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2008-2009 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2009 No. , 2009 (Treasury) A Bill for an Act to amend the Medicare Levy Act 1986, and for related purposesContents 1 Short title ........................................................................................... 1 2 Commencement ................................................................................. 1 3 Schedule(s) ........................................................................................ 2 Schedule 1--Amendments 3 Medicare Levy Act 1986 3 i Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2009 No. , 2009
1 A Bill for an Act to amend the Medicare Levy Act 2 1986, and for related purposes 3 The Parliament of Australia enacts: 4 1 Short title 5 This Act may be cited as the Fairer Private Health Insurance 6 Incentives (Medicare Levy Surcharge) Act 2009. 7 2 Commencement 8 (1) Each provision of this Act specified in column 1 of the table 9 commences, or is taken to have commenced, in accordance with 10 column 2 of the table. Any other statement in column 2 has effect 11 according to its terms. 12 Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2009 No. , 2009 1
Commencement information Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 The day on which this Act receives the and anything in Royal Assent. this Act not elsewhere covered by this table 2. Schedule 1 Immediately after the commencement of Schedule 1 to the Fairer Private Health Insurance Incentives Act 2009 1 Note: This table relates only to the provisions of this Act as originally 2 passed by both Houses of the Parliament and assented to. It will not be 3 expanded to deal with provisions inserted in this Act after assent. 4 (2) Column 3 of the table contains additional information that is not 5 part of this Act. Information in this column may be added to or 6 edited in any published version of this Act. 7 3 Schedule(s) 8 Each Act that is specified in a Schedule to this Act is amended or 9 repealed as set out in the applicable items in the Schedule 10 concerned, and any other item in a Schedule to this Act has effect 11 according to its terms. 12 2 Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2009 No. , 2009
Amendments Schedule 1 1 Schedule 1--Amendments 2 3 Medicare Levy Act 1986 4 1 Subsection 3(1) 5 Insert: 6 family tier 1 threshold has the same meaning as in the Income Tax 7 Assessment Act 1997. 8 2 Subsection 3(1) (definition of singles surcharge threshold) 9 Repeal the definition. 10 3 Subsection 3(1) 11 Insert: 12 singles tier 1 threshold has the same meaning as in the Income Tax 13 Assessment Act 1997. 14 4 Subsection 3(1) 15 Insert: 16 tier 2 earner has the meaning given by section 3A. 17 5 Subsection 3(1) 18 Insert: 19 tier 3 earner has the meaning given by section 3A. 20 6 Sections 3AA and 3A 21 Repeal the sections, substitute: 22 3A Meaning of tier 2 earner and tier 3 earner 23 (1) Subject to this section, for the purposes of this Act: 24 (a) tier 2 earner has the same meaning as in the Income Tax 25 Assessment Act 1997; and 26 (b) tier 3 earner has the same meaning as in that Act. Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2009 No. , 2009 3
Schedule 1 Amendments 1 (2) In determining whether a person is a tier 2 earner or tier 3 earner 2 for a year of income for the purposes of this Act, section 61-225 of 3 the Income Tax Assessment Act 1997 operates with the 4 modification set out in subsection (3). 5 (3) Replace paragraph 61-225(1)(b) of the Income Tax Assessment Act 6 1997 with the following paragraph: 7 (b) on any day in the year, you have one or more dependants 8 (within the meaning of the A New Tax System (Medicare 9 Levy Surcharge--Fringe Benefits) Act 1999), other than a 10 dependant to whom you are married (within the meaning of 11 that Act): 12 7 Subsection 8B(2) 13 Omit "the singles surcharge threshold", substitute "the person's singles 14 tier 1 threshold". 15 8 At the end of section 8B 16 Add: 17 (3) Increase the amount of each percentage mentioned in 18 subsection (2) by 0.25 of a percentage point if the person is a tier 2 19 earner for the year of income. 20 (4) Increase the amount of each percentage mentioned in 21 subsection (2) by 0.5 of a percentage point if the person is a tier 3 22 earner for the year of income. 23 9 Subsection 8C(3) 24 Omit "family surcharge threshold", substitute "family tier 1 threshold". 25 10 At the end of section 8C 26 Add: 27 (4) Increase the amount of each percentage mentioned in 28 subsection (3) by 0.25 of a percentage point if the person is a tier 2 29 earner for the year of income. 30 (5) Increase the amount of each percentage mentioned in 31 subsection (3) by 0.5 of a percentage point if the person is a tier 3 32 earner for the year of income. 4 Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2009 No. , 2009
Amendments Schedule 1 1 11 Paragraph 8D(3)(b) 2 Omit "family surcharge threshold", substitute "family tier 1 threshold". 3 12 Subparagraph 8D(4)(a)(i) 4 Omit "family surcharge threshold", substitute "family tier 1 threshold". 5 13 Paragraph 8D(4)(b) 6 Omit "family surcharge threshold", substitute "family tier 1 threshold". 7 14 After subsection 8D(4) 8 Insert: 9 (4A) Increase the amount of each percentage mentioned in 10 subsections (3) and (4) by 0.25 of a percentage point if the person 11 is a tier 2 earner for the year of income. 12 (4B) Increase the amount of each percentage mentioned in 13 subsections (3) and (4) by 0.5 of a percentage point if the person is 14 a tier 3 earner for the year of income. 15 15 Subsection 8E(2) 16 Omit "the singles surcharge threshold", substitute "the beneficiary's 17 singles tier 1 threshold". 18 16 At the end of section 8E 19 Add: 20 (3) Increase the amount of each percentage mentioned in 21 subsection (2) by 0.25 of a percentage point if the beneficiary is a 22 tier 2 earner for the year of income. 23 (4) Increase the amount of each percentage mentioned in 24 subsection (2) by 0.5 of a percentage point if the beneficiary is a 25 tier 3 earner for the year of income. 26 17 Subsection 8F(2) 27 Omit "family surcharge threshold", substitute "family tier 1 threshold". 28 18 At the end of section 8F 29 Add: Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2009 No. , 2009 5
Schedule 1 Amendments 1 (3) Increase the amount of each percentage mentioned in 2 subsection (2) by 0.25 of a percentage point if the beneficiary is a 3 tier 2 earner for the year of income. 4 (4) Increase the amount of each percentage mentioned in 5 subsection (2) by 0.5 of a percentage point if the beneficiary is a 6 tier 3 earner for the year of income. 7 19 Paragraph 8G(2)(b) 8 Omit "family surcharge threshold", substitute "family tier 1 threshold". 9 20 Subparagraph 8G(3)(a)(i) 10 Omit "family surcharge threshold", substitute "family tier 1 threshold". 11 21 Paragraph 8G(3)(b) 12 Omit "family surcharge threshold", substitute "family tier 1 threshold". 13 22 After subsection 8G(3) 14 Insert: 15 (3A) Increase the amount of each percentage mentioned in 16 subsections (2) and (3) by 0.25 of a percentage point if the 17 beneficiary is a tier 2 earner for the year of income. 18 (3B) Increase the amount of each percentage mentioned in 19 subsections (2) and (3) by 0.5 of a percentage point if the 20 beneficiary is a tier 3 earner for the year of income. 21 23 Application 22 The amendments made by this Schedule apply to the 2010-11 year of 23 income and later years of income. 6 Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2009 No. , 2009