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This is a Bill, not an Act. For current law, see the Acts databases.

FAIRER PRIVATE HEALTH INSURANCE INCENTIVES BILL 2009 [NO. 2]

2008-2009
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Fairer Private Health Insurance
Incentives Bill 2009
No. , 2009
(Treasury)
A Bill for an Act to provide for fairer private health
insurance incentives, and for related purposes
i Fairer Private Health Insurance Incentives Bill 2009 No. , 2009
Contents
1 Short
title
...........................................................................................
1
2 Commencement
.................................................................................
1
3 Schedule(s)
........................................................................................
2
Schedule 1--Amendments
3
Income Tax Assessment Act 1936
3
Income Tax Assessment Act 1997
3
Private Health Insurance Act 2007
10
Taxation Administration Act 1953
15
Taxation (Interest on Overpayments and Early Payments) Act 1983
16
Fairer Private Health Insurance Incentives Bill 2009 No. , 2009 1
A Bill for an Act to provide for fairer private health
1
insurance incentives, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Fairer Private Health Insurance
5
Incentives Act 2009.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2 Fairer Private Health Insurance Incentives Bill 2009 No. , 2009
Commencement information
Column 1
Column 2
Column 3
Provision(s)
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day on which this Act receives the
Royal Assent.
2. Schedule 1
The latest of:
(a) the day on which the Fairer Private
Health Insurance Incentives (Medicare
Levy Surcharge) Act 2009 receives the
Royal Assent; and
(b) the day on which the Fairer Private
Health Insurance Incentives (Medicare
Levy Surcharge--Fringe Benefits) Act
2009 receives the Royal Assent; and
(c) 1 July 2010.
However, the provision(s) do not commence
at all unless both of the events mentioned in
paragraphs (a) and (b) occur.
Note:
This table relates only to the provisions of this Act as originally
1
passed by both Houses of the Parliament and assented to. It will not be
2
expanded to deal with provisions inserted in this Act after assent.
3
(2) Column 3 of the table contains additional information that is not
4
part of this Act. Information in this column may be added to or
5
edited in any published version of this Act.
6
3 Schedule(s)
7
Each Act that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
12
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2009 No. , 2009 3
Schedule 1--Amendments
1
2
Income Tax Assessment Act 1936
3
1 After paragraph 264BB(2)(g)
4
Insert:
5
(ga) whether the premium has been reduced under section 23-1 of
6
the Private Health Insurance Act 2007, and if so, the amount
7
of the reduction;
8
(gb) the name, address and date of birth of a participant (within
9
the meaning of the Private Health Insurance Act 2007) in the
10
premiums reduction scheme (within the meaning of that Act)
11
in respect of the policy;
12
Income Tax Assessment Act 1997
13
2 Subsection 61-205(3)
14
Omit "if", substitute "to the extent that".
15
3 Paragraph 61-205(3)(b)
16
Omit "was less than it would otherwise have been", substitute "was
17
reduced".
18
4 After subsection 61-210(1)
19
Insert:
20
(1A) Reduce the amount of each percentage mentioned in subsection (1)
21
by 10 percentage points if you are a
*
tier 1 earner for the income
22
year.
23
(1B) Reduce the amount of each percentage mentioned in subsection (1)
24
by 20 percentage points if you are a
*
tier 2 earner for the income
25
year.
26
(1C) If you are a
*
tier 3 earner for the income year:
27
(a) reduce the amount of each percentage mentioned in
28
subsection (1) to nil; and
29
(b) do not apply subsection (2).
30
Schedule 1 Amendments
4 Fairer Private Health Insurance Incentives Bill 2009 No. , 2009
5 Subsection 61-210(2)
1
Omit "However,", substitute "Despite subsections (1), (1A) and (1B),".
2
6 Paragraph 61-210(2)(a)
3
Omit "under subsection (1)", substitute "under subsection (1) (taking
4
into account any reduction under subsection (1A) or (1B))".
5
7 Subsection 61-210(3)
6
Omit "the difference", substitute "the difference (but not below nil)".
7
8 Paragraph 61-215(1)(a)
8
After "35% or 40%", insert "(or either of those percentages as altered
9
under subsection 61-210(1A) or (1B))".
10
9 Subsection 61-215(4)
11
After "35% or 40%", insert "(or either of those percentages as altered
12
under subsection 61-210(1A) or (1B))".
13
10 At the end of Subdivision 61-G
14
Add:
15
61-225 Private health insurance tiers
16
Families
17
(1) The following table applies to you for an income year if:
18
(a) on the last day of the year, you are married (within the
19
meaning of the A New Tax System (Medicare Levy
20
Surcharge--Fringe Benefits) Act 1999); or
21
(b) on any day in the year, you contribute in a substantial way to
22
the maintenance of a dependent child (within the meaning of
23
the Private Health Insurance Act 2007) who is:
24
(i)
your
*
child; or
25
(ii) your sibling (including your half-brother, half-sister,
26
adoptive brother, adoptive sister, step-brother,
27
step-sister, foster-brother or foster-sister) who is
28
dependent on you for economic support:
29
30
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2009 No. , 2009 5
Private health insurance tiers--families
Item
For the year,
you are a ...
if your
*
income for
surcharge purposes for
the year exceeds the
following for the year ...
but does not exceed
the following (if
applicable) for the
year ...
1
tier 1 earner
your
*
family tier 1
threshold
your
*
family tier 2
threshold.
2
tier 2 earner
your
*
family tier 2
threshold
your
*
family tier 3
threshold.
3
tier 3 earner
your
*
family tier 3
threshold
not applicable.
(2) For the purposes of subsection (1), if paragraph (1)(a) applies, treat
1
the
*
income for surcharge purposes for the year of the person to
2
whom you are married (as mentioned in that paragraph) as
3
included in your income for surcharge purposes for the year.
4
Singles
5
(3) The following table applies to you for an income year if the table
6
in subsection (1) does not apply to you for the year:
7
8
Private health insurance tiers--singles
Item
For the year,
you are a ...
if your
*
income for
surcharge purposes for
the year exceeds the
following for the year ...
but does not exceed
the following (if
applicable) for the
year ...
1
tier 1 earner
your
*
singles tier 1
threshold
your
*
singles tier 2
threshold.
2
tier 2 earner
your
*
singles tier 2
threshold
your
*
singles tier 3
threshold.
3
tier 3 earner
your
*
singles tier 3
threshold
not applicable.
61-230 Private health insurance singles thresholds
9
(1)
Your
singles tier 1 threshold for the 2008-09 income year is
10
$70,000. This amount is indexed annually.
11
Schedule 1 Amendments
6 Fairer Private Health Insurance Incentives Bill 2009 No. , 2009
(2)
Your
singles tier 2 threshold for the 2010-11 income year is
1
$90,000. This amount is indexed annually.
2
(3)
Your
singles tier 3 threshold for the 2010-11 income year is
3
$120,000. This amount is indexed annually.
4
Note: Subdivision
960-M
shows
you how to index amounts.
5
61-235 Private health insurance family thresholds
6
(1)
Your
family tier 1 threshold for an income year is an amount equal
7
to double your
*
singles tier 1 threshold for the year.
8
(2)
Your
family tier 2 threshold for an income year is an amount equal
9
to double your
*
singles tier 2 threshold for the year.
10
(3)
Your
family tier 3 threshold for an income year is an amount equal
11
to double your
*
singles tier 3 threshold for the year.
12
(4) However, if you have 2 or more dependants (within the meaning of
13
the A New Tax System (Medicare Levy Surcharge--Fringe
14
Benefits) Act 1999) who are
*
children, increase your family tier 1
15
threshold, family tier 2 threshold and family tier 3 threshold for
16
the income year by the result of the following formula:
17
$1,500
Number of those dependants who are children
1
×
-
18
Example: If you have 3 such dependants who are children, your family tier 2
19
threshold for the 2010-11 income year is:
20
$180,000
$1,500
2
$183,000
+
×
=
21
11 Section 960-265 (at the end of the table)
22
Add:
23
14
Private health insurance offset--singles tier 1
threshold
subsection
61-230(1)
15
Private health insurance offset--singles tier 2
threshold and singles tier 3 threshold
subsections
61-230(2) and (3)
12 At the end of section 960-270
24
Add:
25
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2009 No. , 2009 7
(4) This section does not apply in relation to amounts mentioned in the
1
provisions listed at items 14 and 15 in section 960-265.
2
Note:
For the indexation of those amounts, see section 960-290.
3
13 At the end of section 960-275
4
Add:
5
(7) This section does not apply in relation to amounts mentioned in the
6
provisions listed at items 14 and 15 in section 960-265.
7
Note:
For the indexation of those amounts, see section 960-290.
8
14 At the end of section 960-280
9
Add:
10
Exception--private health insurance thresholds
11
(7) This section does not apply in relation to amounts mentioned in the
12
provisions listed at items 14 and 15 in section 960-265.
13
Note:
For the indexation of those amounts, see section 960-290.
14
15 At the end of Subdivision 960-M
15
Add:
16
960-290 Indexation--private health insurance thresholds
17
(1) This section applies in relation to an amount mentioned in a
18
provision listed at item 14 or 15 in section 960-265.
19
Indexing amounts
20
(2) You index the amount by:
21
(a)
firstly:
22
(i) if the amount is mentioned in item 14 in
23
section 960-265 (singles tier 1 threshold)--multiplying
24
the amount for the 2008-2009 income year by its
25
*
indexation factor mentioned in subsection (4); or
26
(ii) if the amount is mentioned in item 15 in
27
section 960-265 (singles tier 2 threshold or singles tier 3
28
threshold)--multiplying the amount for the 2010-2011
29
income year by its indexation factor mentioned in
30
subsection (5); and
31
Schedule 1 Amendments
8 Fairer Private Health Insurance Incentives Bill 2009 No. , 2009
(b) next, rounding the result in paragraph (a) down to the nearest
1
multiple of $1,000.
2
Example 1: If the amount to be indexed is $90,000 and the indexation factor
3
increases this to an indexed amount of $90,500, the indexed amount is
4
rounded back down to $90,000.
5
Example 2: If the amount to be indexed is $120,000 and the indexation factor
6
increases this to an indexed amount of $121,500, the indexed amount
7
is rounded down to $121,000.
8
(3) You do not index the amount if its indexation factor mentioned in
9
subsection (4) or (5) is 1 or less.
10
Indexation factor
11
(4) For indexation of the amount on an annual basis in accordance
12
with subparagraph (2)(a)(i), the indexation factor is:
13
*Index number mentioned in subsection (7) for
the quarter ending on 31 December just before the
start of the relevant income year
*Index number mentioned in subsection (7)
for the quarter ending on 31 December 2007
14
(5) For indexation of the amount on an annual basis in accordance
15
with subparagraph (2)(a)(ii), the indexation factor is:
16
*Index number mentioned in subsection (7) for
the quarter ending on 31 December just before the
start of the relevant income year
*Index number mentioned in subsection (7)
for the quarter ending on 31 December 2009
17
(6) You work out the
*
indexation factor mentioned in subsection (4) or
18
(5) to 3 decimal places (rounding up if the fourth decimal place is 5
19
or more).
20
Index number
21
(7) For calculating the amounts, the index number for a quarter is the
22
estimate of full-time adult average weekly ordinary time earnings
23
for the middle month of the quarter first published by the
24
Australian Statistician in respect of that month.
25
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2009 No. , 2009 9
16 Subsection 995-1(1)
1
Insert:
2
family tier 1 threshold has the meaning given by section 61-235.
3
17 Subsection 995-1(1)
4
Insert:
5
family tier 2 threshold has the meaning given by section 61-235.
6
18 Subsection 995-1(1)
7
Insert:
8
family tier 3 threshold has the meaning given by section 61-235.
9
19 Subsection 995-1(1) (after paragraph (a) of the definition
10
of indexation factor)
11
Insert:
12
(aa) for an amount mentioned in a provision listed at item 14 or
13
15 in section 960-265--indexation factor has the meaning
14
given by section 960-290; or
15
20 Subsection 995-1(1) (after paragraph (a) of the definition
16
of index number)
17
Insert:
18
(aa) for an amount mentioned in a provision listed at item 14 or
19
15 in section 960-265--index number has the meaning given
20
by section 960-290; or
21
21 Subsection 995-1(1)
22
Insert:
23
singles tier 1 threshold has the meaning given by section 61-230.
24
22 Subsection 995-1(1)
25
Insert:
26
singles tier 2 threshold has the meaning given by section 61-230.
27
23 Subsection 995-1(1)
28
Schedule 1 Amendments
10 Fairer Private Health Insurance Incentives Bill 2009 No. , 2009
Insert:
1
singles tier 3 threshold has the meaning given by section 61-230.
2
24 Subsection 995-1(1)
3
Insert:
4
tier 1 earner has the meaning given by section 61-225.
5
25 Subsection 995-1(1)
6
Insert:
7
tier 2 earner has the meaning given by section 61-225.
8
26 Subsection 995-1(1)
9
Insert:
10
tier 3 earner has the meaning given by section 61-225.
11
Private Health Insurance Act 2007
12
27 After subsection 23-1(2)
13
Insert:
14
(2A) Reduce the amount of each percentage mentioned in subsection (2)
15
by 10 percentage points if the person mentioned in subsection (1)
16
is a
*
tier 1 earner for the financial year.
17
(2B) Reduce the amount of each percentage mentioned in subsection (2)
18
by 20 percentage points if the person mentioned in subsection (1)
19
is a
*
tier 2 earner for the financial year.
20
(2C) If the person mentioned in subsection (1) is a
*
tier 3 earner for the
21
financial year:
22
(a) reduce the amount of each percentage mentioned in
23
subsection (2) to nil; and
24
(b) do not apply subsection (3).
25
28 Subsection 23-1(3)
26
Omit "However,", substitute "Despite subsections (2), (2A) and (2B),".
27
29 Paragraph 23-1(3)(a)
28
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2009 No. , 2009 11
Omit "under subsection (2)", substitute "under subsection (2) (taking
1
into account any reduction under subsection (2A) or (2B))".
2
30 Paragraph 23-10(1)(a)
3
After "35% or 40%", insert "(or either of those percentages as altered
4
under subsection 23-1(2A) or (2B))".
5
31 Subsection 23-10(4)
6
After "35% or 40%", insert "(or either of those percentages as altered
7
under subsection 23-1(2A) or (2B))".
8
32 After subsection 26-1(2)
9
Insert:
10
(2A) Reduce the amount of each percentage mentioned in subsection (2)
11
by 10 percentage points if the person mentioned in subsection (1)
12
is a
*
tier 1 earner for the financial year.
13
(2B) Reduce the amount of each percentage mentioned in subsection (2)
14
by 20 percentage points if the person mentioned in subsection (1)
15
is a
*
tier 2 earner for the financial year.
16
(2C) If the person mentioned in subsection (1) is a
*
tier 3 earner for the
17
financial year:
18
(a) reduce the amount of each percentage mentioned in
19
subsection (2) to nil; and
20
(b) do not apply subsection (3).
21
33 Subsection 26-1(3)
22
Omit "However,", substitute "Despite subsections (2), (2A) and (2B),".
23
34 Paragraph 26-1(3)(a)
24
Omit "under subsection (2)", substitute "under subsection (2) (taking
25
into account any reduction under subsection (2A) or (2B))".
26
35 Paragraph 26-5(1)(a)
27
After "35% or 40%", insert "(or either of those percentages as altered
28
under subsection 26-1(2A) or (2B))".
29
36 Subsection 26-5(4)
30
Schedule 1 Amendments
12 Fairer Private Health Insurance Incentives Bill 2009 No. , 2009
After "35% or 40%", insert "(or either of those percentages as altered
1
under subsection 26-1(2A) or (2B))".
2
37 After subsection 282-1(1)
3
Insert:
4
(1A) However, an amount is not recoverable under paragraph (1)(d), (e),
5
(f) or (g) if the situation giving rise to the amount did not occur due
6
to the fault of the private health insurer.
7
38 After Subdivision 282-A
8
Insert:
9
Subdivision 282-AA--Recovery of certain amounts by
10
Commissioner of Taxation
11
282-16 Administration of this Subdivision by Commissioner of
12
Taxation
13
The Commissioner of Taxation has the general administration of:
14
(a) this Subdivision; and
15
(b) any other provision of this Act to the extent that it relates to
16
this Subdivision.
17
282-17 Subdivision operates in addition to Subdivision 282-A
18
(1)
This
Subdivision:
19
(a) operates in addition to Subdivision 282-A; and
20
(b) does not limit the operation of that Subdivision.
21
(2) Subdivision 282-A does not limit the operation of this Subdivision.
22
No double recovery
23
(3) Despite subsections (1) and (2):
24
(a) an amount is not recoverable under section 282-1 to the
25
extent that it has already been recovered in accordance with
26
section 282-18; and
27
(b) an amount is not recoverable under section 282-18 to the
28
extent that it has already been recovered in accordance with
29
section 282-1.
30
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2009 No. , 2009 13
Note:
This section means that an amount that is recoverable under both
1
paragraph 282-1(1)(e) and section 282-18 is recoverable from the
2
private health insurer in accordance with section 282-1 or from the
3
participant in accordance with section 282-18.
4
282-18 Liability for excess private health insurance premium
5
reduction or refund
6
(1) This section applies if:
7
(a) the amount of premiums payable under a
*
complying health
8
insurance policy in respect of a financial year is reduced
9
because a person is a
*
participant in the
*
premiums reduction
10
scheme in respect of the policy; and
11
(b) the amount of the reduction of the premiums exceeds the
12
amount of the reduction allowable under section 23-1.
13
(2) This section also applies if:
14
(a) a payment is made to a person under Subdivision 26-B; and
15
(b) the amount of the payment exceeds the amount to which the
16
person was entitled under section 26-1.
17
(3) The person is liable to pay the excess to the Commonwealth.
18
(4) An amount that a person is liable to pay under subsection (3) is due
19
and payable 21 days after the day on which the Commissioner of
20
Taxation gives him or her a notice in writing of the liability.
21
Note:
The liability is a tax-related liability: see Part 4-15 in Schedule 1 to the
22
Taxation Administration Act 1953 for collection and recovery
23
provisions.
24
(5) A notice under subsection (4) may be included in a notice of any
25
assessment under the Income Tax Assessment Act 1936 or the
26
Income Tax Assessment Act 1997.
27
(6) If the person is dissatisfied with the notice under subsection (4), he
28
or she may object against it in the manner set out in Part IVC of the
29
Taxation Administration Act 1953.
30
282-19 When general interest charge payable
31
(1)
If:
32
(a) a person is liable under subsection 282-18(3) to pay an
33
amount; and
34
Schedule 1 Amendments
14 Fairer Private Health Insurance Incentives Bill 2009 No. , 2009
(b) the whole or a part of the amount remains unpaid after the
1
time by which the amount is due to be paid;
2
the person is liable to pay
*
general interest charge on the unpaid
3
amount.
4
(2) A person who is liable under this section to pay
*
general interest
5
charge on an unpaid amount is liable to pay the charge for each day
6
in the period that:
7
(a) started at the beginning of the day by which the unpaid
8
amount was due to be paid; and
9
(b) finishes at the end of the last day at the end of which any of
10
the following remains unpaid:
11
(i) the unpaid amount;
12
(ii) general interest charge on any of the unpaid amount.
13
39 Section 282-25
14
Omit "or this Part" (wherever occurring), substitute ", this Part or
15
paragraph 323-5(c)".
16
40 Paragraph 323-5(b)
17
Omit "Medicare Australia Act 1973.", substitute "Medicare Australia
18
Act 1973; or".
19
41 At the end of section 323-5
20
Add:
21
(c) for the purpose of enabling a person to perform functions
22
under:
23
(i) a provision of the A New Tax System (Medicare Levy
24
Surcharge--Fringe Benefits) Act 1999; or
25
(ii) a provision of the Medicare Levy Act 1986; or
26
(iii) a provision of Subdivision 61-G of the Income Tax
27
Assessment Act 1997; or
28
(iv) any other provision of the Income Tax Assessment Act
29
1997, or of any other Act, to the extent that the
30
provision relates to a provision mentioned in
31
subparagraph (i), (ii) or (iii).
32
42 Clause 1 of Schedule 1
33
Insert:
34
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2009 No. , 2009 15
general interest charge means the charge worked out under
1
Part IIA of the Taxation Administration Act 1953.
2
43 Clause 1 of Schedule 1
3
Insert:
4
tier 1 earner, for a financial year, means a person who is a tier 1
5
earner (within the meaning of the Income Tax Assessment Act
6
1997) for the income year corresponding to the financial year.
7
44 Clause 1 of Schedule 1
8
Insert:
9
tier 2 earner, for a financial year, means a person who is a tier 2
10
earner (within the meaning of the Income Tax Assessment Act
11
1997) for the income year corresponding to the financial year.
12
45 Clause 1 of Schedule 1
13
Insert:
14
tier 3 earner, for a financial year, means a person who is a tier 3
15
earner (within the meaning of the Income Tax Assessment Act
16
1997) for the income year corresponding to the financial year.
17
Taxation Administration Act 1953
18
46 Subsection 8AAB(5) (after table item 4)
19
Insert:
20
4AA 282-19
Private Health Insurance Act 2007
47 Subsection 250-10(2) in Schedule 1 (after table item 45A)
21
Insert:
22
45B
liability for excess
private health
insurance premium
reduction or refund
282-18
Private Health Insurance Act
2007
Schedule 1 Amendments
16 Fairer Private Health Insurance Incentives Bill 2009 No. , 2009
Taxation (Interest on Overpayments and Early Payments)
1
Act 1983
2
48 Subsection 3(1) (after paragraph (ca) of the definition of
3
decision to which this Act applies)
4
Insert:
5
(caaa) in a case where the expression is used in relation to relevant
6
tax of a kind referred to in item 60 of the table in
7
section 3C--a decision of the Commissioner to give a notice
8
under subsection 282-18(4) of the Private Health Insurance
9
Act 2007; or
10
49 Section 3C (after item 55 of the table)
11
Insert:
12
60
Liabilities under subsection 282-18(3) of the Private Health Insurance Act
2007
50 After subparagraph 8E(1)(d)(iv)
13
Insert:
14
(iva) a liability under subsection 282-18(3) of the Private
15
Health Insurance Act 2007 that is notified in the notice
16
of assessment;
17
51 After subparagraph 8E(2)(d)(iv)
18
Insert:
19
(iva) a liability under subsection 282-18(3) of the Private
20
Health Insurance Act 2007, payable by the person
21
immediately before the post-notice crediting;
22
52 Application
23
The amendments made by this Schedule apply on and after 1 July 2010.
24

 

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