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2008-2009
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
HEALTH WORKFORCE AUSTRALIA BILL 2009
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Health and Ageing, the Hon
Nicola Roxon MP)
HEALTH WORKFORCE AUSTRALIA BILL 2009
OUTLINE
The Health Workforce Australia Bill 2009 (the Bill) establishes Health
Workforce Australia (HWA). HWA will be a National Health Workforce
Authority that forms part of the $1.6 billion health workforce package
agreed to by the Council of Australian Governments (COAG) in November 2008.
HWA will be responsible for implementing the majority of initiatives under
the COAG workforce package.
There is currently a need for more effective governance arrangements around
health workforce training, planning and policy development that can work
across and with jurisdictions and the health and education sectors. The
creation of a new single body that can operate across both the health and
education sectors and jurisdictional responsibilities in health is critical
to devising national solutions that effectively integrate workforce
planning and policy.
HWA will establish more effective, streamlined and integrated clinical
training arrangements and support workforce policy and planning. Its
responsibilities will include funding, planning and coordinating pre-
professional entry clinical training across all health disciplines;
supporting health workforce research and planning, including through a
national workforce planning statistical resource, and funding simulation
training. The Authority will also ensure best value for money for the
workforce initiatives, a more rapid and substantive workforce planning and
policy development environment and will provide advice to Health Ministers
on relevant workforce issues.
The Bill is required to establish HWA as a statutory authority under the
Commonwealth Authorities and Companies Act 1997, thereby providing
governance arrangements that reflect the shared funding and policy interest
of all jurisdictions. The principal provisions in the Bill establish HWA
under the Commonwealth Authorities and Companies Act 1997 and specify the
functions, governance and structure of HWA.
HWA will consist of:
- A Board of Directors comprising of a nominee from each State and
Territory and the Commonwealth, an independent Chair and may include up
to three independent members selected by Health Ministers. The Board
will govern HWA, advise and report to Health Ministers and develop
policies and operational plans as required;
- A Chief Executive Officer (CEO) who will be responsible for the
day-to-day administration of HWA and will report to the Board;
- Expert Committees and Consultants engaged to assist with HWA
functions as required; and
- HWA staff.
Financial Impact Statement
The Bill establishes the HWA. The Commonwealth will provide $125 million
over four years for the establishment and operation of HWA. A further $1.2
billion in combined Commonwealth and States and Territory funding will be
administered through HWA over four years for the majority of initiatives
under the COAG health workforce package. The annual funding for HWA is
shown below.
| |2009/10 |2010/11 |2011/12 |2012/13 |Total |
| |($ |($ |($ |($ |($ |
| |million)|million)|million)|million)|million)|
|Direct HWA funding|25.0 |30.0 |35.0 |35.0 |125.0 |
|Funding |171.1 |345.7 |364.4 |338.3 |1219.5 |
|administered | | | | | |
|through HWA | | | | | |
HEALTH WORKFORCE AUSTRALIA BILL 2009
NOTES ON CLAUSES
PART 1-PRELIMINARY
Clause 1: Short title
This is a formal provision which provides that the Bill, once enacted, may
be referred to as the Health Workforce Australia Act 2009.
Clause 2: Commencement
This clause provides that the Bill commences on the day it receives Royal
Assent or 1 July 2009 whichever is the later.
Clause 3: Definitions
This clause sets out definitions of terms that are relied on in other
provisions throughout the Bill. Important definitions that warrant
detailed explanation include the following:
Eligible clinical training is a placement undertaken by medical, nursing,
dental and other health professionals to gain practical experience under
supervision. Clause 5(3)(b) allows for the Minister to determine what is
an eligible course for the purposes of this Bill.
Eligible student is a student undertaking a course of eligible clinical
training and who meets any other criteria. Clause 5(3)(a) allows for the
Minister to determine what is an eligible student for the purposes of this
Bill.
Health workforce means the body of professionals who are providing or are
employed to provide professional health care services to Australians in
public and private hospitals, private practices and other government and
non-government institutions.
PART 2-HEALTH WORKFORCE AUSTRALIA
Clause 4: Establishment
This clause establishes HWA as a body corporate which must have a seal.
Subsection (1) establishes the HWA and subsection (2) provides that it is a
body corporate which must have a seal, may deal with property and may sue
or be sued. The Note to this subsection assists the reader by making clear
that HWA is subject to the CAC Act and briefly describes the nature of that
Act.
Subsection (3) deals with the safe-keeping and use of the HWA seal and
subsection (4) deals with the judicial treatment of the HWA seal on
documents.
Clause 5: Functions
This clause sets out the functions of HWA, the major functions being to
plan, coordinate and provide funding in relation to eligible pre-
professional entry clinical training and supervision and to provide advice
to health ministers on health workforce issues (subsection (1)). Paragraph
(5)(1)(f) provides for the conferral of additional functions on HWA,
contemplating that over time such additional functions may be necessary or
required through regulations. Subsection (2) makes clear that any such
conferral of additional functions must be requested by Australian Health
Ministers' Conference.
Subsections (3) and (4) deal with HWA's provision of financial support,
specifying that HWA may make payments to or for eligible persons
undertaking to, proposing to, or actually providing, clinical training or
the associated facilities. It is anticipated eligibility will, in the
first instance, be limited to students in a Commonwealth supported
Australian tertiary institution undertaking clinical training that leads to
professional entry or registration in a relevant health discipline.
Eligible courses are expected to be those that are accredited by a
recognised accrediting body for the purposes of registration, or where this
is not applicable, otherwise specified in the legislative instrument.
Clause 6: Powers
This clause empowers HWA to undertake activities necessary or convenient to
perform its functions prescribed at section 5, including day-to-day
operations such as entering into contracts.
Clause 7: Ministerial directions
This clause enables Health Ministers to give directions to HWA through the
Australian Health Ministers' Conference (subsection (1)). It is expected
that Health Ministers' directions will be used to determine operations
issues, such as eligibility criteria for the pre-professional entry
clinical training subsidies and publication requirements direct. This is
expected to include a Ministerial direction to the Board to circulate
relevant publications to the Health Workforce Principal Committee. Such
directions must be of a general nature (paragraph (2)(a)) and must be
consistent with this Act, its regulations, the CAC Act or any legislation
made pursuant to that Act (paragraph (7)(2)(b)), and will only be
implemented following consultation with the Chair of the Governing Board
(subsection (3)).
Subsection (4) provides that such directions will not be legislative
instruments, and therefore not subject to the Legislative Instruments Act
2003.
Major new functions for HWA would require amendments to the HWA Act rather
than through Health Ministers' directions.
PART 3-THE BOARD OF HEALTH WORKFORCE AUSTRALIA
Clause 8: Establishment
This clause establishes the Board of HWA.
Clause 9: Role
This clause sets out the governing role of the Board, which is to ensure
the proper and efficient performance of HWAs functions (subsection (1)).
The Board is empowered to carry out all things necessary or convenient to
be done in connection with its duties (subsection (2)) and will be taken to
have been carried out by HWA (subsection (3)).
Subsection (4) deals with the exercise of powers or functions which depend
upon an opinion, belief or state of mind of HWA.
In performing its role, the Board will report to, and take directions from,
Health Ministers (see clause 7).
DIVISION 2-MEMBERS OF THE BOARD
Clause 10: Membership
This clause provides for the Board to consist of a Chair, one member
nominated by each State and Territory and the Commonwealth and up to three
independent members.
Clause 11: Appointment of members
This clause provides for the Commonwealth Health Minister to appoint Board
members, by written instrument (subsection (1)), following agreement of
State and Territory Health Ministers (subsection (2)). All appointments
will be on a part-time basis (subsection (3)).
Clause 12: Term of appointment
This clause provides that the term of Board membership is 3 to 5 years.
Board members will be eligible for reappointment to the Board. A Board
appointment can resign (see clause 16) or be terminated at other times if
necessary (see clause 17).
Clause 13: Acting appointments
This clause provides for the Commonwealth Health Minister, following
agreement from State and Territory Health Ministers, to appoint an acting
Chair (subsection (1)) or acting member (subsection (2)) to the Board when
necessary due to vacancies or absences. Such appointments will be by
written instrument (subsection (3)).
Subsection (4) deals with persons purporting to act under an appointment
and provides that such actions are not invalid if the prescribed
circumstances apply, such as cessation of the appointment or a defective
instrument of appointment.
The Note to this section assists the reader by providing a reference to the
appointment provisions of the Acts Interpretation Act 1901.
Clause 14: Remuneration
This clause provides that the remuneration of Board members is to be
determined by the Remuneration Tribunal, or by the regulations if there is
no determination by the Tribunal (subsection (1)). Subsection (2)
specifies that Board members will not be eligible for remuneration if they
are full-time employees of prescribed bodies, such as a State government.
Subsection (3) provides that members are to be paid allowances to be set
out in the regulations, and subsection (4) makes clear that this provision
is subject to the Remuneration Tribunal Act 1973.
Clause 15: Leave
This clause provides for the Commonwealth Health Minister to grant the
Chair of the Board leave of absences and to determine the conditions of the
leave (subsection (1)) and for the Chair of the Board to provide the same
function for granting leave of absence to other Board members (subsection
(2)). It also requires the Chair to notify the Commonwealth Health Minster
if a leave of absence greater than 6 months is granted (subsection (3)).
Clause 16: Resignation
This clause provides for resignation of Board members through written
resignation to the Commonwealth Health Minister (subsection (1)). Any such
resignation is effective from either the day the Minister receives the
written notice or a later date if specified in the resignation (subsection
(2)).
Clause 17: Termination of appointment
This clause provides for the Commonwealth Health Minister following
agreement from State and Territory Health Ministers to terminate the
appointment of a government nominated member (subsection (1)) or other
board members due to specified circumstances, including incapacity and non-
approved absenteeism (subsection (2)). Subsections (1) and (2) specify the
circumstances in which the Minister may terminate an appointment, and
subsection (3) specifies the circumstances in which the Minister must
terminate an appointment.
Clause 18: Other terms and conditions of appointment
This clause provides for the Commonwealth Health Minister to determine
other terms and conditions of Board membership not otherwise covered in the
Act.
DIVISION 3-PROCEDURES OF THE BOARD
Clause 19: Convening of meetings
This clause sets out the minimum Board meetings to be convened, being 3 per
year (subsection (1)), and the circumstances for convening additional
meetings, being direction from the Chair if he or she considers an
additional meeting is necessary (subsection (2)) or by Health Ministers
(subsection (3)).
Clause 20: Presiding at meetings
This clause provides that the Chair of the Board is to preside at all Board
meetings at which he or she is present (subsection (1)), and where the
Chair is not present, for a Board member elected by the Board to preside
(subsection (2)).
Clause 21: Quorum
This clause provides that a quorum is established if there is the Chair and
six government nominated members present or seven government nominated
members present (subsection (1)). In circumstances where a member is
required to absent himself or herself from deliberations or a decision for
reasons of material personal interest, the remaining Board members
constitute a quorum for any deliberations or decision relating to that
matter (subsection (2)).
Clause 22: Voting at meetings
This clause provides for Board decisions to be made on a majority basis
(subsection (1)), with the Chair of the Board or presiding member having
the casting vote (subsection (2)).
Clause 23: Decisions without meetings
This clause provides for decisions of the Board to be made without a formal
meeting in certain circumstances (subsection (1)). The mechanism for such
decision-making (such as advice in writing from Board members) will be
determined by the Board (subsection (2)).
Subsection (3) provides that a member would not be entitled to vote on a
decision if he or she would not have been eligible to vote on the decision
at a Board meeting.
Clause 24: Other procedural matters
This clause provides for the Board to regulate the conduct of its meetings,
subject to the CAC Act, as it thinks fit (subsection (1)) and to record
decisions made at meetings (subsection (2)).
The Note to subsection (1) assists the reader by providing a reference to
the provision of the Acts Interpretation Act 1901 which deals with members'
participation in meetings.
PART 4-CHIEF EXECUTIVE OFFICER, STAFF AND CONSULTANTS
DIVISION 1-THE CHIEF EXECUTIVE OFFICER OF HEALTH WORKFORCE AUSTRALIA
Clause 25: Establishment
This clause specifies that there MUST be a Chief Executive Officer (CEO) of
HWA.
Clause 26: Role
This clause sets out the role of the CEO, being the day-to-day
administration of HWA (subsection (1)), and empowers the CEO to do all
things necessary in performing the role (subsection (2)). The CEO must act
in accordance with policies and directions from the Board (subsection (3)).
Clause 27: Appointment
This clause provides for the CEO of HWA to be appointed by the Board,
following consultation with the Commonwealth Health Minister and following
consultation with the State and Territory Health Ministers (subsections (1)
and (2)). Subsection (7) provides for the first CEO to be appointed by the
Commonwealth Health Minister, following consultation with the State and
Territory Health Ministers, given the Board will not yet be established.
Appointment will be by written instrument (subsection (3)) and will be on a
full-time basis (subsection (4)). Subsection (5) provides for the
appointment period to be 3 to 5 years, and subsection (6) provides that the
CEO cannot be a member of the Board. The CEO will be eligible for
reappointment.
Clause 28: Acting appointments
This clause provides for the Board to appoint an acting CEO to vacancies or
absences by the existing CEO (subsection (1). The Board must consult the
Commonwealth Health Minister who in turn must consult with the State and
Territory Health Ministers (subsection (2)). The appointment must be by
written instrument (subsection (3)).
Subsection (4) deals with persons purporting to act under an appointment
and provides that such actions are not invalid if the prescribed
circumstances apply, such as cessation of the appointment or a defective
instrument of appointment.
Clause 29: Outside employment
This clause specifies that the CEO is not to engage in paid employment
outside the CEO role without approval by the Chair of the Board (subsection
(1)) and that the Board must notify the Commonwealth Health Minister if
providing such approval (subsection (2)).
Clause 30: Remuneration
This clause provides that the remuneration of the CEO is to be determined
by the Remuneration Tribunal, or by the regulations if there is no
determination by the Tribunal (subsection (1)).
Subsection (2) provides that members are to be paid allowances to be set
out in the regulations, and subsection (3) makes clear that this provision
is subject to the Remuneration Tribunal Act 1973.
Clause 31: Leave
This clause provides for the CEO's recreation leave entitlements to be
determined by the Remuneration Tribunal (subsection (1)). It also provides
that the Chair of the Board may grant, and determine the conditions of,
other leaves of absence (subsection (2)) and requires the Chair to notify
the Commonwealth Health Minister if granting the CEO leave of more than two
month (subsection (3)).
Clause 32: Disclosure of interests
This clause requires the CEO to inform the Board, in writing, of any
personal interests that may conflict with the performance of the CEO role.
Clause 33: Resignation
This clause provides for the resignation of the CEO by written resignation
to the Chair (subsection (1)). Such resignation is effective from either
the day the Chair receives the written notice or a later date if specified
in the resignation (subsection (2)). The Chair is required to notify the
Commonwealth Health Minister if the CEO resigns (subsection (3)).
Clause 34: Termination
This clause provides for the Board, to terminate the appointment of the CEO
due to specified circumstances, including incapacity and non-approved
absenteeism. Subsection (1) specifies the circumstances in which the Board
may terminate an appointment. Subsection (2) requires that the Board must
consult with the Commonwealth Health Minister who must consult with the
State and Territory Health Ministers before terminating the appointment
under subsection(1). Subsection (3) specifies the circumstances in which
the Board must terminate an appointment. Subsection (4) requires that the
Board must notify the Commonwealth Health Minister if the Board has
terminated the appointment of the CEO.
Clause 35: Other terms and conditions
This clause provides for the Board to determine other terms and conditions
of the CEO's office not otherwise covered in the Act.
DIVISION 2-STAFF AND CONSULTANTS
Clause 36: Staff
This clause provides for HWA to employ staff to support the performance of
HWA functions (subsection (1)) and to determine, in writing, the terms and
conditions of staff employment (subsection (2)).
Clause 37: Arrangements for secondments of staff
This clause provides for HWA to arrange for the services of employees of
Commonwealth (subsection (1)) or State and Territory Government (subsection
(2)) agencies or bodies to be made available to HWA.
Clause 38: Consultants
This clause provides for HWA to engage consultants to assist in performing
its functions. This will enable HWA to gain expert advice relevant to
workforce issues and/or to implement projects as required.
PART 5-COMMITTEES
Clause 39: Committees
This clause provides for HWA to establish committees to provide advice or
assistance to HWA in the performance of its functions (subsection (1)).
The membership of such committee may be by Board members, non-members or a
mixture of both (subsection (2)). Subsection (3)) provides that HWA may
determine the terms of reference, appointment terms and conditions and
procedures for such a committee.
PART 6-OTHER MATTERS
Clause 40: How the Ministerial Conference gives agreement etc.
This clause provides for Health Ministers to give nominations, agreement or
directions (as applicable) in accordance with procedures determined by
Health Ministers.
Clause 41: Taxation
This clause specifies that HWA is not subject to taxation under any
Commonwealth, States or Territory law. It does not exempt HWA from GST.
Clause 42: Constitutional operation
This provision provides for the functions of HWA to be performed within
constitutional powers
Clause 43: Regulations
This clause provides for the Governor-General to make regulations required,
necessary or convenient for the operation or giving effect of the Act.
For example, this Bill enables regulations to be made in relation to:
. the functions of HWA (see clause 5);
. directions by Health Ministers to HWA (see clause 7);
. the remuneration of Board members, including allowances (see clause 14);
and
. the remuneration of the CEO, including allowances (see clause 30).