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A Bill for an Act to amend the Federal Financial Relations Act 2009, and for other purposes
Administered by: Treasury
For authoritative information on the progress of bills and on amendments proposed to them, please see the House of Representatives Votes and Proceedings, and the Journals of the Senate as available on the Parliament House website.
Registered 24 Jun 2010
Introduced HR 23 Jun 2010

2008‑2009‑2010

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

Federal Financial Relations Amendment (National Health and Hospitals Network) Bill 2010

 

No.      , 2010

 

(Treasury)

 

 

 

A Bill for an Act to amend the Federal Financial Relations Act 2009, and for other purposes

  

  


Contents

1............ Short title............................................................................................ 1

2............ Commencement.................................................................................. 1

3............ Schedule(s).......................................................................................... 2

Schedule 1—Amendments                                                                                                 3

Federal Financial Relations Act 2009                                                                    3

 


A Bill for an Act to amend the Federal Financial Relations Act 2009, and for other purposes

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Federal Financial Relations Amendment (National Health and Hospitals Network) Act 2010.

2  Commencement

             (1)  Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

 

2.  Schedule 1

1 July 2011.

1 July 2011

Note:          This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

             (2)  Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

3  Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


 

Schedule 1Amendments

  

Federal Financial Relations Act 2009

1  Paragraph 3(a)

Before “GST revenue grants”, insert “untied”.

2  After paragraph 3(b)

Insert:

                    (ba)  National Health and Hospitals Network payments; and

3  Section 4

Insert:

costs, in relation to:

                     (a)  capital expenditure for public hospitals; or

                     (b)  capital expenditure for primary health care facilities;

includes:

                     (c)  depreciation; and

                     (d)  borrowing costs; and

                     (e)  anything that is declared by the regulations to be costs for the purposes of this paragraph.

4  Section 4

Insert:

dedicated GST revenue has the meaning given by section 6A.

5  Section 4 (definition of Intergovernmental Agreement)

Repeal the definition (including the note), substitute:

Intergovernmental Agreement means:

                     (a)  the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 January 2009, as amended from time to time; or

                     (b)  if a later agreement is expressed to replace the agreement mentioned in paragraph (a)—that later agreement, as amended from time to time.

Note:          The agreement mentioned in paragraph (a) provides an overarching framework for financial transfers between the Commonwealth and the States and related collaboration on policy development and service delivery.

6  Section 4

Insert:

joint intergovernmental funding authority, in relation to a State, means a body corporate, where:

                     (a)  the body corporate is established by a law of the State; and

                     (b)  the body corporate is known:

                              (i)  as the joint intergovernmental funding authority for the State; or

                             (ii)  if another name is specified in the regulations—by that other name; and

                     (c)  the law that establishes the body corporate includes such provisions relating to the following matters:

                              (i)  governance;

                             (ii)  financial management and accountability;

                            (iii)  audit;

                            (iv)  reporting obligations;

                            as are specified in the regulations.

7  Section 4

Insert:

local hospital network means a body corporate that is:

                     (a)  established by a law of a State; and

                     (b)  known as a Local Hospital Network.

8  Section 4

Insert:

National Health and Hospitals Network Agreement means the National Health and Hospitals Network Agreement, endorsed by the Premiers of the States (other than Western Australia) in Canberra on 20 April 2010, as amended from time to time.

Note:          The National Health and Hospitals Network Agreement is expressed to be an agreement that sets out the architecture and foundations of the National Health and Hospitals Network, which will deliver major structural reforms to establish the foundation of Australia’s future health system.

9  Section 4

Insert:

National Health and Hospitals Network Fund means the National Health and Hospitals Network Fund established by section 15A.

10  Section 4

Insert:

National Health and Hospitals Network matter means:

                     (a)  the provision of public hospital services to public patients; or

                     (b)  training in public hospitals; or

                     (c)  research in public hospitals; or

                     (d)  general practitioner medical services; or

                     (e)  primary health care services; or

                      (f)  primary health care equivalent outpatient services; or

                     (g)  a matter that:

                              (i)  relates to health care; and

                             (ii)  is specified in the regulations.

11  Section 4

Insert:

non‑participating NHHN State, in relation to a financial year, means a State that is not a participating NHHN State in relation to the financial year.

12  Section 4

Insert:

participating NHHN State, in relation to a financial year, means a State that is a party to the National Health and Hospitals Network Agreement at the start of the financial year.

13  Section 4

Insert:

Premier:

                     (a)  the Chief Minister of the Australian Capital Territory is taken to be the Premier of that Territory for the purposes of this Act; and

                     (b)  the Chief Minister of the Northern Territory is taken to be the Premier of that Territory for the purposes of this Act.

14  Section 4

Insert:

primary health care equivalent outpatient service means an outpatient service that:

                     (a)  is provided in a public hospital; and

                     (b)  is of a kind specified in the regulations.

15  At the end of Part 1

Add:

4A  Distribution of GST revenue

                   The Parliament acknowledges that the Commonwealth will not seek to amend the following provisions:

                     (a)  Division 1 of Part 2 (which deals with untied GST revenue grants);

                     (b)  Division 2 of Part 3A (which deals with dedicated GST revenue payments).

16  Division 1 of Part 2 (heading)

Repeal the heading, substitute:

Division 1Untied GST revenue grants

17  Section 5

Repeal the section, substitute:

5  Untied GST revenue grants

Scope

             (1)  This section applies to:

                     (a)  the 2011‑12 payment year; and

                     (b)  each later payment year.

Untied GST revenue grants—participating NHHN States

             (2)  Subject to this Act, each State that is a participating NHHN State in relation to a payment year is entitled to the payment, by way of financial assistance, for the payment year, of a grant worked out using the formula:

where:

adjusted State population means the estimated population of the State on 31 December in the payment year (see section 7) multiplied by the GST revenue sharing relativity (see section 8) for the State for that year.

adjusted total population means the sum of the adjusted State populations of all of the States for the payment year.

dedicated GST revenue means the dedicated GST revenue for the State for the financial year that corresponds to the payment year (see section 6A).

GST revenue means the GST revenue for the payment year (see section 6).

Untied GST revenue grants—non‑participating NHHN States

             (3)  Subject to this Act, each State that is a non‑participating NHHN State in relation to a payment year is entitled to the payment, by way of financial assistance, for the payment year, of a grant worked out using the formula:

where:

adjusted State population means the estimated population of the State on 31 December in the payment year (see section 7) multiplied by the GST revenue sharing relativity (see section 8) for the State for that year.

adjusted total population means the sum of the adjusted State populations of all of the States for the payment year.

GST revenue means the GST revenue for the payment year (see section 6).

18  After section 6

Insert:

6A  Dedicated GST revenue for a State

Scope

             (1)  This section applies to:

                     (a)  the financial year starting on 1 July 2011; and

                     (b)  each later financial year.

Dedicated GST revenue

             (2)  The Minister may determine that a specified amount is the dedicated GST revenue for a specified State for a specified financial year.

             (3)  The specified State must be a participating NHHN State for the specified financial year.

             (4)  A determination under subsection (2) is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to the determination.

19  Section 10

Repeal the section.

20  Before section 11

Insert:

10A  Specific purpose payments for health care—non‑participating NHHN States

             (1)  Financial assistance is payable in accordance with this section to a State for:

                     (a)  the financial year starting on 1 July 2011; and

                     (b)  each later financial year;

for the purpose of expenditure on health care.

             (2)  Despite subsection (1), financial assistance is not payable under that subsection to a State for a financial year unless the State is a non‑participating NHHN State in relation to the financial year.

             (3)  The total amount of all financial assistance payable under subsection (1) to the States for a financial year must equal the non‑participating NHHN States component for the financial year.

Note:          For non‑participating NHHN States component, see subsection 15F(3).

             (4)  The Minister may, by legislative instrument, determine, for each financial year, the manner in which the total amount under subsection (3) is to be divided between the non‑participating NHHN States.

             (5)  Financial assistance is payable to a State under this section on condition that the financial assistance is spent on health care.

21  After Part 3

Insert:

Part 3ANational Health and Hospitals Network payments etc.

Division 1National Health and Hospitals Network Fund

15A  Establishment of the National Health and Hospitals Network Fund

             (1)  The National Health and Hospitals Network Fund is established by this section.

             (2)  The National Health and Hospitals Network Fund is a Special Account for the purposes of the Financial Management and Accountability Act 1997.

Note:          An Act appropriating money for expenditure out of the Consolidated Revenue Fund may contain a provision to the effect that, if any of the purposes of a Special Account is a purpose that is covered by an item in the Act (whether or not the item expressly refers to the Special Account), then amounts may be debited against the appropriation for that item and credited to that Special Account.

15B  Credits of amounts to the National Health and Hospitals Network Fund

             (1)  The Minister may, by writing, determine that:

                     (a)  a specified amount is to be credited to the National Health and Hospitals Network Fund on a specified day; or

                     (b)  a specified amount is to be credited to the National Health and Hospitals Network Fund in specified instalments on specified days.

Note:          For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.

             (2)  A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to the determination.

15C  Purpose of National Health and Hospitals Network Fund

                   The purpose of the National Health and Hospitals Network Fund is the making of payments of grants under sections 15D, 15E and 15H.

Division 2Dedicated GST revenue payments

15D  Dedicated GST revenue payments

Grants

             (1)  The Minister may determine that a specified amount is payable to a State, by way of a grant of financial assistance, for:

                     (a)  the financial year starting on 1 July 2011; or

                     (b)  a later financial year.

             (2)  The Minister may determine that a specified amount is payable to a joint intergovernmental funding authority for a State, by way of a grant, for:

                     (a)  the financial year starting on 1 July 2011; or

                     (b)  a later financial year.

             (3)  The Minister must not determine that an amount is payable to:

                     (a)  a State under subsection (1); or

                     (b)  the joint intergovernmental funding authority for a State under subsection (2);

for a financial year unless the State is a participating NHHN State in relation to the financial year.

             (4)  The Minister must ensure that the total amount of grants payable to:

                     (a)  a State under subsection (1); and

                     (b)  the joint intergovernmental funding authority for the State under subsection (2);

for a financial year is equal to the dedicated GST revenue for the State for the financial year.

Conditions

             (5)  A grant is payable under this section on such conditions as are specified in a written determination made by the Minister.

             (6)  At least one of the conditions specified under subsection (5) must require the grant to be spent on one or more specified National Health and Hospitals Network matters.

Note:          See also section 15J (indirect spending of grants).

             (7)  If the Minister is satisfied that:

                     (a)  particular costs are costs of capital expenditure for public hospitals and/or primary health care facilities; and

                     (b)  the capital expenditure has already been incurred;

the Minister may, in writing, determine that a specified grant payable under subsection (1) or (2) is for the purposes of reimbursing or covering those costs.

             (8)  Subsection (6) does not apply in relation to a grant specified in a determination in force under subsection (7).

Legislative instruments

             (9)  A determination under subsection (1) or (2) is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to the determination.

           (10)  A determination under subsection (5) or (7) is not a legislative instrument.

Division 3Special payments etc.

15E  Special payments

Grants

             (1)  The Minister may determine that a specified amount is payable to a State, by way of a grant of financial assistance, for:

                     (a)  the financial year starting on 1 July 2011; or

                     (b)  a later financial year.

             (2)  The Minister may determine that a specified amount is payable to a joint intergovernmental funding authority for a State, by way of a grant, for:

                     (a)  the financial year starting on 1 July 2011; or

                     (b)  a later financial year.

             (3)  The Minister must not determine that an amount is payable to:

                     (a)  a State under subsection (1); or

                     (b)  the joint intergovernmental funding authority for a State under subsection (2);

for a financial year unless the State is a participating NHHN State in relation to the financial year.

             (4)  The Minister must ensure that the total amount of all grants payable to:

                     (a)  the States under subsection (1); and

                     (b)  the joint intergovernmental funding authorities for the States under subsection (2);

for a financial year is equal to the amount worked out using the following formula:

where:

applicable gross amount means:

                     (a)  if there are one or more non‑participating NHHN States for the financial year—the participating NHHN States component for the financial year; or

                     (b)  otherwise—the total amount under subsection 15F(1) for the financial year.

Note:          For participating NHHN States component, see subsection 15F(3).

total negative State adjustment amount means the total of any negative State adjustment amounts determined under subsection 15G(2) for the financial year.

total positive State adjustment amount means the total of any positive State adjustment amounts determined under subsection 15G(1) for the financial year.

Conditions

             (5)  A grant is payable under this section on such conditions as are specified in a written determination made by the Minister.

             (6)  At least one of the conditions specified under subsection (5) must require the grant to be spent on one or more specified National Health and Hospitals Network matters.

Note:          See also section 15J (indirect spending of grants).

             (7)  If the Minister is satisfied that:

                     (a)  particular costs are costs of capital expenditure for public hospitals and/or primary health care facilities; and

                     (b)  the capital expenditure has already been incurred;

the Minister may, in writing, determine that a specified grant payable under subsection (1) or (2) is for the purposes of reimbursing or covering those costs.

             (8)  Subsection (6) does not apply in relation to a grant specified in a determination in force under subsection (7).

Legislative instruments

             (9)  A determination under subsection (1) or (2) is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to the determination.

           (10)  A determination under subsection (5) or (7) is not a legislative instrument.

15F  Total amount payable

             (1)  The Minister must ensure that the total amount of all grants payable:

                     (a)  to the States under subsection 15E(1); and

                     (b)  to the joint intergovernmental funding authorities for the States under subsection 15E(2); and

                     (c)  to the States under section 10A;

for a financial year is equal to:

                     (d)  for the financial year starting on 1 July 2011—the amount that would have been payable under repealed section 10 for the financial year, if that section had not been repealed; or

                     (e)  for a later financial year—the total amount under this subsection for the preceding financial year, indexed in accordance with subsection (2).

Note:          Section 10A deals with specific purpose payments for health care to non‑participating NHHN States.

             (2)  The Minister may, by legislative instrument, determine the manner in which the total amount under paragraph (1)(b) is to be indexed for a particular financial year. The determination must include a statement of the total amount for that financial year.

             (3)  If there are one or more non‑participating NHHN States in relation to:

                     (a)  the financial year starting on 1 July 2011; or

                     (b)  a later financial year;

the Minister must, by legislative instrument, determine:

                     (c)  that a specified portion of the total amount under subsection (1) for the financial year is the participating NHHN States component for the financial year; and

                     (d)  that the remainder of the total amount under subsection (1) for the financial year is the non‑participating NHHN States component for the financial year.

15G  State adjustment amounts

             (1)  The Minister may determine that a specified amount is a positive State adjustment amount for a specified State for a specified financial year.

             (2)  The Minister may determine that a specified amount is a negative State adjustment amount for a specified State for a specified financial year.

             (3)  A determination under subsection (1) or (2) is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to the determination.

Division 4Top‑up payments

15H  Top‑up payments

Grants

             (1)  The Minister may determine that a specified amount is payable to a State, by way of a grant of financial assistance, for:

                     (a)  the financial year starting on 1 July 2014; or

                     (b)  a later financial year.

             (2)  The Minister may determine that a specified amount is payable to a joint intergovernmental funding authority for a State, by way of a grant, for:

                     (a)  the financial year starting on 1 July 2014; or

                     (b)  a later financial year.

             (3)  The Minister must not determine that an amount is payable to:

                     (a)  a State under subsection (1); or

                     (b)  the joint intergovernmental funding authority for a State under subsection (2);

for a financial year unless the State is a participating NHHN State in relation to the financial year.

             (4)  The Minister must ensure that the total amount of all grants payable to:

                     (a)  the States under subsection (1); and

                     (b)  the joint intergovernmental funding authorities for the States under subsection (2);

for the financial years included in the period:

                     (c)  beginning at the start of 1 July 2014; and

                     (d)  ending at the end of 30 June 2020;

is at least:

                     (e)  $15.6 billion; or

                      (f)  if a lower amount is specified in a determination in force under subsection (5)—that amount.

             (5)  The Minister may determine a specified amount for the purposes of paragraph (4)(f).

             (6)  The Minister must not make an instrument under subsection (5) unless there is at least one non‑participating NHHN State in relation to any of the financial years included in the period:

                     (a)  beginning at the start of 1 July 2014; and

                     (b)  ending at the end of 30 June 2020.

             (7)  If an Appropriation Act relating to a financial year declares, in relation to the financial year, that a specified amount is the general drawing rights limit for the purposes of this section, the total amount covered by drawing rights authorising debits from the National Health and Hospitals Network Fund for the purposes of paying grants to:

                     (a)  the States under subsection (1); and

                     (b)  the joint intergovernmental funding authorities for the States under subsection (2);

for the financial year must not exceed that general drawing rights limit.

             (8)  Despite anything else in this section, if no Appropriation Act relating to a financial year declares, in relation to the financial year, that a specified amount is the general drawing rights limit for the purposes of this section, drawing rights must not be issued authorising debits from the National Health and Hospitals Network Fund for the purposes of paying grants under subsection (1) or (2) for the financial year.

Conditions

             (9)  A grant is payable under this section on such conditions as are specified in a written determination made by the Minister.

           (10)  At least one of the conditions specified under subsection (9) must require the grant to be spent on one or more specified National Health and Hospitals Network matters.

Note:          See also section 15J (indirect spending of grants).

           (11)  If the Minister is satisfied that:

                     (a)  particular costs are costs of capital expenditure for public hospitals and/or primary health care facilities; and

                     (b)  the capital expenditure has already been incurred;

the Minister may, in writing, determine that a specified grant payable under subsection (1) or (2) is for the purposes of reimbursing or covering those costs.

           (12)  Subsection (10) does not apply in relation to a grant specified in a determination in force under subsection (11).

Legislative instruments

           (13)  A determination under subsection (1), (2) or (5) is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to the determination.

           (14)  A determination under subsection (9) or (11) is not a legislative instrument.

Division 5Indirect spending of grants

15J  Indirect spending of grants

             (1)  For the purposes of this Act, if:

                     (a)  a grant is paid under this Part to a joint intergovernmental funding authority for a State; and

                     (b)  the grant is subject to a condition that requires the grant to be spent on one or more National Health and Hospitals Network matters specified in a determination made by the Minister; and

                     (c)  the joint intergovernmental funding authority forwards the whole or a part of the grant to a local hospital network; and

                     (d)  the local hospital network spends the amount forwarded to it on those matters;

the whole or the part, as the case may be, of the grant is taken to have been spent on those matters.

             (2)  For the purposes of this Act, if:

                     (a)  a grant is paid under this Part to a joint intergovernmental funding authority for a State; and

                     (b)  the grant is subject to a condition that requires the grant to be spent on one or more National Health and Hospitals Network matters specified in a determination made by the Minister; and

                     (c)  the joint intergovernmental funding authority forwards the whole or a part of the grant to a local hospital network; and

                     (d)  the local hospital network forwards the amount forwarded to it to a body corporate; and

                     (e)  the body corporate spends the amount forwarded to it on those matters;

the whole or the part, as the case may be, of the grant is taken to have been spent on those matters.

             (3)  For the purposes of this Act, if:

                     (a)  a grant is paid under this Part to a joint intergovernmental funding authority for a State; and

                     (b)  the grant is subject to a condition that requires the grant to be spent on one or more National Health and Hospitals Network matters specified in a determination made by the Minister; and

                     (c)  the joint intergovernmental funding authority forwards the whole or a part of the grant to a local hospital network; and

                     (d)  the local hospital network:

                              (i)  divides the amount forwarded to it into portions; and

                             (ii)  forwards those portions to different bodies corporate; and

                     (e)  each of those bodies corporate spends the portion forwarded to it on those matters;

the whole or the part, as the case may be, of the grant is taken to have been spent on those matters.

15K  Grants are not public money

Scope

             (1)  This section applies if a grant is paid under this Part to a joint intergovernmental funding authority for a State.

Grant is not public money

             (2)  The grant is not public money for the purposes of the Financial Management and Accountability Act 1997 when it is in the custody or under the control of the joint intergovernmental funding authority.

             (3)  If the joint intergovernmental funding authority forwards the whole or a part of the grant to a local hospital network, the amount forwarded is not public money for the purposes of the Financial Management and Accountability Act 1997 when it is in the custody or under the control of the local hospital network.

22  Section 17

Before “The Minister may”, insert “(1)”.

23  At the end of section 17

Add:

             (2)  The Minister may make advances to a State of portions of the amount or amounts to which, it appears to the Minister, the State will be entitled under a provision of Part 3A for a financial year.

             (3)  The Minister may make advances to a joint intergovernmental funding authority for a State or portions of the amount or amounts to which, it appears to the Minister, the joint intergovernmental funding authority will be entitled under a provision of Part 3A for a financial year.

24  At the end of section 18

Add:

             (3)  If a State has been paid an amount in excess of the amount that, under a provision of Part 3A, it was entitled to receive by way of a grant of financial assistance for a financial year, the Minister must deduct an amount equal to the excess from any amount that the State is entitled to receive by way of a grant of financial assistance under that provision for the first practicable subsequent financial year.

             (4)  If a State has been paid less than the amount that, under a provision of Part 3A, it was entitled to receive by way of a grant of financial assistance for a financial year, the Minister must add an amount equal to the shortfall to any amount that the State is entitled to receive by way of a grant of financial assistance under that provision for the first practicable subsequent financial year.

Joint intergovernmental funding authorities

             (5)  If a joint intergovernmental funding authority has been paid an amount in excess of the amount that, under a provision of Part 3A, it was entitled to receive by way of a grant for a financial year, the Minister must deduct an amount equal to the excess from any amount that the joint intergovernmental funding authority is entitled to receive by way of a grant under that provision for the first practicable subsequent financial year.

             (6)  If a joint intergovernmental funding authority has been paid less than the amount that, under a provision of Part 3A, it was entitled to receive by way of a grant for a financial year, the Minister must add an amount equal to the shortfall to any amount that the joint intergovernmental funding authority is entitled to receive by way of a grant under that provision for the first practicable subsequent financial year.

Note:       The following heading to subsection 18(1) is inserted “States”.

25  Subsection 19(1)

After “this Act”, insert “(other than Part 3A)”.

26  After subsection 19(1)

Insert:

          (1A)  The Minister may, in writing, determine that a grant payable to a State under Part 3A:

                     (a)  is to be paid at such time as the Minister determines; or

                     (b)  is to be paid, by way of instalments, in such amounts, and at such times, as the Minister determines.

          (1B)  The Minister may, in writing, determine that a grant payable to a joint intergovernmental funding authority under Part 3A:

                     (a)  is to be paid at such time as the Minister determines; or

                     (b)  is to be paid, by way of instalments, in such amounts, and at such times, as the Minister determines.

27  Subsection 19(2)

After “subsection (1)”, insert “, (1A) or (1B)”.

28  At the end of section 20

Add:

Joint intergovernmental funding authorities

             (6)  It is a condition of a payment of a grant under Part 3A to a joint intergovernmental funding authority that, if the joint intergovernmental funding authority does not fulfil a condition in respect of the payment, the joint intergovernmental funding authority will, if the Minister so determines, repay to the Commonwealth the amount stated in the determination.

             (7)  The amount stated in the determination under subsection (6) must not be more than the amount of the payment.

             (8)  A determination made under subsection (6) is not a legislative instrument.

             (9)  If:

                     (a)  a payment of a grant has, during a financial year, been made to a joint intergovernmental funding authority under Part 3A; and

                     (b)  the Minister has determined under subsection (6) that the joint intergovernmental funding authority must repay an amount in respect of the payment; and

                     (c)  the joint intergovernmental funding authority has not repaid the amount;

the Minister may deduct an amount equal to the amount unpaid from any amount that the joint intergovernmental funding authority is entitled to receive by way of a grant under Part 3A for a subsequent financial year.

           (10)  An amount payable by a joint intergovernmental funding authority to the Commonwealth under this Act is a debt due by the joint intergovernmental funding authority to the Commonwealth.

Note:       The following heading to subsection 20(1) is inserted “States”.

29  Section 21

After “under this Act”, insert “(other than section 6A or Part 3A)”.

30  After section 21

Insert:

21A  Minister to have regard to National Health and Hospitals Network Agreement and other agreements

                   In making a determination under:

                     (a)  section 6A; or

                     (b)  Part 3A;

the Minister must have regard to:

                     (c)  the National Health and Hospitals Network Agreement; and

                     (d)  the Intergovernmental Agreement; and

                     (e)  if the determination relates to:

                              (i)  a particular State; or

                             (ii)  the joint intergovernmental funding authority for a particular State;

                            any other written agreement between the Commonwealth and the State that is relevant to the determination.

21B  Procedures for making determinations that are inconsistent with National Health and Hospitals Network Agreement

Scope

             (1)  This section applies to a determination under:

                     (a)  section 6A; or

                     (b)  Part 3A;

if:

                     (c)  the determination is inconsistent with the National Health and Hospitals Network Agreement; and

                     (d)  the inconsistency would result in substantial financial detriment to one or more States that are parties to the National Health and Hospitals Network Agreement.

Procedures for making determination

             (2)  The Minister must not make the determination unless:

                     (a)  the Minister has given a copy of the proposed determination to the Premier of each State that is a party to the National Health and Hospitals Network Agreement; and

                     (b)  COAG has agreed to the making of the determination; and

                     (c)  either:

                              (i)  a copy of the proposed determination was given under paragraph (a) at least 3 months before COAG gave its agreement under paragraph (b); or

                             (ii)  COAG has agreed to waive the requirement set out in subparagraph (i); and

                     (d)  the Minister has caused a copy of the proposed determination to be tabled in each House of the Parliament; and

                     (e)  each House of the Parliament has passed a resolution approving the making of the determination.

COAG

             (3)  COAG is to give its agreement for the purposes of paragraph (2)(b) or subparagraph (2)(c)(ii) by resolution of COAG passed in accordance with the procedures determined by COAG.

             (4)  For the purposes of this section, COAG means the Council of Australian Governments, excluding the Premier of any State that is not a party to the National Health and Hospitals Network Agreement.

31  Subsection 23(1)

Omit “section 17 or 19”, substitute “subsection 17(1) or 19(1)”.

32  Subsection 23(2)

After “under a delegation”, insert “under subsection (1)”.

33  At the end of section 23

Add:

             (3)  The Minister may, by writing, delegate any or all of his or her powers under:

                     (a)  subsection 17(2); or

                     (b)  subsection 17(3); or

                     (c)  subsection 19(1A); or

                     (d)  subsection 19(1B);

to an SES employee, or acting SES employee, in the Department.

Note:          The expressions SES employee and acting SES employee are defined in section 17AA of the Acts Interpretation Act 1901.

             (4)  In exercising powers under a delegation under subsection (3), the delegate must comply with any directions of the Minister.