Benefit Associations Act 1958

This Act may be cited as the Benefit Associations Act 1958.

This Act shall not apply to—

any friendly society;

any organisation registered as a medical benefits organisation or a hospital benefits organisation under the Commonwealth Act entitled the National Health Act 1953, as amended (or any corresponding subsequent enactment) or the regulations thereunder;

any person or body corporate which is registered under the Commonwealth Act entitled the Life Insurance Act 1945, as amended, or any corresponding subsequent enactment;

any association of employees registered as an organisation under the Commonwealth Act entitled the Conciliation and Arbitration Act 1904, as amended, or any corresponding subsequent enactment, or any association of employees that is a registered association within the meaning of the Industrial Conciliation and Arbitration Act 1972, as amended;

any approved insurer under Part 4 of the Motor Vehicles Act 1959, as amended;

any association declared by proclamation to be exempt from this Act.

A person, society, organisation, association or other body such as mentioned in subsection (1) of this section shall not be a benefit association within the meaning of this Act.

In this Act unless the context otherwise requires—

actuary means a Fellow or Accredited Member of the Institute of Actuaries of Australia;

association means person or body of persons (corporate or unincorporate);

benefit association means association carrying on any benefit business in the State, either with or without other business;

benefit business means the business of making and carrying out contracts under which an association, in consideration of the payment of contributions, undertakes to make payments to or on behalf of or for the benefit of contributors or others in respect of all or any of the following, namely,

accommodation, maintenance, and nursing service in hospitals;

medical, surgical, physiotherapeutic, and other therapeutic treatment;

the provision of drugs, medicines, bandages, and other aids to the treatment of disease;

dental treatment and services;

funerals, burials, and cremation;

director includes the chairman and any member of the governing body of an association.

For purposes of this Act an association shall be deemed to carry on benefit business within the State if it provides or undertakes to provide any of the benefits or services mentioned in the definition of benefit business for persons resident in the State, or accepts or collects contributions for any such benefits or services from contributors or members resident in the State.

An association shall not carry on medical benefit business or hospital benefit business unless—

it is carrying on that business at the time of the passing of this Act; or

it is registered as a medical benefits organisation or a hospital benefits organisation under the Commonwealth Act entitled the National Health Act 1953, as amended (or any corresponding subsequent enactment) or the regulations thereunder.

In this section—

hospital benefit business means the business of making and carrying out contracts under which an association in consideration of the payment of contributions undertakes to make payments to contributors or others in respect of any hospital treatment in relation to which benefit is payable under the laws of the Commonwealth;

medical benefit business means the business of making and carrying out contracts under which an association in consideration of the payment of contributions undertakes to make payments to contributors or others in respect of any medical services in relation to which benefit is payable under the laws of the Commonwealth.

The Minister may at his discretion grant an exemption from this section to any association which has made a deposit with the Treasurer of the Commonwealth under the Insurance Act 1932, as amended (or any corresponding subsequent enactment) of the Commonwealth.

Contributions accepted or collected by a benefit association must—

be held in a fund under the control of a trustee approved by the Minister; or

be invested otherwise as approved by the Minister.

A fund established under subsection (1)(a) must be invested in accordance with the Trustee Act 1936 and the value of the fund must be maintained at a level at least equal to the liabilities of the fund certified annually by an actuary.

Every benefit association shall within three months after the end of each financial year deliver to the Minister a return setting out its income, expenditure, assets and liabilities.

Every benefit association shall when so requested by the Minister by a written notice give the Minister within the time specified in the notice any information specified in the notice as to its income, expenditure, assets, liabilities or financial position generally.

The Minister may investigate or cause to be investigated the income, expenditure, assets, liabilities, transactions and management of a benefit association, or any other matter arising in the course of the business of any such association.

For the purpose of any such investigation the Minister may appoint persons to assist him or act on his behalf. Any person so appointed is in this section called an authorised person.

For the purpose of any investigation being made or about to be made under this Act, the Minister or an authorised person may request a benefit association or a director or officer of a benefit association to supply him, within a time specified by him, with any information relating to the business or transactions of the association. An association or person shall comply with any such request.

An authorised person may—

enter any building or place where the books of account or other records of a benefit association are or are suspected to be; and

examine any such books or records; and

make copies of any matters recorded in any such books or records.

A benefit association shall when requested by the Minister or an authorised person to do so forthwith produce its books of account and records or any of them for examination by the Minister or authorised person.

Any person having the possession or control of any books of account or records of a benefit association shall when requested by the Minister or an authorised person forthwith produce those books of account or records for examination by the Minister or authorised person.

A person shall not hinder the Minister or an authorised person in doing any act which he is authorised by this section to do.

If the Minister after considering a report of an investigation carried out by an actuary appointed by the Minister for the purpose is satisfied that the assets of a benefit association are insufficient to meet its liabilities he may make a provisional recommendation relating to all or any of the following matters:

the increase, variation or adjustment of contributions payable to the association by existing or future members or any of them;

the reduction, variation or adjustment of benefits payable by the association to existing or future members or any of them;

the limitation or reduction of management expenses including commissions and allowances payable by the association;

any matters incidental to any of those mentioned in the preceding paragraphs of this section.

If the Minister after considering a report of an investigation carried out by an actuary appointed by the Minister for the purpose is satisfied that the assets of a benefit association are in excess of those required to meet the liabilities of the association he may make a provisional recommendation relating to all or any of the following matters:

the reduction, variation or adjustment of contributions payable by existing or future members or any of them;

the use, disposal or distribution of any surplus or profits;

the increase, variation, or adjustment of benefits provided for existing or future members or any of them;

the limitation or reduction of management expenses including commissions and allowances payable by the association;

any matters incidental to any of those mentioned in the preceding paragraphs of this section.

The Minister shall deliver a copy of each provisional recommendation to the benefit association to which it applies.

At any time within eight weeks after the delivery of a provisional recommendation or within an extended period allowed by the Minister the association may make representations to the Minister for the purpose of showing cause why the provisional recommendation should not be confirmed or should be varied or added to.

If any such representations are made the Minister after considering and inquiring into them may confirm the provisional recommendation either with or without variations or additions, or may cancel it.

If no such representations are made within eight weeks after the delivery of a provisional recommendation the Minister may forthwith upon the expiry of that period confirm the provisional recommendation.

Notwithstanding any Act, law or contract, a benefit association shall have power to make any rules or alterations of rules necessary to carry out any recommendation made by the Minister under this Act.

In this section—

rules includes rules, regulations, by-laws, and other like provisions regulating contributions, benefits, management and other matters relating to a benefit association.

Every recommendation shall state the time within which anything thereby recommended to be done shall be completed.

If a benefit association to which a recommendation applies does not comply with such recommendation within the time stated therein the Minister may prepare a report on the financial position of the association and direct the association to send a copy of it to each member and contributor within a time specified by the Minister.

An association which receives such a direction shall comply with it.

If a benefit association to which a recommendation applies does not comply with such recommendation within the time stated therein, the association shall not after the time so stated—

invite any person to become a member of the association; or

admit any person to membership of the association; or

solicit or accept contributions from any person purporting to have become a member after the time so stated.