Commonwealth Numbered Acts

COMMUNITY SERVICES AND HEALTH LEGISLATION AMENDMENT ACT 1989 No. 95 of 1989 - SECT 35

35. Section 73BAB of the Principal Act is amended:

   (a)  by omitting subsection (1) and substituting the following subsections:

"(1) It is a condition of registration of a registered organisation that,
where it conducts only one health benefits fund, the value of the assets of
that fund shall at all times exceed the sum of:

   (a)  whichever is the higher of:

        (i)    the prescribed minimum amount; or

        (ii)   the amount (if any) by which the sum of the amounts debited to
               that fund during the last preceding prescribed period of the
               organisation exceeds the amount of income received during that
               period from assets of that fund consisting of investments;

   (b)  the liabilities that are required to be met out of that fund;

   (c)  the amount of any subsisting guarantee, not falling within paragraph
        (b), given by the organisation in relation to a prescribed company;

   (d)  the sum of the amounts of payments by way of calls in respect of
        shares in a prescribed company, not falling within paragraph (b), that
        the organisation is, or could become, liable to pay; and

   (e)  any other amount that the Minister, after taking into account the
        advice of the Council, considers should be a liability for the
        purposes of this subsection.

"(1A) It is a condition of registration of a registered health benefits
organisation that, where it conducts 2 or more health benefits funds, the
value of the assets of each of those funds shall at all times exceed the sum
of:

   (a)  the amount (if any) by which the sum of the amounts debited to that
        fund during the last preceding prescribed period of the organisation
        exceeds the amount of income received during that period from assets
        of that fund consisting of investments;

   (b)  the liabilities that are required to be met out of that fund;

   (c)  so much as the Minister, by instrument in writing, determines of the
        amount of any subsisting guarantee, not falling within paragraph (b),
        given by the organisation in relation to a prescribed company;

   (d)  the amount equal to so much as the Minister, by instrument in writing,
        determines of the sum of the amounts of payments by way of calls in
        respect of shares in a prescribed company, not falling within
        paragraph (b), that the organisation is, or could become, liable to
        pay; and

   (e)  any other amount that the Minister, after taking into account the
        advice of the Council, considers should be a liability for the
        purposes of this subsection.

"(1B) It is a condition of registration of a registered health benefits
organisation that, where it conducts 2 or more health benefits funds, the
value of the sum of the assets of all those funds shall at all times exceed
the sum of:

   (a)  whichever is the higher of:

        (i)    the prescribed minimum amount; or

        (ii)   the amount (if any) by which the sum of the amounts debited to
               those funds during the last preceding prescribed period of the
               organisation exceeds the amount of income received during that
               period from assets of those funds consisting of investments;

   (b)  the liabilities that are required to be met out of those funds;

   (c)  the amount of any subsisting guarantee, not falling within paragraph
        (b), given by the organisation in relation to a prescribed company;

   (d)  the sum of the amounts of payments by way of calls in respect of
        shares in a prescribed company, not falling within paragraph (6), that
        the organisation is, or could become, liable to pay; and

   (e)  any other amount that the Minister, after taking into account the
        advice of the Council, considers should be a liability for the
        purposes of this subsection.";

   (b)  by omitting from paragraph (2) (b) "or" (last occurring);

   (c)  by adding at the end of subsection (2) the following word and
        paragraph:

"; or (d) any property that the Minister, after taking into account the advice
of the Council, considers should not be an asset for the purposes of this
section.";

   (d)  by inserting in subsection (3) the following definitions:

" 'prescribed minimum amount' means $1,000,000 or, if a higher amount is
prescribed, that higher amount;
'property' includes an interest, power, right or privilege;".