National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2016 (No. 1) (PB 17 of 2016)

Administered by Department of Health, Disability and Ageing

Legislation au F2016L00183 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

NATIONAL HEALTH ACT 1953

NATIONAL HEALTH (REMOTE ABORIGINAL HEALTH SERVICES PROGRAM) SPECIAL ARRANGEMENTS AMENDMENT INSTRUMENT 2016 (NO. 1)

PB 17 of 2016 (No. 1)

 

Authority

 

Subsection 100(1) of the National Health Act 1953 (the Act) enables the Minister to make special arrangements for the supply of pharmaceutical benefits. Subsection 100(2) of the Act provides that the Minister may vary or revoke a special arrangement made under subsection 100(1).

 

Subsection 100(3) of the Act provides that Part VII of the Act, and instruments made for the purposes of Part VII of the Act, have effect subject to a special arrangement made under subsection 100(1). 

 

Purpose

 

The purpose of the National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2016 (No. 1), (the Amendment Instrument), made under subsections 100(1) and 100(2) of the Act, is to amend the National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010 (PB 65 of 2010) (the Special Arrangement).  The Special Arrangement provides for the supply to remote Aboriginal Health Services of pharmaceutical benefits.

 

The Amendment Instrument amends paragraph 9(b) to “an amount equal to the administration, handling and infrastructure fee worked out under the determination under paragraph 98B(1)(a) of the Act” that is payable to an approved pharmacist or an approved hospital authority in respect of the supply of a pharmaceutical benefit to an approved Aboriginal Health Service in accordance with the Special Arrangement.

 

The 'pharmacy mark-up' previously referred to in paragraph 9(b) became the administrative, handling and infrastructure fee on 1 July 2015 via amendment to the paragraph 98B(1)(a) determination. This amendment is a technical change for simplicity and clarity to ensure that it is clear on the face of the special arrangement that the 'pharmacy mark-up' is the administration, handling and infrastructure fee.

 

Consultations

 

The Amendment Instrument is minor and machinery in nature.

 

The Amendment Instrument commences on 1 March 2016.

 

The Amendment Instrument is a legislative instrument for the purpose of the Legislative Instruments Act 2003.


Overview

The National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2016 (No. 1) was enacted to amend the existing National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010. This amendment was made under the authority provided by the National Health Act 1953, specifically subsections 100(1) and 100(2), which empower the Minister to establish and adjust special arrangements for the supply of pharmaceutical benefits. The policy objective of the amendment is to ensure that the 'pharmacy mark-up' is clearly defined within the special arrangement, now referred to as the administration, handling and infrastructure fee. This change was necessitated by the reclassification of the fee on 1 July 2015, which aimed to improve clarity and simplify the terms of the special arrangement. The amendment instrument was introduced to ensure that the administrative, handling and infrastructure fee is transparently acknowledged in the special arrangement, thus improving the program's functionality and compliance.

Scope and Application

The National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2016 (No. 1) amends the National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010, applying specifically to the supply of pharmaceutical benefits to remote Aboriginal Health Services. This instrument is made under subsections 100(1) and 100(2) of the National Health Act 1953, empowering the Minister to create and modify special arrangements for the supply of such benefits. The amendment modifies the fee structure previously known as the 'pharmacy mark-up' to the administration, handling and infrastructure fee, effective from 1 July 2015, thus ensuring consistency and clarity in the special arrangement. The Amendment Instrument applies to approved pharmacists and approved hospital authorities supplying pharmaceutical benefits to approved Aboriginal Health Services within the scope of the special arrangement. It does not extend beyond the parameters set by the National Health Act 1953, which governs the national jurisdiction of these special arrangements. The Amendment Instrument, a legislative instrument under the Legislative Instruments Act 2003, commenced on 1 March 2016.

Key Provisions

The main operative sections of the National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2016 (No. 1) are concerned with the administration and supply of pharmaceutical benefits to remote Aboriginal Health Services. Specifically, the amendment modifies paragraph 9(b) of the National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010 to ensure clarity and technical accuracy in the terminology used (subsection 100(1) and (2) of the National Health Act 1953). The change replaces the term 'pharmacy mark-up' with 'administration, handling and infrastructure fee', aligning with the updated terminology introduced on 1 July 2015, as detailed in paragraph 98B(1)(a) of the Act. This amendment is designed to improve the clarity and accuracy of the special arrangement, ensuring that it accurately reflects the current fee structure applicable to the supply of pharmaceutical benefits under the program. The obligations imposed by this Amendment Instrument are primarily concerned with the correct application and payment of fees related to the supply of pharmaceutical benefits to approved Aboriginal Health Services. The Act requires that these services be supplied in accordance with the special arrangement, which now explicitly references the administration, handling and infrastructure fee rather than the previous 'pharmacy mark-up'. This change necessitates that all parties involved in the supply chain, including approved pharmacists and hospital authorities, ensure that they are charging and recording the correct fee as stipulated by the updated arrangement. The requirement is to maintain accurate records and compliance with the terms of the special arrangement, which is now clearly defined in the amended paragraph 9(b). In terms of the consequences for non-compliance, the Amendment Instrument does not explicitly detail specific offences or penalties within the explanatory statement. However, breaches of the terms of the special arrangement under the National Health Act 1953 could lead to civil or administrative penalties. The Act generally provides for enforcement mechanisms, and failure to adhere to the specified terms could result in actions such as fines or other corrective measures. The precise penalties would depend on the nature and severity of the breach, and could be subject to the broader provisions of the Act or related legislation. It is important for all involved parties to ensure strict compliance with the updated fee structure to avoid any potential repercussions.

Legal classification tags

Area of Law
Health Law
Indigenous Peoples & Native Title Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Offence Provisions
Reporting & Disclosure Obligations

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.