{"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":{"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":"**What this legislation does**\n\nThis Determination is a formal instrument that authorises the Commonwealth Government to pay approximately **$18.95 billion** to Australia's States and Territories for public hospital funding during the 2016-17 financial year.\n\n**Who it affects**\n\n- **State and Territory governments** — they receive the money (New South Wales gets the largest share at ~$5.9 billion, followed by Victoria at ~$4.6 billion)\n- **Public hospitals and patients** — the funding ultimately supports hospital services, though the Determination itself doesn't specify exactly how each dollar is spent\n- **The Administrator of the National Health Funding Pool** — an independent body that calculated how much each jurisdiction should receive\n\n**How the funding works**\n\nThe payments flow from a deal called the **National Health Reform Agreement** (a funding agreement between the Commonwealth and the States). The system works on an \"activity basis\" — meaning the Commonwealth pays more when hospitals deliver more services efficiently, rather than just giving fixed lump sums.\n\nSpecifically:\n- The Commonwealth funds **45% of efficient growth** in hospital services\n- This covers both **activity-based services** (treating patients) and **block grants** (teaching, training, and research)\n\n**The catch**\n\nThe money comes with strings attached. States must spend it according to the National Health Reform Agreement — they can't just use it for roads or schools.\n\n**Why it matters**\n\nThis is the legal machinery that keeps public hospitals running. Without this Determination, the Commonwealth couldn't legally transfer these billions to the States, potentially disrupting hospital services across Australia."},"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-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"}}