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This is a Bill, not an Act. For current law, see the Acts databases.
FAIRER PRIVATE HEALTH INSURANCE INCENTIVES BILL 2012
2010-2011
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Fairer Private Health Insurance
Incentives Bill 2011
No. , 2011
(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 2011 No. , 2011
Contents
1 Short
title
...........................................................................................
1
2 Commencement
.................................................................................
1
3 Schedule(s)
........................................................................................
2
Schedule 1--Amendments
3
Age Discrimination Act 2004
3
Income Tax Assessment Act 1936
3
Income Tax Assessment Act 1997
3
Private Health Insurance Act 2007
6
Taxation Administration Act 1953
22
Taxation (Interest on Overpayments and Early Payments) Act 1983
23
Fairer Private Health Insurance Incentives Bill 2011 No. , 2011 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 2011.
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 2011 No. , 2011
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 this Act receives the Royal Assent.
2. Schedule 1
The latest of:
(a) the day the Fairer Private Health
Insurance Incentives (Medicare Levy
Surcharge) Act 2011 receives the Royal
Assent; and
(b) the day the Fairer Private Health
Insurance Incentives (Medicare Levy
Surcharge--Fringe Benefits) Act 2011
receives the Royal Assent; and
(c) 1 January 2012.
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
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be 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 2011 No. , 2011 3
Schedule 1--Amendments
1
2
Age Discrimination Act 2004
3
1 Schedule 2 (table item 9A, column headed "Provision(s)")
4
Omit "23-1, 23-10, 26-1 and 26-5", substitute "22-15 and 22-25".
5
Income Tax Assessment Act 1936
6
2 After paragraph 264BB(2)(g)
7
Insert:
8
(ga) whether the premium has been reduced under section 23-1 of
9
the Private Health Insurance Act 2007, and if so, the amount
10
of the reduction;
11
(gb) the name, address and date of birth of a participant (within
12
the meaning of the Private Health Insurance Act 2007) in the
13
premiums reduction scheme (within the meaning of that Act)
14
in respect of the policy;
15
Income Tax Assessment Act 1997
16
3 Subsection 61-205(1)
17
Repeal the subsection, substitute:
18
(1) You are entitled to a
*
tax offset for the 2011-12 income year or a
19
later income year if:
20
(a) a premium, or an amount in respect of a premium, was paid
21
by you or another entity during the income year under a
22
*
complying health insurance policy in respect of a period (the
23
premium period); and
24
(b) you are a
*
PHIIB in respect of the premium or amount; and
25
(c) each person insured under the policy during the premium
26
period is, for the whole of the time that he or she is insured
27
under the policy during the premium period:
28
(i) an eligible person (within the meaning of section 3 of
29
the Health Insurance Act 1973); or
30
(ii) treated as such because of section 6, 6A or 7 of that Act.
31
Schedule 1 Amendments
4 Fairer Private Health Insurance Incentives Bill 2011 No. , 2011
4 Subsection 61-205(3)
1
Repeal the subsection.
2
5 Sections 61-210, 61-215 and 61-220
3
Repeal the sections, substitute:
4
61-210 Amount of the private health insurance tax offset
5
(1) The amount of the
*
tax offset is your
*
share of the PHII benefit in
6
respect of the premium or amount.
7
Reduction because PHII benefit received in other forms
8
(2) Subsections (3), (4) and (5) apply if any of the following
9
paragraphs apply:
10
(a) the amount of the premium was reduced because of the
11
operation or purported operation of Division 23 of the
12
Private Health Insurance Act 2007;
13
(b) a payment was made to a person because of the operation or
14
purported operation of Division 26 of the Private Health
15
Insurance Act 2007 in relation to the premium.
16
(3) Divide the total of the reduction (if any) and payment (if any) by
17
the number of persons who are
*
PHIIBs in respect of the premium
18
or amount.
19
(4)
Reduce
your
*
tax offset under subsection (1) to nil if the amount
20
worked out under subsection (3) equals or exceeds your
*
share of
21
the PHII benefit in respect of the premium or amount.
22
Note:
If the amount worked out under subsection (3) exceeds your share of
23
the PHII benefit, you are liable to pay the excess to the
24
Commonwealth. See section 282-18 of the Private Health Insurance
25
Act 2007 (Liability for excess private health insurance premium
26
reduction or refund).
27
(5) Otherwise, reduce your
*
tax offset under subsection (1) by the
28
amount worked out under subsection (3).
29
61-215 Reallocation of the private health insurance tax offset
30
between spouses
31
(1) You can make a choice under this section in relation to the income
32
year if:
33
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2011 No. , 2011 5
(a) you are a
*
PHIIB in respect of the premium or amount; and
1
(b) on the last day of the income year, you are married (within
2
the meaning of the A New Tax System (Medicare Levy
3
Surcharge--Fringe Benefits) Act 1999; and
4
(c) the individual to whom you are married is also a PHIIB in
5
respect of the premium or amount; and
6
(d) the individual to whom you are married has not made a
7
choice under this section in relation to the income year.
8
Note:
If you make a choice under this section, you might be liable to pay an
9
amount under section 282-18 of the Private Health Insurance Act
10
2007 (Liability for excess private health insurance premium reduction
11
or refund).
12
(2) If you make a choice under this section in relation to the income
13
year:
14
(a) the amount (if any) of the
*
tax offset for the income year
15
under section 61-205 in respect of the premium or amount of
16
the individual to whom you are married is reduced to nil; and
17
(b) your tax offset for the income year under that section in
18
respect of the premium or amount is increased by that
19
amount.
20
(3) A choice under this section in relation to the income year can only
21
be made in your
*
income tax return for the income year.
22
(4) A choice under this section in relation to an income year has effect
23
for all premiums, or amounts in respect of premiums, paid during
24
the income year.
25
6 Subsection 995-1(1)
26
Insert:
27
complying health insurance policy has the meaning given by the
28
Private Health Insurance Act 2007.
29
7 Subsection 995-1(1) (definition of incentive amount)
30
Repeal the definition.
31
8 Subsection 995-1(1)
32
Insert:
33
Schedule 1 Amendments
6 Fairer Private Health Insurance Incentives Bill 2011 No. , 2011
PHIIB (short for private health insurance incentive beneficiary)
1
has the meaning given by the Private Health Insurance Act 2007.
2
9 Subsection 995-1(1)
3
Insert:
4
share of the PHII benefit (short for share of the private health
5
insurance incentive benefit) has the meaning given by the Private
6
Health Insurance Act 2007.
7
Private Health Insurance Act 2007
8
10 After Division 20
9
Insert:
10
Division 22--PHIIB, PHII benefit and related concepts
11
Subdivision 22-A--PHIIB, PHII benefit and related concepts
12
22-1 Application of Subdivision
13
This Subdivision applies if a premium, or an amount in respect of a
14
premium, was paid, or is payable, during a financial year under a
15
*
complying health insurance policy in respect of a period (the
16
premium period).
17
22-5 Meaning of PHIIB
18
Adults insured under policy
19
(1)
Each
*
adult insured under the
*
complying health insurance policy
20
throughout the premium period is a PHIIB, in respect of the
21
premium or amount.
22
Note:
PHIIB is short for private health insurance incentive beneficiary.
23
Dependent child-only policies
24
(2) Subsections (3) and (4) apply if the only persons insured under the
25
*
complying health insurance policy throughout the premium period
26
are one or more
*
dependent children.
27
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2011 No. , 2011 7
(3) Each person who is a parent (within the meaning of Part 2.11 of the
1
Social Security Act 1991) in relation to one or more of those
2
*
dependent children on the last day of the financial year mentioned
3
in section 22-1 is a PHIIB, in respect of the premium or amount.
4
(4) However, the person who pays the premium or amount is the only
5
PHIIB, in respect of the premium or amount, if:
6
(a) disregarding this subsection, more than one person would be
7
a
*
PHIIB in respect of the premium or amount because of
8
subsection (3); and
9
(b) those persons are not married to each other (within the
10
meaning of the A New Tax System (Medicare Levy
11
Surcharge--Fringe Benefits) Act 1999) at the end of the
12
financial year; and
13
(c) the person who pays the premium or amount is not a
14
*
dependent child.
15
22-10 Meaning of PHII benefit
16
The amount of the PHII benefit, in respect of the premium or
17
amount, is:
18
(a) if there is only one
*
PHIIB in respect of the premium or
19
amount--the PHIIB's
*
share of the PHII benefit in respect of
20
the premium or amount; or
21
(b) if there is more than one PHIIB in respect of the premium or
22
amount--the sum of each of those PHIIB's share of the PHII
23
benefit in respect of the premium or amount.
24
Note:
PHII benefit is short for private health insurance incentive benefit.
25
22-15 Meaning of share of the PHII benefit--single PHIIB
26
(1) If there is only one
*
PHIIB in respect of the premium or amount,
27
the amount of the
*
PHIIB's share of the PHII benefit, in respect of
28
the premium or amount, is the sum of:
29
(a) 30% of the amount of the premium, or of the amount in
30
respect of a premium, paid or payable in respect of days in
31
the premium period on which no person insured under the
32
policy was aged 65 years or over; and
33
(b) 35% of the amount of the premium, or of the amount in
34
respect of a premium, paid or payable in respect of days in
35
the premium period on which:
36
Schedule 1 Amendments
8 Fairer Private Health Insurance Incentives Bill 2011 No. , 2011
(i) at least one person insured under the policy was aged 65
1
years or over; and
2
(ii) no person insured under the policy was aged 70 years or
3
over; and
4
(c) 40% of the amount of the premium, or of the amount in
5
respect of a premium, paid or payable in respect of days in
6
the premium period on which at least one person insured
7
under the policy was aged 70 years or over.
8
(2) Reduce the amount of each percentage mentioned in subsection (1)
9
by 10 percentage points if the
*
PHIIB is a
*
tier 1 earner for the
10
financial year mentioned in section 22-1.
11
(3) Reduce the amount of each percentage mentioned in subsection (1)
12
by 20 percentage points if the
*
PHIIB is a
*
tier 2 earner for the
13
financial year mentioned in section 22-1.
14
(4) Reduce the amount of each percentage mentioned in subsection (1)
15
to nil if the
*
PHIIB is a
*
tier 3 earner for the financial year
16
mentioned in section 22-1.
17
(5) For the purposes of applying subsections (2), (3) and (4) in relation
18
to the premium or amount, treat the table in subsection 22-30(1) as
19
applying to the
*
PHIIB for the financial year if he or she is a PHIIB
20
in respect of the premium or amount because of subsection 22-5(3)
21
or (4).
22
Note 1:
The table in subsection 22-30(1) sets out the private health insurance
23
tiers for families.
24
Note 2:
Subsections 22-5(3) and (4) apply if the only persons insured under
25
the policy are dependent children.
26
22-20 Meaning of share of the PHII benefit--multiple PHIIBs
27
If there is more than one
*
PHIIB in respect of the premium or
28
amount, work out in accordance with section 22-15 the amount of
29
each of those PHIIB's share of the PHII benefit, in respect of the
30
premium or amount, on the following assumptions:
31
(a) assume that the PHIIB is the only person who is a PHIIB in
32
respect of the premium or amount;
33
(b) assume that the premium or amount is the amount of the
34
premium (or the amount in respect of the premium) divided
35
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2011 No. , 2011 9
by the number of persons who are PHIIBs in respect of the
1
premium or amount.
2
22-25 Application of subsection 22-15(1) after a person 65 years or
3
over ceases to be covered by policy
4
(1)
If:
5
(a)
the
*
PHIIB mentioned in subsection 22-15(1) was insured
6
under a
*
complying health insurance policy (the original
7
policy) (whether or not the policy mentioned in section 22-1)
8
at a time before the start of the premium period mentioned in
9
that section; and
10
(b) the PHIIB was not a
*
dependent child at that time; and
11
(c) at that time, another person (the entitling person) was:
12
(i) insured under the original policy; and
13
(ii) aged 65 years or over; and
14
(d) the entitling person subsequently ceased to be insured under
15
the original policy;
16
subsection 22-15(1) applies in relation to the complying health
17
insurance policy mentioned in section 22-1 as if:
18
(e) the entitling person were also insured under that policy; and
19
(f) the entitling person were the same age as the age at which he
20
or she ceased to be insured under the original policy.
21
(2) Subsection (1) ceases to apply if a person (other than a
*
dependent
22
child) who was not insured under the original policy at the time the
23
entitling person ceased to be insured under it becomes insured
24
under the
*
complying health insurance policy mentioned in
25
section 22-1.
26
(3) Subsection (1) does not apply if its application would result in the
27
*
PHIIB's
*
share of the PHII benefit being less than it would
28
otherwise have been.
29
Schedule 1 Amendments
10 Fairer Private Health Insurance Incentives Bill 2011 No. , 2011
Subdivision 22-B--Private health insurance tiers
1
22-30 Private health insurance tiers
2
Families
3
(1) The following table applies to a person (the first person) for a
4
financial year if:
5
(a) on the last day of the financial year, the person is married
6
(within the meaning of the A New Tax System (Medicare
7
Levy Surcharge--Fringe Benefits) Act 1999); or
8
(b) on any day in the financial year, the person contributes in a
9
substantial way to the maintenance of a
*
dependent child who
10
is:
11
(i) the person's child (within the meaning of the Income
12
Tax Assessment Act 1997); or
13
(ii) the person's sibling (including the person's half-brother,
14
half-sister, adoptive brother, adoptive sister,
15
step-brother, step-sister, foster-brother or foster-sister)
16
who is dependent on the person for economic support:
17
18
Private health insurance tiers--families
Item Column
1
For the
financial
year, the
person is a ...
Column 2
if his or her income for
surcharge purposes for
the financial year exceeds
the following for the
financial year ...
Column 3
but does not exceed
the following (if
applicable) for the
financial year ...
1
tier 1 earner
his or her
*
family tier 1
threshold
his or her
*
family tier 2
threshold.
2
tier 2 earner
his or her
*
family tier 2
threshold
his or her
*
family tier 3
threshold.
3
tier 3 earner
his or her
*
family tier 3
threshold
not applicable.
(2) For the purposes of subsection (1), if paragraph (1)(a) applies, treat
19
the
*
income for surcharge purposes for the financial year of the
20
person to whom the first person is married (as mentioned in that
21
paragraph) as included in the first person's income for surcharge
22
purposes for the financial year.
23
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2011 No. , 2011 11
(3) Subdivision 960-J of the Income Tax Assessment Act 1997 (Family
1
relationships) applies to subparagraphs (1)(b)(i) and (ii) of this
2
section in the same way as it applies to that Act.
3
Singles
4
(4) The following table applies to a person for a financial year if the
5
table in subsection (1) does not apply to the person for the financial
6
year:
7
8
Private health insurance tiers--singles
Item Column
1
For the
financial
year, the
person is a ...
Column 2
if his or her income for
surcharge purposes for
the financial year exceeds
the following for the
financial year ...
Column 3
but does not exceed
the following (if
applicable) for the
financial year ...
1
tier 1 earner
his or her
*
singles tier 1
threshold
his or her
*
singles tier 2
threshold.
2
tier 2 earner
his or her
*
singles tier 2
threshold
his or her
*
singles tier 3
threshold.
3
tier 3 earner
his or her
*
singles tier 3
threshold
not applicable.
22-35 Private health insurance singles thresholds
9
(1)
A
person's
singles tier 1 threshold for the 2008-09 financial year
10
is $70,000. This amount is indexed annually.
11
(2)
A
person's
singles tier 2 threshold for the 2010-11 financial year
12
is $90,000. This amount is indexed annually.
13
(3)
A
person's
singles tier 3 threshold for the 2010-11 financial year
14
is $120,000. This amount is indexed annually.
15
Note 1:
A person may be a tier 1 earner, tier 2 earner or tier 3 earner if his or
16
her income for surcharge purposes exceeds the applicable threshold
17
for that tier: see section 22-30.
18
Note 2:
Section 22-45 shows how to index amounts.
19
Schedule 1 Amendments
12 Fairer Private Health Insurance Incentives Bill 2011 No. , 2011
22-40 Private health insurance family thresholds
1
(1)
A
person's
family tier 1 threshold for a financial year is an amount
2
equal to double his or her
*
singles tier 1 threshold for the financial
3
year.
4
(2)
A
person's
family tier 2 threshold for a financial year is an amount
5
equal to double his or her
*
singles tier 2 threshold for the financial
6
year.
7
(3)
A
person's
family tier 3 threshold for a financial year is an amount
8
equal to double his or her
*
singles tier 3 threshold for the financial
9
year.
10
(4) However, if the person has 2 or more dependants (within the
11
meaning of the A New Tax System (Medicare Levy Surcharge--
12
Fringe Benefits) Act 1999) who are children, increase his or her
13
family tier 1 threshold, family tier 2 threshold and family tier 3
14
threshold for the financial year by the result of the following
15
formula:
16
$1,500
Number of those dependants who are children
1
×
-
17
Example: If the person has 3 such dependants who are children, his or her family
18
tier 2 threshold for the 2010-11 financial year is:
19
(
)
$180,000
$1,500
2
$183,000
+
×
=
20
Note:
A person may be a tier 1 earner, tier 2 earner or tier 3 earner if his or
21
her income for surcharge purposes exceeds the applicable threshold
22
for that tier: see section 22-30.
23
22-45 Indexation
24
(1) This section applies in relation to an amount mentioned in
25
section 22-35 (Private health insurance singles thresholds).
26
Indexing amounts
27
(2) Index the amount by:
28
(a)
firstly:
29
(i) if the amount is mentioned in subsection 22-35(1)
30
(singles tier 1 threshold)--multiplying the amount for
31
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2011 No. , 2011 13
the 2008-2009 financial year by its
*
indexation factor
1
mentioned in subsection (4); or
2
(ii) if the amount is mentioned in subsection 22-35(2) or (3)
3
(singles tier 2 threshold or singles tier 3 threshold)--
4
multiplying the amount for the 2010-2011 financial year
5
by its indexation factor mentioned in subsection (5); and
6
(b) next, rounding the result in paragraph (a) down to the nearest
7
multiple of $1,000.
8
Example 1: If the amount to be indexed is $90,000 and the indexation factor
9
increases this to an indexed amount of $90,500, the indexed amount is
10
rounded back down to $90,000.
11
Example 2: If the amount to be indexed is $120,000 and the indexation factor
12
increases this to an indexed amount of $121,500, the indexed amount
13
is rounded down to $121,000.
14
(3) Do not index the amount if its indexation factor mentioned in
15
subsection (4) or (5) is 1 or less.
16
Indexation factor
17
(4) For indexation of the amount on an annual basis in accordance
18
with subparagraph (2)(a)(i), the indexation factor is:
19
*Index number mentioned in subsection (7) for
*
the quarter ending on 31 December just before the
start of the relevant financial year
*Index number mentioned in subsection (7)
*
for the quarter ending on 31 December 2007
20
(5) For indexation of the amount on an annual basis in accordance
21
with subparagraph (2)(a)(ii), the indexation factor is:
22
*Index number mentioned in subsection (7) for
*
the quarter ending on 31 December just before the
start of the relevant financial year
*Index number mentioned in subsection (7)
*
for the quarter ending on 31 December 2009
23
(6)
Work
out
the
*
indexation factor mentioned in subsection (4) or (5)
24
to 3 decimal places (rounding up if the fourth decimal place is 5 or
25
more).
26
Schedule 1
Amendments
14 Fairer Private Health Insurance Incentives Bill 2011 No. , 2011
Index number
1
(7) For calculating the amounts, the index number for a
*
quarter is the
2
estimate of full-time adult average weekly ordinary time earnings
3
for the middle month of the quarter first published by the
4
Australian Statistician in respect of that month.
5
11 Subdivision 23-A
6
Repeal the Subdivision, substitute:
7
Subdivision 23-A--Amount of reduction
8
23-1 Reduction in premiums
9
(1) The amount of premiums payable under a
*
complying health
10
insurance policy in respect of a period is reduced in accordance
11
with this section if a person is a
*
participant in the
*
premiums
12
reduction scheme in respect of the policy.
13
(2) The amount of the reduction for each premium is the
*
PHII benefit
14
in respect of the premium.
15
12 Paragraph 23-15(1)(b)
16
Repeal the paragraph, substitute:
17
(b) the person is a
*
PHIIB in respect of a premium paid or
18
payable under the policy; and
19
13 Section 23-25
20
Repeal the section.
21
14 Subsections 26-1(1), (2), (3) and (4)
22
Repeal the subsections, substitute:
23
Entitlement to payment
24
(1) A person is entitled to a payment under this subsection if:
25
(a) a premium was paid (whether or not by the person) under a
26
*
complying health insurance policy in respect of a period;
27
and
28
(b) the person is a
*
PHIIB in respect of the premium; and
29
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2011 No. , 2011 15
(c) the amount of the premium was not reduced under
1
Division 23; and
2
(d) the person meets any requirements specified in the Private
3
Health Insurance (Incentives) Rules for the purposes of this
4
paragraph.
5
Amount of payment
6
(2) The amount of the payment is the
*
PHII benefit in respect of the
7
premium.
8
(2A) However, if there is more than one
*
PHIIB in respect of the
9
premium, the amount of the payment is the
*
PHII benefit in respect
10
of the premium divided by the number of those PHIIBs.
11
Payment if there is more than one PHIIB
12
(3) If subsection (2A) applies and the person is paid the amount to
13
which he or she is entitled under subsection (1) in respect of the
14
premium:
15
(a) the person is also to be paid each amount to which another
16
person is entitled under subsection (1) in respect of the
17
premium because the other person is one of those
*
PHIIBs;
18
and
19
(b) if the person is paid an amount in accordance with
20
paragraph (a)--he or she is liable to account for that amount
21
to the other person mentioned in that paragraph.
22
Reduction in amount payable
23
(4) A person's entitlement under subsection (1) in respect of the
24
premium is reduced to the extent that:
25
(a) a previous payment was made under this section in relation to
26
that entitlement; or
27
(b) the person has received a tax offset under Subdivision 61-G
28
of the Income Tax Assessment Act 1997 in respect of the
29
premium.
30
15 Saving provision--Private Health Insurance (Incentives)
31
Rules
32
(1)
This item applies to a requirement specified in the Private Health
33
Insurance (Incentive) Rules if:
34
Schedule 1
Amendments
16 Fairer Private Health Insurance Incentives Bill 2011 No. , 2011
(a) the requirement was specified for the purposes of paragraph
1
26-1(1)(c) of the Private Health Insurance Act 2007; and
2
(b) the requirement was in force immediately before the
3
commencement of this item.
4
(2)
The requirement has effect, on and after the commencement of this
5
item, as if it had been made for the purposes of paragraph 26-1(1)(d) of
6
that Act as amended by this Schedule.
7
16 Section 26-5
8
Repeal the section.
9
17 Section 26-30
10
Repeal the section.
11
18 After subsection 282-1(1)
12
Insert:
13
(1A) However, an amount is not recoverable under paragraph (1)(d), (e),
14
(f) or (g) if the situation giving rise to the amount did not occur due
15
to the fault of the private health insurer.
16
19 After Subdivision 282-A
17
Insert:
18
Subdivision 282-AA--Recovery of certain amounts by
19
Commissioner of Taxation
20
282-16 Administration of this Subdivision by Commissioner of
21
Taxation
22
The Commissioner of Taxation has the general administration of:
23
(a) this Subdivision; and
24
(b) any other provision of this Act to the extent that it relates to
25
this Subdivision.
26
282-17 Subdivision operates in addition to Subdivision 282-A
27
(1)
This
Subdivision:
28
(a) operates in addition to Subdivision 282-A; and
29
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2011 No. , 2011 17
(b) does not limit the operation of that Subdivision.
1
(2) Subdivision 282-A does not limit the operation of this Subdivision.
2
No double recovery
3
(3) Despite subsections (1) and (2):
4
(a) an amount is not recoverable under section 282-1 to the
5
extent that it has already been recovered in accordance with
6
section 282-18; and
7
(b) an amount is not recoverable under section 282-18 to the
8
extent that it has already been recovered in accordance with
9
section 282-1.
10
Note:
This section means that an amount that is recoverable under both
11
paragraph 282-1(1)(e) and section 282-18 is recoverable from the
12
private health insurer in accordance with section 282-1 or from the
13
participant in accordance with section 282-18.
14
282-18 Liability for excess private health insurance premium
15
reduction or refund
16
(1) This section applies if any of the following requirements are
17
satisfied:
18
(a) the amount of a premium payable during a financial year
19
under a
*
complying health insurance policy is reduced
20
because of the operation or purported operation of
21
Division 23;
22
(b) a payment is made to a person because of the operation or
23
purported operation of Division 26 in relation to a premium
24
paid during a financial year (whether or not by the person)
25
under a complying health insurance policy.
26
(2) Divide the total of the reduction (if any) and payment (if any) by
27
the number of persons who are
*
PHIIBs in respect of the premium.
28
(3) If the amount worked out under subsection (2) exceeds the
*
share
29
of the PHII benefit of a person who is a
*
PHIIB in respect of the
30
premium, that person is liable to pay the amount of that excess to
31
the Commonwealth.
32
(4) If subsection (3) applies, the Commissioner of Taxation must give
33
the person a notice stating that the person is liable to pay the
34
amount of that excess to the Commonwealth.
35
Schedule 1
Amendments
18 Fairer Private Health Insurance Incentives Bill 2011 No. , 2011
(5) A notice given to a person under subsection (4) may be contained
1
in a notice of assessment under the Income Tax Assessment Act
2
1936.
3
(6) An amount that a person is liable to pay under subsection (3) is due
4
and payable at the same time as the income tax the person must
5
pay for the financial year is due and payable under section 5-5 of
6
the Income Tax Assessment Act 1997. For the purposes of
7
determining that time, assume that the person must pay income tax
8
for the financial year and that the Commissioner of Taxation makes
9
an assessment of the income tax.
10
Note:
The liability is a tax-related liability: see Part 4-15 in Schedule 1 to the
11
Taxation Administration Act 1953 for collection and recovery
12
provisions.
13
(7) If the person is dissatisfied with the notice under subsection (4), he
14
or she may object against it in the manner set out in Part IVC of the
15
Taxation Administration Act 1953.
16
Reallocation of liability between spouses
17
(8) Subsection (10) applies if:
18
(a) a person (the first person) is a
*
PHIIB in respect of the
19
premium; and
20
(b) the first person is, on the last day of the financial year,
21
married (within the meaning of the A New Tax System
22
(Medicare Levy Surcharge--Fringe Benefits) Act 1999; and
23
(c) the person to whom the first person is married is also a
24
PHIIB in respect of the premium; and
25
(d)
either:
26
(i) the first person has made a choice under section 61-215
27
of the Income Tax Assessment Act 1997 in relation to
28
the
*
income year corresponding to the financial year
29
mentioned in subsection (1); or
30
(ii) the requirement in subsection (9) is satisfied.
31
(9) The requirement in this subsection is satisfied if:
32
(a)
during
an
*
income year (the lodgement year), the first person
33
lodges his or her income tax return for the income year (the
34
return year) corresponding to the financial year mentioned in
35
subsection (1); and
36
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2011 No. , 2011 19
(b) the person to whom the first person is married does not lodge
1
his or her income tax return for the return year before the end
2
of the lodgement year (whether or not he or she is required to
3
lodge such a return).
4
(10) If this subsection applies:
5
(a) the amount (if any) that the person to whom the first person
6
is married is liable to pay under subsection (3) in respect of
7
the premium is reduced to nil; and
8
(b) the first person's liability under subsection (3) is increased by
9
that amount.
10
282-19 When general interest charge payable
11
(1)
If:
12
(a) a person is liable under section 282-18 to pay an amount; and
13
(b) the whole or a part of the amount remains unpaid after the
14
time by which the amount is due to be paid;
15
the person is liable to pay
*
general interest charge on the unpaid
16
amount.
17
(2) A person who is liable under this section to pay
*
general interest
18
charge on an unpaid amount is liable to pay the charge for each day
19
in the period that:
20
(a) started at the beginning of the day by which the unpaid
21
amount was due to be paid; and
22
(b) finishes at the end of the last day at the end of which any of
23
the following remains unpaid:
24
(i) the unpaid amount;
25
(ii) general interest charge on any of the unpaid amount.
26
20 Section 282-25
27
Omit "or this Part" (wherever occurring), substitute ", this Part or
28
paragraph 323-5(c)".
29
21 At the end of section 323-5
30
Add:
31
; or (c) for the purpose of enabling a person to perform functions
32
under:
33
Schedule 1
Amendments
20 Fairer Private Health Insurance Incentives Bill 2011 No. , 2011
(i) a provision of the A New Tax System (Medicare Levy
1
Surcharge--Fringe Benefits) Act 1999; or
2
(ii) a provision of the Medicare Levy Act 1986; or
3
(iii) a provision of Subdivision 61-G of the Income Tax
4
Assessment Act 1997; or
5
(iv) any other provision of the Income Tax Assessment Act
6
1997, or of any other Act, to the extent that the
7
provision relates to a provision mentioned in
8
subparagraph (i), (ii) or (iii).
9
22 Clause 1 of Schedule 1
10
Insert:
11
family tier 1 threshold has the meaning given by section 22-40.
12
23 Clause 1 of Schedule 1
13
Insert:
14
family tier 2 threshold has the meaning given by section 22-40.
15
24 Clause 1 of Schedule 1
16
Insert:
17
family tier 3 threshold has the meaning given by section 22-40.
18
25 Clause 1 of Schedule 1
19
Insert:
20
general interest charge means the charge worked out under
21
Part IIA of the Taxation Administration Act 1953.
22
26 Clause 1 of Schedule 1 (definition of incentive amount)
23
Repeal the definition.
24
27 Clause 1 of Schedule 1
25
Insert:
26
income for surcharge purposes, of a person for a financial year,
27
means the income for surcharge purposes (within the meaning of
28
the Income Tax Assessment Act 1997) for the person for the
29
*
income year corresponding to the financial year.
30
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2011 No. , 2011 21
28 Clause 1 of Schedule 1
1
Insert:
2
income year has the meaning given by the Income Tax Assessment
3
Act 1997.
4
29 Clause 1 of Schedule 1
5
Insert:
6
indexation factor has the meaning given by section 22-45.
7
30 Clause 1 of Schedule 1
8
Insert:
9
index number has the meaning given by section 22-45.
10
31 Clause 1 of Schedule 1
11
Insert:
12
PHIIB (short for Private Health Insurance Incentive Beneficiary)
13
has the meaning given by section 22-5.
14
32 Clause 1 of Schedule 1
15
Insert:
16
PHII benefit (short for Private Health Insurance Incentive
17
benefit) has the meaning given by section 22-10.
18
33 Clause 1 of Schedule 1
19
Insert:
20
quarter has the meaning given by the Income Tax Assessment Act
21
1997.
22
34 Clause 1 of Schedule 1
23
Insert:
24
share of the PHII benefit has the meaning given by
25
sections 22-15, 22-20 and 22-25.
26
35 Clause 1 of Schedule 1
27
Insert:
28
Schedule 1
Amendments
22 Fairer Private Health Insurance Incentives Bill 2011 No. , 2011
singles tier 1 threshold has the meaning given by section 22-35.
1
36 Clause 1 of Schedule 1
2
Insert:
3
singles tier 2 threshold has the meaning given by section 22-35.
4
37 Clause 1 of Schedule 1
5
Insert:
6
singles tier 3 threshold has the meaning given by section 22-35.
7
38 Clause 1 of Schedule 1
8
Insert:
9
tier 1 earner has the meaning given by section 22-30.
10
39 Clause 1 of Schedule 1
11
Insert:
12
tier 2 earner has the meaning given by section 22-30.
13
40 Clause 1 of Schedule 1
14
Insert:
15
tier 3 earner has the meaning given by section 22-30.
16
Taxation Administration Act 1953
17
41 Subsection 8AAB(4) (after table item 20)
18
Insert:
19
20A 282-19
Private Health Insurance
Act 2007
repayment of private
health insurance
premium reduction or
refund
42 Subsection 250-10(2) in Schedule 1 (after table item 45A)
20
Insert:
21
Amendments Schedule 1
Fairer Private Health Insurance Incentives Bill 2011 No. , 2011 23
45B
liability for excess
private health
insurance premium
reduction or refund
282-18
Private Health Insurance Act
2007
Taxation (Interest on Overpayments and Early Payments)
1
Act 1983
2
43 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
44 Section 3C (after item 55 of the table)
11
Insert:
12
60
Liabilities under section 282-18 of the Private Health Insurance Act 2007
45 After subparagraph 8E(1)(d)(iv)
13
Insert:
14
(iva) a liability under section 282-18 of the Private Health
15
Insurance Act 2007 that is notified in the notice of
16
assessment;
17
46 After subparagraph 8E(2)(d)(iv)
18
Insert:
19
(iva) a liability under section 282-18 of the Private Health
20
Insurance Act 2007, payable by the person immediately
21
before the post-notice crediting;
22
47 At the end of section 9
23
Add:
24
Schedule 1
Amendments
24 Fairer Private Health Insurance Incentives Bill 2011 No. , 2011
Liabilities under section 282-18 of the Private Health Insurance
1
Act 2007
2
(8) For the purposes of this section, if:
3
(a) the Commissioner gives a notice to a person under subsection
4
282-18(4) of the Private Health Insurance Act 2007; and
5
(b) the notice states that the person is liable to pay an amount to
6
the Commonwealth under section 282-18 of that Act; and
7
(c) the person pays the stated amount to the Commissioner; and
8
(d) the stated amount exceeds the amount the person is liable to
9
pay under that section; and
10
(e) the excess is refunded to the person or applied against any
11
liability of the person to the Commonwealth;
12
treat the excess as being overpaid by the person, and so refunded or
13
applied, as a result of the decision of the Commissioner to give the
14
notice.
15
Note 1:
The decision of the Commissioner to give the notice is a decision to
16
which this Act applies. See section 3.
17
Note 2:
Liabilities under section 282-18 of the Private Health Insurance Act
18
2007 are relevant tax. See section 3C.
19
48 Application
20
(1)
The amendments made by this Schedule apply in relation to premiums,
21
and amounts in respect of premiums, paid on and after 1 January 2012.
22
(2)
To avoid doubt, a choice under section 61-215 of the Income Tax
23
Assessment Act 1997, as substituted by this Schedule, does not have
24
effect for a premium, or an amount in respect of a premium, paid before
25
1 January 2012.
26