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.
Overview
The States (Tax Sharing and Health Grants) Regulations (Amendment) Statutory Rules 1982, No 145 were enacted to amend the regulations promulgated on 1 September 1981 under the States (Tax Sharing and Health Grants) Act 1981. These regulations 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, as well as setting the level of charges to be used by the Treasurer for determining the capacity of the States (excluding South Australia and Tasmania) and the Northern Territory to raise additional revenue from health charges. The amendments correct a printing error and adjust the definitions to align with the Health Insurance Act 1973, ensuring consistency and accuracy in the application of the Act. The regulations were issued by the authority of the Treasurer, pursuant to the authority granted by the Parliament of Australia, with the objective of accurately determining the additional revenue raising capacity of the states to facilitate appropriate health grants.
Scope and Application
The States (Tax Sharing and Health Grants) Regulations (Amendment) 1982 concern the implementation of Section 20 of the States (Tax Sharing and Health Grants) Act 1981, which pertains to the eligibility criteria for individuals to be considered as eligible pensioners or their dependants, and disadvantaged persons or their dependants. These regulations also address the level of charges to be used by the Treasurer in determining the additional revenue raising capacity of the states, excluding South Australia and Tasmania, and the Northern Territory, which in turn affects the calculation of health grants under Sections 14 and 16 of the Act. The regulations apply to the Commonwealth and the eligible states and territory, establishing the criteria for eligibility and the methodology for determining revenue capacity based on health care charges. The changes made in these regulations involve clarifying and correcting definitions and aligning terms with those used in the Health Insurance Act 1973, ensuring consistency and accuracy in the application of the Act.
Key Provisions
The main operative sections of the States (Tax Sharing and Health Grants) Regulations (Amendment) (C2004L06499) involve amendments to previously promulgated regulations under Section 20 of the States (Tax Sharing and Health Grants) Act 1981. The amendments specifically address the definitions of eligible pensioners, disadvantaged persons, and their dependants, ensuring these terms align with the Health Insurance Act 1973. Additionally, the new regulations introduce provisions under Section 12 of the Act, determining the level of charges for health care provided at public hospitals. This is crucial for calculating the additional revenue-raising capacity of states and the Northern Territory, which in turn affects the distribution of health grants.
These regulations impose several obligations on the parties involved. Firstly, the Treasurer is required to consult with the Minister for Health and consider findings from the Commonwealth Grants Commission when determining the additional revenue-raising capacity of states. This ensures a comprehensive assessment based on expert input and relevant findings. The regulations also mandate that the level of charges for health care be precisely defined, taking into account the specific definitions of compensable patients and shared wards. This clarity is vital for accurate revenue calculations and equitable distribution of health grants.
The Act and accompanying regulations do not explicitly outline specific offences or penalties for non-compliance with the requirements. However, the importance of adhering to these regulations stems from their role in the financial framework governing health grants distribution. Non-compliance could potentially lead to inaccuracies in revenue assessments and, consequently, inequitable distribution of health grants, which might have broader implications for state health funding and services. While the regulations themselves do not specify penalties, any failure to comply with the Act's requirements might attract legal scrutiny or administrative actions under the broader legislative framework.