Private Health Insurance (National Joint Replacement Register Levy) Amendment Rule 2019

Administered by Department of Health, Disability and Ageing

Legislation au F2019L01508 Rules Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Health

 

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

 

Private Health Insurance (National Joint Replacement Register Levy) Amendment Rule 2019

 

Section 8 of the Private Health Insurance (National Joint Replacement Register Levy) Act 2009 (the Act) provides that the Minister may 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.

 

In addition to the power to make this instrument under section 8 of the Act, 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.

 

Sections 6 and 7 of the Act, respectively provide for the Private Health Insurance (National Joint Replacement Register Levy) Rules to specify the days on which National Joint Replacement Register Levy (NJRR Levy) will be imposed and the rate at which it is to be imposed.

 

The NJRR Levy supports the work of the National Joint Replacement Registry. The Registry, operated by the Australian Orthopaedic Association, collects data on the implantation of prosthetic joint replacement devices and reports on revision rates, complications and other outcomes for those devices for inclusion in the National Joint Replacement Register. Its aim is to improve the quality of care of patients undergoing joint replacement surgery. The Registry is funded through cost-recovery.

 

NJRR Levy is payable by sponsors of those joint replacement prostheses listed on the Private Health Insurance (Prostheses) Rules (the Prostheses Rules).

 

The purpose of the Private Health Insurance (National Joint Replacement Register Levy) Amendment Rule 2019 (the Amendment Rule) is to provide future funding amounts for the levy after 31 October 2018.

 

The Private Health Insurance (National Joint Replacement Register Levy) Rule 2015 specifies a formula for calculating the rate of NJRR Levy and the levy imposition days. The amendments will allow the cost recovery arrangements to continue and fund the maintenance of the NJRR Register beyond 31 October 2018. The calculation of the levy ($2 376 000) for 30 November 2019 is based on National Joint Replacement Registry: Cost Recovery Impact Statement - 1 July 2019 to 30 June 2020.

 

 

 

Consultation

 

Sponsors of joint replacement prostheses are aware that the levy is calculated annually, based on the funding requirements to administer the National Joint Replacement Registry.

 

The National Joint Replacement Registry: Cost Recovery Impact Statement (CRIS) - 1 July 2019 to 30 June 2020 was published on the Department of Health Website 1 July 2019. The CRIS informs industry of the amount to be recovered. It is the same amount that was recovered in the preceding year.  

 

Industry did not raise any issues with the costs to be recovered for the NJRR.

 

 

 


ATTACHMENT

 

Details of the Private Health Insurance (National Joint Replacement Register Levy) Amendment Rule 2019

 

Section 1 – Name

 This instrument is the Private Health Insurance (National Joint Replacement Register Levy) Amendment Rule 2019.

 

Section 2 – Commencement

This instrument commences on 28 November 2019.

 

Section 3 – Authority

 

This instrument is made under Private Health Insurance (National Joint Replacement Register Levy) Act 2009.

 

Section 4 – Schedules

 

Section 4 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

 

Item 1 amends paragraph (d) of the definition of NJRR funding amount in subsection 7(4) of the Private Health Insurance (National Joint Replacement Register Levy) Rule 2015 (the Rule) consequential on the addition of a new paragraph (e) to that definition (refer to Item 2). This is a technical amendment only.

 

Item 2 adds a new paragraph (e) in the definition of NJRR funding amount in subsection 7(4) of the Rule.  New paragraph (e) provides that $2 376 00 is the NJRR funding amount for the levy day on 30 November of any financial year after 31 October 2018.

 

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 Rule 2019
 

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 instrument

Section 8 of the Private Health Insurance (National Joint Replacement Register Levy) Act 2009 (the Act) provides that the Minister may 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.

 

In addition to the power to make this instrument under section 8 of the Act, 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.

 

Sections 6 and 7 of the Act, respectively, provide for Private Health Insurance (National Joint Replacement Register Levy) Rules to specify the days on which National Joint Replacement Register Levy (NJRR Levy) will be imposed and the rate at which it is to be imposed.

 

The NJRR Levy supports the work of the National Joint Replacement Registry. The Registry, operated by the Australian Orthopaedic Association, collects data on the implantation of prosthetic joint replacement devices and reports on revision rates, complications and other outcomes for those devices for inclusion in the National Joint Replacement Register. Its aim is to improve the quality of care and health outcomes of patients undergoing joint replacement surgery. The Registry is funded through cost-recovery.

 

NJRR Levy is payable by sponsors of those joint replacement prostheses listed on the Private Health Insurance (Prostheses) Rules (the Prostheses Rules).

 

The Private Health Insurance (National Joint Replacement Register Levy) Rule 2015 specifies a formula for calculating the rate of NJRR Levy and the levy imposition days. The amendments will allow the cost recovery arrangements to continue and fund the maintenance of the NJRR Register beyond 31 October 2018. The calculation of the levy ($2 376 000) for 30 November 2019 is based on National Joint Replacement Registry: Cost Recovery Impact Statement - 1 July 2019 to 30 June 2020.

 


Human rights implications

This instrument engages article 12 of the International Covenant on Economic Social and Cultural Rights (ICESCR), specifically the rights to health.

Right to Health

The right to health – the right to the enjoyment of the highest attainable standard of physical and mental health – is 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 health care must be scientifically and medically appropriate and of good quality.

Analysis

The ongoing collection of the NJRR levy facilitates the administration of the NJRR. The purpose of the NJRR is to define, improve and maintain health outcomes for individuals receiving joint replacement surgery.

  

 

Conclusion

The Amending instrument is compatible with human rights because it supports the protection of human rights, in particular the right to health.

Greg Hunt

Minister for Health

 

 

Overview

The Private Health Insurance (National Joint Replacement Register Levy) Act 2009 was enacted to address the need for improved quality of care and health outcomes for patients undergoing joint replacement surgery in Australia. The Act provides for the imposition of a levy on sponsors of joint replacement prostheses, collected through the National Joint Replacement Register (NJRR) Levy, to fund the operations of the National Joint Replacement Registry, which is operated by the Australian Orthopaedic Association. This Registry collects data on the implantation of prosthetic joint replacement devices and reports on revision rates, complications and other outcomes for those devices, contributing to the National Joint Replacement Register. The Act was enacted by the Parliament of Australia and the policy objective was to establish a cost-recovery mechanism to ensure the Registry's sustainability and effectiveness. The Private Health Insurance (National Joint Replacement Register Levy) Amendment Rule 2019 was subsequently introduced to ensure the ongoing funding of the NJRR beyond 31 October 2018, with the levy calculation for 30 November 2019 based on the National Joint Replacement Registry: Cost Recovery Impact Statement - 1 July 2019 to 30 June 2020. This amendment maintains the cost recovery arrangements and facilitates the continuation of the Registry's work in improving health outcomes for patients undergoing joint replacement surgery.

Scope and Application

The Private Health Insurance (National Joint Replacement Register Levy) Amendment Rule 2019 applies to the sponsors of joint replacement prostheses listed under the Private Health Insurance (Prostheses) Rules. This rule is made under the authority of the Private Health Insurance (National Joint Replacement Register Levy) Act 2009 and is applicable across the Commonwealth of Australia. The Act mandates that the National Joint Replacement Register Levy (NJRR Levy) be imposed on the specified sponsors to fund the National Joint Replacement Registry, which is operated by the Australian Orthopaedic Association. The purpose of the NJRR Levy is to support the collection and analysis of data on joint replacement devices to improve patient care and health outcomes. The Amendment Rule 2019 amends the Private Health Insurance (National Joint Replacement Register Levy) Rule 2015 to specify the funding amount for the levy at $2,376,000 for the levy day on 30 November of any financial year after 31 October 2018, ensuring the Registry's operations continue to be funded beyond the original date. The rule is compatible with human rights, specifically the right to health under the International Covenant on Economic, Social and Cultural Rights, as it facilitates the protection and improvement of health outcomes for patients undergoing joint replacement surgery.

Key Provisions

The Private Health Insurance (National Joint Replacement Register Levy) Amendment Rule 2019 (the Amendment Rule) amends the Private Health Insurance (National Joint Replacement Register Levy) Rule 2015. Specifically, it updates the rate of the National Joint Replacement Register Levy (NJRR Levy) to ensure continued funding for the National Joint Replacement Registry (NJRR) beyond 31 October 2018. The NJRR Levy is a cost-recovery mechanism designed to support the work of the NJRR, which collects data on the implantation of prosthetic joint replacement devices and reports on revision rates, complications, and other outcomes for those devices. This data is essential for improving the quality of care for patients undergoing joint replacement surgery. The Amendment Rule introduces a new levy rate of $2,376,000 for the levy day on 30 November of any financial year following 31 October 2018. This rate is based on the National Joint Replacement Registry: Cost Recovery Impact Statement - 1 July 2019 to 30 June 2020. The levy is payable by sponsors of joint replacement prostheses listed under the Private Health Insurance (Prostheses) Rules. By specifying the rate and the levy imposition days, the Amendment Rule ensures that the NJRR can maintain its operations and continue to collect and analyse critical data to enhance patient outcomes. Sponsors of joint replacement prostheses must comply with the NJRR Levy as specified by the Amendment Rule. They are required to pay the levy on the designated levy imposition days at the specified rate. This obligation is crucial for the continued operation of the NJRR, which relies on this funding to perform its function of collecting and reporting on joint replacement data. Failure to comply with the levy requirements could potentially disrupt the data collection and reporting processes, thereby impacting the quality of care and health outcomes for patients. Failure to comply with the levy requirements may lead to civil consequences, such as fines or other penalties as stipulated in the Private Health Insurance (National Joint Replacement Register Levy) Act 2009. Although the Amendment Rule itself does not specify penalties, the Act provides a framework under which non-compliance may be enforced. The exact penalties would be determined in accordance with the provisions of the Act, which may include financial penalties or other administrative actions to ensure compliance. Ensuring adherence to the levy requirements is essential to maintain the integrity and effectiveness of the NJRR in supporting joint replacement surgery outcomes.

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