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.
Overview
The Statutory Rules 1983 No. 267, issued by the authority of the Minister for Health, amends the National Health Regulations under the National Health Act 1953. The primary purpose of this amendment is to address a gap in the eligibility criteria for membership within restricted membership organizations. Such organizations, which restrict eligibility based on specified matters such as employment or professional association, were previously unable to consider a person's former dependant status under the rules of a medical or hospital benefits fund as a criterion for membership. This amendment rectifies that by allowing such a relationship to be considered in determining membership eligibility.
The enacting body for these regulations is the Australian Parliament, and the policy objective is to provide flexibility in membership criteria for restricted membership organizations, thereby enhancing the operational efficiency of these entities while still ensuring they meet the broader requirements of the National Health Act 1953. The amendment came into effect on the date of its notification in the Commonwealth of Australia Gazette.
Scope and Application
The National Health Regulations (Amendment) under the National Health Act 1953 apply to organisations seeking registration as either a registered medical benefits organisation or a registered hospital benefits organisation, with a specific focus on those restricted membership organisations. These regulations clarify and expand the criteria for what constitutes a "restricted membership organisation," allowing such entities to base membership eligibility on a wider range of criteria, including former dependant relationships under the rules of the organisation. The amended regulations were made under the authority granted by Section 140 of the Act and came into effect upon notification in the Commonwealth of Australia Gazette. The jurisdictional reach of these regulations is national, impacting all restricted membership organisations across Australia. There are no specific exclusions or thresholds mentioned in the explanatory statement, and the regulations do not extend or restrict application through subordinate instruments beyond what is outlined in the statement.
Key Provisions
The National Health Regulations (Amendment) Statutory Rules 1983 amend the definition of a "restricted membership organization" under the National Health Act 1953 (sections 67 and 68). These amendments allow the rules of such organizations to include eligibility criteria based on a person having been a former dependant of a contributor to a medical or hospital benefits fund conducted by the organization. This change is significant as it broadens the criteria for membership eligibility in restricted membership organizations, which are typically those whose rules restrict membership by reference to employment, professional association, union membership, or Defence Force service, or any other prescribed matter (section 4(1)). These organizations are permitted to operate a single medical benefits fund and a single hospital benefits fund regardless of the states in which they conduct business, unlike other organizations that must maintain separate funds for each state (subsections 67(4) and 68(4)).
Entities governed by these regulations, particularly restricted membership organizations, must ensure their membership rules comply with the updated definition. This includes reviewing and potentially revising their membership criteria to incorporate the new permissible ground of former dependant status. Organizations must also ensure that their operations adhere to the specific requirements for restricted membership organizations, such as maintaining only one fund per type of benefit, regardless of the geographical scope of their business.
Failure to comply with the requirements of the National Health Act 1953 and the amended regulations can result in various consequences. Under the Act, non-compliance with registration criteria or operational requirements can lead to revocation of registration as a medical or hospital benefits organization. Additionally, the regulations themselves do not explicitly outline specific penalties for breaches; however, general provisions within the Act allow for fines and other enforcement actions. The penalties for non-compliance may include fines up to the maximum prescribed by the Act, which can vary based on the severity and nature of the breach. Additionally, ongoing non-compliance could potentially lead to criminal charges, depending on the specific circumstances and the discretion of the enforcing authorities.