Health (Commonwealth State Funding Arrangements) Act 2012
Authorised by the Chief Parliamentary Counsel
Authorised Version
i
Health (Commonwealth State Funding
Arrangements) Act 2012
No. 40 of 2012
TABLE OF PROVISIONS
Section Page
PART 1—PRELIMINARY 1
1 Purpose 1
2 Commencement 2
3 Interpretation 2
PART 2—ADMINISTRATOR OF THE NATIONAL HEALTH
FUNDING POOL 5
4 The office of Administrator 5
5 Appointment of Administrator 5
6 Suspension of Administrator 6
7 Removal and resignation of Administrator 7
8 Acting Administrator 8
9 Provision of staff and facilities for Administrator 8
10 Functions of Administrator 8
PART 3—STATE POOL ACCOUNTS—THE NATIONAL
HEALTH FUNDING POOL 11
11 Establishment of State Pool Account with Reserve Bank 11
12 Payments into State Pool Account 11
13 Payment from State Pool Account 12
14 Distribution of Commonwealth funding 13
PART 4—FINANCIAL MANAGEMENT AND REPORTING 14
15 Financial management obligations of Administrator 14
16 Monthly reports by Administrator 14
17 Annual report by Administrator 15
18 Administrator to prepare financial statements for State Pool
Accounts 17
19 Audit of financial statements 17
20 Performance audits 17
21 States to provide Administrator with information about State
Managed Funds 18
22 Provision of information generally 19
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Section Page
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PART 5—STATE FINANCIAL MANAGEMENT OBLIGATIONS 20
Division 1—Interpretation 20
23 Interpretation 20
Division 2—The Health State Pool Fund 20
24 Health State Pool Fund 20
25 Audit Act 1994 20
26 Financial Management Act 1994 20
Division 3—The State Managed Fund 20
27 Establishment of the Health State Managed Fund 20
28 Audit Act 1994 21
29 Financial Management Act 1994 21
PART 6—MISCELLANEOUS 22
30 Office of Administrator 22
31 Exclusion of legislation of this jurisdiction 22
32 Application of Commonwealth Acts 22
33 Extraterritorial operation of Act 23
34 Act binds the Crown 23
35 Delegation of functions of responsible Minister 23
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ENDNOTES 25
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Authorised by the Chief Parliamentary Counsel
Authorised Version
1
Health (Commonwealth State Funding
Arrangements) Act 2012 †
No. 40 of 2012
[Assented to 27 June 2012]
The Parliament of Victoria enacts:
PART 1—PRELIMINARY
1 Purpose
The main purpose of this Act is to provide for the
implementation of the National Health Reform
Agreement between the Commonwealth and the
States and Territories that was agreed to by
COAG on 2 August 2011.
Victoria
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2 Commencement
(1) Subject to subsection (2), this Act comes into
operation on a day or days to be proclaimed.
(2) If a provision of this Act does not come into
operation before 22 May 2013, it comes into
operation on that day.
3 Interpretation
(1) In this Act—
Administrator means the Administrator of the
National Health Funding Pool appointed
under section 5 and under the corresponding
provisions of the laws of the Commonwealth
and the other States;
COAG means the Council of Australian
Governments;
function includes a power, authority or duty;
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 the administration of the
provision of this Act in which the expression
occurs (or of the corresponding provision of
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the laws of the Commonwealth and the other
States);
Standing Council on Health means (subject to
subsection (2)) the Ministerial Council by
that name or, if there is no such Ministerial
Council, the standing Ministerial Council
established or recognised by COAG whose
members include all Ministers in Australia
having portfolio responsibility for health;
State includes the Australian Capital Territory and
the Northern Territory;
State Managed Fund of a State means a bank
account or fund established or designated by
the State for the purposes of health funding
under the National Health Reform
Agreement that is required to be undertaken
in the State through a State Managed Fund;
State Pool Account of a State means the bank
account established by the State under Part 3
or under the corresponding provisions of the
law of another State.
(2) The Standing Council on Health, when acting
under this Act, is to be constituted only by a single
Minister for the Commonwealth and a single
Minister for each of the States, and any reference
in this Act to a member of that Council is to be
construed as a reference to those Ministerial
members only.
(3) If there are 2 or more Ministers for the
Commonwealth or for a State who are members of
the Standing Council on Health, the relevant
Minister for the purposes of this Act is the
Minister having primary portfolio responsibility
for health in his or her jurisdiction.
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(4) A reference in this Act to the agreement of, or a
request by, a member of the Standing Council on
Health is a reference to an agreement or request in
writing.
(5) This Act is to be interpreted in accordance with
Schedule 7 to the Health Practitioner Regulation
National Law set out in the Schedule to the Health
Practitioner Regulation National Law Act 2009 of
Queensland and, for that purpose, Schedule 7
applies as if references to this Law or a
Queensland Act were references to this Act or an
Act of this jurisdiction, and with all other
necessary modifications.
(6) The Interpretation of Legislation Act 1984 does
not apply to or in respect of this Act.
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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
provisions 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 provisions 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 to the office of the Administrator of the
National Health Funding Pool under this Act.
(2) Before the appointment is made, the Chair of the
Standing Council on Health is to give each
member of the 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
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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
re-appointment.
(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
(c) has been accused or convicted of an offence
that carries a penalty of imprisonment; or
(d) has or may become bankrupt.
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(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 and 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 the 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.
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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 all the members of the
Standing Council on Health.
Note
The applied provisions of Schedule 7 to the Health
Practitioner Regulation National Law (clause 27) contain
additional provisions relating to acting appointments that
have effect subject to this section.
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 of the
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
s. 8
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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 4; and
(c) to make payments from each State Pool
Account in accordance with the directions of
the State concerned; 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
The National Health Reform Act 2011 of the
Commonwealth provides that the functions of the
Administrator include monitoring Commonwealth payments
into each State Pool Account for the purposes of Part 4.
(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 4).
s. 10
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(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
(c) are to be made publicly available by the
Administrator.
(5) 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 law of a State to make payments
from the State Pool Account of the State in
accordance with the directions of the State.
(6) To avoid doubt, the Administrator may have
regard to information obtained in the exercise or
performance of functions under the law of another
jurisdiction in the exercise or performance of the
Administrator's functions under Part 4.
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PART 3—STATE POOL ACCOUNTS—THE NATIONAL
HEALTH FUNDING POOL
11 Establishment of State Pool Account with Reserve
Bank
(1) The responsible Minister for the State is to open
and maintain with the Reserve Bank of Australia
a separate State bank account for the purpose of
the National Health Reform Agreement.
(2) The bank account is the State Pool Account
established for the State for the purposes of this
Act.
12 Payments into State Pool Account
There is payable into the State Pool Account
established for the State—
(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 in the State through the
State Pool Account 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) interest paid on money deposited in the State
Pool Account, unless directed to be paid into
another bank account by the responsible
Minister for the State; and
(e) money repaid to the State by a local hospital
network, being money previously paid to the
local hospital network from the State Pool
Account.
s. 11
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13 Payment from State Pool Account
(1) There are payable from the State Pool Account
established for the State amounts to fund the
following in the State under the National Health
Reform Agreement (including through a State
Managed Fund)—
(a) the services provided by local hospital
networks;
(b) health teaching, training and research
provided by local hospital networks or other
organisations;
(c) any other matter that under that Agreement is
to be funded through the National Health
Funding Pool.
(2) Payments of amounts from the State Pool Account
established for the State are to be made by the
Administrator strictly in accordance with the
directions of the responsible Minister for the
State, including on the amount of each payment,
the party or account to which it is to be paid and
the timing of the payment.
(3) The Administrator is required to authorise
personally each payment made from the State
Pool Account.
(4) The Administrator is, at the direction of the
responsible Minister for the State, to repay any
money paid by the State into the State Pool
Account for the State that the responsible Minister
is satisfied constitutes an overpayment into that
Account.
(5) This section does not affect the payment from the
State Pool Account of charges imposed by the
Reserve Bank of Australia for the operation of
that Account.
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(6) This section does not require the payment for
services and matters referred to in subsection (1)
to be made only from the State Pool Account.
(7) For the purposes of this section, the funding of a
local hospital network includes the funding of
another party on behalf of the network for
corporate or other services provided to the
network by that other party.
(8) If at any time when a payment from the State Pool
Account is required to be made there is no
Administrator or the Administrator is not
available to make the payment at that time, the
payment from that Account may be made by an
official of this State who is directed by the
responsible Minister for the State to make the
payment.
14 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.
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PART 4—FINANCIAL MANAGEMENT AND REPORTING
15 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.
16 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
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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 services
and 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.
17 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;
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(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 the Parliament of the responsible Minister’s
jurisdiction.
s. 17
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18 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.
19 Audit of financial statements
(1) A financial statement under this Part for the State
Pool Account of a State is to be audited by the
Auditor-General of that State.
(2) For the purposes of subsection (1), the Audit Act
1994 applies to a financial statement prepared
under this Part in relation to the State Pool
Account established for this State as if a reference
in that Act to "authority", in relation to financial
statements, were a reference to the Administrator.
20 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 jurisdiction
conducts a performance audit, the Auditor-
General must notify the Auditors-General of all
other jurisdictions of his or her intention to
conduct the proposed audit.
s. 18
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(3) Auditors-General who are conducting
performance audits at the same time are to make
arrangements to co-ordinate the conduct of those
audits in relation to any requirements imposed on
the Administrator.
(4) A performance audit is to be conducted by the
Auditor-General of this jurisdiction.
(5) For the purposes of this section, the Audit Act
1994 applies to the conduct of a performance
audit under this section as if a reference in that
Act to "authority", in relation to performance
audits under this section, were a reference to the
Administrator when acting in relation to the State
Pool Account established for this State.
21 States to provide Administrator with information
about State Managed Funds
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 the 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;
(c) the public hospital services and functions
that are funded from the State Managed
Fund.
s. 21
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22 Provision of information generally
(1) The Administrator is required to provide to the
responsible Minister for a jurisdiction any
information requested by that responsible Minister
that relates to that jurisdiction.
(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
the advice provided by the Administrator to the
Treasurer of the Commonwealth about the basis
on which the Administrator has calculated the
payments to be made into State Pool Accounts by
the Commonwealth.
(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 by the Administrator to another
jurisdiction may only be publicly released by that
other jurisdiction in accordance with arrangements
approved by the responsible Minister for the
jurisdiction to which the information relates.
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PART 5—STATE FINANCIAL MANAGEMENT
OBLIGATIONS
Division 1—Interpretation
23 Interpretation
In this Part, Health State Pool Fund means the
State Pool Account established for this State under
Part 3.
Division 2—The Health State Pool Fund
24 Health State Pool Fund
The account opened and maintained by the
Minister under section 11(1) forms part of the
Public Account and is part of the Trust Fund and
is to be known as the Health State Pool Fund.
25 Audit Act 1994
The Audit Act 1994 applies to the Health State
Pool Fund to the extent that it is consistent with
this Act.
26 Financial Management Act 1994
The Financial Management Act 1994 applies to
the Health State Pool Fund to the extent that it is
consistent with this Act.
Division 3—The State Managed Fund
27 Establishment of the Health State Managed Fund
(1) There is established as part of the Public Account
and as part of the Trust Fund and as the State
Managed Fund for this State an account to be
known as the Health State Managed Fund.
(2) There must be paid into the Health State Managed
Fund any money required to be paid into the Fund
under the National Health Reform Agreement.
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(3) Payments out of the Fund must be made in
accordance with the National Health Reform
Agreement by the Minister.
28 Audit Act 1994
The Audit Act 1994 applies to the Health State
Managed Fund to the extent that it is consistent
with this Act.
29 Financial Management Act 1994
The Financial Management Act 1994 applies to
the Health State Managed Fund to the extent that
it is consistent with this Act.
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PART 6—MISCELLANEOUS
30 Office of Administrator
(1) The Administrator is not a public body for the
purposes of the Financial Management Act
1994.
(2) The Public Administration Act 2004 does not
apply to the office of Administrator.
31 Exclusion of legislation of this jurisdiction
The following Acts do not apply to the
Administrator or to any power exercised, or
function performed, by the Administrator—
(a) the Freedom of Information Act 1982;
(b) the Health Records Act 2001;
(c) the Information Privacy Act 2000;
(d) the Interpretation of Legislation Act 1984;
(e) the Ombudsman Act 1973;
(f) the Public Records Act 1973;
(g) the Subordinate Legislation Act 1994.
32 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 of the
Commonwealth;
(b) the Australian Information Commissioner
Act 2010 of the Commonwealth;
(c) the Freedom of Information Act 1982 of the
Commonwealth;
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(d) the Ombudsman Act 1976 of the
Commonwealth;
(e) the Privacy Act 1988 of the Commonwealth.
(2) Each of those Acts so applies subject to the
modifications made by regulations made under the
National Health Reform Act 2011 of the
Commonwealth with the agreement of all the
members of the Standing Council on Health.
33 Extraterritorial operation of Act
It is the intention of the Parliament of this
jurisdiction that the operation of this Act is, as far
as possible, to include operation in relation to the
following—
(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.
34 Act binds the Crown
This Act binds the Crown in right of Victoria and
in so far as the legislative power of the Parliament
permits, the Crown in all its other capacities.
35 Delegation of functions of responsible Minister
The Minister, by instrument, may delegate to—
(a) the Secretary to the Department administered
by the Minister administering this Act; or
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(b) any person or class of person employed in
the Department administered by the Minister
administering this Act—
any of the Minister's powers under Parts 3, 4
and 5.
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ENDNOTES
† Minister's second reading speech—
Legislative Assembly: 23 May 2012
Legislative Council: 19 June 2012
The long title for the Bill for this Act was "A Bill for an Act to provide
for the implementation of the National Health Reform Agreement and for
other purposes."
Endnotes
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