National Health Regulations (Amendment) 1994 No. 2
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 2
Issued by-authority of the Minister for Health
National Health Act 1953
National Health Regulations (Amendment)
Section 140 of the National-Health Act 1953 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.
The definition of a restricted membership organization is contained in subsection 4(1) of the Act, the relevant part of which follows:
"... an organisation the rules of which restrict eligibility for membership by reference to:
(a) employment or former employment in a profession, trade, industry or calling;
(b) employment or former employment by a particular employer or by an employer included in a particular class of employers;
(c) membership or former membership of a particular profession, professional association or union;
(d) membership or former membership of the Defence Force or of a part of the Defence Force; or
(e) any other prescribed matter;"
BACKGROUND
The purpose of the proposed regulations was to ensure that members of the APPM Council Health Benefits Ltd (Tasmania) (the APPM health fund) who, as at 27 January 1994, were employed by or had been employed in the past by North Broken Hill Peko Limited (NBHP) could remain members of the fund, by prescribing those members under paragraph (e) of the definition of "restricted membership organisation,' in the Act.
The APPM health fund is a "restricted" health fund under paragraph 4(1)(b) of the definition of "restricted membership organization" in the Act. Its membership is restricted to people employed by, or formerly employed by, a particular employer.
Until recently, the APPM health fund was conducted for employees 6f NBHP, which was involved in the activities of forestry, woodchipping and papermaking. However, a portion of the business was recently sold by NBHP to another company, Amcor Limited (Amcor).
As a result of the sale the current membership of the APPM health fund fell outside of the definition of a "restricted membership organization" because membership of the APPM health fund was no longer restricted to the one employer. This development had the potential to disadvantage many members.
Proposed subregulation 2.1 omits current regulation 3 and substitutes a new regulation 3 which contains two prescribed matters in its paragraphs (a) and (b) for the purposes of paragraph 4(1)(e) of the Act.
Paragraph (a) of proposed Regulation 3 repeats the current Regulation 3 which provides that relationship as a dependant of a person who was a contributor to a health benefits fund conducted by a restricted membership organization is a prescribed matter.
Paragraph (b) of proposed Regulation 3 provides that present or past employment of NBHP or present employment in AMCOR is a prescribed matter for the purposes of becoming a contributor to a health benefits fund conducted by the organization, currently named the APPM health fund.
The Regulations commenced on Gazettal.
Overview
The National Health Regulations (Amendment) 1994 No. 2, enacted by the Parliament of Australia, amends the National Health Regulations under the National Health Act 1953 to address a gap created by the sale of a portion of North Broken Hill Peko Limited's business to Amcor Limited. The amendment ensures that the membership of the APPM Council Health Benefits Ltd, a restricted health fund based in Tasmania, can continue to include individuals who were previously employed by North Broken Hill Peko Limited, thereby preventing potential disadvantages to these members. This legislative adjustment was made to maintain the integrity of the restricted membership criteria for the fund as outlined in the Act, specifically to include past and present employment with the relevant companies as a prescribed matter. The policy objective is to preserve the continuity of membership for those who were part of the health benefits fund prior to the business sale, ensuring they are not disenfranchised by changes in employer affiliation.
Scope and Application
The National Health Regulations (Amendment) 1994 No. 2 applies to the APPM Council Health Benefits Ltd, a restricted membership health fund based in Tasmania, which previously operated exclusively for employees of North Broken Hill Peko Limited (NBHP). This amendment was necessitated by the sale of part of NBHP's business to Amcor Limited, which resulted in a change to the fund's membership eligibility criteria under the National Health Act 1953. The amendment ensures that individuals who were employed by or had been employed by NBHP, as well as those currently employed by Amcor, remain eligible for membership in the APPM health fund. The geographic scope of this regulation is limited to Tasmania, where the APPM health fund operates. This amendment does not extend beyond the prescribed membership criteria of the APPM health fund and does not affect other health funds or membership organizations. The regulation was issued under section 140 of the National Health Act 1953 and came into effect upon gazette publication.
Key Provisions
The National Health Regulations (Amendment) 1994 No. 2 primarily amend Regulation 3 under the National Health Act 1953 (the Act) to ensure that members of the APPM Council Health Benefits Ltd (Tasmania) who were employed by, or had been employed in the past by, North Broken Hill Peko Limited (NBHP) can continue to be members of the fund. This amendment is necessary due to a recent business sale by NBHP to Amcor Limited, which altered the membership eligibility criteria of the APPM health fund. Regulation 3(a) retains the existing provision that a relationship as a dependant of a person who was a contributor to a health benefits fund conducted by a restricted membership organization is a prescribed matter. Regulation 3(b) introduces a new provision, stipulating that present or past employment by NBHP, or present employment by Amcor, is a prescribed matter for the purposes of becoming a contributor to a health benefits fund conducted by the organization, which in this case is the APPM health fund.
The obligations imposed by these regulations require the APPM Council Health Benefits Ltd to continue recognising the membership eligibility of individuals based on their employment history with NBHP or their current employment with Amcor. This ensures that the membership of the health fund remains aligned with the original intent of a restricted membership organization, despite the change in business ownership. The APPM Council must also ensure compliance with the new regulations, which means verifying the employment history of potential and existing members to confirm their eligibility under the prescribed matters.
Failure to comply with the amended regulations could result in legal consequences for the APPM Council Health Benefits Ltd. While specific offences and penalties are not detailed in the explanatory statement, breaches of health regulations under the National Health Act 1953 could potentially lead to civil or criminal penalties. These penalties could include fines or other sanctions as determined by relevant authorities. The precise nature and extent of these penalties would be governed by other provisions within the Act and related legislative instruments. The regulations aim to protect the interests of the existing members and ensure the continuity of the health benefits fund under the defined criteria.