States (Tax Sharing and Health Grants) Regulations

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Statutory Rules 1981 No. 2491

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I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the States (Tax Sharing and Health Grants) Act 1981.

Dated 27 August 1981.

ZELMAN COWEN

Governor-General

By His Excellency’s Command,

JOHN HOWARD

Treasurer

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Citation

1. These Regulations may be cited as the States (Tax Sharing and Health Grants) Regulations.

Commencement

2. These Regulations shall come into operation on 1 September 1981.

Interpretation

3. (1) In these Regulations, unless the contrary intention appears—

“Health Insurance Act” means the Health Insurance Act 1973;

“the Act” means the States (Tax Sharing and Health Grants) Act 1981.

(2) In these Regulations, unless the contrary intention appears, a word or expression defined for the purposes of the Health Insurance Act has the meaning that it would have if used in that Act.

Circumstances in which persons are to be taken to be public patients

4. (1) In this regulation—

“commencing day” means 1 September 1981.

“prescribed person” means an eligible pensioner or a person who is a disadvantaged person within the meaning of the Health Insurance Act;

“prescribed service” means—

(a) a medical service to which an item relates, being a service that is rendered by or on behalf of a medical practitioner;

(b) a medical service to which an item relates, being a service that is a prescribed medical service within the meaning of the Health Insurance Act and is rendered in an operating theatre of a hospital by a dental practitioner;

(c) a service specified in an item that is expressed to relate to a professional attendance by an accredited dental practitioner, being a service that is rendered by a dental practitioner to a referred dental patient who has not attained the age of 22 years;

(d) a service specified in an item that is expressed to relate to a professional attendance by a participating optometrist, being a service that is rendered by an optometrist;

(e) a pathology service that, within the meaning of section 16a of the Health Insurance Act, is rendered by or on behalf of an approved pathology practitioner other than a medical practitioner; or

(f) a health service or procedure, other than a health service or procedure referred to in another paragraph of this definition, that is normally available at public hospitals to persons other than in-patients;

“relevant event”, in relation to a prescribed person or the dependant of a prescribed person, means—

(a) a request made by the prescribed person or, in the case of the dependant of a prescribed person, the prescribed person of whom he is a dependant to have a professional service rendered by or on behalf of a practitioner in such circumstances that the professional service would not be regarded as being rendered by or on behalf of the hospital of which the prescribed person or the dependant, as the case may be, is a patient;

(b) where the prescribed person or the dependant is receiving hospital treatment in the course of the treatment of, or as a result of, an injury or a disease—the perscribed person or the dependant, as the case may be, receives, or establishes his right to receive, in respect of that injury or disease, a payment by way of compensation or damages (including a payment in settlement of a claim for compensation or damages) under the law that is or was in force in a State or internal Territory, being a payment the whole or a part of the amount of which is intended to provide in full for any hospital expenses incurred, or likely to be incurred (whether or not by the patient), in the course of the treatment of, or as a result of, that injury or disease; or

(c) the prescribed person or the dependant, as the case may be, becomes a nursing-home type patient in relation to whom, in respect of the provision of accommodation and the rendering of services, fees are payable at a rate that does not exceed the rate of his patient contribution.

(2) The circumstances in which persons referred to in sub-paragraph 20 (1) (a) (i) or (ii) of the Act are to be taken to be public patients for the purposes of sub-section 20 (1) of the Act are as follows:

(a) in the case of a prescribed person—

(i) the person is, on the commencing day, a hospital patient in respect of whom, immediately before that day, accommodation was being provided and services were being rendered by the hospital without charge;

(ii) the person has, before the commencing day or on or after that day, requested, in respect of his becoming a patient on the particular occasion, that the hospital provide accommodation and render services in respect of him without charge as a hospital patient; or

(iii) the person has, before the commencing day or on or after that day, requested, in respect of his becoming a patient on the particular occasion, that the hospital render to him without charge, otherwise than as an in-patient, a prescribed service,

and an event that is a relevant event in relation to the person has not occurred;

(b) in the case of the dependant of a prescribed person—

(i) the dependant is, on the commencing day, a hospital patient in respect of whom, immediately before that day, accommodation was being provided and services were being rendered by the hospital without charge;

(ii) the prescribed person has, before the commencing day or on orafter that day, requested, in respect of the dependant becoming a patient on the particular occasion, that the hospital provide accommodation and render services in respect of the dependant without charge as a hospital patient; or

(iii) the prescribed person has, before the commencing day or on or after that day, requested, in respect of the dependant becoming a patient on the particular occasion, that the hospital render to the dependant without charge, otherwise than as an inpatient, a prescribed service,

and an event that is a relevant event in relation to the dependant has not occurred.

NOTE

1. Notified in the Commonwealth of Australia Gazette on 31 August 1981.

Overview

The States (Tax Sharing and Health Grants) Regulations 1981 were enacted under the States (Tax Sharing and Health Grants) Act 1981, which was introduced to address the need for a more equitable distribution of tax revenues and health grants between the Commonwealth and the states in Australia. These regulations, made by the Governor-General on the advice of the Federal Executive Council, aim to provide a framework for the administration of tax sharing and health grants, ensuring that the financial resources are allocated effectively to support state-based health services and other public services. The regulations came into operation on 1 September 1981 and include definitions and provisions that govern the circumstances under which individuals are considered public patients for the purposes of receiving health services without charge. The overarching policy objective of these regulations is to support the equitable distribution of financial resources to the states to meet their public service obligations, particularly in the health sector.

Scope and Application

The States (Tax Sharing and Health Grants) Regulations, which were made under the States (Tax Sharing and Health Grants) Act 1981, apply to the distribution of tax revenue between the Commonwealth and the states of Australia and the provision of health grants to the states. These regulations are instrumental in ensuring that the Commonwealth's tax revenue is shared equitably among the states while also providing financial support to state-run health services. The regulations specify the criteria and circumstances under which certain individuals, specifically eligible pensioners and disadvantaged persons as defined by the Health Insurance Act 1973, are to be considered as public patients. This definition impacts the eligibility of these individuals for free or subsidised medical services in public hospitals. The regulations have a national reach, applying across all states and territories within Australia, and are designed to implement and refine the provisions of the overarching Act. The application of these regulations is further detailed and potentially extended through subordinate instruments, which may provide additional definitions, guidelines, or specific instances of application as deemed necessary by the relevant authorities.

Key Provisions

The States (Tax Sharing and Health Grants) Regulations 1981 establish the framework for the allocation of tax sharing and health grants between the Australian states and territories. The regulations, which came into effect on 1 September 1981, are made under the States (Tax Sharing and Health Grants) Act 1981 and provide specific definitions and criteria for the distribution of these funds. Section 3 defines key terms such as “Health Insurance Act” and “the Act,” and specifies that terms defined in the Health Insurance Act will have the same meaning when used in these regulations. The regulations impose certain obligations on the parties involved. For example, they detail the criteria for determining when a person is considered a public patient under section 20(1) of the Act. According to section 4, a prescribed person or the dependant of a prescribed person will be considered a public patient if they are already hospital patients receiving services without charge, or if they have requested that the hospital provide services without charge. This applies to both prescribed persons and their dependants, provided no relevant event has occurred. These obligations are designed to ensure that eligible individuals receive the necessary health services without charge, thereby supporting the equitable distribution of healthcare resources. Failure to comply with these regulations can result in legal consequences. Although the regulations themselves do not explicitly outline penalties, violations of the underlying Act or other related laws could lead to civil or criminal penalties. For instance, under the States (Tax Sharing and Health Grants) Act 1981, there may be provisions for fines or other penalties for non-compliance, which would be determined by the specific legal context in which the breach occurs. It is important for entities governed by these regulations to adhere to the outlined criteria to avoid any potential legal repercussions.

Area of Law: Taxation Law
Instrument: Regulation
Concepts: Definitions & Interpretation; Commencement Provisions; Reporting & Disclosure Obligations

Interactions

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.

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