EXPLANATORY STATEMENT
STATUTORY RULES 1982, NO 145
ISSUED BY THE AUTHORITY OF THE TREASURER
SUBJECT: STATES (TAX SHARING AND HEALTH GRANTS) ACT 1981 STATES (TAX SHARING AND HEALTH GRANTS) REGULATIONS (AMENDMENT)
These regulations
• amend regulations previously promulgated on 1 September 1981 (Statutory Rules 1981, No 249) relating to Section 20 of the States (Tax Sharing and Health Grants) Act 1981 (“the Act”) which define, for the purposes of the Act, persons who are to be regarded as eligible pensioners or their dependants, and disadvantaged persons or their dependants; and
• define, for the purposes of Section 12 of the Act, the level of charges to be used by the Treasurer for the purposes of determining the capacity of the States (other than South Australia and Tasmania) and the Northern Territory to raise additional revenue from health charges.
The amendments to the previously gazetted regulations involve:
• the deletion of sub-regulation 3(2) of the existing Regulations and the insertion of a similar provision in regulation 4 so that words and expressions defined for the purposes of the Health Insurance Act 1973 will have their defined meanings only in regulation 4; and
• the correction of a printing error appearing at present in the definition of “relevant event” contained in regulation 4 of the existing Regulations.
The regulations pursuant to Section 12 of the Act have not previously been promulgated.
Section 12 of the Act requires the Treasurer to determine for the years commencing 1 July 1981 and 1 July 1982 the capacity of each State to raise additional revenue from the imposition of charges for health care provided at its public hospitals at the levels specified in the Regulations. The amounts of additional revenue raising capacity are required in order to calculate the levels of health grants to the States (excluding South Australia and Tasmania) and the Northern Territory under Sections 14 and 16 of the Act.
The Treasurer’s determination of the additional revenue raising capacity of each State is based on the amount by which revenue raised in the year commencing 1 July 1980 is exceeded by the amount of revenue that could be raised in 1981-82 and 1982-83 if the specified level of charges (as defined in the regulations) were imposed. In arriving at this determination, the Treasurer is required to consult with the Minister for Health and to take into consideration any findings of the Commonwealth
Grants Commission in respect of the capacity of the States and the Northern Territory to raise additional revenue in the relevant years from charges for health care provided at their public hospitals. As required, the Treasurer has consulted and reached agreement with the Minister for Health. There have been no investigations by the Commonwealth Grants Commission pertinent to this requirement of the Act.
The statutory rules define the level of charges to be used by the Treasurer in making his determination of additional revenue raising capacity. The level of charges is prescribed under sub-regulation 3A(3) of the statutory rules. Sub-regulation 3A(1) defines a compensable patient in a hospital for the purposes of sub-regulation 3A(3). It has been necessary to define a compensable patient in these regulations since:
(i) there is no definition of a compensable patient under the Health Insurance Act 1973; and
(ii) revenue raised from charges on compensable patients has been a factor in the overall assessment of a State’s additional revenue raising capacity.
Sub-regulation 3A(2) clarifies the definition of a shared ward for the purposes of sub-regulation 3A(3).
The attached Regulations, which have been drafted by the Attorney-General’s Department on the basis of instruction from the Departments of Health and Treasury, do not specify the manner in which the Treasurer’s determination will be made. In accordance with Section 12 of the Act, they are concerned only with the level of charges which will be used in the determination.