National Health Funding Pool Act 2012 (Western Australia)

The National Health Funding Pool Act 2012 (WA) establishes the institutional, financial and reporting architecture by which Commonwealth and State funding for public hospital services is held, reported and disbursed in Western Australia as part of the National Health Reform Agreement. The Act creates the office of the Administrator of the National Health Funding Pool (ss 4-10), requires the State to open and maintain a State Pool Account (ss 11-13) and to establish State Managed Funds where block grants are required (s 16). It prescribes how money is to be credited to and paid from the State Pool Account (ss 13-15), the Administrator’s role in advising the Commonwealth Treasurer on Commonwealth payment amounts (s 10(1)(a)), and an extensive set of financial management, reporting and audit obligations (ss 17-24).

Mechanically, the Act:

establishes a statutory office, the Administrator, with appointment, suspension, removal and acting appointment rules (ss 4-8);
requires the CEO of the State department principally assisting to open and maintain a discrete State bank account and to administer an agency special purpose account called the State Pool Account under the Financial Management Act 2006 (ss 11-13);
confines the flow of funds to public hospital services, teaching, training and research, or other matters funded through the National Health Funding Pool, and requires payments from the State Pool Account to be made strictly in accordance with directions of the responsible Minister and personally authorised by the Administrator (s 14);
mandates monthly and annual reporting, preparation of audited financial statements and performance audits by the State Auditor General, coordinated where necessary across jurisdictions (ss 17-22);

CrestWestern Australia

National Health Funding Pool Act 2012

Western Australia

National Health Funding Pool Act 2012

Contents

Part 1 — Preliminary

Short title 2
Commencement 2
Terms used 2

Part 2 — Administrator of the National Health Funding Pool

The office of Administrator 5
Appointment of Administrator 5
Suspension of Administrator 6
Removal or resignation of Administrator 7
Acting Administrator 7
Provision of staff and facilities for Administrator 8
Functions of Administrator 8

Part 3 — State Pool Accounts — the National Health Funding Pool

Establishment of State Pool Account ‑ Special Purpose Account 11
Establishment of State Pool Account ‑ Bank Account 11
Administration of State Pool Account 11
Payments from State Pool Account 12
Distribution of Commonwealth funding 13

Part 4 — State Managed Funds

State Managed Funds 14

Part 5 — Financial management and reporting

Financial management obligations of Administrator 16
Monthly reports by Administrator 16
Annual report by Administrator 17
Administrator to prepare financial statements for State Pool Accounts 18
Audit of financial statements 19
Performance audits 19
States to provide Administrator with information about State Managed Funds 19
Provision of other information 20

Part 6 — Miscellaneous

Exclusion of legislation of this jurisdiction 21
Application of Commonwealth Acts 21
Extraterritorial operation of Act 22
Act binds the State 22
Delegation of functions of responsible Minister 22
Regulations 22
Transitional and validation provisions 23

Part 7 — Hospitals and Health Services Act 1927 amended

Act amended 24
Section 21 amended 24

Part 8 — Hospital Fund Act 1930 repealed

Division 1 — Repeal

Hospital Fund Act 1930 repealed 25
Funds to be transferred 25

Division 2 — Lotteries Commission Act 1990 amended

Act amended 26
Section 22 amended 26

Notes

Compilation table 27

Uncommenced provisions table 27

Defined terms

Western Australia

National Health Funding Pool Act 2012

An Act to —

provide for the appointment of the Administrator of the National Health Funding Pool; and
provide for the establishment and management of a State Pool Account; and
amend the Hospitals and Health Services Act 1927; and
repeal the Hospital Fund Act 1930 and make consequential amendments.

The Parliament of Western Australia enacts as follows:

Part 1 — Preliminary

1. Short title

This is the National Health Funding Pool Act 2012.

2. Commencement

This Act comes into operation as follows —

(a) sections 1 and 2 — on the day on which this Act receives the Royal Assent;

(b) the rest of the Act — on a day fixed by proclamation, and different days may be fixed for different provisions.

3. Terms used

(1) In this Act —

Administrator means the Administrator of the National Health Funding Pool appointed under section 5 and under the corresponding provision of the laws of the Commonwealth and the other States;

CEO means the chief executive officer of the department of the Public Service principally assisting in the administration of this Act;

COAG means the Council of Australian Governments;

local hospital network means an organisation that is a local hospital network (however described) for the purposes of the National Health Reform Agreement;

National Health Funding Pool means the combined State Pool Accounts for each State;

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;

responsible Minister for a jurisdiction means the relevant Minister with portfolio responsibility for 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);

Note:

Part 2 — Administrator of the National Health Funding Pool

4. The office of Administrator

(1) The office of Administrator of the National Health Funding Pool is established by this Act.

(2) It is the intention of Parliament that the same individual holds the office established under subsection (1) and under the corresponding provision of the law of the Commonwealth and the other States.

(3) The Administrator appointed under this Act may exercise and perform the functions of the Administrator in relation to —

(a) one jurisdiction; or

(b) 2 or more or all jurisdictions collectively.

(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 provision of the law of the Commonwealth and the other States.

5. Appointment of Administrator

(1) The Minister for this jurisdiction who is a member of the Standing Council on Health is to appoint an individual as the Administrator of the National Health Funding Pool under this Act.

(2) Before the appointment is made, the Chair of the Standing Council is to give each member of that Council an opportunity to nominate an individual for appointment.

(3) An appointment is not to be made unless all the members of the Standing Council on Health 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.

(4) The appointment is to be made by instrument in writing.

(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 reappointment.

(6) The Administrator is entitled to the remuneration determined in accordance with the law of the Commonwealth.

6. Suspension of Administrator

(1) The Chair of the Standing Council on Health is required to suspend the Administrator from office if requested to do so by —

(a) at least 3 members of the Council who are Ministers of a State; or

(b) the member of the Council who is a Minister of the Commonwealth.

(2) A member of the Standing Council on Health is not to request the suspension of the Administrator unless the member is satisfied that the Administrator —

(a) is, because of any physical or mental incapacity or otherwise, unable to perform his or her functions satisfactorily; or

(b) has failed to comply with his or her obligations or duties as Administrator; or

(d) has or may become bankrupt.

(3) A suspension is to be effected by an instrument in writing and is to be notified by the Chair of the Standing Council on Health to all members of the Council.

(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 Standing Council on Health —

(a) terminate the suspension; or

(b) extend the suspension for a specified further period.

(5) Despite subsection (1), the Chair of the Standing Council on Health 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.

7. Removal or resignation of Administrator

(1) The Minister for this jurisdiction who is a member of the Standing Council on Health 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.

(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 members of the Standing Council on Health.

(3) The Administrator may resign as Administrator by notice in writing to the Chair of the Standing Council on Health.

(4) The resignation of the Administrator takes effect on the date notified by the Chair of the Standing Council on Health to all members of the Council.

8. Acting Administrator

(1) The Chair of the Standing Council on Health 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.

(2) Any such appointment may only be made from a panel of persons, and in accordance with the procedure, agreed to by the Standing Council on Health.

Note for this section:

The Health Practitioner Regulation National Law (Western Australia) Schedule 7 clause 27 includes additional provisions relating to acting appointments that have effect subject to this section.

[Section 8 amended: No. 21 of 2024 s. 54.]

9. Provision of staff and facilities for Administrator

(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 (Commonwealth).

(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.

10. Functions of Administrator

(1) The Administrator is —

(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

(b) to monitor State payments into each State Pool Account for the purposes of Part 5; and

(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

(e) to exercise or perform any other functions conferred on the Administrator under this Act.

Note:

Under the corresponding legislation of the Commonwealth the functions of the Administrator include monitoring Commonwealth payments into each State Pool Account for the purposes of Part 5.

(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.

(3) However, the Administrator is required to comply with any directions given by COAG 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 5).

(4) Directions given by COAG under subsection (3) —

(a) are to be given in accordance with a written resolution of COAG passed in accordance with the procedures determined by COAG; and

(b) are to be notified in writing to the Administrator; and

(5) When the Administrator is given a direction under subsection (3) —

(a) the Administrator must give a copy of the direction to the responsible Minister for the State; and

(b) the responsible Minister must, as soon as practicable after receiving the copy, cause it to be tabled in each House of Parliament.

(6) To avoid doubt, this Act is not intended —

(a) to give the Commonwealth ownership or control of money in a State Pool Account; or

(b) to affect the obligation of the Administrator under the laws of a State to make payments from the State Pool Account of the State in accordance with the directions of the State.

(7) 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 5.

Part 3 — State Pool Accounts — the National Health Funding Pool

11. Establishment of State Pool Account ‑ Special Purpose Account

An agency special purpose account called the State Pool Account is established in accordance with the Financial Management Act 2006 section 16 for the purpose of the National Health Reform Agreement.

12. Establishment of State Pool Account ‑ Bank Account

(1) The CEO is to open and maintain a separate State bank account for the purpose of the National Health Reform Agreement.

(2) The bank account is to be opened and maintained with —

(a) the Reserve Bank of Australia; or

(b) if another bank is specified under the National Health Reform Agreement, that other bank.

(3) Unless otherwise agreed under the National Health Reform Agreement, the bank account does not form part of the Public Bank Account.

13. Administration of State Pool Account

(1) The State Pool Account is to be administered by the CEO.

(2) There is to be credited to the State Pool Account —

(a) money paid to the State by the Commonwealth for payment into the State Pool Account under the National Health Reform Agreement; and

(b) money made available by the State for the purposes of funding public hospital services on an activity basis under the National Health Reform Agreement; and

(c) money paid to the State by another State for payment into the State Pool Account under the National Health Reform Agreement; and

(d) any other amount required by law to be credited to the State Pool Account.

14. Payments from State Pool Account

(1) Money standing to the credit of the State Pool Account is to be applied to fund the following in the State under the National Health Reform Agreement (including through a State Managed Fund) —

(a) the services provided by local hospital networks;

(b) health teaching, training and research provided by local hospital networks or other organisations;

(2) Interest earned on money in the State Pool Account is to be credited to the Consolidated Account.

(3) 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.

(4) The Administrator is required to authorise personally each payment made from the State Pool Account.

(5) 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.

(6) This section does not affect the payment from the State Pool Account of charges imposed by the bank at which the Account is established for the operation of that Account.

(7) 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.

(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 the State who is directed by the responsible Minister for the State to make the payment.

15. Distribution of Commonwealth funding

(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.

(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.

Part 4 — State Managed Funds

16. State Managed Funds

(1) The following agency special purpose accounts are established in accordance with the Financial Management Act 2006 section 16 —

(a) the State Managed Fund (Health) Account for the purposes of the department of the Public Service principally assisting in the administration of the Health Services Act 2016; and

(b) the State Managed Fund (Mental Health) Account for the purposes of the department of the Public Service principally assisting in the administration of the Mental Health Act 2014.

(2) The agency special purpose accounts are designated as State Managed Funds 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.

(3) The following money may be credited to a State Managed Fund —

(a) money applied under section 14(1) that is to be used as block grant funding for —

(i) services provided by local hospital networks;

(ii) health teaching, training and research provided by local hospital networks or other organisations;

(iii) any other matter that under the National Health Reform Agreement is to be funded through a State Managed Fund;

(b) money made available by the State under the National Health Reform Agreement that is to be used as block grant funding for —

(i) services provided by local hospital networks;

(ii) health teaching, training and research provided by local hospital networks or other organisations;

(iii) any other matter that under the National Health Reform Agreement is to be funded through a State Managed Fund.

(4) Amounts to fund the following in the State under the National Health Reform Agreement are to be debited to a State Managed Fund —

(a) services provided by local hospital networks;

(b) health teaching, training and research provided by local hospital networks or other organisations;

[Section 16 amended: No. 25 of 2014 s. 73; No. 11 of 2016 s. 297.]

Part 5 — Financial management and reporting

17. Financial management obligations of Administrator

The Administrator must —

(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

(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

(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.

18. Monthly reports by Administrator

(1) The Administrator must provide monthly reports to the Commonwealth and each State containing the following information for the relevant month —

(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;

(b) the amounts paid into each State Pool Account by the Commonwealth and the basis on which the payments were made;

(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;

(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;

(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;

(f) the number of other public hospital functions funded from each State Pool Account or State Managed Fund (including a running financial year total).

(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.

(3) The Administrator is to make reports provided under this section publicly available.

19. Annual report by Administrator

(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.

(2) The annual report must include the following information for the relevant financial year —

(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;

(b) the amounts paid into each State Pool Account by the Commonwealth and the basis on which the payments were made;

(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;

(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;

(e) the number of public hospital services funded for each local hospital network in accordance with the system of activity based funding;

(f) the number of other public hospital services and functions funded from each State Pool Account or State Managed Fund.

(3) The annual report is to be accompanied by —

(a) an audited financial statement for each State Pool Account; and

(b) a financial statement that combines the audited financial statements for each State Pool Account.

(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 each House of the Parliament of the responsible Minister’s jurisdiction.

20. Administrator to prepare financial statements for State Pool Accounts

The Administrator must, after each financial year, prepare —

(a) a financial statement for each State Pool Account that details financial transactions during that financial year; and

(b) a combined financial statement that consists of the financial statements for each State Pool Account for the financial year.

21. Audit of financial statements

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 in accordance with the relevant legislation of that State relating to financial audit by the Auditor General.

22. Performance audits

(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.

(2) Before the Auditor General of this State 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.

(3) Auditors General who are conducting performance audits at the same time are to make arrangements to coordinate the conduct of those audits in relation to any requirements imposed on the Administrator.

(4) A performance audit is to be conducted by the Auditor General of this jurisdiction in accordance with the laws of this jurisdiction relating to the exercise or performance of the functions of the Auditor General.

23. States to provide Administrator with information about State Managed Funds

(1) The 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 that State that the Administrator requires for the preparation of reports and financial statements under this Part —

(a) the amounts paid by the State into the State Managed Fund and the basis on which the payments were made;

(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;

(2) The information is to be provided by the time requested by the Administrator.

24. Provision of other information

(1) The Administrator is required to provide to the responsible Minister for a jurisdiction any information requested by that Minister that relates to that jurisdiction.

(2) The information is to be provided by the time requested by that responsible Minister.

(3) The Administrator is required to provide to the responsible Ministers of all jurisdictions a copy of 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.

(4) The Administrator may at any time provide any information that relates to a jurisdiction to the responsible Minister for that jurisdiction.

(5) Any information relating to a jurisdiction that is provided under this section to another jurisdiction may only be publicly released by that other jurisdiction if approved by the responsible Minister for the jurisdiction to which the information relates.

Part 6 — Miscellaneous

25. Exclusion of legislation of this jurisdiction

The following Acts of this jurisdiction do not apply to or in respect of the Administrator or any function exercised or performed by the Administrator —

(a) the Freedom of Information Act 1992;

(b) the Parliamentary Commissioner Act 1971;

(d) the State Records Act 2000.

26. Application of Commonwealth Acts

(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 —

(a) the Archives Act 1983 (Commonwealth);

(b) the Australian Information Commissioner Act 2010 (Commonwealth);

(d) the Ombudsman Act 1976 (Commonwealth);

(e) the Privacy Act 1988 (Commonwealth).

(2) Each of those Acts so applies subject to any modifications necessary to give effect to subsection (1) that are made by the regulations.

(3) Until regulations referred to in subsection (2) are made, subsection (1) does not have effect and instead the legislation referred to in section 25 applies to or in respect of the Administrator and any function exercised or performed by the Administrator.

27. Extraterritorial operation of Act

It is the intention of Parliament that the operation of this Act is to include, as far as possible, operation in relation to the following —

(a) things situated in or outside the territorial limits of this jurisdiction;

(b) acts, transactions and matters done, entered into or occurring in or outside the territorial limits of this jurisdiction;

(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.

28. Act binds the State

This Act binds the State and, so far as the legislative power of the State permits, the Crown in all its other capacities.

29. Delegation of functions of responsible Minister

(1) The responsible Minister for the State may delegate to an authority or officer of the State the responsible Minister’s functions under this Act.

(2) This section does not apply to the functions of a Minister under Part 2.

30. Regulations

(1) The Governor may make regulations prescribing all matters that are required or permitted by this Act to be prescribed, or are necessary or convenient to be prescribed for giving effect to the purposes of this Act.

(2) Nothing in section 3(5) or (6) affects the operation of the Interpretation Act 1984 Part VI in relation to regulations made under this Act.

31. Transitional and validation provisions

(1) If, on the commencement of this Act, corresponding provisions to this Act have not been enacted by another jurisdiction, the responsible Minister for that jurisdiction for the purposes of this Act is the Minister of that jurisdiction with portfolio responsibility for health.

(2) Any thing done by a Minister of the Commonwealth or of a State before the commencement of this Act that would have been validly done if this Act, and the corresponding provisions of other jurisdictions, had been in force at the time is taken to have been validly done.

Part 7 — Hospitals and Health Services Act 1927 amended

32. Act amended

This Part amends the Hospitals and Health Services Act 1927.

33. Section 21 amended

(1) In section 21(1)(g) delete “the board.” and insert:

the board;

(2) After section 21(1)(g) insert:

(h) the funding of services for public patients provided by private hospitals and non‑government providers of health services.

(3) After section 21(1) insert:

(2A) In subsection (1)(h) —

public patient has the meaning given in section 3(1) of the Commonwealth Act.

Part 8 — Hospital Fund Act 1930 repealed

Division 1 — Repeal

34. Hospital Fund Act 1930 repealed

The Hospital Fund Act 1930 is repealed.

35. Funds to be transferred

(1) In this section —

commencement day means the day on which section 34 comes into operation;

Hospital Fund means the Hospital Fund established under the Hospital Fund Act 1930.

(2) The Treasurer, on advice from the Minister who administers the Hospitals and Health Services Act 1927, must make a determination for the purposes of subsections (3) and (4) before section 34 comes into operation.

(3) On the commencement day any funds standing to the credit of the Hospital Fund are to be credited to one of the following accounts, in accordance with the determination of the Treasurer made under subsection (2) —

(a) the State Pool Account of the State;

(b) a State Managed Fund of the State;

(c) an agency special purpose account established and maintained under the Financial Management Act 2006 section 16 by the department of the Public Service principally assisting in the administration of the Hospitals and Health Services Act 1927;

(d) the Consolidated Account.

(4) An account or fund referred to in subsection (3) is to be credited, in accordance with the determination made by the Treasurer under subsection (2), with any money that became payable to the Hospital Fund before the commencement day and that is paid after that day.

Division 2 — Lotteries Commission Act 1990 amended

36. Act amended

This Division amends the Lotteries Commission Act 1990.

37. Section 22 amended

(1) In section 22(2)(b) delete “agency special purpose account referred to in section 3(2) of the Hospital Fund Act 1930;” and insert:

State Pool Account of the State established under the National Health Funding Pool Act 2012; and

(2) Delete section 22(2a)(a) and insert:

(a) paid into the State Pool Account of the State established under the National Health Funding Pool Act 2012; and

(3) After section 22(2d) insert:

(3) The moneys paid into the State Pool Account of the State under subsection (2a) are to be applied in accordance with the National Health Funding Pool Act 2012 section 14*.*

(4) After section 22(2)(a) and (c) insert:

and

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Notes

This is a compilation of the National Health Funding Pool Act 2012 and includes amendments made by other written laws. For provisions that have come into operation see the compilation table. For provisions that have not yet come into operation see the uncommenced provisions table.

Compilation table

Short title	Number and year	Assent	Commencement
National Health Funding Pool Act 2012	44 of 2012	20 Nov 2012	s. 1 and 2: 20 Nov 2012 (see s. 2(a)); Act other than s. 1, 2 and Pt. 8: 15 Dec 2012 (see s. 2(b) and Gazette 14 Dec 2012 p. 6195); Pt. 8: 28 Aug 2013 (see s. 2(b) and Gazette 27 Aug 2013 p. 4051)
Mental Health Legislation Amendment Act 2014 Pt. 4 Div. 4 Subdiv. 17	25 of 2014	3 Nov 2014	30 Nov 2015 (see s. 2(b) and Gazette 13 Nov 2015 p. 4632)
Health Services Act 2016 s. 297	11 of 2016	26 May 2016	1 Jul 2016 (see s. 2(b) and Gazette 24 Jun 2016 p. 2291)
Health Practitioner Regulation National Law Application Act 2024 Pt. 6 Div. 2	21 of 2024	14 May 2024	15 May 2024 (see s. 2(c))

Uncommenced provisions table

To view the text of the uncommenced provisions see Acts as passed on the WA Legislation website.

Short title	Number and year	Assent	Commencement
Privacy and Responsible Information Sharing Act 2024 Pt. 6 Div. 5	51 of 2024	6 Dec 2024	To be proclaimed (see s. 2(c))

Defined terms

[This is a list of terms defined and the provisions where they are defined. The list is not part of the law.]

Defined term Provision(s)

Administrator 3(1)

CEO 3(1)

COAG 3(1)

commencement day 35(1)

Hospital Fund 35(1)

local hospital network 3(1)

National Health Funding Pool 3(1)

National Health Reform Agreement 3(1)

performance audit 22(1)

responsible Minister 3(1)

Standing Council on Health 3(1)

State 3(1)

State Managed Fund 3(1)

State Pool Account 3(1)

This work is licensed under a Creative Commons Attribution 4.0 International Licence (CC BY 4.0). To view relevant information and for a link to a copy of the licence, visit www.legislation.wa.gov.au.

By Authority: GEOFF O. LAWN, Government Printer

Western Australia

National Health Funding Pool Act 2012

Western Australia

National Health Funding Pool Act 2012

Contents

Part 1 — Preliminary

Short title 2
Commencement 2
Terms used 2

Part 2 — Administrator of the National Health Funding Pool

The office of Administrator 5
Appointment of Administrator 5
Suspension of Administrator 6
Removal or resignation of Administrator 7
Acting Administrator 7
Provision of staff and facilities for Administrator 8
Functions of Administrator 8

Part 3 — State Pool Accounts — the National Health Funding Pool

Establishment of State Pool Account ‑ Special Purpose Account 11
Establishment of State Pool Account ‑ Bank Account 11
Administration of State Pool Account 11
Payments from State Pool Account 12
Distribution of Commonwealth funding 13

Part 4 — State Managed Funds

State Managed Funds 14

Part 5 — Financial management and reporting

Financial management obligations of Administrator 16
Monthly reports by Administrator 16
Annual report by Administrator 17
Administrator to prepare financial statements for State Pool Accounts 18
Audit of financial statements 19
Performance audits 19
States to provide Administrator with information about State Managed Funds 19
Provision of other information 20

Part 6 — Miscellaneous

Exclusion of legislation of this jurisdiction 21
Application of Commonwealth Acts 21

The Act organises funds and functions around several recurring legal and administrative concepts. These are defined and recur throughout the text; understanding them is essential to applying the statute.

Administrator: the statutory officeholder who administers State Pool Accounts for the National Health Funding Pool, whose appointment is made by the responsible Minister for the jurisdiction that is a member of the Standing Council on Health after agreement by all members of that Council (s 5). The Administrator advises the Commonwealth Treasurer, monitors State payments and makes payments from the State Pool Account according to State directions (s 10). The Administrator is to be the same person appointed under corresponding Commonwealth and other State laws if possible (s 4(2)) and is entitled to remuneration set under Commonwealth law (s 5(6)).
State Pool Account: an agency special purpose account established under the Financial Management Act 2006 (s 11) and a separate bank account to be opened and maintained by the CEO (s 12). The Account receives Commonwealth money paid for the State under the National Health Reform Agreement, State contributions for activity‑based public hospital funding, inter‑State payments required by the Agreement, and other legally required credits (s 13(2)(a)-(d)). Money standing to the credit of the Account is to be applied to public hospital services, teaching, training and research, and other Agreement items (s 14(1)).
State Managed Fund: a designated agency special purpose account established for block‑grant style funding under the National Health Reform Agreement (s 16(1)-(2)). The Act specifically establishes State Managed Fund (Health) and State Managed Fund (Mental Health) accounts (s 16(1)). Certain payments may be credited to or debited from these funds (s 16(3)-(4)).
National Health Funding Pool: the combined State Pool Accounts for each State, i.e. a conceptual pooled structure composed of State Pool Accounts (defined in s 3(1)). The Administrator’s functions and reporting duties operate across the Pool (s 10).
Standing Council on Health: the ministerial body that participates in appointment, suspension and removal processes and may instruct the Administrator through written directions (s 3(1) and s 10(3)-(5)). For Act‑specific purposes the Standing Council is to be constituted by a single Minister for the Commonwealth and a single Minister for each State (s 3(2)) and all agreements or requests under the Act are to be in writing (s 3(4)).
Activity‑based funding and local hospital networks: the Act references funding for public hospital services on an activity basis and local hospital networks established under the National Health Reform Agreement; monthly and annual reports must include numbers of funded public hospital services per local hospital network under activity‑based funding (ss 18(1)(e), 19(2)(e)).
Reporting and audit architecture: the Administrator must develop financial management policies, maintain records, prepare financial statements and reports, make monthly reports publicly available and provide annual reports to responsible Ministers accompanied by audited financial statements (ss 17-21). Auditing of State Pool Account financial statements is to be conducted by the State Auditor General (s 21). Separate performance audits by the Auditor General are possible and coordination between jurisdictions is mandated (s 22).
Interaction with State and Commonwealth transparency and administrative law: the Act expressly excludes certain State statutes (Freedom of Information Act 1992, Parliamentary Commissioner Act 1971, Public Sector Management Act 1994, State Records Act 2000) from applying to the Administrator (s 25). The Act contemplates application of specified Commonwealth Acts (Archives Act 1983, Australian Information Commissioner Act 2010, Freedom of Information Act 1982, Ombudsman Act 1976, Privacy Act 1988) to the Administrator as laws of WA, but only when regulations effecting necessary modifications are made; until such regulations the exclusions in s 25 continue to apply (s 26(1)-(3)).
Ministerial directions and personal authorisation: payments from the State Pool Account must be made strictly in accordance with directions of the responsible Minister (s 14(3)), and the Administrator is required to personally authorise each payment (s 14(4)). The Act also allows the responsible Minister to direct a State official to make payments if there is no Administrator or the Administrator is unavailable (s 14(8)).

These concepts interact to allocate who pays (Commonwealth and State), who decides disbursement (responsible Minister, with the Administrator as the agent that must authorise payments), and who monitors and reports (the Administrator, with State Auditor General audit). The Act therefore sets up a legal choreography intended to ensure funds delivered under the National Health Reform Agreement are identifiable, reported, audited and spent on agreed hospital funding purposes.

The Act’s primary legal subjects are identified and their roles are specified in the statute. The text sets out who pays, who makes decisions, who receives funds and who must provide information.

The Commonwealth: the Commonwealth is a payer into each State Pool Account under the National Health Reform Agreement (s 13(2)(a)). The Administrator must calculate and advise the Commonwealth Treasurer of the amounts required to be paid by the Commonwealth into each State Pool Account and provide the basis for reconciliations tied to actual service delivery (s 10(1)(a)). The Act’s structures therefore directly affect Commonwealth fiscal disbursement processes associated with National Health Reform Agreement funding.
The State (Western Australia): the State is both a payer and custodian. The State must make money available for activity‑based funding under the National Health Reform Agreement and to credit that money to the State Pool Account (s 13(2)(b)). The State’s chief executive officer of the department principally assisting in administration must open and maintain a State bank account and administer the State Pool Account (ss 12(1), 13(1)). The responsible Minister for the State directs the Administrator on payments from the State Pool Account (s 14(3)) and must provide requested information to the Administrator about State Managed Funds (s 23).
The Administrator: a statutory officeholder who advises the Commonwealth Treasurer (s 10(1)(a)), monitors State payments (s 10(1)(b)), makes payments per the responsible Minister’s directions (s 10(1)(c) and s 14(3)), and reports publicly on Pool payments (s 10(1)(d)). The Administrator is also the entity required to prepare, publish and provide the detailed monthly and annual reports specified by the Act (ss 18-19), and to prepare audited financial statements for State Pool Accounts (s 20), which are audited by the State Auditor General (s 21).
Responsible Ministers and Standing Council on Health: the responsible Minister for the State issues directions for payments from the State Pool Account and must table COAG directions in the State Parliament when provided to the Administrator (s 10(5)). The Standing Council on Health’s members must agree on the appointment of the Administrator (s 5(3)), and the Standing Council can direct suspension under certain thresholds (s 6), and may give directions to the Administrator via COAG processes (s 10(3)-(5)).
Local hospital networks and other service providers: funds in the State Pool Account and State Managed Funds are to be applied to services provided by local hospital networks, health teaching, training and research provided by those networks or other organisations, and other matters funded through the National Health Funding Pool (s 14(1), s 16(4)). Local hospital networks are explicitly identified as recipients in reporting obligations (ss 18(1)(e), 19(2)(e)).
Auditor General and auditors: the State Auditor General audits the financial statements prepared by the Administrator (s 21) and may conduct performance audits of the Administrator’s exercise of functions in the State (s 22). Coordination among Auditors General of jurisdictions is required when multiple jurisdictions conduct performance audits simultaneously (s 22(3)).
Departments and officials: the CEO is charged with bank account establishment and administrative control of the State Pool Account (s 12(1), s 13(1)). The responsible Minister may delegate their functions under this Act to an authority or officer of the State, except the Minister’s functions under Part 2 (s 29). If the Administrator is absent, an official directed by the responsible Minister may make payments from the State Pool Account (s 14(8)).
Statutory bodies and historical funds: the Lotteries Commission is affected through amendments to s 22 of the Lotteries Commission Act 1990 to direct certain proceeds into the State Pool Account (Pt 8, ss 36-37). The repeal of the Hospital Fund Act 1930 and transfer of its funds to State accounts is handled by Treasurer determination (ss 34-35).
The public and researchers: the Act requires the Administrator to make monthly reports publicly available (s 18(3)) and requires Ministers to table annual reports in Parliament (s 19(4)), which provides public reporting channels. However, the Act also excludes certain State transparency regimes from applying to the Administrator (s 25) and makes application of Commonwealth information and privacy statutes contingent on regulations (s 26), affecting public access to information.

In short, the Act creates an interlocking set of obligations for Commonwealth treasurers, State treasuries and departments, the Administrator, responsible Ministers, local hospital networks and auditors. Money flows from the Commonwealth and the State into State Pool Accounts and State Managed Funds, is distributed to local hospital networks and other designated recipients, and is subject to centralised reporting and audit by the Administrator and State Auditor General.

The Act distributes duties, rights and procedural prerequisites between the Administrator, the responsible Minister, the CEO and other actors. These provisions determine who must do what, when and how.

Administrator’s duties and rights

Calculation and advice to Commonwealth Treasurer: the Administrator must calculate and advise the Commonwealth Treasurer of amounts required to be paid by the Commonwealth into each State Pool Account under the National Health Reform Agreement, including reconciling amounts to actual service delivery (s 10(1)(a)).
Monitoring and payments: the Administrator must monitor State payments into each State Pool Account and make payments from the Account in accordance with directions of the responsible Minister (s 10(1)(b)-(c); s 14(3)).
Reporting and financial management: duties include public reporting on payments (s 10(1)(d)), development and application of financial management policies, record keeping, and preparation of financial statements and audits (s 17; s 20).
Authorising payments: the Administrator is required to personally authorise each payment made from the State Pool Account (s 14(4)).
Independence and directions: the Administrator and assisting staff are not subject to control or direction by any Commonwealth Minister in exercising functions under this Act (s 10(2)), but must comply with directions given by COAG as to the manner of exercising functions (s 10(3)). COAG directions must be by written resolution, notified to the Administrator and made public (s 10(4)). When a COAG direction is given, the Administrator must give a copy to the responsible Minister and that Minister must table it in each House of Parliament as soon as practicable (s 10(5)).

Responsible Minister’s duties and rights

Direction power on payments: the responsible Minister for the State directs the Administrator on the amount, recipient and timing of payments from the State Pool Account (s 14(3)). The Administrator must comply with those directions when making payments (s 14(3), s 15(2)).
Information provision: responsible Ministers must provide the Administrator with requested information about State Managed Funds and must table annual reports received from the Administrator in State Parliament (s 23(1); s 19(4)).
Delegation: the responsible Minister may delegate functions under the Act to State authorities or officers, except functions conferred under Part 2 (s 29).

CEO and State obligations

Bank account and administration: the CEO must open and maintain a separate State bank account (s 12(1)) and administer the State Pool Account (s 13(1)). The bank account may be with the Reserve Bank or another bank specified under the National Health Reform Agreement (s 12(2)), and does not form part of the Public Bank Account unless otherwise agreed (s 12(3)).
Credit and debit rules: the CEO must ensure that specified classes of receipts are credited to the State Pool Account (s 13(2)) and that State Managed Funds receive and pay out amounts consistent with s 16.

State Managed Fund duties

The Act establishes specified State Managed Fund accounts, prescribes what may be credited to them (s 16(3)) and requires that amounts used to fund services under the National Health Reform Agreement be debited to the State Managed Fund (s 16(4)).

Audit and reporting duties

Monthly reporting: the Administrator must provide monthly reports to the Commonwealth and each State containing detailed information about amounts paid into and from each State Pool Account and State Managed Fund and activity‑based funding outputs (s 18(1)-(2)); monthly reports are to be made publicly available (s 18(3)).
Annual reporting: the Administrator must provide annual reports within four months of the financial year end to responsible Ministers, including information on amounts paid into and out of Pool Accounts and State Managed Funds, numbers of public hospital services funded under activity‑based funding, and must accompany the annual report with audited financial statements for each State Pool Account and a combined statement (s 19(1)-(3)).
Audit: financial statements for each State Pool Account are to be audited by the Auditor General of the State (s 21). Performance audits by the Auditor General are permitted to assess whether the Administrator is acting effectively, economically and efficiently, and in compliance with laws (s 22).

Other rights and procedural rules

Appointment, suspension and removal: the Act sets consensus and majority thresholds for appointment, suspension and removal of the Administrator via the Standing Council on Health (ss 5-7). Appointment requires agreement of all Standing Council members on the appointee and terms (s 5(3)), suspension can be requested by at least three State ministers or the Commonwealth minister (s 6(1)), and removal requires a majority vote of the Standing Council (s 7(1)).
Information flow and protection: the Administrator must provide information requested by a responsible Minister and may provide information relating to one jurisdiction to other jurisdictions, but any public release of such jurisdictional information by another jurisdiction requires the approval of the responsible Minister for the jurisdiction to which the information relates (s 24(1)-(5)).

Limitations and exclusions

Delegation constraint: the Administrator may not delegate a function under the Act to the National Health Funding Body or its staff, or to any other person or body (s 9(2)).
Exclusions from State oversight: various State oversight and access statutes do not apply to the Administrator (s 25); application of Commonwealth information and privacy laws is conditional on regulations (s 26).

These duties and rights create procedural gates (appointment consensus, ministerial directions, personal authorisation of payments) and reporting obligations that largely vest the responsibility for transparent accounting and fiscal reconciliation with the Administrator while leaving payment direction authority with responsible Ministers.

The Act lays out the financial governance, reporting and audit architecture, but it contains no express criminal penalties, administrative fines or civil sanctions within its text for failure to comply with specific provisions. Enforcement and oversight mechanisms in the Act are predominantly built around institutional controls, reporting obligations, audit powers and ministerial processes. The following enforcement and oversight devices appear in the statute and are the principal mechanisms by which compliance is intended to be achieved:

Audit and public reporting: the Administrator must prepare audited financial statements for each State Pool Account and a combined statement (s 19(3); s 20). Those statements are to be audited by the State Auditor General in accordance with State audit legislation (s 21). The requirement that audited statements accompany the annual report provides a forensic tool for identifying non‑compliance and misstatement in Pool administration.
Performance audits by the Auditor General: the Act defines performance audits and authorises the Auditor General to audit the Administrator’s exercise of functions in relation to a jurisdiction to determine whether the Administrator is acting effectively, economically and efficiently and in compliance with relevant laws (s 22(1)). The Auditor General must notify Auditors General of other jurisdictions before conducting such an audit and coordinate simultaneous audits across jurisdictions (ss 22(2)-(3)). Performance audits create reputational and parliamentary accountability through tabling and public reporting channels.
Parliamentary tabling and ministerial accountability: COAG directions to the Administrator must be given by written resolution and be notified and made public by the Administrator (s 10(4)). When the Administrator receives a COAG direction the responsible Minister must cause it to be tabled in each House of Parliament (s 10(5)(b)). The Administrator’s annual report must be tabled by the responsible Minister in each House of the State Parliament (s 19(4)). These tabling requirements generate parliamentary scrutiny and political accountability.
Administrative removal and suspension: the Standing Council on Health can suspend the Administrator where threshold conditions are met (s 6). Suspension can be requested by at least three State ministers or the Commonwealth minister (s 6(1)), and a suspension lasts up to 60 days unless removed, resigned, terminated or extended by a majority of the Standing Council (s 6(4)). The Administrator can be removed by a majority of Standing Council members (s 7(1)). These provisions provide a mechanism to remove an Administrator perceived as non‑compliant, incapacitated or otherwise unsuitable, subject to ministerial consensus thresholds.
Ministerial direction over payments: the responsible Minister directs payments from the State Pool Account and can require an official to make payments if the Administrator is not available (s 14(3), s 14(8)). This maintains a chain of ministerial control over expenditure.

What the Act does not do, substantively:

It does not, on its face, create specified statutory offences or civil liability regimes tied to breaches of the Act’s provisions. No sections in the provided text specify penalties, fines or criminal sanctions for non‑compliance with reporting or payment rules.
It does not provide an express independent enforcement agency or inspectorate tasked with developing compliance orders or imposing monetary penalties.

Because enforcement rests on audit, reporting, parliamentary tabling and ministerial processes, practical consequences for non‑compliance are likely to be administrative, reputational and political rather than directly penal in the form of statutory fines or criminal liability under this Act. Where legal consequences are sought, they must be pursued by reference to other applicable statutory regimes, contract terms or common law causes of action; the Act provides the reporting and audit materials that would support such processes rather than prescribing statutory sanctions itself.

The Act is expressly cross‑referential and modifies, displaces or complements several State and Commonwealth statutes. The interactions are procedural and substantive and affect information access, financial management, hospital funding law and historic funds. The principal cross‑interactions in the Act are:

Financial Management framework

The State Pool Account is an agency special purpose account established under the Financial Management Act 2006 s 16 (s 11). The Act therefore sits within WA’s established public finance framework for the creation and management of special purpose accounts and relies on the Financial Management Act for accounting, audit and related governance practices.

Health sector statute amendments

Hospitals and Health Services Act 1927: Part 7 amends s 21 of that Act to add, in s 21(1)(h), “the funding of services for public patients provided by private hospitals and non‑government providers of health services” and to import the Commonwealth Act definition of “public patient” by reference (s 33). This expands the textual statutory bases in WA law for funding public patients in private and non‑government settings.
Hospital Fund Act 1930: the Act repeals the Hospital Fund Act 1930 (s 34) and provides for the Treasurer to determine to which account the existing Hospital Fund balances are to be transferred on commencement (s 35). The transitional provision requires a Treasurer’s determination before repeal comes into effect (s 35(2)) and specifies a list of possible destination accounts (s 35(3)).

Lotteries Commission Act 1990

The Act amends s 22 of the Lotteries Commission Act 1990 to change references so that moneys previously payable to the Hospital Fund are instead to be paid into the State Pool Account (Pt 8, ss 36-37). Subsection drafting instructs that moneys paid under s 22(2a) are to be applied in accordance with the National Health Funding Pool Act s 14 (Pt 8, s 37(3)).

Commonwealth laws and interjurisdictional application

The Act anticipates corresponding provisions in the Commonwealth and other States, and contemplates that the Administrator will be appointed under corresponding laws in multiple jurisdictions (s 4(2)). The Act provides that the Administrator may exercise functions in relation to one or more jurisdictions (s 4(3)) and that references to the Administrator’s functions include those under corresponding provisions elsewhere (s 4(4)). Transitional provisions address gaps where corresponding provisions in other jurisdictions are not yet enacted (s 31(1)).

Information, privacy and oversight regimes

The Act excludes specified WA statutes from applying to the Administrator and the Administrator’s functions: Freedom of Information Act 1992, Parliamentary Commissioner Act 1971, Public Sector Management Act 1994 and State Records Act 2000 (s 25). In parallel, it contemplates that Commonwealth statutes , Archives Act 1983, Australian Information Commissioner Act 2010, Freedom of Information Act 1982, Ombudsman Act 1976 and Privacy Act 1988 , will apply as laws of WA to the Administrator, subject to necessary modifications by regulation (s 26(1)-(2)). Importantly, until regulations are made, s 26 does not take effect and s 25’s exclusions remain (s 26(3)). This staged interaction means that information access, privacy and oversight for the Administrator are transitional and conditional.

Interpretation and special rules

The Act is to be interpreted in accordance with the Health Practitioner Regulation National Law (WA) Schedule 7, with Schedule 7 applied as if references to that Law were references to this Act (s 3(5)). The Interpretation Act 1984 does not apply generally to this Act except in Parts 7 and 8 and as provided in s 30(2) (s 3(6)). This modifies standard interpretation rules and aligns certain interpretive machinery with the national health practitioner framework.

Auditor and audit law

Auditing of State Pool Account financial statements is to be undertaken by the State Auditor General under the relevant State audit legislation (s 21). Performance audit powers referenced in s 22 are to be exercised under State law as to the Auditor General’s functions (s 22(4)). This ties the Act’s auditing regime to existing State audit rules and powers.

National Health Reform Agreement

The Act repeatedly relies on the National Health Reform Agreement for defining the purpose and mechanics of payments, the specification of the bank for the State Pool Account if other than the Reserve Bank, and to shape what is funded through the Pool (s 3(1) definition; ss 12(2), 13, 14, 15, 16). The Act operationalises the Agreement in State law.

Practical consequences

The Act displaces the Hospital Fund Act 1930 and channels former Hospital Fund flows into the State Pool Account or State Managed Funds per the Treasurer’s determination (ss 34-35).
The Ministerial and COAG direction powers interact with the Administrator’s statutory independence: the Administrator is not subject to Commonwealth Ministerial direction (s 10(2)), but must comply with COAG directions on manner and must give COAG‑originating directions to the responsible Ministers for tabling (s 10(3)-(5)).
The exclusion and conditional application of information and oversight statutes (ss 25-26) creates a layered oversight regime bridging State and Commonwealth laws, with the precise regime dependent on whether implementing regulations are made.

Those interactions make the Act a vehicle to implement the National Health Reform Agreement within WA law while grafting the Pool architecture onto the State’s existing public finance, health services and auditing frameworks.

The compilation table and in‑text amendment notes in the provided document identify the principal amendments and commencement sequencing for the Act. The compilation shows enactment dates and later amendments which have been incorporated; the in‑text notes identify specific changes. The notable amendments and timing in the source are:

Original enactment: National Health Funding Pool Act 2012, assented 20 November 2012. Sections 1 and 2 commenced on 20 November 2012. The remainder of the Act (other than Parts 1-2 as noted) commenced by proclamation, primarily 15 December 2012 for most of the Act, and Part 8 commenced 28 August 2013 (compilation table).
Mental Health Legislation Amendment Act 2014 (No. 25 of 2014), Part 4 Division 4 Subdivision 17: amendment recorded in the compilation table with assent 3 November 2014 and commencement 30 November 2015. The Act shows that s 16 was amended by the 2014 Act (in the note above s 16: “[Section 16 amended: No. 25 of 2014 s. 73]”).
Health Services Act 2016 (No. 11 of 2016), s 297: amendment recorded with assent 26 May 2016 and commencement 1 July 2016. The Act notes an amendment at s 16 was made by s 297 of the Health Services Act 2016 (see note above s 16: “[Section 16 amended: No. 11 of 2016 s. 297]”).
Health Practitioner Regulation National Law Application Act 2024 (No. 21 of 2024), Part 6 Division 2: the compilation table records assent 14 May 2024 and commencement 15 May 2024. The in‑text note to s 3 shows an amendment: “[Section 3 amended: No. 21 of 2024 s. 53.]” and to s 8: “[Section 8 amended: No. 21 of 2024 s. 54.]” These amendments adjust the interpretation provisions and the rules around acting appointments to align with the Health Practitioner Regulation National Law schedule applied to this Act (s 3(5) and the note accompanying s 8).
Uncommenced provision listed in compilation: Privacy and Responsible Information Sharing Act 2024 (No. 51 of 2024) Part 6 Division 5 is noted as assented 6 December 2024 and to be proclaimed. The compilation table flags this as an uncommenced provision.

Textual amendments made within the Act itself:

Part 7 amends the Hospitals and Health Services Act 1927 by replacing and inserting subsections to expand the scope of funding to include services for public patients provided by private hospitals and non‑government providers (ss 32-33). The new subsection references the Commonwealth Act for the definition of “public patient” (s 33(3)).
Part 8 repeals the Hospital Fund Act 1930 and establishes a mechanism for Treasurer determinations to transfer standing funds to the State Pool Account, a State Managed Fund, a departmental special purpose account, or the Consolidated Account on commencement (ss 34-35). Part 8 also amends the Lotteries Commission Act 1990 to redirect relevant receipts into the State Pool Account (ss 36-37).

Commencement sequencing and transitional rules:

Sections 1 and 2 of the Act commenced on Royal Assent (20 November 2012); most of the remainder of the Act commenced by proclamation on 15 December 2012; Part 8 (repeal of Hospital Fund Act) commenced on 28 August 2013 (compilation table). Section 31 provides transitional and validation provisions for actions done before commencement: acts that would have been validly done had this Act and corresponding provisions in other jurisdictions been in force are taken to have been validly done (s 31(2)).

Regulatory visibility:

Section 26 contemplates regulations to modify the application of specified Commonwealth Acts to the Administrator. Until those regulations are made, the exclusions in s 25 continue to apply (s 26(3)). This creates a regulatory implementation point that remains dependent on subsequent subordinate legislation.

These are the amendments and procedural modification points evident in the text compiled. The Act as presented includes amendment notes for s 3 and s 8 (2024 amendments), and the compilation table lists the 2014 and 2016 amending Acts as well as the original 2012 enactment and commencement dates. The Act’s architecture also embeds the requirement that the Administrator be appointed across jurisdictions under corresponding laws, so amendments in other jurisdictions (Commonwealth and other States) can affect the Administrator’s legal footing, as contemplated by s 4(2) and s 31.

The provided compilation of the National Health Funding Pool Act 2012 contains no judicial decisions, case citations or litigation narrative. The statute itself does not list or cite any cases. The compilation table and notes record enactment and amending statutes, commencement dates and related provisions, but they do not reference any reported litigation or judicial interpretation.

What the document does record that bears on litigation risk:

The Act establishes an audit trail and reporting obligations (ss 17-21) and requires audited financial statements and performance audits by the Auditor General (ss 21-22), which create documentary bases that could be relied on in any administrative law or judicial challenge relating to the administration of State Pool Accounts. However, the Act contains no express causes of action, statutory civil remedies or criminal offences tied to breaches of reporting and payment duties.
Ministerial directions and COAG direction mechanisms are specified (s 10(3)-(5) and s 14(3)), which may give rise to legal questions about the scope and validity of directions if disputes over compliance or the lawfulness of directions arise. The Act does not set out judicial review exclusions or express privative clauses; therefore, judicial review of administrative acts relating to COAG directions, ministerial directions or payments from the State Pool Account would turn on general administrative law principles and other applicable statutes rather than on remedies specific to this Act.
The Act excludes certain State oversight statutes from applying to the Administrator (s 25) and contemplates the application of Commonwealth oversight and information statutes only by regulation (s 26). Whether and when Commonwealth oversight and FOI regimes apply to the Administrator may be a matter of statutory construction, subordinate instruments and intergovernmental agreement; that could generate dispute if a party seeks access to information and there is uncertainty about which statute governs.

Because the source contains no litigation history, practitioners should consult case law databases and subsequent reported decisions for any judicial treatment of the Act after the dates shown in the compilation table. The Act’s internal architecture , in particular the reporting, tabling and auditing requirements , creates records that would be relevant to any dispute, while the absence of express sanctions and the staged application of information regimes are features likely to drive litigation or administrative complaints if contested.

A number of drafting choices and operational requirements in the Act create practical risks, procedural traps and implementation points that deserve attention when advising clients or designing compliance processes. These “gotchas” are grounded in the statute’s text.

Personal authorisation requirement and single‑point bottleneck (s 14(4))

The Administrator must personally authorise each payment from the State Pool Account. This creates a strict procedural requirement and a potential single‑point operational bottleneck. If the Administrator is unavailable, s 14(8) allows a responsible Minister to direct a State official to make the payment, but that requires the Minister to take an affirmative step and may not be an automatic delegation. The Act also constrains the Administrator from delegating functions to the National Health Funding Body and its staff (s 9(2)), amplifying the operational dependence on the Administrator’s physical availability.

Exclusion from State FOI and oversight laws until Commonwealth regress occurs (ss 25-26)

Section 25 removes the operation of several WA oversight and information statutes in respect of the Administrator, notably the Freedom of Information Act 1992 and the Parliamentary Commissioner Act 1971. Section 26 contemplates that Commonwealth information, privacy and oversight Acts will apply as laws of WA to the Administrator but only when regulations are made to effect necessary modifications; until those regulations are made s 25 continues to apply (s 26(3)). This creates a transitional transparency gap and legal uncertainty about whether access to Pool material is governed by WA or Commonwealth regimes at any given time.

Appointment and suspension thresholds (ss 5-6)

Appointment requires agreement by all members of the Standing Council on Health about the identity of the Administrator, the effective date, period and conditions (s 5(3)). Suspension is triggered by requests from at least three State Ministers or the Commonwealth Minister and suspension lasts 60 days unless varied by a majority (s 6). These thresholds can produce deadlock risks in appointment or prolong suspensions if the required consensus is not achieved.

COAG directions and tabling obligations (s 10(3)-(5))

COAG can direct the Administrator as to the manner of exercising functions, and such directions must be notified and be made public by the Administrator (s 10(4)). The responsible Minister must cause such directions to be tabled in State Parliament (s 10(5)(b)). That creates a tight interface between intergovernmental direction and State parliamentary accountability; however, the Act does not detail processes for resolving conflicts between COAG directions and State ministerial directions, other than requiring tabling.

Interest on the State Pool Account is credited to the Consolidated Account (s 14(2))

Interest earned on money in the State Pool Account is not retained by the Pool or State Managed Funds for health purposes: it is credited to the Consolidated Account. This allocation reduces the effective funds available for health-purposes if significant account balances persist and may produce incentives to minimise idle balances or to shift funds to account structures that generate retained interest.

Information release restrictions for inter‑jurisdictional sharing (s 24(5))

If the Administrator provides information about one jurisdiction to another jurisdiction under s 24, that other jurisdiction may only publicly release the information with the approval of the responsible Minister of the jurisdiction to which the information relates (s 24(5)). That adds a consent gate for public releases which may limit cross‑jurisdictional transparency and complicate FOI responses.

Interaction with existing funds and Lotteries commission transfers (ss 35, 37)

Repeal of the Hospital Fund Act 1930 and transfer of its balances depends on a Treasurer’s determination made before repeal (s 35(2)). Practitioners must ensure that Treasury determinations are made timely and captured in records. Lotteries Commission proceeds previously targeted to the Hospital Fund are redirected into the State Pool Account by amendment of the Lotteries Commission Act (ss 36-37), which changes prior funding allocations and requires administrative reconfigurations.

Administrator cannot delegate to the National Health Funding Body and staff (s 9(2))

Although the National Health Funding Body under the National Health Reform Act 2011 (Commonwealth) must provide staff and facilities to assist the Administrator (s 9(1)), the Administrator may not delegate functions to that body or its staff (s 9(2)). This means the Administrator retains non‑delegable legal responsibility even while practically reliant on staff resources the Commonwealth body supplies, which can create operational tension and legal responsibility for acts performed by staff.

Cross‑jurisdiction reliance and potential non‑alignment (s 31(1)-(2))

The Act presumes corresponding provisions in other jurisdictions, and s 4(2) expresses parliamentary intention that the same individual hold the Administrator office under corresponding Commonwealth and other State laws. If other jurisdictions do not enact corresponding provisions or use different rules, operational alignment problems and legal uncertainties could arise; s 31(1) provides a stopgap by designating the health minister of the other jurisdiction as responsible Minister until corresponding provisions are enacted.

No express statutory sanctions in the Act

The Act relies on audit, reporting, tabling and ministerial processes for enforcement rather than specifying civil or criminal penalties. Where stakeholders expect explicit remedial or punitive measures for non‑compliance, they will need to look to other instruments or general administrative law remedies.

These features should be considered when designing operational policies, drafting ministerial directions, structuring audit programmes and advising agencies on risk management. The personal authorisation rule, delegation restriction, staged information regime, and the role of COAG directions are particularly salient for operational continuity and transparency.

Compliance with the Act requires internal processes, record-keeping, coordination between State officials and the Administrator, and readiness for audit and parliamentary tabling. The following is a concrete, source‑grounded compliance checklist and recommended operating practices mapped to the Act’s provisions.

Formal appointment and governance arrangements (ss 4-8)

Ensure the Standing Council on Health participates in the Administrator appointment process precisely as required: provide opportunity for nominations, secure written agreement of all Standing Council members on the appointee, effective date, term and conditions before an instrument in writing is made (s 5(2)-(4)). Maintain a written record of all Standing Council agreements and the instrument of appointment.
Maintain a panel of persons agreed by the Standing Council for acting appointments, and ensure any acting appointment follows the agreed panel and procedures (s 8(1)-(2)).

Bank account and accounting set up (ss 11-13)

The CEO should open and maintain a separate State bank account for the National Health Reform Agreement purposes with the Reserve Bank of Australia or another bank specified by the National Health Reform Agreement (s 12(1)-(2)). Record whether the account forms part of the Public Bank Account, and document any agreement to the contrary (s 12(3)).
Establish a State Pool Account as an agency special purpose account under the Financial Management Act 2006 s 16, and ensure accounting systems map receipts and disbursements to the State Pool Account in accordance with s 13(2)-(3).

Payment authority and operational controls (s 14)

Establish a payments workflow that ensures the responsible Minister issues directions in writing for payments from the State Pool Account and that each payment is personally authorised by the Administrator before release (s 14(3)-(4)). Maintain an auditable log of ministerial directions and Administrator authorisations for every transaction.
Implement contingency procedures where the Administrator is absent: the responsible Minister must direct an official to make required payments pursuant to s 14(8). Ensure that such delegated officials have appropriate delegated authority recorded under s 29 if the responsible Minister chooses to delegate functions generally.

Financial management policies and record‑keeping (s 17)

The Administrator must develop and apply financial management policies that ensure payments conform to responsible Minister directions. Policies should specify approval thresholds, reconciliation procedures, and segregation of duties consistent with audit standards (s 17(a)-(b)).
Keep comprehensive records of all payments into and out of State Pool Accounts and State Managed Funds, including the legal basis, ministerial directions and supporting documentation to satisfy s 17(b).

Monthly and annual reporting (ss 18-19)

Prepare monthly reports that include the specific items listed in s 18(1)(a)-(f): amounts paid into each State Pool Account and State Managed Fund and their bases; Commonwealth amounts paid into each State Pool Account and their bases; amounts paid from each State Pool Account and State Managed Fund and their bases; numbers of public hospital services funded per local hospital network under activity‑based funding and running year totals; and numbers of other public hospital functions funded.
Provide monthly reports to the responsible Minister or the notified body/officer and make these reports publicly available as required by s 18(2)-(3).
For annual reporting (s 19), compile the same information on a financial year basis, have audited financial statements for each State Pool Account prepared, and provide a combined financial statement. Ensure the annual report is delivered within four months after year end and that the responsible Minister tables the report in each House of Parliament as required (s 19(1), s 19(4)).

Financial statements and audits (ss 20-22)

Prepare financial statements for each State Pool Account detailing annual transactions (s 20). Coordinate with the State Auditor General’s office to arrange audit schedules and provide required documentation (s 21). For performance audits under s 22, anticipate and plan for potential audits by the Auditor General and coordinate record requests and responses with other jurisdictions where audits are simultaneous.

State Managed Funds handling (s 16)

Where block grants are used, ensure State Managed Fund accounts (Health and Mental Health) are established as agency special purpose accounts and that credits and debits comply with s 16(3)-(4). Map accounting codes to reflect the permitted credit and debit categories and implement tracking for services funded via State Managed Funds.

Information provision and confidentiality rules (ss 23-24)

Respond promptly to Administrator information requests concerning State Managed Funds on the matters listed in s 23(1)(a)-(c) and by the times requested (s 23(2)). Maintain organised records to ensure timely compliance.
When receiving jurisdictional information under s 24, observe the constraint that any public release by another jurisdiction requires the approval of the responsible Minister for the originating jurisdiction (s 24(5)). Implement an approvals process for any interjurisdictional information sharing.

Oversight and statutory interface (ss 25-26)

Be aware that, until regulations are made under s 26 to apply Commonwealth oversight laws as laws of WA, the Administrator is excluded from certain WA laws (s 25). Maintain legal advice on the current status of the regulations and the applicable information and privacy regime to avoid inadvertent non‑compliance with either State or Commonwealth disclosure obligations.

Treasurer determinations and historic funds (s 35)

On repeal of the Hospital Fund Act 1930, ensure the Treasurer makes the required determination for transfer of funds before repeal commences (s 35(2)). Keep records of the Treasurer’s determination and ensure transfers comply with the determination and are recorded in the State Pool Account or relevant State Managed Fund (s 35(3)-(4)).

Documentation for COAG and Standing Council processes (ss 3, 5, 10)

Procedural steps for appointment, suspension and COAG direction are specified. Maintain formal written records of Standing Council nominations, agreements, COAG resolutions directing the Administrator, notifications to the Administrator and the publication of such directions by the Administrator as required by s 10(4)-(5).

Compliance training and continuity planning

Given the Administrator’s non‑delegable obligations and personal authorisation requirement, implement continuity plans, cross‑training and documented temporary authority arrangements conforming with s 14(8) and s 29 delegations where appropriate. Maintain a register of authorisations, delegation instruments and acting appointments approved by the Standing Council panel.

Operational reconciliation and minimising idle balances

Because interest on the State Pool Account is credited to the Consolidated Account (s 14(2)), design treasury practices to minimise idle balances in the State Pool Account or to time transfers so that interest income is not materially diverted from health funding purposes.

Records and evidence for audit trails

For every transaction, retain: the responsible Minister’s written direction, Administrator personal authorisation, payment documentation, mapping to National Health Reform Agreement purposes, and cross‑references to monthly and annual reports. Such documentation will be necessary for both the Auditor General’s financial and performance audits.

Following these steps and documenting the institutional controls will position the Administrator, the CEO and the responsible Minister to satisfy the Act’s reporting, audit and payment control obligations and to demonstrate compliance to the Auditor General, COAG and State Parliament.

Deep Dive

What it does

Current sections