National Health Regulations (Amendment)

Administered by Department of Health, Disability and Ageing

Legislation au F1996B03242 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

SUBJECT - NATIONAL HEALTH ACT 1953

NATIONAL HEALTH REGULATIONS (AMENDMENT)

1990 No. 24

ISSUED ON THE AUTHORITY OF THE MINISTER FOR COMMUNITY SERVICES AND HEALTH

Section 140 of the National Health Act 1953 (the Act) provides that the Govenor-General may make Regulations, not inconsistent with the Act, prescribing all matters required or permitted to be prescribed or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Section 68 of the Act provides for applications to be made by organizations wishing to become registered health benefits organizations for the purposes of the Act. Subsection 69(1) provides that the National Health Regulations (the Regulations) shall make provision for, and in relation to, the manner and form in which such applications are to be lodged and the documents and information which are to accompany them.

Regulation 19 of the Regulations sets out, for the purposes of subsection 69(1), the documents and information required to accompany such applications. It also requires the applications to be in accordance with an authorized form. The new Regulations have made amendments to Regulation 19 to modify some of these current requirements. Details of the proposed amendments to Regulation 19 are set out in Attachment A.

Subsection 68(1D) of the Act has only recently been inserted into the Act. It commenced operation on 15 November 1989. It allows an organization already registered to apply to carry on business in States other than those in respect of which it is already registered.

Subsection 69(1) also provides that the Regulations shall make provision for the manner and form in which these applications are to be lodged and the documents and information which are to accompany them. Until now, however, the Regulations have not made such provision. The new Regulations, therefore, have inserted a new Regulation 19A into the Regulations to cover such matters. This Regulation provides for such applications to be made in accordance with an approved form and also sets out the information and documents which must accompany them. Details of the new Regulation 19A are set out in Attachment B.

Regulation 20 of the Regulations allows the Secretary of the Department of Community Services and Health to require an organization applying for registration under section 68 of the Act to furnish him with specified additional information relating to the documents already required to be provided by Regulation 19 or the general affairs, finances or conduct of the organization.


The new Regulations have amended Regulation 20 to allow the Secretary to also request such information from registered organizations applying under subsection 68 (1D) of the Act to carry on business in States other than those in respect of which it is already registered.

ATTACHMENT A

AMENDMENTS TO REGULATION 19

Regulation 19 of the Regulations requires applications for registration to be made in accordance with an authorized form accompanied by the documents and information set out in the Regulation. The new Regulations have made a number of modifications to these requirements - most of which are of a minor and cosmetic nature.

The changes include, however, the addition of two further documents which will be required to accompany such applications. One is a statement signed by an actuary stating that the estimates made by the organization and provided under paragraphs (c), (d) and (f) of Regulation 19 (relating to assets and liabilities, income and expenditure, management and administrative expenses and fund contributions), are reasonable and consistent.

The other additional document is a statement setting out, in relation to each Director or other officer of the organization responsible for the conduct of the organization’s affairs, particulars of any employment or other experience relevant to the conduct of a business.


ATTACHMENT B

REGULATION 19A

The new Regulations have inserted a new Regulation 19A into the Regulations to make provision for the manner and form in which applications under subsection 68(1D) must be made.

The new Regulation requires such applications to be in accordance with the approved form and lodged with the Secretary to the Department of Community Services and Health.

The application is required to be accompanied by:

(i) Two copies of the rules and articles of association of the organization;

(ii) A statement estimating the assets and liabilities of the new fund proposed to be conducted in the new State or States;

(iii) A statement, in relation to the above proposed fund, estimating the anticipated income and expenditure of the fund during the first 12 months, the fund’s estimated assets and liabilities at the end of that period, and the estimated number of contributors to the fund at the end of that period;

(iv) A statement setting out the ratio that the estimated management and administrative expenses of the above fund bears to the estimated amount of contributions to the fund;

(v) A statement setting out the tables or classes of benefits to be offered in the above fund, the contributions in respect of those benefits and the amount of those benefits;

(vi) A statement signed by an actuary stating that the estimates required by paragraphs (ii), (iii) and (iv) above are reasonable and consistent; and

(v) A statement setting out, in relation to each Director of other officer of the organization responsible for the conduct of its affairs, particulars of any employment or other experience relevant to the conduct of a business.

The new Regulation requires the person signing the application on behalf of the organization to certify that the copies of the rules and articles of association are true and correct and that the above estimates have been prepared on the basis of information that is true and correct.

Overview

The National Health Regulations (Amendment) 1990 (No. 24) were enacted to amend the National Health Regulations 1953, addressing the need for updated and more comprehensive documentation requirements for health benefits organizations applying for registration. This amendment was introduced to ensure that the information provided with such applications is sufficient and accurate, particularly in light of recent changes allowing organizations to apply for registration in states outside their current jurisdiction. The regulations were enacted by authority of the Minister for Community Services and Health, aligning with the policy objective of maintaining high standards in health service provision. The new regulations introduced additional documents and information to be provided with registration applications, such as actuarial statements and detailed financial estimates, to better assess the financial stability and operational capability of the organizations.

Scope and Application

The National Health Regulations (Amendment) 1990 No. 24 amends the National Health Regulations to update the requirements for health benefits organizations seeking registration or wishing to expand their operations across states. These Regulations, made under section 140 of the National Health Act 1953, provide details on the manner and form of applications for registration and the accompanying documents. Regulation 19, which sets out the documents and information required for registration applications, has been amended to include a signed statement from an actuary confirming the reasonableness of financial estimates, as well as particulars of the relevant experience of directors or officers. Additionally, Regulation 19A has been inserted to outline the requirements for organizations applying to extend their operations into new states, including detailed financial estimates and actuarial confirmation, as well as additional corporate governance information. These Regulations apply to organizations operating within Australia, specifically those under the purview of the National Health Act, and are designed to ensure the financial viability and proper management of health benefits organizations.

Key Provisions

The National Health Regulations (Amendment) 1990 No. 24 amends the National Health Regulations under the National Health Act 1953, introducing new provisions and modifying existing ones. Under section 68(1D) of the Act, organizations registered as health benefits organizations can apply to conduct business in states outside their current registration. Previously, the Regulations did not provide for such applications, but the new Regulation 19A now sets out the requirements for these applications, including the approved form and necessary accompanying documents (Reg. 19A). Furthermore, Regulation 19, which outlines the documents and information required for initial registration applications under section 68 of the Act, has been amended. These amendments include minor changes and the addition of two new documents: a statement signed by an actuary affirming the reasonableness of the organization’s estimates, and a statement detailing the relevant experience of each director or officer (Reg. 19, Attachment A). Regulation 20, which allows the Secretary to request additional information from applicants, has also been amended to include registered organizations applying under section 68(1D) (Reg. 20). The National Health Regulations impose specific obligations on organizations applying for registration or seeking to expand their operations. Organizations must submit their applications in accordance with the authorized form, accompanied by detailed documentation. For initial registration applications under section 68, this includes financial estimates, details of management and administrative expenses, and particulars of the organization’s directors and officers (Reg. 19). For applications to operate in additional states under section 68(1D), the requirements are more extensive, including copies of the organization’s rules and articles of association, financial projections for the new fund, and a statement from an actuary verifying the estimates (Reg. 19A). Moreover, the Secretary has the authority to request further information concerning the organization’s general affairs, finances, or conduct, whether for initial registration or for expansion into new states (Reg. 20). Breach of the requirements set out in the National Health Regulations can lead to significant consequences. While the explanatory statement does not explicitly outline the penalties for non-compliance, the National Health Act 1953 provides a framework for enforcement. Non-compliance with the Act or Regulations could result in civil or criminal penalties, depending on the nature and severity of the breach. For example, knowingly providing false or misleading information in an application could lead to criminal charges, potentially resulting in substantial fines or imprisonment. Civil penalties might also apply, including orders for compensation or injunctions to prevent further non-compliance. The exact penalties would be determined in accordance with the relevant sections of the Act and any applicable regulations.

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