Private Health Insurance (National Joint Replacement Register Levy) Amendment (NJRR Funding Amount) Rule 2024

Administered by Department of Health, Disability and Ageing

Legislation au F2024L01545 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Private Health Insurance (National Joint Replacement Register Levy) Act 2009

 

Private Health Insurance (National Joint Replacement Register Levy) Amendment (NJRR Funding Amount) Rule 2024

 

Purpose and operation

 

The Private Health Insurance (National Joint Replacement Register Levy) Rule 2015 (NJRR Rule) gives effect to matters in the Private Health Insurance (National Joint Replacement Register Levy) Act 2009 (the Act), including those relating to the National Joint Replacement Register levy (NJRR levy) day and the rate of the NJRR levy.

 

The Private Health Insurance (National Joint Replacement Register Levy) Amendment (NJRR Funding Amount) Rule 2024 (the Instrument) amends the NJRR Rule by updating the associated cost recovered levy amount for the 2024-25 financial year. The levy amount reflects a partial cost recovery of funding provided to the Australian Orthopaedic Association (AOA) for administering the National Joint Replacement Registry in 2024-25.

 

The National Joint Replacement Register levy day remains as 30 November for the 2024-25 financial year. The Instrument further provides for administrative changes to remove references to a previous levy day, as it is no longer required. The census date for the purposes of calculating the levy amount for individual sponsors remains as 30 September for this financial year and future financial years.

 

Background

 

Section 7 of the Act provides for the NJRR Rule to specify the rate at which the NJRR levy is to be imposed on joint replacement device sponsors.

 

The NJRR levy supports the work of the National Joint Replacement Registry (NJRR). The NJRR, operated by AOA, collects data on the implantation of prosthetic joint replacement devices and reports on revision rates, complications and other outcomes for those devices for inclusion on the NJRR. Its aim is to improve the quality of care for patients undergoing joint replacement surgery.

 

The funding provided to AOA for administering the NJRR is usually fully cost recovered through the NJRR levy from industry stakeholders. In the 2024-25 Budget, the Australian Government (the Government) agreed to provide additional funding of $1.249m in 2023-24, to be cost recovered over four years from 2024-25. The Government also announced additional funding of $1.561m to be provided to the AOA in 2024-25 to temporarily increase core operating funding. The additional funding in 2024-25 will not be cost recovered. The 2024-25 financial year is an exception to the full cost recovery approach.

 

The NJRR levy is payable by sponsors of joint replacement devices or human tissue products listed on the Private Health Insurance (Medical Devices and Human Tissue Products) Rules (MDHTP Rules).

 

The funding amount for the 2025-26 financial year and future financial years are subject to the annual Federal Budget process and the outcomes from a full cost review of the administration of the NJRR. As such, the NJRR Rule will be amended in the future to reflect the terms of any new funding arrangements and amounts for upcoming financial years.

 

Authority

 

The Instrument is made under section 8 of the Act which provides that the Minister may, by legislative instrument, make Private Health Insurance (National Joint Replacement Register Levy) Rules providing for matters required or permitted by the Act to be provided, or necessary or convenient to be provided, in order to carry out or give effect to the Act.

 

Reliance on subsection 33(3) of the Acts Interpretation Act 1901

 

Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

 

Commencement

 

The Instrument commences on the day after it is registered on the Federal Register of Legislation.

 

Consultation

 

Sponsors of joint replacement medical devices or human tissue products are aware that the levy is calculated annually, based on the funding requirements to administer the NJRR.

 

In October 2024, a draft of the National Joint Replacement Registry: Cost Recovery Implementation Statement (CRIS) for the 2024-25 financial year was published on the Department of Health and Aged Care (Department) website to consult on proposed changes to the cost recovery arrangements for funding provided to administer the NJRR.

 

In November 2024, a summary of consultation feedback and departmental responses was included in the final 2024-25 CRIS published on the Department’s website. The CRIS reflects the NJRR funding amount that is cost recovered through the levy, as detailed in the Instrument.

 

General

 

The Instrument is a disallowable legislative instrument for the purposes of the Legislation Act 2003. Details of the Instrument are set out in Attachment A.

 

The Instrument is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.


ATTACHMENT A

 

Private Health Insurance (National Joint Replacement Register Levy) Amendment (NJRR Funding Amount) Rule 2024

 

Section 1 – Name

 

This section provides that the name of the instrument is the Private Health Insurance (National Joint Replacement Register Levy) Amendment (NJRR Funding Amount) Rule 2024 (the Instrument).

 

Section 2 – Commencement

 

This section provides that the Instrument commences on the day after it is registered on the Federal Register of Legislation.

 

Section 3 – Authority

 

This section provides that the Instrument is made under section 8 of the Private Health Insurance (National Joint Replacement Register Levy) Act 2009.

 

Section 4 – Schedules

 

This section provides that each instrument that is specified in a Schedule to this Instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Instrument has effect according to its terms.

 

Schedule 1 – Amendments

 

Private Health Insurance (National Joint Replacement Register Levy) Rule 2015

 

Item 1 – Section 5

 

Item 1 amends section 5 of the Private Health Insurance (National Joint Replacement Register Levy) Rule 2015 to omit “The levy date for the 2020‑21 financial year is specified as 31 March 2021”.

 

This removes reference to the levy day for the 2020-21 financial year as it is no longer relevant.

 

Item 2 – Subsection 7(4) (definition of NJRR funding amount)

 

Item 2 repeals the definition of ‘NJRR funding amount’ in subsection 7(4) of the Private Health Insurance (National Joint Replacement Register Levy) Rule 2015 and substitutes it with a new definition in that refers to the levy day on 30 November 2024 and an updated NJRR funding amount of $2,932,000.

 

This provides for the partial cost recovery as required for the 2024-25 financial year. It also removes paragraph 7(4)(b) as the NJRR funding amount for the 2025-2026 financial year and future financial years will be provided for in future amendments to the Private Health Insurance (National Joint Replacement Register Levy) Rule 2015.


ATTACHMENT B

 

Statement of Compatibility with Human Rights

 

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

 

Private Health Insurance (National Joint Replacement Register Levy) Amendment (NJRR Funding Amount) Rule 2024

This Disallowable 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 Disallowable Legislative Instrument

 

The Private Health Insurance (National Joint Replacement Register Levy) Rule 2015 (NJRR Rule) gives effect to matters in the Private Health Insurance (National Joint Replacement Register Levy) Act 2009 (the Act), including those relating to the national joint replacement register levy (NJRR levy) day and the rate of the NJRR levy.

 

The purpose of the Private Health Insurance (National Joint Replacement Register Levy) Amendment (NJRR Funding Amount) Rule 2024 (the Instrument) is to amend the NJRR Rule by updating the levy amount to reflect the partially cost recovered NJRR funding amount for the 2024-25 financial year.

 

Human rights implications

 

This Instrument engages Article 12(1) of the International Covenant on Economic Social and Cultural Rights (ICESCR) by assisting with the progressive realisation by all appropriate means of the right to the enjoyment of the highest attainable standard of physical and mental health.

 

NJRR levy

The ongoing collection of the NJRR levy facilitates the administration of the National Joint Replacement Registry (NJRR). The purpose of the NJRR is to define, improve and maintain health outcomes for individuals receiving joint replacement surgery. For the 2024-25 financial year, the costs of administering the NJRR are partially recovered and align with advice provided to industry through consultation and the relevant CRIS.  

 

Right to Health

This supports the right to the enjoyment of the highest attainable standard of physical and mental health contained in article 12(1) of the ICESCR. Whilst the UN Committee on Economic Social and Cultural Rights has stated that the right to health is not to be understood as a right to be healthy, it does entail a right to a system of health protection which provides equality of opportunity for people to enjoy the highest attainable level of health. In addition, the right to health must meet certain key requirements, including that health care must be scientifically and medically appropriate and of good quality.

 

 

Conclusion

The Instrument is compatible with human rights as it further promotes the realisation of relevant rights under Article 12 of the ICESCR, in particular the right to health.

 

The Hon Mark Butler MP

The Minister for Health and Aged Care

Overview

The Private Health Insurance (National Joint Replacement Register Levy) Act 2009 was enacted to establish a levy on joint replacement device sponsors to fund the National Joint Replacement Registry (NJRR), which is operated by the Australian Orthopaedic Association (AOA). The Act aims to improve the quality of care for patients undergoing joint replacement surgery by collecting data on the implantation of prosthetic joint replacement devices, reporting on revision rates, complications, and other outcomes. This is achieved through a levy imposed on sponsors of joint replacement devices or human tissue products listed on the Private Health Insurance (Medical Devices and Human Tissue Products) Rules. The Act was enacted by the Parliament of Australia to address the need for a reliable data collection system to support better patient outcomes and informed medical practices. The policy objective is to ensure the ongoing operation and improvement of the NJRR by providing necessary funding through a cost-recovery mechanism. The Private Health Insurance (National Joint Replacement Register Levy) Amendment (NJRR Funding Amount) Rule 2024 was introduced to update the associated cost recovered levy amount for the 2024-25 financial year, reflecting the partial cost recovery of additional funding provided to the AOA. This amendment ensures the NJRR can continue to operate effectively, despite the temporary additional funding provided by the Australian Government. The rule was made under section 8 of the Act, providing the Minister with the authority to amend the levy rules as necessary to carry out the objectives of the Act. The levy day remains 30 November, and the census date for calculating the levy amount remains 30 September. This legislative instrument aligns with the human rights and freedoms recognised under the Human Rights (Parliamentary Scrutiny) Act 2011, particularly the right to the enjoyment of the highest attainable standard of physical and mental health as outlined in the International Covenant on Economic, Social and Cultural Rights.

Scope and Application

The Private Health Insurance (National Joint Replacement Register Levy) Amendment (NJRR Funding Amount) Rule 2024 amends the Private Health Insurance (National Joint Replacement Register Levy) Rule 2015 by updating the levy amount to reflect the partially cost-recovered funding for the National Joint Replacement Registry (NJRR) for the 2024-25 financial year. This rule applies to the sponsors of joint replacement devices or human tissue products listed under the Private Health Insurance (Medical Devices and Human Tissue Products) Rules. The NJRR levy is imposed to support the work of the NJRR, which is operated by the Australian Orthopaedic Association (AOA) to collect data on the implantation of prosthetic joint replacement devices and report on revision rates and other outcomes. The levy is fully cost-recovered through industry stakeholders, although the 2024-25 financial year represents a partial cost recovery due to additional funding provided by the Australian Government. The NJRR levy is payable on 30 November each year, with the census date for calculating the levy remaining as 30 September. The rule is made under the authority of section 8 of the Private Health Insurance (National Joint Replacement Register Levy) Act 2009 and is subject to the annual Federal Budget process and the outcomes of a full cost review for future financial years. The scope of the rule extends across the Commonwealth of Australia and applies to all entities that sponsor joint replacement devices or human tissue products listed under the relevant regulations. There are no stated exclusions or exemptions within the rule, but the application of the levy is subject to the terms of the underlying Act and the NJRR Rule. The rule is designed to be administratively efficient, removing references to outdated levy days and ensuring clarity in the levy calculation process. The rule commences on the day after it is registered on the Federal Register of Legislation, and it is compatible with human rights as it supports the realisation of the right to health by facilitating the administration of the NJRR. The rule is a disallowable legislative instrument under the Legislation Act 2003 and has been subject to parliamentary scrutiny in accordance with the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Private Health Insurance (National Joint Replacement Register Levy) Amendment (NJRR Funding Amount) Rule 2024 amends the Private Health Insurance (National Joint Replacement Register Levy) Rule 2015 by updating the levy amount to reflect the partially cost recovered NJRR funding amount for the 2024-25 financial year. This rule is made under section 8 of the Private Health Insurance (National Joint Replacement Register Levy) Act 2009 and comes into effect on the day after it is registered on the Federal Register of Legislation. The key change is the amendment of section 5 of the 2015 Rule, which removes reference to the levy day for the 2020-21 financial year as it is no longer relevant, and substitutes the definition of 'NJRR funding amount' to reflect the updated levy amount of $2,932,000 for the 2024-25 financial year. The obligations imposed by the Act and the amended Rule primarily concern the collection and payment of the NJRR levy by sponsors of joint replacement devices or human tissue products listed on the Private Health Insurance (Medical Devices and Human Tissue Products) Rules. Sponsors must ensure they comply with the specified levy day of 30 November for the 2024-25 financial year and remit the updated levy amount accordingly. The Act requires the Minister to make rules providing for matters required or permitted by the Act, and these amendments ensure that the NJRR levy continues to support the administration of the National Joint Replacement Registry as intended. The Private Health Insurance (National Joint Replacement Register Levy) Act 2009 does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance with the NJRR levy requirements. However, failure to comply with the Act or the amended Rule could potentially result in enforcement actions by the relevant authorities, including the imposition of fines or other administrative penalties as deemed appropriate under the broader legislative framework governing private health insurance and medical device regulation in Australia. The Act's provisions are designed to ensure the ongoing funding and administration of the NJRR to improve health outcomes for patients undergoing joint replacement surgery. The Instrument is a disallowable legislative instrument under the Legislation Act 2003, meaning it can be disallowed by either House of Parliament within a specified period after it is tabled. Additionally, the 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. The compatibility statement outlines that the amendments to the NJRR funding amount support the right to the enjoyment of the highest attainable standard of physical and mental health, aligning with Article 12 of the International Covenant on Economic, Social and Cultural Rights.

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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.