{"id":"F2016L00486","name":"Federal Financial Relations (National Health Reform Payments) Determination 2014-15","slug":"federal-financial-relations-national-health-reform-payments-determination-2014-15","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":129070,"registerId":"commonwealth-F2016L00486-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Federal Financial Relations (National He","sectionType":"part","heading":"Federal Financial Relations (National Health Reform PAYMENTS) Determination 2014-15","content":"# Federal Financial Relations (National Health Reform PAYMENTS) Determination 2014\\-15","sortOrder":0},{"sectionNumber":"Part 1","sectionType":"part","heading":"preliminary","content":"```html\n

Federal Financial Relations (National Health Reform PAYMENTS) Determination 2014-15

I, SCOTT JOHN MORRISON, Treasurer, make this Determination under subsection 15A(1) of the Federal Financial Relations Act 2009.

SCOTT JOHN MORRISON


Dated: 23 February 2016

\n```\n\n## Part 1 — preliminary\n\n### Name of Determination\n\n This determination is the Federal Financial Relations (National Health Reform Payments) Determination 2014\\-15.\n\n### Commencement\n\n 2. This determination commences on the day on which this determination is made.\n\n### Definitions\n\n 3. The following definitions are used throughout this determination:\n\nAdministrator means the Administrator of the National Health Funding Pool.\n\nFFR Act means the Federal Financial Relations Act 2009.\n\nState includes the Australian Capital Territory and the Northern Territory.\n\n## PArt 2 — National Health Reform PAYMENTS\n\n 4. Under the National Health Reform Agreement, national health reform funding arrangements commenced from 1 July 2012. From 2014-15, Commonwealth funding for most public hospital services is on an activity basis where funding varies in response to efficient growth in public hospital services.\n 5. For 2014-15, Clause A3 of the National Health Reform Agreement provides that the Commonwealth will fund 45 per cent of the efficient growth of activity based services. Efficient growth consists of the national efficient price for any changes in the volume of services provided and the growth in the national efficient price of providing the existing volume of services.\n 6. Where services or functions are more appropriately funded through block grants and for teaching, training and research, Clause A4 of the National Health Reform Agreement provides that the Commonwealth will fund 45 per cent of growth in the efficient cost of providing the services or performing the functions.\n 7. In accordance with the functions of the Administrator under paragraph 238(1)(a) of the National Health Reform Act 2011, the Administrator has calculated and advised the amounts required to be paid by the Commonwealth into each State Pool Account of the National Health Funding Pool under the National Health Reform Agreement. These amounts include the reconciliation of actual service delivery in 2014\\-15 and a further adjustment to 2013-14 amounts to be paid to each State.\n 8. Based on the Administrator’s advice and in accordance with subsection 15A(1) of the FFR Act, the amounts specified in Table 1 are to be paid for the 2014\\-15 financial year to the States specified in that table.\n\n### Table 1: National health reform payments, 2014\\-15\n\n### ![](image.001.png)\n\n 9. In accordance with subsection 15A(3) of the FFR Act, the amounts specified in Table 1 are to be paid to the States on condition that the financial assistance is spent in accordance with the National Health Reform Agreement.","sortOrder":1},{"sectionNumber":"Name of Determination","sectionType":"division","heading":"Name of Determination","content":"### Name of Determination\n\n This determination is the Federal Financial Relations (National Health Reform Payments) Determination 2014\\-15.","sortOrder":2},{"sectionNumber":"Commencement","sectionType":"division","heading":"Commencement","content":"### Commencement\n\n 2. This determination commences on the day on which this determination is made.","sortOrder":3},{"sectionNumber":"Definitions","sectionType":"division","heading":"Definitions","content":"### Definitions\n\n 3. The following definitions are used throughout this determination:\n\nAdministrator means the Administrator of the National Health Funding Pool.\n\nFFR Act means the Federal Financial Relations Act 2009.\n\nState includes the Australian Capital Territory and the Northern Territory.","sortOrder":4},{"sectionNumber":"PArt 2","sectionType":"part","heading":"National Health Reform PAYMENTS","content":"## PArt 2 — National Health Reform PAYMENTS\n\n 4. Under the National Health Reform Agreement, national health reform funding arrangements commenced from 1 July 2012. From 2014-15, Commonwealth funding for most public hospital services is on an activity basis where funding varies in response to efficient growth in public hospital services.\n 5. For 2014-15, Clause A3 of the National Health Reform Agreement provides that the Commonwealth will fund 45 per cent of the efficient growth of activity based services. Efficient growth consists of the national efficient price for any changes in the volume of services provided and the growth in the national efficient price of providing the existing volume of services.\n 6. Where services or functions are more appropriately funded through block grants and for teaching, training and research, Clause A4 of the National Health Reform Agreement provides that the Commonwealth will fund 45 per cent of growth in the efficient cost of providing the services or performing the functions.\n 7. In accordance with the functions of the Administrator under paragraph 238(1)(a) of the National Health Reform Act 2011, the Administrator has calculated and advised the amounts required to be paid by the Commonwealth into each State Pool Account of the National Health Funding Pool under the National Health Reform Agreement. These amounts include the reconciliation of actual service delivery in 2014\\-15 and a further adjustment to 2013-14 amounts to be paid to each State.\n 8. Based on the Administrator’s advice and in accordance with subsection 15A(1) of the FFR Act, the amounts specified in Table 1 are to be paid for the 2014\\-15 financial year to the States specified in that table.","sortOrder":5},{"sectionNumber":"Table 1: National health reform payments","sectionType":"division","heading":"Table 1: National health reform payments, 2014-15","content":"### Table 1: National health reform payments, 2014\\-15\n\n### ![](image.001.png)\n\n 9. In accordance with subsection 15A(3) of the FFR Act, the amounts specified in Table 1 are to be paid to the States on condition that the financial assistance is spent in accordance with the National Health Reform Agreement.","sortOrder":6}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This Determination serves its original narrow purpose: authorising specific annual payments under the National Health Reform Agreement. It has not expanded beyond the statutory framework established by the Federal Financial Relations Act 2009 and the National Health Reform Act 2011. The 45% funding rate and activity-based funding mechanism were established by the underlying Agreement, not created by this instrument."},"complexity_factors":["Only 3 defined terms in the interpretation section (Administrator, FFR Act, State)","Single purpose instrument — purely operational, authorising specific payment amounts","Heavy reliance on external documents — the National Health Reform Agreement and National Health Reform Act 2011 contain the substantive policy (this Determination merely implements them)","Simple conditional structure — one condition in section 9 (spending must comply with the Agreement)","Missing Table 1 data — the actual dollar amounts are referenced but not displayed in the text (replaced with image placeholder), making the operative provision incomplete in this extract","No nested exceptions or complex logical operators","Straightforward commencement (date of making)"],"plain_english_summary":"This is a **2016 legal instrument** made by the Treasurer (Scott Morrison) that authorises specific federal payments to Australian states and territories for public hospital funding.\n\n**What it does:**\n- Directs the Commonwealth to pay money into state \"Pool Accounts\" for public hospital services delivered in 2014-15\n- Implements Australia's activity-based funding system, where hospitals get paid based on the number and type of services they provide (rather than just block grants)\n\n**Key mechanics:**\n- The Commonwealth pays **45% of the \"efficient growth\"** in hospital services — meaning if hospitals deliver more services or costs rise efficiently, the federal government covers nearly half that increase\n- \"Efficient growth\" is calculated using a **national efficient price** (a standardised cost for each type of hospital treatment)\n- Some services (teaching, training, research, and certain block-funded functions) use a different calculation based on \"efficient cost\" rather than activity volume\n\n**Who it affects:**\n- **States and territories** (including ACT and NT) — they receive the payments\n- **Public hospitals** — ultimately funded through these arrangements\n- **Patients** — the system aims to reward efficient service delivery\n\n**Why it matters:**\nThis Determination is part of the **National Health Reform Agreement** (the deal between federal and state governments on hospital funding). It locks in the 45% Commonwealth contribution rate and ensures states get reconciled payments for actual services delivered in 2014-15, plus adjustments for the previous year. The Administrator of the National Health Funding Pool (an independent body) calculates the exact amounts to remove political discretion from the payment process.\n\n**Condition attached:** States must spend this money in accordance with the National Health Reform Agreement — they can't just pocket it for other purposes."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/federal-financial-relations-national-health-reform-payments-determination-2014-15","history":"/api/acts/federal-financial-relations-national-health-reform-payments-determination-2014-15/history","analysis":"/api/acts/federal-financial-relations-national-health-reform-payments-determination-2014-15/analysis","conflicts":"/api/acts/federal-financial-relations-national-health-reform-payments-determination-2014-15/conflicts","importantCases":"/api/acts/federal-financial-relations-national-health-reform-payments-determination-2014-15/important-cases","documents":"/api/acts/federal-financial-relations-national-health-reform-payments-determination-2014-15/documents"}}