Commonwealth of Australia Bills Commonwealth of Australia Bills[Index] [Search] [Download] [Related Items] [Help]
This is a Bill, not an Act. For current law, see the Acts databases.
2004
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Private
Health Insurance Incentives Amendment Bill
2004
No. ,
2004
(Health and
Ageing)
A Bill for an Act to amend the law
relating to private health insurance incentives, and for other
purposes
Contents
Part 1—Amendment of the Private Health Insurance Incentives Act
1998 3
Part 2—Amendment of the Income Tax Assessment Act
1997 7
Part 3—Application 9
National Health Act
1953 10
A Bill for an Act to amend the law relating to private
health insurance incentives, and for other purposes
The Parliament of Australia enacts:
This Act may be cited as the Private Health Insurance Incentives
Amendment Act 2004.
This Act commences on the day on which it receives the Royal
Assent.
Each Act that is specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule concerned, and any
other item in a Schedule to this Act has effect according to its
terms.
Part 1—Amendment
of the Private Health Insurance Incentives Act 1998
1 Subsections 4-10(5) and (6)
Repeal the subsections, substitute:
If no-one registered or eligible to apply for registration
(5) If no person was so registered or eligible to apply for registration,
the amount payable is the sum of the following amounts:
(a) 30% of the amount of the premium paid by you, or by your employer as a
*fringe benefit for you, under the policy in
respect of days in the later financial year on which no person covered by the
policy was aged 65 years or over;
(b) 35% of the amount of the premium paid by you, or by your employer as a
*fringe benefit for you, under the policy in
respect of days in the later financial year on which:
(i) at least one person covered by the policy was aged 65 years or over;
and
(ii) no person covered by the policy was aged 70 years or over;
(c) 40% of the amount of the premium paid by you, or by your employer as a
*fringe benefit for you, under the policy in
respect of days in the later financial year on which at least one person covered
by the policy was aged 70 years or over.
If someone registered or eligible to apply for
registration
(6) If a person was so registered or eligible to apply for registration,
the amount payable is the greater of:
(a) the sum of the amounts referred to in paragraphs (5)(a), (b) and
(c); and
(b) the *incentive amount for the policy
for the later financial year.
2 After section 4-10
Insert:
(1) This section applies to a person (the first person) at a
particular time (the relevant time) if:
(a) at any time before the relevant time, the first person was covered by
an *appropriate private health insurance policy
(the original policy), other than as a
*dependent child; and
(b) at any time when the person was so covered, the amount payable under
this Chapter was 35% or 40% of the amount of premium payable under the original
policy because of the age of another person (the entitling person)
covered by the policy; and
(c) before the relevant time, the entitling person ceased to be covered by
the original policy.
(2) If, at the relevant time:
(a) the first person is covered by an
*appropriate private health insurance policy
(which may be either the original policy or another policy); and
(b) each other person (if any) covered, since the entitling person ceased
to be covered by the original policy, by an
*appropriate private health insurance policy
that also covered the first person:
(i) is or was covered as a *dependent
child; or
(ii) is a person who was covered by the original policy immediately before
that cessation;
subsections 4-10(5) and (6) are taken to apply (other than for the purposes
of working out the *incentive amount) as if the
entitling person:
(c) were covered by the policy mentioned in paragraph (a);
and
(d) were the same age as at that cessation.
(3) Subsection (2) does not apply if its application would result in
the amount payable under subsection 4-10(5) or (6) being less than it would
otherwise have been.
3 Subsections 12-5(2A) and (3)
Repeal the subsections, substitute:
(2A) If the financial year is a later financial year, and no person was so
registered or eligible to apply for registration, the amount of the reduction is
the sum of the following amounts:
(a) 30% of the amount of the premium payable under the policy in respect
of days in the later financial year on which no person covered by the policy was
aged 65 years or over;
(b) 35% of the amount of the premium payable under the policy in respect
of days in the later financial year on which:
(i) at least one person covered by the policy was aged 65 years or over;
and
(ii) no person covered by the policy was aged 70 years or over;
(c) 40% of the amount of the premium payable under the policy in respect
of days in the later financial year on which at least one person covered by the
policy was aged 70 years or over.
(3) If the financial year is a later financial year and a person was so
registered or eligible to apply for registration, the amount of the reduction is
the greater of:
(a) the sum of the amounts referred to in paragraphs (2A)(a), (b) and
(c); and
(b) the *incentive amount for the policy
for the later financial year.
4 After section 12-5
Insert:
(1) This section applies to a person (the first person) at a
particular time (the relevant time) if:
(a) at any time before the relevant time, the first person was covered by
an *appropriate private health insurance policy
(the original policy), other than as a
*dependent child; and
(b) at any time when the person was so covered, the amount of the premium
reduction under this Chapter was 35% or 40% of the amount of premium payable
under the original policy because of the age of another person (the
entitling person) covered by the policy; and
(c) before the relevant time, the entitling person ceased to be covered by
the original policy.
(2) If, at the relevant time:
(a) the first person is covered by an
*appropriate private health insurance policy
(which may be either the original policy or another policy); and
(b) each other person (if any) covered, since the entitling person ceased
to be covered by the original policy, by an
*appropriate private health insurance policy
that also covered the first person:
(i) is or was covered as a *dependent
child; or
(ii) is a person who was covered by the original policy immediately before
that cessation;
subsections 12-5(2A) and (3) are taken to apply (other than for the
purposes of working out the *incentive amount)
as if the entitling person:
(c) were covered by the policy mentioned in paragraph (a);
and
(d) were the same age as at that cessation.
(3) Subsection (2) does not apply if its application would result in
the amount of the premium reduction under subsection 12-5(2A) or (3) being less
than it would otherwise have been.
Part 2—Amendment
of the Income Tax Assessment Act 1997
5 Subsections 61-340(5) and (6)
Repeal the subsections, substitute:
(5) If no person was so registered or eligible to apply for registration,
the amount of the *tax offset is the sum of the
following amounts:
(a) 30% of the amount of the premium, or of the amount in respect of a
premium, paid by you, or by your employer as a
*fringe benefit for you, under the policy in
respect of days in the later income year on which no person covered by the
policy was aged 65 years or over;
(b) 35% of the amount of the premium, or of the amount in respect of a
premium, paid by you, or by your employer as a
*fringe benefit for you, under the policy in
respect of days in the later income year on which:
(i) at least one person covered by the policy was aged 65 years or over;
and
(ii) no person covered by the policy was aged 70 years or over;
(c) 40% of the amount of the premium, or of the amount in respect of a
premium, paid by you, or by your employer as a
*fringe benefit for you, under the policy in
respect of days in the later income year on which at least one person covered by
the policy was aged 70 years or over.
(6) If a person was so registered or eligible to apply for registration,
the amount of the *tax offset is the greater
of:
(a) the sum of the amounts referred to in paragraphs (5)(a), (b) and
(c); and
(b) the incentive amount for the policy for the later income
year.
6 After section 61-340
Insert:
(1) This section applies to a person (the first person) at a
particular time (the relevant time) if:
(a) at any time before the relevant time, the first person was covered by
an appropriate private health insurance policy (the original
policy), other than as a dependent child; and
(b) at any time when the person was so covered, the amount of the
*tax offset under section 61-340 was 35%
or 40% of the amount of premium payable under the original policy because of the
age of another person (the entitling person) covered by the
policy; and
(c) before the relevant time, the entitling person ceased to be covered by
the original policy.
(2) If, at the relevant time:
(a) the first person is covered by an appropriate private health insurance
policy (which may be either the original policy or another policy);
and
(b) each other person (if any) covered, since the entitling person ceased
to be covered by the original policy, by an appropriate private health insurance
policy that also covered the first person:
(i) is or was covered as a dependent child; or
(ii) is a person who was covered by the original policy immediately before
that cessation;
subsections 61-340(5) and (6) are taken to apply (other than for the
purposes of working out the incentive amount) as if the entitling
person:
(c) were covered by the policy mentioned in paragraph (a);
and
(d) were the same age as at that cessation.
(3) Subsection (2) does not apply if its application would result in
the amount of the *tax offset under subsection
61-340(5) or (6) being less than it would otherwise have been.
(4) In this section:
dependent child has the same meaning as in the Private
Health Insurance Incentives Act 1998.
7 Application of amendments
The amendments made by this Schedule apply to amounts of premium, and
amounts in respect of premium, paid or payable in respect of a period beginning
on or after 1 April 2005.
1 Paragraph 4(2)(a) of
Schedule 2
Omit “under the Veterans’ Entitlements Act
1986”.
2 Subclause 4(3) of Schedule 2 (definition of
gold card)
Repeal the definition, substitute:
gold card means a card that evidences a person’s
entitlement to be provided with treatment:
(a) in accordance with the Treatment Principles prepared under
section 90 of the Veterans’ Entitlements Act 1986;
or
(b) in accordance with a determination made under section 286 of the
Military Rehabilitation and Compensation Act 2004 in respect of the
provision of treatment.
3 Application of amendment
The amendment made by item 2 of this Schedule applies to a card held
in respect of a period beginning on or after 1 July 2004.