{"id":"health-commonwealth-state-funding-arrangements-act-2012","name":"Health (Commonwealth State Funding Arrangements) Act 2012","slug":"health-commonwealth-state-funding-arrangements-act-2012","collection":"act","jurisdiction":"vic","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":173472,"registerId":"vic-health-commonwealth-state-funding-arrangements-act-2012-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Health (Commonwealth State Funding Arrangements) Act 2012","content":"Version No. 005\n\n**Health (Commonwealth State Funding Arrangements) Act 2012**\n\n**No. 40 of 2012**\n\nVersion incorporating amendments as at  \n30 March 2022\n\n**TABLE OF PROVISIONS**\n\n*Section Page*\n\nPart 1—Preliminary 1\n\n1 Purpose 1\n\n2 Commencement 1\n\n3 Interpretation 1\n\nPart 2—Administrator of the National Health Funding Pool 5\n\n4 The office of Administrator 5\n\n5 Appointment of Administrator 5\n\n6 Suspension of Administrator 6\n\n7 Removal and resignation of Administrator 7\n\n8 Acting Administrator 8\n\n9 Provision of staff and facilities for Administrator 8\n\n10 Functions of Administrator 8\n\nPart 3—State Pool Accounts—the National Health Funding Pool 11\n\n11 Establishment of State Pool Account with Reserve Bank 11\n\n12 Payments into State Pool Account 11\n\n13 Payment from State Pool Account 12\n\n14 Distribution of Commonwealth funding 13\n\nPart 4—Financial management and reporting 14\n\n15 Financial management obligations of Administrator 14\n\n16 Monthly reports by Administrator 14\n\n17 Annual report by Administrator 15\n\n18 Administrator to prepare financial statements for State Pool Accounts 17\n\n19 Audit of financial statements 17\n\n20 Performance audits 17\n\n21 States to provide Administrator with information about State Managed Funds 18\n\n22 Provision of information generally 19\n\nPart 5—State financial management obligations 20\n\nDivision 1—Interpretation 20\n\n23 Interpretation 20\n\nDivision 2—The Health State Pool Fund 20\n\n24 Health State Pool Fund 20\n\n25 Audit Act 1994 20\n\n26 Financial Management Act 1994 20\n\nDivision 3—The State Managed Fund 20\n\n27 Establishment of the Health State Managed Fund 20\n\n28 Audit Act 1994 21\n\n29 Financial Management Act 1994 21\n\nPart 6—Miscellaneous 22\n\n30 Office of Administrator 22\n\n31 Exclusion of legislation of this jurisdiction 22\n\n32 Application of Commonwealth Acts 22\n\n33 Extraterritorial operation of Act 23\n\n34 Act binds the Crown 23\n\n35 Delegation of functions of responsible Minister 24\n\n═══════════════\n\nEndnotes 25\n\n1 General information 25\n\n2 Table of Amendments 27\n\n3 Explanatory details 28\n\n**Version No.** **005**\n\n**Health (Commonwealth State Funding Arrangements) Act 2012**\n\n**No. 40 of 2012**\n\nVersion incorporating amendments as at  \n30 March 2022\n\n**The Parliament of Victoria enacts:**\n\nPart 1—Preliminary\n\n\t1 Purpose\n\nThe main purpose of this Act is to provide for the implementation of the National Health Reform Agreement between the Commonwealth and the States and Territories that was agreed to by COAG on 2 August 2011.\n\n\t2 Commencement\n\n(1) Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed.\n\n(2) If a provision of this Act does not come into operation before 22 May 2013, it comes into operation on that day.\n\n\t3 Interpretation\n\n(1) In this Act—\n\n***Administrator*** means the Administrator of the National Health Funding Pool appointed under section 5 and under the corresponding provisions of the laws of the Commonwealth and the other States;\n\n***COAG*** means the Council of Australian Governments;\n\nS. 3(1) def. of *First Ministers' Council* inserted by No. 13/2022 s. 61(1).\n\n***First Ministers' Council*** means a body (however described) that consists only of, or that includes, the following persons—\n\n(a) the Prime Minister;\n\n(b) the Premiers of each State;\n\n(c) the Chief Ministers of the Australian Capital Territory and the Northern Territory;\n\n***function*** includes a power, authority or duty;\n\n***local hospital network*** means an organisation that is a local hospital network (however described) for the purposes of the National Health Reform Agreement;\n\nS. 3(1) def. of *Ministerial Council* inserted by No. 13/2022 s. 69(2).\n\n***Ministerial Council*** means a body (however described) that consists of the Minister of the Commonwealth, and the Minister of each State and Territory, who is responsible, or principally responsible, for matters relating to health;\n\n***National Health Funding Pool*** means the combined State Pool Accounts for each State;\n\n***National Health Reform Agreement*** means the National Health Reform Agreement between the Commonwealth and the States that was agreed to by COAG on 2 August 2011, as amended from time to time;\n\n***responsible Minister*** for a jurisdiction means the relevant Minister with portfolio responsibility for the administration of the provision of this Act in which the expression occurs (or of the corresponding provision of the laws of the Commonwealth and the other States);\n\nS. 3(1) def. of *Standing Council on Health* repealed by No. 13/2022 s. 69(1).\n\n* * * * *\n\n***State*** includes the Australian Capital Territory and the Northern Territory;\n\n***State Managed Fund*** of a State means a bank account or fund established or designated by the State for the purposes of health funding under the National Health Reform Agreement that is required to be undertaken in the State through a State Managed Fund;\n\n***State Pool Account*** of a State means the bank account established by the State under Part 3 or under the corresponding provisions of the law of another State.\n\nS. 3(2) amended by No. 13/2022 s. 69(3).\n\n(2) The Ministerial Council, when acting under this Act, is to be constituted only by a single Minister for the Commonwealth and a single Minister for each of the States, and any reference in this Act to a member of that Council is to be construed as a reference to those Ministerial members only.\n\nS. 3(3) amended by No. 13/2022 s. 69(3).\n\n(3) If there are 2 or more Ministers for the Commonwealth or for a State who are members of the Ministerial Council, the relevant Minister for the purposes of this Act is the Minister having primary portfolio responsibility for health in his or her jurisdiction.\n\nS. 3(4) amended by No. 13/2022 s. 69(3).\n\n(4) A reference in this Act to the agreement of, or a request by, a member of the Ministerial Council is a reference to an agreement or request in writing.\n\n(5) This Act is to be interpreted in accordance with Schedule 7 to the Health Practitioner Regulation National Law set out in the Schedule to the Health Practitioner Regulation National Law Act 2009 of Queensland and, for that purpose, Schedule 7 applies as if references to this Law or a Queensland Act were references to this Act or an Act of this jurisdiction, and with all other necessary modifications.\n\n(6) The **Interpretation of Legislation Act 1984** does not apply to or in respect of this Act.\n\nPart 2—Administrator of the National Health Funding Pool\n\n\t4 The office of Administrator\n\n(1) The office of Administrator of the National Health Funding Pool is established by this Act.\n\n(2) It is the intention of Parliament that the same individual holds the office established under subsection (1) and under the corresponding provisions of the law of the Commonwealth and the other States.\n\n(3) The Administrator appointed under this Act may exercise and perform the functions of the Administrator in relation to—\n\n(a) one jurisdiction; or\n\n(b) 2 or more or all jurisdictions collectively.\n\n(4) A reference in a provision of this Act (other than in section 10(1) or Part 3) to a function of the Administrator under this Act includes a reference to a function of the Administrator under the corresponding provisions of the law of the Commonwealth and the other States.\n\n\t5 Appointment of Administrator\n\nS. 5(1) amended by No. 13/2022 s. 69(4).\n\n(1) The Minister for this jurisdiction who is a member of the Ministerial Council is to appoint an individual to the office of the Administrator of the National Health Funding Pool under this Act.\n\nS. 5(2) amended by No. 13/2022 s. 69(4).\n\n(2) Before the appointment is made, the Chair of the Ministerial Council is to give each member of the Council an opportunity to nominate an individual for appointment.\n\nS. 5(3) amended by No. 13/2022 s. 69(4).\n\n(3) An appointment is not to be made unless all the members of the Ministerial Council have agreed on the individual who will be appointed as Administrator, the date that the appointment will take effect, the period of appointment and the conditions of appointment.\n\n(4) The appointment is to be made by instrument in writing.\n\n(5) The Administrator is to be appointed (subject to subsection (3)) for the period, not exceeding 5 years, and on the conditions specified in his or her instrument of appointment, but is eligible for re‑appointment.\n\n(6) The Administrator is entitled to the remuneration determined in accordance with the law of the Commonwealth.\n\n\t6 Suspension of Administrator\n\nS. 6(1) amended by No. 13/2022 s. 69(5).\n\n(1) The Chair of the Ministerial Council is required to suspend the Administrator from office if requested to do so by—\n\n(a) at least 3 members of the Council who are Ministers of a State; or\n\n(b) the member of the Council who is a Minister of the Commonwealth.\n\nS. 6(2) amended by No. 13/2022 s. 69(5).\n\n(2) A member of the Ministerial Council is not to request the suspension of the Administrator unless the member is satisfied that the Administrator—\n\n(a) is, because of any physical or mental incapacity or otherwise, unable to perform his or her functions satisfactorily; or\n\n(b) has failed to comply with his or her obligations or duties as Administrator; or\n\n(c) has been accused or convicted of an offence that carries a penalty of imprisonment; or\n\n(d) has or may become bankrupt.\n\nS. 6(3) amended by No. 13/2022 s. 69(5).\n\n(3) A suspension is to be effected by an instrument in writing and is to be notified by the Chair of the Ministerial Council to all members of the Council.\n\nS. 6(4) amended by No. 13/2022 s. 69(5).\n\n(4) A suspension is terminated after a period of suspension of 60 days unless before the end of that period the Administrator is removed or resigns from office or a majority of the members of the Ministerial Council—\n\n(a) terminate the suspension; or\n\n(b) extend the suspension for a specified further period.\n\nS. 6(5) amended by No. 13/2022 s. 69(5).\n\n(5) Despite subsection (1), the Chair of the Ministerial Council is not to suspend the Administrator from office within the period of 90 days after an earlier period of suspension was terminated unless a majority of the members of the Council request the Chair to do so.\n\n\t7 Removal and resignation of Administrator\n\nS. 7(1) amended by No. 13/2022 s. 69(6).\n\n(1) The Minister for this jurisdiction who is a member of the Ministerial Council is required to remove the Administrator from office if a majority of the members of the Council agree to the Administrator’s removal from office.\n\nS. 7(2) amended by No. 13/2022 s. 69(6).\n\n(2) The Administrator is to be removed from office by an instrument in writing that takes effect on the date agreed to by the majority of the members of the Ministerial Council.\n\nS. 7(3) amended by No. 13/2022 s. 69(6).\n\n(3) The Administrator may resign as Administrator by notice in writing to the Chair of the Ministerial Council.\n\nS. 7(4) amended by No. 13/2022 s. 69(6).\n\n(4) The resignation of the Administrator takes effect on the date notified by the Chair of the Ministerial Council to all members of the Council.\n\n\t8 Acting Administrator\n\nS. 8(1) amended by No. 13/2022 s. 69(7).\n\n(1) The Chair of the Ministerial Council may, from time to time, appoint an individual to act as the Administrator during any period when the office is vacant or the holder of the office is suspended or absent from duty.\n\nS. 8(2) amended by No. 13/2022 s. 69(7).\n\n(2) Any such appointment may only be made from a panel of persons, and in accordance with the procedure, agreed to by all the members of the Ministerial Council.\n\n**Note**\n\nThe applied provisions of Schedule 7 to the Health Practitioner Regulation National Law (clause 27) contain additional provisions relating to acting appointments that have effect subject to this section.\n\n\t9 Provision of staff and facilities for Administrator\n\n(1) Staff and facilities to assist the Administrator in exercising or performing his or her functions under this Act are to be provided by the National Health Funding Body constituted under the National Health Reform Act 2011 of the Commonwealth.\n\n(2) The Administrator is not entitled to delegate a function conferred on the Administrator under this Act to that body, to any such member of staff or to any other person or body.\n\n\t10 Functions of Administrator\n\n(1) The Administrator is—\n\n(a) to calculate and advise the Treasurer of the Commonwealth of 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 (including advice on any reconciliation of those amounts based on subsequent actual service delivery); and\n\n(b) to monitor State payments into each State Pool Account for the purposes of Part 4; and\n\n(c) to make payments from each State Pool Account in accordance with the directions of the State concerned; and\n\n(d) to report publicly on the payments made into and from each State Pool Account and other matters on which the Administrator is required to report under this Act; and\n\n(e) to exercise or perform any other functions conferred on the Administrator under this Act.\n\n**Note**\n\nThe National Health Reform Act 2011 of the Commonwealth provides that the functions of the Administrator include monitoring Commonwealth payments into each State Pool Account for the purposes of Part 4.\n\n(2) The Administrator and the body and staff assisting the Administrator are not subject to the control or direction of any Minister of the Commonwealth in relation to the exercise or performance of the Administrator’s functions under this Act.\n\nS. 10(3) amended by No. 13/2022 s. 61(2).\n\n(3) However, the Administrator is required to comply with any directions given by the First Ministers' Council in relation to the manner in which the Administrator exercises or performs his or her functions under this Act  (including in relation to the preparation or provision of annual or monthly reports, financial statements or information under Part 4).\n\nS. 10(4) amended by No. 13/2022 s. 61(3).\n\n(4) Directions given by the First Ministers' Council under subsection (3)—\n\nS. 10(4)(a) amended by No. 13/2022 s. 61(3).\n\n(a) are to be given in accordance with a written resolution of the First Ministers' Council passed in accordance with the procedures determined by the First Ministers' Council; and\n\n(b) are to be notified in writing to the Administrator; and\n\n(c) are to be made publicly available by the Administrator.\n\n(5) To avoid doubt, this Act is not intended—\n\n(a) to give the Commonwealth ownership or control of money in a State Pool Account; or\n\n(b) to affect the obligation of the Administrator under the law of a State to make payments from the State Pool Account of the State in accordance with the directions of the State.\n\n(6) To avoid doubt, the Administrator may have regard to information obtained in the exercise or performance of functions under the law of another jurisdiction in the exercise or performance of the Administrator's functions under Part 4.\n\nPart 3—State Pool Accounts—the National Health Funding Pool\n\n\t11 Establishment of State Pool Account with Reserve Bank\n\n(1) The responsible Minister for the State is to open and maintain with the Reserve Bank of Australia a separate State bank account for the purpose of the National Health Reform Agreement.\n\n(2) The bank account is the State Pool Account established for the State for the purposes of this Act.\n\n\t12 Payments into State Pool Account\n\nThere is payable into the State Pool Account established for the State—\n\n(a) money paid to the State by the Commonwealth for payment into the State Pool Account under the National Health Reform Agreement; and\n\n(b) money made available by the State for the purposes of funding in the State through the State Pool Account under the National Health Reform Agreement; and\n\n(c) money paid to the State by another State for payment into the State Pool Account under the National Health Reform Agreement; and\n\n(d) interest paid on money deposited in the State Pool Account, unless directed to be paid into another bank account by the responsible Minister for the State; and\n\n(e) money repaid to the State by a local hospital network, being money previously paid to the local hospital network from the State Pool Account.\n\n\t13 Payment from State Pool Account\n\n(1) There are payable from the State Pool Account established for the State amounts to fund the following in the State under the National Health Reform Agreement (including through a State Managed Fund)—\n\n(a) the services provided by local hospital networks;\n\n(b) health teaching, training and research provided by local hospital networks or other organisations;\n\n(c) any other matter that under that Agreement is to be funded through the National Health Funding Pool.\n\n(2) Payments of amounts from the State Pool Account established for the State are to be made by the Administrator strictly in accordance with the directions of the responsible Minister for the State, including on the amount of each payment, the party or account to which it is to be paid and the timing of the payment.\n\n(3) The Administrator is required to authorise personally each payment made from the State Pool Account.\n\n(4) The Administrator is, at the direction of the responsible Minister for the State, to repay any money paid by the State into the State Pool Account for the State that the responsible Minister is satisfied constitutes an overpayment into that Account.\n\n(5) This section does not affect the payment from the State Pool Account of charges imposed by the Reserve Bank of Australia for the operation of that Account.\n\n(6) This section does not require the payment for services and matters referred to in subsection (1) to be made only from the State Pool Account.\n\n(7) For the purposes of this section, the funding of a local hospital network includes the funding of another party on behalf of the network for corporate or other services provided to the network by that other party.\n\n(8) If at any time when a payment from the State Pool Account is required to be made there is no Administrator or the Administrator is not available to make the payment at that time, the payment from that Account may be made by an official of this State who is directed by the responsible Minister for the State to make the payment.\n\n\t14 Distribution of Commonwealth funding\n\n(1) Directions by the responsible Minister for the State to the Administrator for payments from the State Pool Account are, in relation to the distribution of Commonwealth funding provided to the State under the National Health Reform Agreement, to be consistent with the advice provided by the Administrator to the Treasurer of the Commonwealth about the basis on which the Administrator has calculated the payments to be made into that Account by the Commonwealth.\n\n(2) This section does not affect the obligation of the Administrator to make payments from the State Pool Account strictly in accordance with the directions of the responsible Minister for the State.\n\nPart 4—Financial management and reporting\n\n\t15 Financial management obligations of Administrator\n\nThe Administrator must—\n\n(a) develop and apply appropriate financial management policies and procedures with respect to the State Pool Accounts (including policies and procedures to ensure payments from those Accounts are made in accordance with the directions of the responsible Ministers); and\n\n(b) keep proper records in relation to the administration of the State Pool Accounts, including records of all payments made into and from those Accounts and the basis on which the payments were made; and\n\n(c) prepare the financial statements required by this Part in relation to the State Pool Accounts and arrange for the audit of those financial statements in accordance with this Part.\n\n\t16 Monthly reports by Administrator\n\n(1) The Administrator must provide monthly reports to the Commonwealth and each State containing the following information for the relevant month—\n\n(a) the amounts paid into each State Pool Account and State Managed Fund by the relevant State and the basis on which the payments were made;\n\n(b) the amounts paid into each State Pool Account by the Commonwealth and the basis on which the payments were made;\n\n(c) the amounts paid from each State Pool Account to local hospital networks, a State Managed Fund or other organisations or funds and the basis on which the payments were made;\n\n(d) the amounts paid from each State Managed Fund to local hospital networks or other organisations or funds and the basis on which the payments were made;\n\n(e) the number of public hospital services funded for each local hospital network (including a running financial year total) in accordance with the system of activity based funding;\n\n(f) the number of other public hospital services and functions funded from each State Pool Account or State Managed Fund (including a running financial year total).\n\n(2) A monthly report required to be provided to a jurisdiction under this section is to be provided to the responsible Minister for that jurisdiction or to a body or officer notified to the Administrator by that Minister.\n\n(3) The Administrator is to make reports provided under this section publicly available.\n\n\t17 Annual report by Administrator\n\n(1) The Administrator must, within 4 months after the end of each financial year, provide to the responsible Ministers an annual report on the exercise or performance of his or her functions under this Act during the financial year.\n\n(2) The annual report must include the following information for the relevant financial year—\n\n(a) the amounts paid into each State Pool Account and State Managed Fund by the relevant State and the basis on which the payments were made;\n\n(b) the amounts paid into each State Pool Account by the Commonwealth and the basis on which the payments were made;\n\n(c) the amounts paid from each State Pool Account to local hospital networks, a State Managed Fund or other organisations or funds and the basis on which the payments were made;\n\n(d) the amounts paid from each State Managed Fund to local hospital networks or other organisations or funds and the basis on which the payments were made;\n\n(e) the number of public hospital services funded for each local hospital network in accordance with the system of activity based funding;\n\n(f) the number of other public hospital services and functions funded from each State Pool Account or State Managed Fund.\n\n(3) The annual report is to be accompanied by—\n\n(a) an audited financial statement for each State Pool Account; and\n\n(b) a financial statement that combines the audited financial statements for each State Pool Account.\n\n(4) A responsible Minister must, as soon as practicable after receiving an annual report under this section, cause a copy of the report to be tabled in the Parliament of the responsible Minister’s jurisdiction.\n\n\t18 Administrator to prepare financial statements for State Pool Accounts\n\nThe Administrator must, after each financial year, prepare—\n\n(a) a financial statement for each State Pool Account that details financial transactions during that financial year; and\n\n(b) a combined financial statement that consists of the financial statements for each State Pool Account for the financial year.\n\n\t19 Audit of financial statements\n\n(1) A financial statement under this Part for the State Pool Account of a State is to be audited by the Auditor-General of that State.\n\nS. 19(2) amended by No. 12/2019 s. 19.\n\n(2) For the purposes of subsection (1), the **Audit Act 1994** applies to a financial statement prepared under this Part in relation to the State Pool Account established for this State as if a reference in that Act to \"public body\", in relation to financial statements, were a reference to the Administrator.\n\n\t20 Performance audits\n\n(1) For the purposes of this section, a ***performance audit*** is an audit by the Auditor-General of a jurisdiction of the exercise or performance of the functions of the Administrator in relation to that jurisdiction to determine whether the Administrator is acting effectively, economically, efficiently and in compliance with all relevant laws.\n\n(2) Before the Auditor-General of this jurisdiction conducts a performance audit, the Auditor-General must notify the Auditors-General of all other jurisdictions of his or her intention to conduct the proposed audit.\n\n(3) Auditors-General who are conducting performance audits at the same time are to make arrangements to co-ordinate the conduct of those audits in relation to any requirements imposed on the Administrator.\n\n(4) A performance audit is to be conducted by the Auditor-General of this jurisdiction.\n\nS. 20(5) amended by No. 12/2019 s. 19.\n\n(5) For the purposes of this section, the **Audit Act 1994** applies to the conduct of a performance audit under this section as if a reference in that Act to \"public body\", in relation to performance audits under this section, were a reference to the Administrator when acting in relation to the State Pool Account established for this State.\n\n\t21 States to provide Administrator with information about State Managed Funds\n\nThe responsible Minister for a State is to provide information to the Administrator about any of the following matters relating to the State Managed Fund of the State that the Administrator requires for the preparation of reports and financial statements under this Part—\n\n(a) the amounts paid by the State into the State Managed Fund and the basis on which the payments were made;\n\n(b) the amounts paid by the State from the State Managed Fund to local hospital networks or other organisations or funds and the basis on which the payments were made;\n\n(c) the public hospital services and functions that are funded from the State Managed Fund.\n\n\t22 Provision of information generally\n\n(1) The Administrator is required to provide to the responsible Minister for a jurisdiction any information requested by that responsible Minister that relates to that jurisdiction.\n\n(2) The information is to be provided by the time requested by that responsible Minister.\n\n(3) The Administrator is required to provide to the responsible Ministers of all jurisdictions a copy of the advice provided by the Administrator to the Treasurer of the Commonwealth about the basis on which the Administrator has calculated the payments to be made into State Pool Accounts by the Commonwealth.\n\n(4) The Administrator may at any time provide any information that relates to a jurisdiction to the responsible Minister for that jurisdiction.\n\n(5) Any information relating to a jurisdiction that is provided by the Administrator to another jurisdiction may only be publicly released by that other jurisdiction in accordance with arrangements approved by the responsible Minister for the jurisdiction to which the information relates.\n\nPart 5—State financial management obligations\n\nDivision 1—Interpretation\n\n\t23 Interpretation\n\nIn this Part, ***Health*** ***State Pool Fund*** means the State Pool Account established for this State under Part 3.\n\nDivision 2—The Health State Pool Fund\n\n\t24 Health State Pool Fund\n\nThe account opened and maintained by the Minister under section 11(1) forms part of the Public Account and is part of the Trust Fund and is to be known as the Health State Pool Fund.\n\n\t25 Audit Act 1994\n\nThe **Audit Act 1994** applies to the Health State Pool Fund to the extent that it is consistent with this Act.\n\n\t26 Financial Management Act 1994\n\nThe **Financial Management Act 1994** applies to the Health State Pool Fund to the extent that it is consistent with this Act.\n\nDivision 3—The State Managed Fund\n\n\t27 Establishment of the Health State Managed Fund\n\n(1) There is established as part of the Public Account and as part of the Trust Fund and as the State Managed Fund for this State an account to be known as the Health State Managed Fund.\n\n(2) There must be paid into the Health State Managed Fund any money required to be paid into the Fund under the National Health Reform Agreement.\n\n(3) Payments out of the Fund must be made in accordance with the National Health Reform Agreement by the Minister.\n\n\t28 Audit Act 1994\n\nThe **Audit Act 1994** applies to the Health State Managed Fund to the extent that it is consistent with this Act.\n\n\t29 Financial Management Act 1994\n\nThe **Financial Management Act 1994** applies to the Health State Managed Fund to the extent that it is consistent with this Act.\n\nPart 6—Miscellaneous\n\n\t30 Office of Administrator\n\n(1) The Administrator is not a public body for the purposes of the **Financial Management Act 1994**.\n\n(2) The **Public Administration Act 2004** does not apply to the office of Administrator.\n\n\t31 Exclusion of legislation of this jurisdiction\n\nThe following Acts do not apply to the Administrator or to any power exercised, or function performed, by the Administrator—\n\n(a) the **Freedom of Information Act 1982**;\n\n(b) the **Health Records Act 2001**;\n\nS. 31(c) repealed by No. 60/2014 s. 140(Sch. 3 item 23.1).\n\n* * * * *\n\n(d) the **Interpretation of Legislation Act 1984**;\n\n(e) the **Ombudsman Act 1973**;\n\nS. 31(ea) inserted by No. 60/2014 s. 140(Sch. 3 item 23.2).\n\n(ea) the **Privacy and Data Protection Act 2014**;\n\n(f) the **Public Records Act 1973**;\n\n(g) the **Subordinate Legislation Act 1994**.\n\n\t32 Application of Commonwealth Acts\n\n(1) The following Acts apply (subject to subsection (2)) as laws of this jurisdiction to or in respect of the Administrator and any function exercised or performed by the Administrator—\n\n(a) the Archives Act 1983  of the Commonwealth;\n\n(b) the Australian Information Commissioner Act 2010 of the Commonwealth;\n\n(c) the Freedom of Information Act 1982 of the Commonwealth;\n\n(d) the Ombudsman Act 1976  of the Commonwealth;\n\n(e) the Privacy Act 1988  of the Commonwealth.\n\nS. 32(2) amended by No. 13/2022 s. 69(8).\n\n(2) Each of those Acts so applies subject to the modifications made by regulations made under the National Health Reform Act 2011  of the Commonwealth with the agreement of all the members of the Ministerial Council.\n\n\t33 Extraterritorial operation of Act\n\nIt is the intention of the Parliament of this jurisdiction that the operation of this Act is, as far as possible, to include operation in relation to the following—\n\n(a) things situated in or outside the territorial limits of this jurisdiction;\n\n(b) acts, transactions and matters done, entered into or occurring in or outside the territorial limits of this jurisdiction;\n\n(c) things, acts, transactions and matters (wherever situated, done, entered into or occurring) that would, apart from this Act, be governed or otherwise affected by the law of another jurisdiction.\n\n\t34 Act binds the Crown\n\nThis Act binds the Crown in right of Victoria and in so far as the legislative power of the Parliament permits, the Crown in all its other capacities.\n\n\t35 Delegation of functions of responsible Minister\n\nThe Minister, by instrument, may delegate to—\n\n(a) the Secretary to the Department administered by the Minister administering this Act; or\n\n(b) any person or class of person employed in the Department administered by the Minister administering this Act—\n\nany of the Minister's powers under Parts 3, 4 and 5.\n\n ═══════════════\n\nEndnotes\n\n1 General information\n\nSee [www.legislation.vic.gov.au](http://www.legislation.vic.gov.au) for Victorian Bills, Acts and current Versions of legislation and up-to-date legislative information.\n\n*Minister's second reading speech—*\n\n*Legislative Assembly: 23 May 2012*\n\n*Legislative Council: 19 June 2012*\n\nThe long title for the Bill for this Act was \"A Bill for an Act to provide for the implementation of the National Health Reform Agreement and for other purposes.\"\n\nThe **Health (Commonwealth State Funding Arrangements) Act 2012** was assented to on 27 June 2012 and came into operation as follows:\n\nSections 1–30, 33–35 on 1 October 2012: Special Gazette (No. 324) 26 September 2012 p. 1; sections 31 and 32 on 22 May 2013: section 2(2).\n\nINTERPRETATION OF LEGISLATION ACT 1984 (ILA)\n\nStyle changes\n\nSection 54A of the ILA authorises the making of the style changes set out in Schedule 1 to that Act.\n\nReferences to ILA s. 39B\n\nSidenotes which cite ILA s. 39B refer to section 39B of the ILA which provides that where an undivided section or clause of a Schedule is amended by the insertion of one or more subsections or subclauses, the original section or clause becomes subsection or subclause (1) and is amended by the insertion of the expression \"(1)\" at the beginning of the original section or clause.\n\nInterpretation\n\nAs from 1 January 2001, amendments to section 36 of the ILA have the following effects:\n\n• Headings\n\nAll headings included in an Act which is passed on or after 1 January 2001 form part of that Act. Any heading inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act. This includes headings to Parts, Divisions or Subdivisions in a Schedule; sections; clauses; items; tables; columns; examples; diagrams; notes or forms. See section 36(1A)(2A).\n\n• Examples, diagrams or notes\n\nAll examples, diagrams or notes included in an Act which is passed on or after 1 January 2001 form part of that Act. Any examples, diagrams or notes inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, form part of that Act. See section 36(3A).\n\n• Punctuation\n\nAll punctuation included in an Act which is passed on or after 1 January 2001 forms part of that Act. Any punctuation inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act. See section 36(3B).\n\n• Provision numbers\n\nAll provision numbers included in an Act form part of that Act, whether inserted in the Act before, on or after 1 January 2001. Provision numbers include section numbers, subsection numbers, paragraphs and subparagraphs. See section 36(3C).\n\n• Location of \"legislative items\"\n\nA \"legislative item\" is a penalty, an example or a note. As from 13 October 2004, a legislative item relating to a provision of an Act is taken to be at the foot of that provision even if it is preceded or followed by another legislative item that relates to that provision. For example, if a penalty at the foot of a provision is followed by a note, both of these legislative items will be regarded as being at the foot of that provision. See section 36B.\n\n• Other material\n\nAny explanatory memorandum, table of provisions, endnotes, index and other material printed after the Endnotes does not form part of an Act.  \nSee section 36(3)(3D)(3E).\n\n2 Table of Amendments\n\nThis publication incorporates amendments made to the **Health (Commonwealth State Funding Arrangements) Act 2012** by Acts and subordinate instruments.\n\n–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––\n\n**Privacy and Data Protection Act 2014, No. 60/2014**\n\n| *Assent Date:* | 2.9.14 |\n| --- | --- |\n| *Commencement Date:* | S. 140(Sch. 3 item 23) on 17.9.14: Special Gazette (No. 317) 16.9.14 p. 1 |\n| *Current State:* | This information relates only to the provision/s amending the **Health (Commonwealth State Funding Arrangements) Act 2012** |\n\n\n**Audit Amendment Act 2019, No. 12/2019**\n\n| Assent Date: | 4.6.19 |\n| --- | --- |\n| Commencement Date: | S. 19 on 1.7.19: s. 2(2) |\n| Current State: | This information relates only to the provision/s amending the **Health (Commonwealth State Funding Arrangements) Act 2012** |\n\n\n**Regulatory Legislation Amendment (Reform) Act 2022, No. 13/2022**\n\n| Assent Date: | 29.3.22 |\n| --- | --- |\n| *Commencement Date:* | Ss 61, 69 on 30.3.22: s. 2(3) |\n| Current State: | This information relates only to the provision/s amending the **Health (Commonwealth State Funding Arrangements) Act 2012** |\n\n\n–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––\n\n3 Explanatory details\n\nNo entries at date of publication.","sortOrder":0}],"analysis":{"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"},"issue_detection":{"absurdities":[],"contradictions":[]},"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"Based on the available information, the Act appears to remain focused on its original purpose of providing a state-level legal framework for Commonwealth-State health funding arrangements. No evidence of scope expansion or significant amendment is apparent from the version history provided."},"complexity_factors":["The available text is largely structural/metadata rather than substantive legislative content, limiting full analysis","Intergovernmental funding arrangements inherently involve two layers of government (federal and state), adding some complexity","The Act likely references or gives effect to external Commonwealth agreements, requiring readers to consult those documents as well","Short enabling-style acts of this type are generally straightforward in purpose, keeping complexity low"],"plain_english_summary":"The Act creates the legal framework allowing Commonwealth health funding to flow to Victoria and be managed or passed on by state authorities. It affects Victorians who use public health services, state health agencies and hospitals, and the government bodies that administer funding. It matters because it gives legal authority to interstate funding arrangements that keep public hospitals and services operating."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The Act’s core scope—to implement the National Health Reform Agreement by creating an Administrator, State Pool Accounts and rules for payment, reporting and audit—remains unchanged. Amendments updated governance terminology and procedural details (for example, changes to Ministerial/First Ministers' Council references and audit provisions; see table of amendments: Regulatory Legislation Amendment (Reform) Act 2022 No.13/2022, Audit Amendment Act 2019 No.12/2019, Privacy and Data Protection Act 2014 No.60/2014) but did not alter the Act’s fundamental coverage."},"complexity_factors":["Cross‑jurisdiction governance and appointment rules for a single Administrator with roles under Commonwealth and State laws (ss 4–8, s 5(3)) create coordination and consensus requirements among multiple Ministers.","Dual reporting and direction paths: the Administrator must follow responsible Ministers' directions for payments (s 13(2)) but also comply with written directions from the First Ministers' Council about how functions are performed (s 10(3)–(4)), which can produce potential operational tension.","Financial flow and control mechanics: creation and operation of State Pool Accounts at the Reserve Bank, permitted receipts and permitted payments, authorisation requirement (s 11, s 12, s 13(1)–(3)), and power for officials to act if Administrator unavailable (s 13(8)).","Detailed financial management, audit and public reporting obligations (ss 15–19) including monthly and annual report content requirements (ss 16–17) and audited statements by State Auditors‑General (s 19), imposing compliance and recordkeeping burdens.","Information sharing and confidentiality rules: obligations on States to provide information (s 21), rules on release by other jurisdictions (s 22(5)), and exclusions/applications of various State and Commonwealth information laws (ss 31–32), producing legal complexity on data handling.","Intersection with State financial statutes and public accounts: designation of Health State Pool Fund and State Managed Fund as part of the Public Account and subject to State Audit and Financial Management Acts 'to the extent consistent' (ss 24–29), requiring interpretation where conflicts arise.","Extraterritorial intent and Crown binding provisions (ss 33–34) broaden the Act’s reach and raise questions about application to acts outside the State’s ordinary territorial scope.","Amendments over time (see endnotes) that modify definitions and governance terminology (e.g. Ministerial Council, First Ministers' Council) require reading consolidated text to understand current operation."],"plain_english_summary":"Mechanically, this Act sets up an Administrator and separate State Pool Accounts at the Reserve Bank to receive Commonwealth and State hospital funding, requires the Administrator to calculate Commonwealth contributions, make payments on the directions of responsible Ministers, and publish monthly and annual audited reports. It implements the National Health Reform Agreement and affects Commonwealth and State Treasurers, responsible Ministers, local hospital networks and auditors: governments pay into and direct payments from the accounts while the Administrator authorises payments and manages reporting."},"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: implementing the financial machinery of the National Health Reform Agreement. The 2022 amendments (No. 13/2022) updated governance terminology (replacing 'Standing Council on Health' with 'First Ministers' Council' and 'Ministerial Council') but did not expand the Act's substantive scope beyond hospital funding administration. The 2019 and 2014 amendments were technical updates to audit and privacy legislation references. The Act has not grown to cover broader health policy or funding areas."},"complexity_factors":["Mirror legislation structure: The Act is designed to operate identically across all Australian jurisdictions with 'corresponding provisions' in Commonwealth and other state laws, requiring readers to understand this intergovernmental scheme.","Dual governance layers: The Administrator takes directions from state ministers for payments but from the First Ministers' Council (Prime Minister + Premiers) for reporting methods, creating split accountability.","Legislative exclusion maze: Section 31 explicitly excludes 7 Victorian Acts from applying to the Administrator, while section 32 applies 5 Commonwealth Acts instead, with modifications possible via Commonwealth regulations.","Conditional application of state financial laws: Sections 25-26 and 28-29 apply the Audit Act 1994 and Financial Management Act 1994 to the Health State Pool Fund and Health State Managed Fund only 'to the extent consistent with this Act', creating uncertainty about which provisions apply.","Cross-referencing to external agreements: The Act's operation depends heavily on the National Health Reform Agreement (which can be amended 'from time to time') and the Health Practitioner Regulation National Law (Schedule 7), neither of which are reproduced in the Act.","Acting appointment procedures: Section 8 requires acting appointments to come from a panel agreed by all Ministerial Council members, adding procedural complexity for temporary vacancies."],"plain_english_summary":"This Victorian law sets up the financial plumbing for how the Commonwealth (federal government) and the states share money for public hospitals under the National Health Reform Agreement.\n\n**What it does:**\n- **Creates a special bank account** (called the State Pool Account) at the Reserve Bank of Australia where federal hospital funding is deposited.\n- **Appoints an Administrator** (the same person holds this job across all states) who manages these accounts, calculates how much the Commonwealth should pay in, and makes payments out to local hospital networks based on state government directions.\n- **Requires transparency** through monthly and annual public reports on where the money goes.\n- **Sets up oversight** with audits by state Auditors-General.\n\n**Who it affects:**\n- **State and federal health ministers** who direct the Administrator on payments.\n- **Local hospital networks** that ultimately receive the funding.\n- **The public**, who can see how hospital funding flows through published reports.\n\n**Why it matters:**\nThis is essentially the \"banking system\" for public hospital funding. It ensures that when the Commonwealth promises money for hospitals, there's a clear, auditable trail from the federal Treasury to the hospital ward. The Administrator acts as an independent referee, calculating entitlements and ensuring money moves according to the rules, not political whim. It also allows states to manage some health funding through separate \"State Managed Funds\" while still reporting on it.\n\n**Key quirks:**\n- The Administrator is weirdly powerful but weirdly constrained—states control where money goes, but the Administrator controls the calculations and the bank account.\n- Victorian laws like the Freedom of Information Act and Ombudsman Act don't apply to the Administrator; instead, Commonwealth equivalents apply (like the Commonwealth Ombudsman and FOI Act)."}},"importantCases":[],"_links":{"self":"/api/acts/health-commonwealth-state-funding-arrangements-act-2012","history":"/api/acts/health-commonwealth-state-funding-arrangements-act-2012/history","analysis":"/api/acts/health-commonwealth-state-funding-arrangements-act-2012/analysis","conflicts":"/api/acts/health-commonwealth-state-funding-arrangements-act-2012/conflicts","importantCases":"/api/acts/health-commonwealth-state-funding-arrangements-act-2012/important-cases","documents":"/api/acts/health-commonwealth-state-funding-arrangements-act-2012/documents"}}