House of Representatives

Replacement Explanatory Memorandum

Circulated By the Authority of the Minister for Health and Ageing, the Hon. Nicola Roxon MP

Notes On Clauses - Healthcare Identifiers (Consequential Amendments) Bill 2010

Clause 1 - Short Title

This clause provides that the Bill, once enacted, may be cited as the Healthcare Identifiers (Consequential Amendments) Act 2010.

Clause 2 - Commencement

This part provides for sections 1 to 3 of the Bill to commence upon Royal Assent. Schedules 1 and 2 are to commence at the same time as the Healthcare Identifiers Bill 2010 (once enacted).

Clause 3 - Schedule(s)

This clause seeks to make minor amendments to the Health Insurance Act 1973 and the Privacy Act 1988 as follows:

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Schedule 1-Amendment of the Health Insurance Act 1973

Item 1 of this schedule amends section 131(1) of the Health Insurance Act 1973 to include a reference to the Healthcare Identifiers Bill 2010 (once enacted). This will allow for key functions allocated under the Healthcare Identifiers Bill 2010 (once enacted) to be delegated by the Minister, Secretary or Chief Executive Officer of Medicare Australia.

The inclusion of the reference to the Healthcare Identifiers Bill 2010 (once enacted) will enable the Chief Executive Officer of Medicare Australia to delegate his or her functions to officers within Medicare Australia. This is necessary to support the day-to-day operation of the Healthcare Identifiers Service.

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Schedule 2 - Amendment of the Privacy Act 1988

Part 1 - Main Amendments

Item 1 of this schedule amends the definition of agency in section 6(1) of the Privacy Act to include the service operator of the Healthcare Identifiers Service. This will make clear that the service operator is a Commonwealth agency for the purposes of the Privacy Act and will come under the jurisdiction of the Privacy Commissioner.

In accordance with items 2 and 3 of this schedule, a definition of healthcare identifier and healthcare identifier offence will be added to section 6(1) of the Privacy Act to ensure consistency with the Healthcare Identifiers Bill 2010 (once enacted).

Item 4 of this schedule will add a note to the end of section 13 of the Privacy Act to clarify that an act or practice that contravenes the Healthcare Identifiers Bill 2010 (once enacted) is an interference with an individual's privacy. This aligns with subsection 29(1) of the Healthcare Identifiers Bill 2010 which applies section 13 of the Privacy Act in relation to acts or practices that contravene the Bill.

Item 5 of this schedule will add a new clause after section 27 of the Privacy Act to support the additional functions of the Federal Privacy Commissioner in relation to the Healthcare Identifiers Bill 2010 (once enacted). The new clause 27A will clarify that the Privacy Commissioner has authority to exercise existing functions such as conducting audits of public sector agencies and own motion investigations in relation to regulating the handling of healthcare identifiers.

In addition, the Privacy Commissioner will have the authority to investigate an interference of an individual's privacy under the Healthcare Identifiers Bill 2010 (once enacted) and where appropriate, attempt to settle the matter by way of conciliation. This aligns with the functions for the Privacy Commissioner, as set out in section 29 of the Healthcare Identifiers Bill 2010.

Item 6 of this schedule will make minor technical amendments to section 28(1) and 28A(1) to recognise the insertion of the new clause 27A under item 5 of this schedule.

Item 7 of this schedule will add a reference to healthcare identifier offence in section 49(1)(a) to enable the Privacy Commissioner to refer matters to the Commissioner of Police or the Department of Public Prosecutions where, in the course of an investigation, the Privacy Commissioner thinks an offence has been committed.

Part 2 - Amendments contingent on the Personal Property Securities (Consequential Amendments) Act 2009

Privacy Act 1988

The Personal Property Securities (Consequential Amendments) Act 2009 makes a number of amendments to the current Privacy Act but has not yet commenced operation.

As the Healthcare Identifiers (Consequential Amendments) Bill 2010 proposes amendments to the current Privacy Act, it is necessary to ensure it operates consistently with the proposed amendments under the Personal Property Securities (Consequential Amendments) Act 2009.

Items 9 to 13 of this schedule make minor technical amendments to ensure the proposed amendments by both Bills appropriately align. Amendments proposed in these items will commence operation once both item 26 of Schedule 5 of the Personal Property Securities (Consequential Amendments) Act 2009 and the Healthcare Identifiers Bill 2010 has commenced.