EXPLANATORY STATEMENT
Select Legislative Instrument 2012 No. 299
National Health Act 1953
National Health (Pharmaceutical Benefits) Amendment Regulation 2012 (No. 5)
Section 140 of the National Health Act 1953 (the Act) provides, in part, that the Governor‑General may make regulations, not inconsistent with the Act, prescribing all matters which by the Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act. In particular, this includes prescribing the fees and allowances payable to members of a committee established under the Act, other than members who are officers of the Public Service of the Commonwealth or of a state.
The Pharmaceutical Benefits Advisory Committee (PBAC) is established under section 100A of the Act. Its primary role is to make recommendations and give advice to the Minister for Health in relation to drugs and medicinal preparations seeking to be subsidised under the Pharmaceutical Benefits Scheme (PBS), and about drugs already listed on the PBS.
Section 101A of the Act provides that PBAC may establish sub-committees to assist it in performing its functions. The Drug Utilisation Sub-Committee (DUSC) and
Economic Sub-Committee (ESC) are sub-committees of the PBAC which are established in accordance with section 101A of the Act. DUSC and ESC undertake evaluation and analysis work to support PBAC’s deliberations. Subsection 101A(4) provides that sub-committees established under section 101A (i.e. DUSC and ESC) are “committees” for the purposes of section 140 and therefore are subject to regulations made under the Act.
Regulation 48 of the National Health (Pharmaceutical Benefits) Regulations 1960 (the Principal Regulations) sets the fees and allowances payable to the chair and members of DUSC and ESC as the amounts that are payable to the chair and members of professional committees under Schedule B to the Remuneration Tribunal Determination 2010/11: Remuneration and Allowances for Holders of Part-Time Public Office.
The purpose of the regulation is to update the Principal Regulations to reflect a more recent Remuneration Tribunal determination. The regulation ensures payment of PBAC sub-committee members of DUSC and ESC, is consistent with the Remuneration Tribunal Determination 2012/13: Remuneration and Allowances for Holders of Part-Time Public Office.
The Act specifies no conditions that need to be satisfied before the power to make the regulation may be exercised.
The regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The regulation commences on the day after it is registered on the Federal Register of Legislative Instruments.
Regulation 48 of the National Health (Pharmaceutical Benefits) Regulations 1960 sets the fees and allowances payable to the chair and members of the Drug Utilisation Sub-Committee (DUSC) and Economics Sub-Committee (ESC) to the amounts that are payable to the chair and members of professional committees under Schedule B to the Remuneration Tribunal Determination: Remuneration and Allowances for Holders of Part-Time Public Office (the Determination). A minor amendment to Regulation 48 updates the title of the Determination from ‘Remuneration Tribunal Determination 2010/11’ to ‘Remuneration Tribunal Determination 2012/13’. As the conditions of payment do not change following the amendment, and the payments to the chair and members of the respective committees increase marginally under the 2012/13 Determination, consultation with members of the ESC and DUSC was not necessary.
Authority: Section 140 of the
National Health Act 1953
Overview
The National Health Act 1953 was enacted to establish a framework for the provision of health services and the administration of health-related matters in Australia. This Act serves as the foundational legislation for the National Health and Medical Research Council, and it also establishes the Pharmaceutical Benefits Scheme (PBS). The National Health (Pharmaceutical Benefits) Amendment Regulation 2012 (No. 5) was introduced to update the fees and allowances payable to members of the Pharmaceutical Benefits Advisory Committee (PBAC) sub-committees, namely the Drug Utilisation Sub-Committee (DUSC) and the Economics Sub-Committee (ESC). This amendment was made to align with the Remuneration Tribunal Determination 2012/13: Remuneration and Allowances for Holders of Part-Time Public Office, reflecting the recent determinations of the Remuneration Tribunal. The regulation ensures that the remuneration of these committee members remains consistent with the latest standards set by the tribunal, thereby maintaining the integrity and functionality of the advisory committees within the PBS framework. The regulation was made under the authority of Section 140 of the National Health Act 1953 and is a legislative instrument governed by the Legislative Instruments Act 2003.
Scope and Application
The National Health (Pharmaceutical Benefits) Amendment Regulation 2012 applies to members of the Drug Utilisation Sub-Committee (DUSC) and Economic Sub-Committee (ESC) of the Pharmaceutical Benefits Advisory Committee (PBAC). These sub-committees, established under the National Health Act 1953, undertake evaluation and analysis work to support the PBAC's deliberations on drugs and medicinal preparations seeking to be subsidised under the Pharmaceutical Benefits Scheme (PBS). The Regulation specifically addresses the fees and allowances payable to the chairs and members of DUSC and ESC, aligning their remuneration with the Remuneration Tribunal Determination 2012/13: Remuneration and Allowances for Holders of Part-Time Public Office. The Regulation updates the previous remuneration structure as per the Remuneration Tribunal Determination 2010/11, ensuring that the payments are consistent with the most recent determination. The regulation operates nationally, applying across the Commonwealth of Australia, and there are no stated exclusions or thresholds within the text provided. The application of the Regulation is further extended or restricted through subordinate instruments, which are not detailed in the provided text.
Key Provisions
The key provisions of the National Health (Pharmaceutical Benefits) Amendment Regulation 2012 (No. 5) pertain to the fees and allowances payable to the members of the Drug Utilisation Sub-Committee (DUSC) and the Economic Sub-Committee (ESC) (regs 1–4). These regulations are made under section 140 of the National Health Act 1953 (the Act) and aim to update the remuneration for the members of the DUSC and ESC, aligning it with the Remuneration Tribunal Determination 2012/13: Remuneration and Allowances for Holders of Part-Time Public Office. Specifically, Regulation 48 of the National Health (Pharmaceutical Benefits) Regulations 1960 is amended to reflect the updated determination, ensuring that the fees and allowances for the chair and members of these sub-committees are in line with the latest determination.
The Act imposes specific obligations on the entities it governs, including the requirement for the chair and members of the DUSC and ESC to be paid in accordance with the updated Remuneration Tribunal Determination 2012/13. The Act also ensures that the payments made to the chair and members of professional committees, including those of the DUSC and ESC, are consistent with the amounts set out in Schedule B of the Determination. There are no specific procedural or reporting obligations imposed by the regulation, as the changes merely update the applicable remuneration determination without altering the fundamental nature of the payments or the role of the committees.
There are no specific offences, penalties, or civil or criminal consequences outlined in the regulation for non-compliance with the updated remuneration provisions. However, failure to adhere to the updated fees and allowances could potentially result in legal challenges or disputes over the correct remuneration, as the regulation is intended to ensure that payments are made in accordance with the latest determination. The regulation itself does not specify any penalties for non-compliance, but it is likely that any disputes would be resolved through the appropriate legal channels, potentially resulting in court orders or other remedies to enforce compliance with the updated remuneration provisions.
In summary, the National Health (Pharmaceutical Benefits) Amendment Regulation 2012 (No. 5) updates the fees and allowances for the members of the DUSC and ESC to align with the Remuneration Tribunal Determination 2012/13. The regulation imposes specific obligations on the entities it governs to ensure that the payments made to the chair and members of these committees are consistent with the updated determination. While the regulation does not outline specific offences or penalties for non-compliance, any disputes over remuneration would likely be resolved through the appropriate legal channels, potentially resulting in court orders or other remedies to enforce compliance with the updated remuneration provisions.