National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2022 (No. 1)

Administered by Department of Health, Disability and Ageing

Legislation au F2022L00867 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

National Health Act 1953

National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2022 (No. 1)

PB 62 of 2022

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 National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2022 (No. 1) (the Amendment Instrument) amends the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement (PB 107 of 2017) (the Special Arrangement). The Amendment Instrument increases the bulk handling fee and the patient specific medicine supply 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 2022, the bulk handling fee is increasing from $3.15 to $3.20 and the patient specific medicine supply fee is increasing from $4.96 to $5.04 in accordance with (WCI9).

 

The Special Arrangement provides for the supply to remote Aboriginal Health Services of pharmaceutical benefits.

 

Consultation

 

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 indexed annually in accordance with the WCI9. As part of the 2017-2018 Budget process Government agreed for Services Australia (formerly the Department of Human Services) to implement an ongoing process for payment to approved pharmacists and approved hospital authorities of the patient specific medicine supply fee and is indexed annually in accordance with the WCI9. Therefore, the Amendment Instrument is minor and machinery in nature.

 

Commencement

 

The legislative instrument commences on 1 July 2022.

 

This Instrument is a legislative instrument for the purpose of the Legislation Act 2003.

 Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2022 (No. 1)

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

The National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2022 (No. 1) (the Amendment Instrument) amends the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement (PB 107 of 2017) (the Special Arrangement). The Amendment Instrument increases the bulk handling fee and the patient specific medicine supply 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 2022 the bulk handling fee is increasing from $3.15 to $3.20 and the patient specific medicine supply fee is increasing from $4.96 to $5.04 in accordance with (WCI9).

 

The Special Arrangement provides for the supply to remote Aboriginal Health Services of pharmaceutical benefits.

 

Human rights implications

The Amendment Instrument engages Article 12 of the International Covenant on Economic, Social and Cultural Rights by assisting with the progressive realisation by all appropriate means of the right of everyone to the enjoyment of the highest attainable standard of physical and mental health.

The Pharmaceutical Benefits Scheme (PBS) is a benefit scheme which assists with advancement of this human right by providing for subsidised access by patients to medicines. The Special Arrangement ensures more ready and equitable access to PBS medicines for Aboriginal and Torres Strait Islander people through the section 100 arrangement under the National Health Act 1953 (the supply of PBS Medicines to Remote Area Aboriginal Health Services (RAAHS) Program). The RAAHS Program addresses three identified barriers that Aboriginal and Torres Strait Islander people living in remote communities experience in accessing essential medicines, being geographical, cultural and financial.

 

Conclusion

This Legislative Instrument is compatible with human rights because it advances the protection of human rights.

Overview

The National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2022 (No. 1) amends the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement established in 2017, under the authority of subsection 100(1) of the National Health Act 1953. The Amendment Instrument, enacted by the Australian Government, increases the fees associated with the supply of pharmaceutical benefits to approved Aboriginal Health Services in remote areas. Specifically, the bulk handling fee and the patient-specific medicine supply fee are adjusted to $3.20 and $5.04, respectively, effective from 1 July 2022. These adjustments are in line with the Wholesale Component Index (WCI9) and are intended to address the financial barriers faced by Aboriginal and Torres Strait Islander people in accessing essential medicines. The policy objective is to facilitate more equitable and accessible health services for remote communities, thereby contributing to the progressive realisation of the highest attainable standard of physical and mental health as recognised in the International Covenant on Economic, Social and Cultural Rights.

Scope and Application

The National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2022 (No. 1) is an amendment to the existing special arrangement under the National Health Act 1953, which governs the supply of pharmaceutical benefits to remote Aboriginal Health Services. The Amendment Instrument adjusts the fees payable to approved pharmacists or hospital authorities for handling bulk pharmaceutical benefits and for supplying patient-specific medicines to approved Aboriginal Health Services, as per the Special Arrangement. This legislation applies specifically to the financial arrangements concerning the supply of pharmaceutical benefits under the Remote Area Aboriginal Health Services Program, targeting approved service providers and the services they render. The geographic scope of this Act is national, as it concerns services provided across Australia, particularly in remote areas where Aboriginal Health Services operate. There are no specific exclusions or exemptions mentioned within the scope of this Amendment Instrument, but its application is inherently limited to those services and entities specified under the Special Arrangement and the National Health Act 1953. The Amendment Instrument is effective from 1 July 2022, aligning with the annual indexation process already established for the fees in question.

Key Provisions

The main provisions of the National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2022 (No. 1) (F2022L00867) amend the existing Special Arrangement made under the National Health Act 1953 (the Act) to increase the fees charged for the supply of pharmaceutical benefits to remote Aboriginal Health Services. Section 100(1) of the Act allows the Minister to make these special arrangements, and Section 100(3) ensures that these arrangements have effect subject to the special arrangement in question. The Amendment Instrument modifies the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement (PB 107 of 2017) by raising the bulk handling fee from $3.15 to $3.20 and the patient specific medicine supply fee from $4.96 to $5.04, effective from 1 July 2022. These amendments impose specific obligations on approved pharmacists and approved hospital authorities, who are now required to charge the new fees for the supply of pharmaceutical benefits to approved Aboriginal Health Services. The revised fees must be applied to the supply of pharmaceutical benefits in accordance with the Special Arrangement, ensuring that the program continues to provide essential medications to remote Aboriginal Health Services. The changes aim to maintain the integrity and effectiveness of the program by keeping up with cost adjustments and ensuring the continued provision of vital health services. The Amendment Instrument does not explicitly outline specific offences, penalties, or consequences for non-compliance. However, non-compliance with the terms of the special arrangement could potentially lead to the revocation or variation of the arrangement by the Minister under Section 100(2) of the Act. This could disrupt the supply of pharmaceutical benefits to remote Aboriginal Health Services, impacting the health and well-being of Aboriginal and Torres Strait Islander people living in remote areas. The primary consequences of non-compliance would likely be administrative, involving the Minister taking steps to enforce the terms of the special arrangement.

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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.