EXPLANATORY STATEMENT
Private Health Insurance (National Joint Replacement Register Levy) Act 2009
Private Health Insurance (National Joint Replacement Register Levy) Amendment Rule 2025
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 Rule 2025 (the Instrument) amends the NJRR Rule by changing the NJRR levy day and the associated cost recovered levy amount for the 2025-26 financial year. It also specifies the persons responsible to pay the levy, which was previously specified in the Act. The levy amount reflects the new cost recovery of funding provided to the Australian Orthopaedic Association (AOA) for administering the National Joint Replacement Registry (NJRR) in 2025-26, and the partial cost recovery of funding provided to the AOA for administering the NJRR in 2023-24.
The census date for the purposes of calculating the NJRR levy amount remains as 30 September for this financial year and future financial years.
The Private Health Insurance (National Joint Replacement Registry Levy) Amendment Act 2025 amends the Act to provide that the person liable to pay the NJRR levy in relation to a joint replacement device is the person specified in the NJRR Rule for the device. The Instrument amends the NJRR Rule to specify this is the person mentioned for the device in Schedule 1 to the Private Health Insurance (Medical Devices and Human Tissue Products) Rules in force on the NJRR levy day in respect of that financial year.
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 persons liable to pay the levy.
The NJRR levy supports the work of the NJRR. The NJRR, administrated by the 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 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. In the 2025-26 Budget, the Government announced an increased funding of $13.381m to be provided to the AOA over 4 years to increase core operating funding.
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
Sections 1 to 4 and Schedule 1 of the Instrument commence on the day after the Instrument is registered on the Federal Register of Legislation.
Schedule 2 of the Instrument commences immediately after the commencement of the Private Health Insurance (National Joint Replacement Registry Levy) Amendment Act 2025.
Consultation
Persons who are liable to pay the NJRR levy are aware that the levy is calculated annually, based on the funding requirements to administer the NJRR.
In January 2026, a draft of the National Joint Replacement Registry: Cost Recovery Implementation Statement (CRIS) for the 2025-26 financial year will be published on the Department of Health, Disability and Ageing (Department) website to consult on proposed changes to the cost recovery arrangements for funding provided to administer the NJRR.
A summary of consultation feedback and the departmental responses will be included in the final CRIS to be 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 Rule 2025
Section 1 – Name
This section provides that the name of the instrument is the Private Health Insurance (National Joint Replacement Register Levy) Amendment Rule 2025 (the Instrument).
Section 2 – Commencement
This section provides that:
- sections 1 to 4 and Schedule 1 of the Instrument commence on the day after the Instrument is registered on the Federal Register of Legislation; and
- Schedule 2 of the Instrument commences immediately after the commencement of the Private Health Insurance (National Joint Replacement Registry Levy) Amendment Act 2025. The Private Health Insurance (National Joint Replacement Registry Levy) Amendment Act 2025 commences on the 14th day after the Act receives the Royal Assent. The Act received the Royal Assent on 4 November 2025.
Section 3 – Authority
This section provides that the Instrument is made under the Private Health Insurance (National Joint Replacement Register Levy) Act 2009 (the Act).
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 commencing the day after registration
Private Health Insurance (National Joint Replacement Register Levy) Rule 2015
Item 1 – Section 5
Item 1 repeals and substitutes section 5 of the Private Health Insurance (National Joint Replacement Register Levy) Rule 2015 (NJRR Rule).
Section 5 sets out the days that are a NJRR levy day for a financial year for the purposes of paragraph 6(1)(a) of the Act.
Paragraph 5(a) provides that for the financial year beginning on 1 July 2025, the levy day will be 28 February 2026.
Paragraph 5(b) provides that for the financial year beginning on 1 July 2026 and for each subsequent financial year, the levy day will be 30 November in that financial year.
Item 2 – Subsection 7(4) (definition of NJRR funding amount)
Item 2 repeals and substitutes the definition of ‘NJRR funding amount’ in subsection 7(4) of the NJRR Rule. The new definition of the NJRR funding amount refers to the NJRR levy day for the 2025-26 financial year (28 February 2026) and the updated NJRR funding amount of $3,571,000.
The updated NJRR funding amount provides for the full cost recovery of funding as required for the AOA in 2025-26, and the partial cost recovery of funding provided to the AOA in 2023-24.
Schedule 2 – Amendments commencing immediately after the commencement of the Private Health Insurance (National Joint Replacement Register Levy) Amendment Act 2025
Private Health Insurance (National Joint Replacement Register Levy) Rule 2015
Item 3 – Section 4 (note)
Item 3 repeals and substitues the note to section 4 of the NJRR Rule. The new note provides that a number of expressions used in the Instrument are defined in the Act, including the expression ‘Private Health Insurance (Medical Devices and Human Tissue Products) Rules’.
Item 4 – At the end of the instrument
Item 4 inserts new Part 4 in the NJRR Rule.
New Part 4 sets out who is liable to pay the NJRR levy.
Section 8 provides that, for the purposes of section 7A of the Act, NJRR levy imposed for a financial year in relation to a joint replacement device is payable by the person mentioned for the device in Schedule 1 to the Private Health Insurance (Medical Devices and Human Tissue Products) Rules (MDHTP Rules) in force on the NJRR levy day in respect of that financial year.
Having the person mentioned in the MDHTP Rules for the joint replacement device on the levy day liable to pay the levy better gives effect to the policy that levy should be payable by the person currently responsible for the distrubtion of the device in Australia, which can change over time.
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 Rule 2025
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 Rule 2025 (the Instrument) is to amend the NJRR Rule by changing the NJRR levy day and the associated cost recovered NJRR funding amount for the 2025-26 financial year, and specifying the persons responsible to pay the levy. The person responsible to pay the levy was previously set out in the Private Health Insurance (National Joint Replacement Register Levy) Act 2009.
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 2025-26 financial year, the costs of administering the NJRR are fully 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 Ageing