EXPLANATORY STATEMENT
NATIONAL HEALTH ACT 1953
NATIONAL HEALTH (REMOTE ABORIGINAL HEALTH SERVICES PROGRAM) SPECIAL ARRANGEMENTS AMENDMENT INSTRUMENT 2016 (NO.2)
PB 40 of 2016
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 this legislative 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). This Special Arrangement provides for the supply to remote Aboriginal Health Services of pharmaceutical benefits.
This instrument increases the handling fee 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.
On and from 1 July 2016, the handling fee is increasing from $2.92 to $2.96. The handling fee is indexed annually.
Consultations
The amendment is minor and machinery in nature.
No consultation was required as the 2010-11 Federal Budget provided for the annual indexation of the Remote Area Aboriginal Health Services Program handling fee and is to be indexed annually thereafter in accordance with the WCI9.
The legislative instrument commences on 1 July 2016.
This Instrument is a legislative instrument for the purpose of the Legislation Act 2003.
Overview
The National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2016 (No.2) was enacted under the authority provided by subsection 100(1) of the National Health Act 1953, enabling the Minister to make special arrangements for the supply of pharmaceutical benefits. The primary objective of this instrument is to amend the National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010, which facilitates the supply of pharmaceutical benefits to remote Aboriginal Health Services. This amendment specifically addresses the increase in the handling fee payable to approved pharmacists or hospital authorities for the supply of pharmaceutical benefits to approved Aboriginal Health Services, reflecting the annual indexation as provided in the 2010-11 Federal Budget and subsequently. The instrument, which is a legislative instrument for the purposes of the Legislation Act 2003, commenced on 1 July 2016.
Scope and Application
The National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2016 (No. 2) amends the National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010. This legislation applies to the supply of pharmaceutical benefits to remote Aboriginal Health Services under the National Health Act 1953. Specifically, it concerns the handling fee payable to an approved pharmacist or an approved hospital authority for supplying these benefits. The amendment increases the handling fee from $2.92 to $2.96, effective from 1 July 2016, and mandates annual indexation thereafter in line with the Wage Price Index. The Act applies nationally and is a Commonwealth instrument. There are no stated exclusions or exemptions in this specific legislative instrument; however, the primary Act and its associated instruments may contain broader provisions. The amendments are administrative in nature, and no consultation was required as they align with the budget provisions and indexation policy.
Key Provisions
The key provisions of this legislation pertain to the National Health Act 1953, specifically focusing on amendments to the handling fee for pharmaceutical benefits supplied to remote Aboriginal Health Services under the Remote Aboriginal Health Services Program. Section 100(1) of the Act allows the Minister to establish special arrangements for the supply of pharmaceutical benefits, while section 100(2) enables the Minister to modify or revoke such arrangements. These provisions are supplemented by section 100(3), which ensures that the special arrangements are subject to the overarching provisions of Part VII of the Act.
Under this legislative instrument, the handling fee payable to an approved pharmacist or hospital authority for the supply of pharmaceutical benefits to approved Aboriginal Health Services is increased from $2.92 to $2.96, effective from 1 July 2016. Additionally, the handling fee is indexed annually, meaning it will adjust in line with the Wholesale Component Index (WCI). This increase was foreshadowed in the 2010-11 Federal Budget, and no further consultation was necessary as the amendments were considered minor and procedural.
The obligations imposed by this Act primarily involve the approved pharmacists and hospital authorities responsible for supplying pharmaceutical benefits to the Aboriginal Health Services. They must comply with the updated handling fee structure as stipulated in the legislation, ensuring that the new fee rates are applied from the commencement date. Moreover, these entities must adhere to the annual indexation process to adjust the handling fee according to the WCI.
Failure to comply with the provisions of the Act, including the correct application of the handling fee, may lead to various consequences. While the specific penalties for non-compliance are not detailed in the explanatory statement, breaches of the National Health Act 1953 generally may result in both civil and criminal penalties. Civil penalties can include fines, while criminal penalties may include imprisonment, reflecting the importance of adhering to the legislative requirements.