EXPLANATORY STATEMENT
STATUTORY RULES 1983 NO. 267
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 prescribing all matters which are required or permitted by the Act to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Section 67 and 68 of the Act respectively provide for the registration under the Act of an organization as a registered medical benefits organization and a registered hospital benefits organization. Those sections set out criteria to be met by organizations before they are eligible to be so registered. Sub-sections 67(4) and 68(4) set out separate criteria in relation to organizations which are restricted membership organizations. The principal difference arising from the application of these separate criteria to restricted membership organizations is that such an organization need only conduct one medical benefits fund and one hospital benefits fund regardless of where it carries on business as a registered organization. Other organizations
are required to conduct individual funds in respect of each State in which they carry on such business.
A “restricted membership organization” is defined in sub-section 4 (1) of the Act as meaning an organization the rules of which restrict eligibility for membership by reference to certain specified matters relating to present or former employment in, or membership of, some form of gainful occupation, a professional association or union, or the Defence Force. The definition also permits eligibility for membership to be determined by reference to “any other prescribed matter”.
The definition of a “restricted membership organization” did not permit the rules of such an organization to provide for eligibility for membership of the organization on the grounds that a person has, under the rules of the organization, formerly been a dependant of a contributor to a medical or hospital benefits fund conducted by the organization. The statutory rules prescribe such a relationship as a former dependent as a matter by reference to which the rules of a restricted membership organization may restrict eligibility for membership.
The statutory rule came into effect on the date of its notification in the Commonwealth of Australia Gazette.