{"id":"F2018L01388","name":"Federal Financial Relations (National Health Reform Payments) Determination 2016-17","slug":"federal-financial-relations-national-health-reform-payments-determination-2016-17","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":98066,"registerId":"commonwealth-F2018L01388-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Federal Financial Relations (National He","sectionType":"part","heading":"Federal Financial Relations (National Health Reform PAYMENTS) Determination 2016-17","content":"# Federal Financial Relations (National Health Reform PAYMENTS) Determination 2016\\-17","sortOrder":0},{"sectionNumber":"Part 1","sectionType":"part","heading":"preliminary","content":"```html\n

Federal Financial Relations (National Health Reform PAYMENTS) Determination 2016-17

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

JOSH FRYDENBERG


Dated: 28 September 2018

\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 2016\\-17.\n\n### Commencement\n\n 2. This determination commences on the day on which it 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\nIHPA means the Independent Hospital Pricing Authority.\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 calculated on an activity basis where funding varies in response to efficient growth in public hospital services.\n 5. For 2016\\-17, Clause A3 of the National Health Reform Agreement provides that the Commonwealth will fund 45 per cent of the efficient growth in 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 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.\n 8. Having regard to the Administrator’s advice on the amounts required to be paid to the States under the National Health Reform Agreement, in accordance with subsection 15A(1) of the FFR Act, the amounts specified in Table 1 are to be paid for the 2016\\-17 financial year to the States specified in that table.\n\n### Table 1: National health reform payments, 2016\\-17\n\n```html\n

State

National health reform payments

New South Wales

$5,922,808,500.84

Victoria

$4,626,936,969.42

Queensland

$4,094,198,906.92

Western Australia

$2,055,031,284.75

South Australia

$1,257,661,327.20

Tasmania

$389,472,806.82

Australian Capital Territory

$364,655,073.71

Northern Territory

$242,519,665.17

Total

$18,953,284,534.83

\n```\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 2016\\-17.","sortOrder":2},{"sectionNumber":"Commencement","sectionType":"division","heading":"Commencement","content":"### Commencement\n\n 2. This determination commences on the day on which it 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\nIHPA means the Independent Hospital Pricing Authority.\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 calculated on an activity basis where funding varies in response to efficient growth in public hospital services.\n 5. For 2016\\-17, Clause A3 of the National Health Reform Agreement provides that the Commonwealth will fund 45 per cent of the efficient growth in 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 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.\n 8. Having regard to the Administrator’s advice on the amounts required to be paid to the States under the National Health Reform Agreement, in accordance with subsection 15A(1) of the FFR Act, the amounts specified in Table 1 are to be paid for the 2016\\-17 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, 2016-17","content":"### Table 1: National health reform payments, 2016\\-17\n\n```html\n

State

National health reform payments

New South Wales

$5,922,808,500.84

Victoria

$4,626,936,969.42

Queensland

$4,094,198,906.92

Western Australia

$2,055,031,284.75

South Australia

$1,257,661,327.20

Tasmania

$389,472,806.82

Australian Capital Territory

$364,655,073.71

Northern Territory

$242,519,665.17

Total

$18,953,284,534.83

\n```\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":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument implements existing National Health Reform funding arrangements for 2016–17 by specifying payable amounts and attaching the NHRA spending condition. It does not change eligibility criteria or the established funding principles (it applies the 45% funding rule set out in Clauses A3–A4 and relies on the Administrator’s calculations)."},"complexity_factors":["Relies on and cross‑references multiple external instruments (National Health Reform Agreement Clauses A3–A4; National Health Reform Act 2011; Federal Financial Relations Act 2009, subsections 15A(1) and 15A(3))","Funding calculation is formulaic (45% of efficient growth) but depends on administrative inputs (Administrator’s calculations/advice)","Precise monetary schedule: large, state‑by‑state figures in Table 1 that must be transcribed and reconciled","Conditionality: payments are subject to compliance with NHRA spending rules, creating ongoing monitoring/enforcement requirements","Operational discretion: Administrator’s role in calculating amounts introduces dependence on technical methodology and data","Document contains duplicated and formatted text (repetition of Parts and Tables), increasing interpretive/clerical effort"],"plain_english_summary":"This Determination directs the Commonwealth to pay specified 2016–17 National Health Reform amounts into each State’s Pool Account, based on the Administrator’s calculations under the National Health Reform Agreement and subsection 15A(1) of the Federal Financial Relations Act. Payments implement the NHRA funding rule that the Commonwealth funds 45% of efficient growth for activity‑based services and 45% for block‑grant growth (Clauses A3–A4), and are conditional on States spending the money in accordance with the Agreement."},"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"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This Determination serves its original narrow purpose: authorising specific National Health Reform payments for the 2016-17 financial year. It does not expand beyond the statutory framework established by the Federal Financial Relations Act 2009 and the National Health Reform Agreement. The scope remains limited to implementing pre-agreed funding formulas and transferring calculated amounts to States."},"complexity_factors":["Only 4 defined terms in the interpretation section (Administrator, FFR Act, IHPA, State)","No nested exceptions or conditional logic beyond a single spending condition in section 9","Minimal cross-referencing — only references to external agreements (National Health Reform Agreement) and parent Act provisions (subsections 15A(1) and 15A(3) of the FFR Act)","Straightforward tabular data presentation with fixed dollar amounts","Short length — approximately 9 operative sections plus preliminary matter","Single purpose instrument: authorising specific payment amounts to specific entities for a specific financial year"],"plain_english_summary":"This Determination authorises the Commonwealth to pay about $18.95 billion to States and Territories for public hospital funding in 2016–17. It affects state/territory governments, public hospitals and patients, and relies on the National Health Funding Pool Administrator’s calculations. Payments flow under the National Health Reform Agreement on an activity‑based basis (the Commonwealth funds 45% of efficient growth, covering patient services and block grants for teaching and research) and must be spent in accordance with that Agreement."}},"importantCases":[],"_links":{"self":"/api/acts/federal-financial-relations-national-health-reform-payments-determination-2016-17","history":"/api/acts/federal-financial-relations-national-health-reform-payments-determination-2016-17/history","analysis":"/api/acts/federal-financial-relations-national-health-reform-payments-determination-2016-17/analysis","conflicts":"/api/acts/federal-financial-relations-national-health-reform-payments-determination-2016-17/conflicts","importantCases":"/api/acts/federal-financial-relations-national-health-reform-payments-determination-2016-17/important-cases","documents":"/api/acts/federal-financial-relations-national-health-reform-payments-determination-2016-17/documents"}}