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2013
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
DisabilityCare Australia Fund (Consequential Amendments) Bill 2013
EXPLANATORY MEMORANDUM
(Circulated by authority of the Deputy Prime Minister and Treasurer,
the Hon Wayne Swan MP)
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Table of abbreviations and common terms
Abbreviation or Full term or description
common term
Agency Future Fund Management Agency
Chair means the Chair of the Future Fund Board
COAG Reform Fund means the Fund to be established under the COAG Reform
Fund Act 2008 for the purpose of making grants of financial
assistance to the States and Territories
DisabilityCare Australia the National Disability Insurance Scheme Act 2013
established the National Disability Insurance Scheme, known
as DisabilityCare Australia
DCA DisabilityCare Australia
DCAF DisabilityCare Australia Fund
DCAF Act DisabilityCare Australia Fund Act
EIF Education Investment Fund
FMA Act Financial Management and Accountability Act 1997
Finance Minister The Minister who administers the Financial Management and
Accountability Act 1997
Fund Account means the Future Fund Special Account established under the
Future Fund Act 2006
Future Fund Board Future Fund Board of Guardians
Future Fund Special Account means the Future Fund Special Account established by
section 12 of the Future Fund Act 2006
HHF Health and Hospitals Fund
National Disability Insurance means the Minister administering the National Disability
Minister Insurance Scheme Act 2013
Nominated Minister means the Nominated Minister determined under section 83
of the Future Fund Act 2006
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Outline
The DisabilityCare Australia Fund (Consequential Amendments) Bill 2013 (the Bill)
is part of a package of Bills giving effect to Government decisions in relation to the
National Disability Insurance Scheme. The National Disability Insurance Scheme Act
2013 established the National Disability Insurance Scheme, known as DisabilityCare
Australia. The establishment of DisabilityCare Australia is Australia's most
fundamental social reform since the Medicare.
The DisabilityCare Australia Fund Act 2013 established the DisabilityCare Australia
Fund (DCAF) to hold the increase to the Medicare levy.
The establishment of the DCAF requires a number of consequential amendments to
other pieces of legislation to enable to the effective operation of the Fund.
These consequential amendments:
enable reimbursements to the States and Territories through the COAG
Reform Fund;
extend the Future Fund's duties to manage the DCAF; and
allow for amounts to be transferred between each of the funds for the purposes
of apportioning the expenses that have been paid from one fund and should be
properly apportioned between two or more of the funds.
The treatment of the DCAF in the DCAF Act and this Bill is modelled on the
legislative arrangements established for the Nation Building Funds.
The Bill amends the COAG Reform Fund Act 2008, the Future Fund Act 2006 and the
Nation Building Funds Act 2008. Providing for a separate Bill for the consequential
amendments conforms to Commonwealth practice to reduce the complexity of
principal Acts.
Financial Impact Statement
The Bill has no financial impact.
Statement of Compatibility with Human Rights
The proposed amendments do not engage any of the applicable rights or freedoms
outlined in the Human Rights (Parliamentary Scrutiny) Act 2011, such as
encompassed in the International Covenant on Civil and Political Rights.
The proposed amendments do not limit any human rights, nor propose any offences or
penalties.
This Bill is therefore compatible with the human rights and freedoms recognised or
declared in the international instruments listed in subsection 3(1) of the Human Rights
(Parliamentary Scrutiny) Act 2011.
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DisabilityCare Australia Fund
(Consequential Amendments) Bill 2013
NOTES ON SECTIONS
Clause 1 - Short Title
Section 1 is a formal provision that the Bill, once enacted, may be referred to as the
DisabilityCare Australia Fund (Consequential Amendments) Act 2013.
Note: The clauses in the Bill will become sections of the Act on Royal Assent.
Clause 2 - Commencement
Section 2 is the commencements provision for the Bill. The commencement dates for
specific provisions are included in the table in subsection 2(1).
Item 1 of the table provides that the Act, excluding the Schedules, commences on the
day on which it receives Royal Assent.
Item 2 of the table provides that Schedule 1 commences on the latter of 1 July 2014
and the commencement of Schedule 1 to the Medicare Levy Amendment
(DisabilityCare Australia) Act 2013. Item 2 provides that the commencement
provision for Schedule 1 does not commence at all if Schedule 1 of the
Medicare Levy Amendment (DisabilityCare Australia) Act 2013 does not commence.
Clause 3 - Schedule
Section 3 provides that each Act specified in a Schedule to the Act is amended or
repealed as set out in the applicable items in the Schedule concerned. It also provides
that any other item in a Schedule to the Act has effect according to its terms.
SCHEDULE 1 - AMENDMENTS
Schedule 1 contains consequential amendments to a range of legislation to enable
debits from the DCAF and credits to the COAG Reform Account and to ensure the
Future Fund is appropriately enabled to manage its duties in relation to the DCAF.
COAG Reform Fund Act 2008
Item 1 inserts a Note 2A at subsection 5(2) to reflect that an amount originating in the
DCAF may be transferred to the COAG Reform Fund to mirror Note 2 establishing
the ability to transfer amounts originating in the Building Australia Fund to the
COAG Reform Fund, the EIF or the HHF.
Items 2 and 3 insert a reference to exclude debits from the COAG Reform Fund
made under the DCAF Act, from the terms and conditions for making a grant of
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financial assistance to a State or Territory set out in subsection 7(2) of the COAG
Reform Fund Act 2008. Item 3 inserts a Note 1A to reflect that the grants under
subparagraph 1(ba) are those channelled through the COAG Reform Fund from the
DCAF and that the terms and conditions for these grants are covered under the DCAF
Act.
Future Fund Act 2006
Item 4 inserts a reference within the Note to confirm that the Future Fund Board of
Guardians has additional functions under the DCAF Act.
Item 5 inserts a definition of DisabilityCare Australia Fund Act by reference to
section 10 in the DCAF Act.
Item 6 inserts a definition of DisabilityCare Australia Fund Special Account by
reference to section 11 of the DCAF Act.
Item 7 inserts a definition of National Disability Insurance Minister.
Item 8 amends Note 2A to confirm that Schedule 2A concerns transfers of amounts
from the Future Fund to the DCAF.
Items 9, 10, 11 and 12 update references to ensure the DCAF Act does not prevent
the same person being engaged as an investment manager under certain provisions in
the Future Fund Act, the Nation Building Funds Act or the DCAF Act.
Item 13 amends the Note to confirm that the Future Fund Board of Guardians has
additional functions under the DCAF Act.
Item 14 updates the references to include the Board's functions conferred under the
DCAF Act.
Item 15 inserts a new subsection 55(3) to exclude, from the requirement to keep the
responsible Ministers informed under section 55, the operation of the Board under the
DCAF Act. Part 4 of the DCAF Act establishes the reporting requirements for the
Future Fund Board.
Items 16 to 18 insert a reference to the DCAF in section 63(1) to confirm the Future
Fund Board will not contravene or commit an offence against certain sections of the
Future Fund Act by doing an act the DCAF requires the Future Fund Board to do.
Item 19 inserts a reference to the DCAF into section 81 to deal with reports in
relation to the DCAF in the form prescribed at section 1D.
Item 20 inserts a Note to confirm that a report under the benchmark provision must
include a benchmark in relation to the amounts prescribed at subparagraph 81(1D)(b)
to (e) relating to the DCAF.
Item 21 updates the references under subparagraph 81(4)(e) to confirm that the
nominated Minister must give a copy of the report to the National Disability
Insurance Minister, as well as the Ministers prescribed at subparagraph 81(4)(a) to
(g).
Items 22 and 23 updates the references under section 83B to confirm that the Board
may delegate any or all of its powers under subsection 39(1) of the DCAF Act.
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Items 24 and 25 update the references in subsection 84(1) to confirm that where the
Board receives an amount of money, and neither the Future Fund Act nor the DCAF
Act requires the amount to be credited to the DCAF Special Account, then the amount
is credited to the Fund Account.
Items 26, 27 and 28 insert a new paragraph 84(4A) to confirm that the nominated
Minister may direct that a specified amount be debited from the Fund Account and
credited to the DCAF Special Account, on a specified day.
Items 29, 30 and 31 update the references in paragraph 2(2)(a), (b) and (c) to include
a reference to the DCAF Act as a purpose that can be debited from the Fund Account
as a purpose not exclusively related to the Fund Account.
Item 32 updates the references in the Simplified Outline under Schedule 2A to refer
to the Inter-Fund Transfers to include the DCAF.
Item 33 inserts a new Item 5 to ensure that where an amount is debited from the
DCAF Special Account for a purpose not related exclusively to the DCAF (under
section 16 of the DCAF Act), that the nominated Minister can direct, in writing, that
an amount be debited from the Fund Account and credited to the DCAF Special
Account. This amount cannot be greater than the amount debited from the DCAF
under section 16 of the DCAF Act. Equivalent provisions are found in the Nation-
building Funds Act 2008 and the DCAF Act.
Nation-building Funds Act 2008
Item 34 inserts a definition of the DisabilityCare Australia Fund Special Account.
Items 35, 36 and 37 update the references in section 20 to ensure that where a
payment relates exclusively to the DCAF, then it cannot be debited from the BAF.
Item 38 inserts a new section 29A to ensure that where an amount is debited from the
DCAF Special Account for a purpose not exclusively relating to the DCAF (under
section 16 of the DCAF Act), the Finance Minister may, in writing, direct that a
specified amount be debited from the Building Australia Fund Special Account and
credited to the DCAF Special Account. This amount cannot be greater than the
amount debited from the DCAF Special Account under section 16 of the DCAF Act.
Equivalent provisions are found in the Future Fund Act 2006 and the DCAF Act.
Items 39 and 40 provide for the delegation of the determination under the new
Section 29A by the Finance Minister to the Secretary of the Finance Department or an
SES Officer and also to the Chair or an SES employee within the Agency.
Items 41, 42 and 43 update the references in section 138 to ensure that where a
payment relates exclusively to the DCAF, then it cannot be debited from the EIF.
Item 44 inserts a new section 148A to ensure that where an amount is debited from
the DCAF Special Account for a purpose not exclusively relating to the DCAF (under
section 16 of the DCAF Act), the Finance Minister may, in writing, direct that a
specified amount be debited from the Educational Investment Fund Special Account
and credited to the DCAF Special Account. This amount cannot be greater than the
amount debited from the DCAF Special Account under section 16 of the DCAF Act.
Equivalent provisions are found in the Future Fund Act 2006 and the DCAF Act.
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Items 45 and 46 provide for the delegation of the determination under the new
Section 148A by the Finance Minister to the Secretary of the Finance Department or
an SES Officer and also to the Chair or an SES employee within the Agency.
Items 47, 48 and 49 update the references in section 219 to ensure that where a
payment relates exclusively to the DCAF, then it cannot be debited from the HHF
Special Account.
Item 50 inserts a new section 224A to ensure that where an amount is debited from
the DCAF Special Account for a purpose not exclusively relating to the DCAF (under
section 16 of the DCAF Act), the Finance Minister may, in writing, direct that a
specified amount be debited from the Educational Investment Fund Special Account
and credited to the DCAF Special Account. This amount cannot be greater than the
amount debited from the DCAF Special Account under section 16 of the DCAF Act.
Equivalent provisions are found in the Future Fund Act 2006 and the DCAF Act.
Items 51 and 52 provide for the delegation of the determination under the new
Section 224A by the Finance Minister to the Secretary of the Finance Department or
an SES Officer and also to the Chair or an SES employee within the Agency.
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