Commonwealth of Australia Explanatory Memoranda

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FEDERAL FINANCIAL RELATIONS AMENDMENT (NATIONAL HEALTH REFORM) BILL 2012

                           2010-2011-2012



   THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                  HOUSE OF REPRESENTATIVES




FEDERAL FINANCIAL RELATIONS AMENDMENT (NATIONAL HEALTH
                    REFORM) BILL 2012




       SUPPLEMENTARY EXPLANATORY MEMORANDUM




         Amendments to be moved on behalf of the Government



                   (Circulated by the authority of the
     Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)


Table of contents General outline and financial impact ....................................................... 1 Chapter 1 Amendments to the Federal Financial Relations Amendment (National Health Reform) Bill 2012 ............ 3 Chapter 2 Statement of Compatibility with Human Rights .............. 5


General outline and financial impact Amendments to the Federal Financial Relations Amendment (National Health Reform) Bill 2012 These amendments seek to amend the Federal Financial Relations Amendment (National Health Reform) Bill 2012 to change the commencement of specific provisions of the Bill. This includes: · changing the commencement of specific items under Schedule 1 - Aged care and disability services to the day after this Act receives the Royal Assent, or the day this Act receives the Royal Assent; and · changing the commencement of Schedule 2 - National health reform payments to the day this Act receives the Royal Assent. Other minor changes to the Bill include: · inserting a reference to national health reform payments in Schedule 1 - Aged care and disability services after paragraph 21(a) of the Federal Financial Relations Act 2009; and · removing a duplicative provision in Schedule 2 - National health reform payments. Date of effect: The amendments to the Federal Financial Relations Amendment (National Health Reform) Bill 2012 in respect of national health reform payments will take effect from the date of Royal Assent. Amendments to the Bill in respect of aged care and disability services will take effect from the date of Royal Assent or the day after the Act receives Royal Assent. Proposal announced: The amendments to the Federal Financial Relations Amendment (National Health Reform) Bill 2012 have not previously been announced. Financial impact: The amendments do not affect the financial impact statement included in the Explanatory Memorandum to the Federal Financial Relations Amendment (National Health Reform) Bill 2012. Human rights implications: The amendments are compatible with human rights. See Statement of Compatibility with Human Rights -- Chapter 2, paragraphs 2.1 to 2.7. Compliance cost impact: Nil. 1


Chapter 1 Amendments to the Federal Financial Relations Amendment (National Health Reform) Bill 2012 Amendment 1 (Commencement information) 1.1 This amendment changes the commencement of certain provisions of the Federal Financial Relations Amendment (National Health Reform) Bill 2012. 1.2 The commencement of Schedule 2 - National health reform payments has been changed from 1 July 2012 to the day this Act receives the Royal Assent. This amendment has been made to ensure that there is greater flexibility in the event that some or all parties to the agreement resolve that initial Commonwealth payments be made ahead of 1 July 2012 to support the implementation of the new funding arrangements under the National Health Reform Agreement. 1.3 The commencement of the specific provisions under Schedule 1 - Aged care and disability services have been changed as a consequence of amending the commencement of Schedule 2 - National health reform payments to when the Act receives the Royal Assent. These amendments have been made as the commencement of Schedule 1 - Aged care and disability services relies on the commencement of Schedule 2 - National health reform payments having taken effect. Amendments 2 and 3 (National health reform payments) 1.4 This amendment provides that the Minister must have regard to the National Health Reform Agreement when determining financial assistance in relation to national health reform payments or aged care and disability services. [Schedule 1, item 5, after paragraph 21(a) of the FFR Act] 1.5 As a consequence of this amendment, a duplicative reference in Schedule 2 - National health reform payments has been omitted. 3


Chapter 2 Statement of Compatibility with Human Rights Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 Federal Financial Relations Amendment (National Health Reform) Bill 2012 2.1 The amendments to the Federal Financial Relations Amendment (National Health Reform) Bill 2012 are 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 2.2 The amendments to the Federal Financial Relations Amendment (National Health Reform) Bill 2012 change the commencement of specific provisions of the Bill. This includes: · changing the commencement of specific items under Schedule 1 - Aged care and disability services to the day after this Act receives the Royal Assent, or the day this Act receives the Royal Assent; · changing the commencement of Schedule 2 - National health reform payments to the day this Act receives the Royal Assent; Other minor changes to the Bill include: · inserting a reference to national health reform payments in Schedule 1 - Aged care and disability services after paragraph 21(a) of the Federal Financial Relations Act 2009; and · removing a duplicative provision in Schedule 2 - National health reform payments. 5


Federal Financial Relations Amendment (National Health Reform) Bill 2012 Human rights implications 2.3 Australia is a party to seven core international human rights treaties. The right to health is contained in article 12(1) of the International Covenant on Economic Social and Cultural Rights. 2.4 The change to federal financial arrangements, in accordance with the National Health Reform Agreement, is a positive step towards the realisation of the highest attainable standard of health for all Australians. 2.5 The new funding approach delivers tangible improvements to the health and hospital system for all Australians, delivering the funding public hospitals need. 2.6 The changes also provide for the transitioning of responsibilities for aged care and disability services, which will ensure clearer lines of accountability between the Commonwealth and the States. Conclusion 2.7 The amendments to the Federal Financial Relations Amendment (National Health Reform) Bill 2012 are compatible with human rights because it advances the protection of human rights. The Hon Wayne Swan MP, Deputy Prime Minister and Treasurer 6


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