What it does
This Determination specifies the Commonwealth payments to each State (including the Australian Capital Territory and the Northern Territory) under the National Health Reform Agreement for the 2016-17 financial year. The Treasurer, Josh Frydenberg, made the Determination under subsection 15A(1) of the Federal Financial Relations Act 2009 (the FFR Act) and dated it 28 September 2018 (see the heading and signature block). Mechanically, the instrument does three things.
First, it records and adopts the Administrator of the National Health Funding Pool’s calculations of the amounts required to be paid into each State Pool Account for 2016-17, referring to the Administrator’s function under paragraph 238(1)(a) of the National Health Reform Act 2011 (para 7). Second, it authorises the Commonwealth to pay the specified sums into each State Pool Account for the 2016-17 financial year by invoking subsection 15A(1) of the FFR Act and setting out the amounts in Table 1 (paras 8 and the Table). Third, it attaches a condition to those payments, requiring that the financial assistance be spent in accordance with the National Health Reform Agreement, pursuant to subsection 15A(3) of the FFR Act (para 9).
The Determination reproduces its name and commencement provisions (s 1, s 2) and contains definitions relevant to the instrument: Administrator, FFR Act, IHPA and State (s 3). The substantive statements about the funding approach under the National Health Reform Agreement are set out in paras 4-6: from 2014-15, most Commonwealth funding for public hospital services is activity based; for 2016-17, the Commonwealth funds 45 per cent of efficient growth in activity‑based services (Clause A3) and 45 per cent of growth in efficient costs for block‑funded services/teaching, training and research (Clause A4). Those clauses are recorded as the explanatory basis for the amounts in Table 1 (paras 4-6). The Table itself lists the dollar amounts for New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the ACT and the NT, and a total for the Commonwealth payments (Table 1; see the Table entries and total at para 8 and the Table).