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Commonwealth act
This Act has been repealed and is no longer in force. It is retained for historical reference.
Establishes a national insurance scheme covering employed persons and eligible voluntary contributors, funded by weekly contributions (from employers, employees and voluntary contributors) plus government payments. (ss.26,30–31,113–115,114) A National Insurance Commission and a Board administer two funds (Health Insurance and Pensions Insurance), approve societies, contract medical practitioners and set rules. (ss.5,108,115,51) The Act specifies medical, sickness, disablement, old‑age, widow’s, orphan’s and dependent‑child benefits and detailed eligibility, collection and enforcement mechanics.
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Direct links to the current provisions in National Health and Pensions Insurance Act 1938.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
NATIONAL HEALTH AND PENSIONS INSURANCE.
No. 25 of 1938.
An Act to provide for Insurance against certain Contingencies affecting Employees, and the Wives, Children, Widows, and Orphans of Employees, and for other purposes.
[Assented to 5th July, 1938.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Part I.—Preliminary.
Short title.
Commencement.
Parts.
Part I.—Preliminary.
Part II.—Administration.
Part III.—Insured Persons.
Part IV.—Contributions.
Part V.—Benefits.
Part VI.—Central Finance.
Part VII.—Approved Societies.
Division 1.—Constitution and Membership.
Division 2.—Financial Provisions.
Part VIII.—Miscellaneous.
Definitions.
4.—(1.) In this Act, unless the contrary intention appears—
“adopted child” includes a child who has been brought up, maintained and educated by two spouses jointly, or by one of two spouses during the lifetime of the other, under a de facto adoption and that child shall not be deemed to be the child of any other person;
“approved society” means a body of persons declared, under Part VII. of this Act, to be an approved society;
“child” includes a step-child and an adopted child, and, in relation to a man, includes an ex-nuptial child, whether his or his wife’s, who was living with him at the time of the commencement of eligibility for benefit of the man, his widow or dependent child, as the case may be, and, in relation to a woman, includes her ex-nuptial child if living with her at the time of the commencement of eligibility for benefit of that woman;
“Consultative Council” means the Approved Societies’ Consultative Council established under this Act;
“contribution half-year” means—
(a) a period of twenty-six weeks commencing on the first Monday in any year; or
(b) a period commencing on the twenty-seventh Monday in any year and terminating on the day preceding the first Monday in the next year,
as the case requires;
“contributions” means contributions consisting of payments at the rates imposed by the National Health and Pensions Insurance (Employers’ Contributions) Act 1938 and by the National Health and Pensions Insurance (Employees’ Contributions) Act 1938 and includes contributions made by or on behalf of voluntary contributors and by special voluntary contributors and other contributions made voluntarily under this Act;
“contribution year” means a period consisting of two consecutive contribution half-years and commencing on the first Monday in any year;
“employed” means engaged, at or after the commencement of this Act, in any of the employments specified in Part I. of the First Schedule to this Act and not specified in Part II. of that Schedule and “employed persons” means persons so engaged;
“employed contributors” means persons insured by reason of their being employed persons;
“employer’s contribution” means the amount of contribution payable by an employer in respect of an insured person employed by him;
“exempt employee” and “partially exempt employee” means a person engaged in any employment in respect of which a certificate has been issued under Part II. of the First Schedule;
“half-year” means a period of six months ending on the thirtieth day of June or on the thirty-first day of December as the case requires;
“health insurance benefits” means sickness benefit, disablement benefit, medical benefit, dependent child’s allowance payable to any person in receipt of sickness benefit or disablement benefit, and additional benefits;
“insurable employment” means employment specified in Part I. of the First Schedule and not specified in Part II. of that Schedule;
“insured” means insured under and in accordance with the provisions of this Act;
“juvenile contributor” means an employed person who has attained the age of fourteen years but has not attained the age of sixteen years;
“maximum age” means, in the case of a man, the age of sixty-five years, and in the case of a woman, the age of sixty years;
“medical practitioner” means a person who is registered, or entitled to practise, as a medical practitioner under the law in force in any State or part of the Commonwealth;
“Ordinance” means an Ordinance of a Territory and includes a State Act in force in a Territory;
“pharmaceutical chemist” means a person who is registered as a pharmaceutical chemist or pharmacist under the law in force in the State or part of the Commonwealth in which he supplies, or proposes to supply, drugs, medicines or appliances in pursuance of a contract made under this Act;
“public funds” means the funds of the Government of the Commonwealth or of a State or of any authority under the Commonwealth or a State;
“Regulations” means regulations made under this Act;
“sickness” means some specific disease, and includes bodily or mental disablement, of which disease or disablement the prescribed notice has been given;
“Territory” means a Territory being part of the Commonwealth;
“the Board” means the Board of Trustees for National Insurance Funds constituted by this Act;
“the Commission” means the National Insurance Commission constituted by this Act;
“the Medical Benefit Council” means the Medical Benefit Council established under this Act;
“voluntary contributors” means persons insured under and in accordance with this Act as voluntary contributors;
“week”, in relation to contributions, means a period of seven days, commencing from the midnight between Sunday and Monday, in respect of which a contribution is paid or payable.
(2.) For the purposes of this Act, any man or woman with whom an ex-nuptial child was living at the time specified in the definition of “child” in the last preceding sub-section and applicable to that child, shall be deemed to be the father or the mother, as the case may be, of that child.
(3.) Any reference in this Act to a Schedule shall be read as a reference to a Schedule to this Act.
Part II.—Administration.
Constitution of Commission.
5.—(1.) There shall be a National Insurance Commission which shall, subject to the control of the Minister, be charged with the general administration of this Act.
(2.) The Commission shall consist of three Commissioners who shall be appointed by the Governor-General.
(3.) The Governor-General shall appoint one of the Commissioners to be Chairman of the Commission.
(4.) At meetings of the Commission two Commissioners shall form a quorum.
Term of office.
6.—(1.) Each Commissioner shall be appointed for such term, not exceeding seven years, as the Governor-General determines, and shall be eligible for re-appointment.
(2.) If an officer of the Public Service of the Commonwealth is appointed a Commissioner, the Officers’ Rights Declaration Act 1928–1933 shall apply as if this Act and section had been specified in the Schedule to that Act.
(3.) If an officer of the Public Service of a State is appointed a Commissioner, he shall have the same rights as if he had been an officer of a Department transferred to the Commonwealth and had been retained in the service of the Commonwealth.
(4.) A Commissioner shall not, without the approval of the Governor-General, engage in any paid employment other than the duties of his office.
Remuneration of Commissioner.
Extraordinary vacancies.
Temporary appointments.
appoint a deputy to act for the Chairman or other Commissioner during his illness, suspension or absence, and every deputy so appointed shall, while so acting, have all the powers and authority of the Chairman or Commissioner, as the case may be.
Suspension of Commissioner or acting Commissioner.
10.—(1.) The Minister may suspend any Commissioner, or any acting Commissioner, from office for inability, inefficiency, or misbehaviour.
(2.) The Minister shall, within seven days after the suspension, if the Parliament is then sitting, or if the Parliament is not then sitting, within seven days after the next meeting of the Parliament, cause to be laid before both Houses of the Parliament a full statement of the grounds of suspension, and if within sixty days thereafter an address is presented to the Governor-General by the Senate and the House of Representatives praying for the restoration of the Commissioner or acting Commissioner, as the case may be, to office, he shall be restored accordingly; but if no such address is so presented the Governor-General may confirm the suspension and declare the office of the Commissioner or acting Commissioner, as the case may be, to be vacant, and the office shall thereupon be and become vacant.
Vacation of office.
(a) becomes bankrupt or insolvent, or applies to take the benefit of any Act for the relief of bankrupt or insolvent debtors, or compounds with his creditors, or makes an assignment of his salary or remuneration for their benefit;
(b) absents himself from duty for a period of fourteen consecutive days, or for twenty-eight days in any twelve months, without leave granted by the Governor-General;
(c) becomes permanently incapable of performing his duties; or
(d) resigns his office by writing under his hand addressed to the Governor-General.
Incorporation.
12.—(1.) The Commission shall be a body corporate with perpetual succession and a common seal, and may acquire, hold and dispose of real and personal property, and shall be capable of suing and being sued.
(2.) The seal of the Commission shall be authenticated by the signatures of a Commissioner and of the Secretary of the Commission or of the person for the time being acting as Secretary of the Commission.
Delegation by Commission.
13.—(1.) The Commission may, by writing under its seal, delegate any of its powers and functions under this Act in relation to any matters or class of matters, or to any particular State or part of the Commonwealth, so that the delegated powers and functions may be exercised by the delegate with respect to the
matters or class of matters specified, or the State or part of the Commonwealth specified, in the instrument of delegation.
(2.) Every delegation by the Commission shall be revocable in writing at will, and no delegation shall prevent the exercise of any power by the Commission.
Deputy Commissioners.
Staff.
15.—(1.) Officers required for the performance of any duties under this Act shall be appointed subject to and in accordance with the Commonwealth Public Service Act 1922–1937.
(2.) For the purposes of this section, the Chairman of the Commission shall have all the powers of a Permanent Head under the Commonwealth Public Service Act 1922–1937.
Annual report.
Part III.—Insured Persons.
Insurance of employed persons.
Insurance of voluntary contributors.
(a) they have been employed, and insured as employed contributors, for a period, whether continuous or not, of not less than one hundred and four weeks since their last entry into insurance;
(b) they have ceased to be employed;
(c) they have given notice as prescribed that they desire to become voluntary contributors; and
(d) they have paid contributions in accordance with this Act.
Application of Act to juvenile contributors.
Free insurance period.
20.—(1.) Where an insured person, other than a juvenile contributor, ceases to be employed or to pay contributions as a voluntary contributor he shall, subject to this Act, during a period ending on the thirtieth day of June or the thirty-first day of December, whichever date first precedes the expiration of two, years from the end of the contribution week in which he ceased to be so employed or in respect of which the last contribution paid by him as a voluntary contributor was paid, (which period is in this Act referred to as a “free insurance period”) be treated for all purposes as if he were an insured person.
(2.) If the approved society is satisfied, or, in the event of a dispute, it is decided in the manner provided by this Act that, within three days after the date when he ceased to be so employed, or, in the case of a voluntary contributor, at the end of the contribution week in respect of which the last contribution was paid, the person was incapable of work by reason of sickness, the period of two years specified in the last preceding sub-section shall be reckoned from the end of the contribution week in which he ceased to be so incapable of work.
(3.) Notwithstanding anything contained in the foregoing provisions of this section, a person who becomes employed during a free insurance period shall not, on ceasing to be employed, become thereby entitled to a new free insurance period unless he has been employed for not less than the prescribed number of weeks since the beginning of the contribution half-year in which the free insurance period began.
Extension of free insurance period.
21.—(1.) If an approved society is satisfied, or, in the event of a dispute, it is decided in the manner provided by this Act, that, at the expiration of a free insurance period, a person who is a member of that society was incapable of work by reason of sickness, the free insurance period shall continue until the thirtieth day of June or the thirty-first day of December, whichever date next follows the day on which he ceased to be so incapable of work.
(2.) If at the date of the termination of a free insurance period the person having the benefit of that period is employed, his free insurance period shall continue until the thirtieth day of June or the thirty-first day of December, whichever date next follows the date on which he ceases to be so employed.
Employment during part of a week.
Persons ceasing to be insured.
Exempt and partially exempt employees.
24.—(1.) Where the Commission has issued a certificate under paragraph (b) of Part II. of the First Schedule certifying that, under the terms of any employment specified in
This is an opening excerpt, not the complete document.