section 40ag for a determination with respect to a patient of a nursing home;

(e) a request under sub-section (1) of section 45 to vary the nature of an approval of a nursing home; or

(f) a claim for Commonwealth benefit. Penalty: $10,000 or imprisonment for 5 years.

“(2) A person shall not, in pursuance of a request made under section 60b, furnish information that is false or misleading in a material particular.

Penalty: $10,000 or imprisonment for 5 years.

“(3) In a prosecution of a person for an offence against this section, it is a defence if the person proves that he did not know, and had no reason to suspect, that the statement or information to which the prosecution relates was false or misleading, as the case may be.

Prosecutions

“63. (1) Subject to sub-section (2), a prosecution for an offence against section 62 shall be on indictment.

“(2) Where a person is charged with an offence against section 62, a court of summary jurisdiction may, with the consent of the defendant and of the prosecutor and if the court is satisfied that it is proper to do so, determine the charge summarily, but, in that event, the penalty that the court may impose is a fine not exceeding $2,000 or imprisonment for a period not exceeding 12 months.

“(3) For the purposes of this section, an offence created by section 5 or 7 of the Crimes Act 1914 shall, to the extent that it relates to an offence against section 62, be deemed to be an offence against that section.”.

Conditions of registration relating to nursing home care

11. (1) Section 73c of the Principal Act is amended by inserting after sub-section (1) the following sub-section:

“(1a) Sub-section (1) does not require provision for the payment of a benefit to the proprietor of a nursing home in respect of any day that is included in a period of suspension of the approval of the nursing home.”.

(2) The amendment made by sub-section (1) applies in relation to all registered organizations, whether registered before or registered after the commencement of this section.

Overview

The National Health Amendment Act 1980 is an Act of the Commonwealth Parliament that amends the National Health Act 1953 to introduce a series of provisions concerning the approval, operation, and oversight of nursing homes within Australia. This amendment was enacted to address the need for more stringent regulatory measures regarding the administration and approval of nursing homes, particularly in ensuring financial accountability and the quality of care provided. By introducing measures such as the suspension and revocation of nursing home approvals based on non-compliance with regulations, and by requiring proprietors to furnish audited accounts, the Act aims to enhance the transparency and accountability of nursing home operations, thereby protecting the interests of both residents and the government. The policy objective of the National Health Amendment Act 1980 is to ensure that nursing homes maintain high standards of care and financial integrity. This is achieved by empowering the Permanent Head to suspend or revoke the approval of a nursing home if certain conditions are not met, such as the proprietor’s failure to provide required audited accounts or if the nursing home is operated during a suspension period. Additionally, the Act aims to prevent the payment of Commonwealth benefits to proprietors during periods when the nursing home's approval is suspended, thereby aligning financial incentives with compliance and quality of care.

Scope and Application

The National Health Amendment Act 1980 applies to the proprietors of approved nursing homes and the approval process for such institutions under the National Health Act 1953. This Act extends to the entire Commonwealth of Australia and concerns itself with the administration, approval, and regulation of nursing homes that are eligible for Commonwealth benefits. It specifies the conditions under which the approval of a nursing home may be suspended or revoked, the obligations of the nursing home proprietors regarding the furnishing of audited accounts and record-keeping, and the consequences of non-compliance, including the suspension of benefits. The Act also includes provisions for the review of suspension decisions by the Minister and sets out penalties for providing false or misleading information. The Act's application can be extended or restricted through subordinate instruments, such as regulations or notices, issued by the Permanent Head under the authority of the Act. There are no stated exclusions, exemptions, or specific thresholds in the Act, although certain provisions apply specifically to non-Government nursing homes.

Key Provisions

The National Health Amendment Act 1980 primarily focuses on amending the National Health Act 1953 in relation to nursing homes and their approvals. Key sections include the insertion of sub-section (5b) in section 40aa, which addresses the payment of benefits during suspension periods of nursing home approvals (Section 3). Additionally, sub-section (4a) is inserted in section 40ab, enabling the Permanent Head to refuse admission applications during suspension periods (Section 4). Section 43a is introduced, requiring proprietors of approved nursing homes to furnish audited accounts and reports to the Permanent Head (Section 5). The Act imposes several obligations on the parties it governs. For example, it mandates that the proprietor of an approved nursing home must keep records that verify claims for Commonwealth benefits and compliance with approval conditions (Section 61). The Permanent Head has the authority to request additional record-keeping requirements and may suspend or revoke the approval of a nursing home if the proprietor fails to comply with certain notices or conditions (Sections 5 and 6). Furthermore, the proprietor must permit inspections of the records by authorized officers (Section 61(5)). Failure to comply with the requirements of the Act can lead to various consequences. For instance, making false or misleading statements or documents in relation to nursing home approvals, applications, or claims can result in penalties of up to $10,000 or imprisonment for 5 years (Section 62(1)). Additionally, the proprietor's failure to keep required records or permit inspections can incur penalties of up to $1,000 (Sections 61(1) and 61(5)). Prosecutions for offences against section 62 can be on indictment, with a summary jurisdiction option available under specific conditions (Section 63). The Act also includes provisions for the review and revocation or extension of suspensions by the Permanent Head (Sections 7 and 8).

Area of Law: Health Law; Administrative Law
Instrument: Act
Concepts: Definitions & Interpretation; Offence Provisions; Reporting & Disclosure Obligations; Regulatory Standards; Enforcement Powers

Interactions

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.

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