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This is a Bill, not an Act. For current law, see the Acts databases.
2002-2003
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
National
Health Amendment (Private Health Insurance Levies) Bill
2003
No. ,
2003
(Health and
Ageing)
A Bill for an Act to amend the
National Health Act 1953, and for related purposes
Contents
Part 1—Amendments 3
National Health Act
1953 3
Part 2—Saving
provision 22
A Bill for an Act to amend the National Health Act
1953, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the National Health Amendment (Private Health
Insurance Levies) Act 2003.
This Act commences on 1 July 2004.
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repealed as set out in the applicable items in the Schedule concerned, and any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.
1 Subsection 4(1)
Insert:
ACAC means an Acute Care Advisory Committee established under
section 3B of the Health Insurance Act 1973.
2 Subsection 4(1)
Insert:
ACAC review levy means an ACAC review levy imposed on
registered health benefits organizations under section 6 of the ACAC Review
Levy Act.
Note: ACAC review levy may be imposed on an ACAC review levy
day and on a supplementary ACAC review levy day.
3 Subsection 4(1)
Insert:
ACAC Review Levy Act means the Private Health Insurance
(ACAC Review Levy) Act 2003.
4 Subsection 4(1)
Insert:
collapsed organization levy means a collapsed organization
levy imposed on registered health benefits organizations under section 7 of
the Collapsed Organization Levy Act.
5 Subsection 4(1)
Insert:
Collapsed Organization Levy Act means the Private Health
Insurance (Collapsed Organization Levy) Act 2003.
6 Subsection 4(1)
Insert:
Council administration levy means a Council administration
levy imposed on registered health benefits organizations under section 6 of
the Council Administration Levy Act.
Note: Council administration levy may be imposed on a
Council administration levy day and on a supplementary Council administration
levy day.
7 Subsection 4(1)
Insert:
Council Administration Levy Act means the Private Health
Insurance (Council Administration Levy) Act 2003.
8 Subsection 4(1)
Insert:
Health Benefits Reinsurance Trust Fund means the Health
Benefits Reinsurance Trust Fund established by subsection 73BC(2).
9 Subsection 4(1)
Insert:
late payment penalty means a penalty payable under
section 83C.
10 Subsection 4(1)
Insert:
Levy Act means:
(a) the ACAC Review Levy Act; or
(b) the Collapsed Organization Levy Act; or
(c) the Council Administration Levy Act; or
(d) the Reinsurance Trust Fund Levy Act.
11 Subsection 4(1)
Insert:
collapsed organization levy amount means:
(a) a collapsed organization levy; or
(b) a late payment penalty in respect of an unpaid amount of that
levy.
12 Subsection 4(1)
Insert:
private health insurance levy means:
(a) an ACAC review levy; or
(b) a collapsed organization levy; or
(c) a Council administration levy; or
(d) a Reinsurance Trust Fund levy.
13 Subsection 4(1)
Insert:
Reinsurance Trust Fund levy means a Reinsurance Trust Fund
levy imposed on registered health benefits organizations under section 6 of
the Reinsurance Trust Fund Levy Act.
Note: Reinsurance Trust Fund levy may be imposed on a
Reinsurance Trust Fund levy day and on a supplementary Reinsurance Trust Fund
levy day.
14 Subsection 4(1)
Insert:
Reinsurance Trust Fund Levy Act means the Private Health
Insurance (Reinsurance Trust Fund Levy) Act 2003.
15 After section 73ABB
Insert:
It is a condition of registration of a registered health benefits
organization that the organization pay:
(a) any Reinsurance Trust Fund levy it is liable to pay; and
(b) a late payment penalty in respect of an unpaid amount of that
levy.
16 Subsection 73BC(1)
Repeal the subsection, substitute:
(1) This section provides for:
(a) the establishment of the Health Benefits Reinsurance Trust Fund;
and
(b) payments to be made into the Fund in relation to amounts that
registered health benefits organizations pay by way of:
(i) Reinsurance Trust Fund levy; and
(ii) late payment penalty in respect of an unpaid amount of that levy;
and
(c) payments to be made out of the Fund to registered health benefits
organizations for the purpose of reallocating the amounts of benefits paid by
the organizations.
The Commonwealth, States and Territories may also make payments into the
Fund.
17 Paragraph 73BC(5)(b)
Repeal the paragraph, substitute:
(b) if an amount of Reinsurance Trust Fund levy is paid by a registered
health benefits organization—an amount equal to that amount of levy;
and
(ba) if an amount of late payment penalty in respect of an unpaid amount
of that levy is paid by a registered health benefits organization—an
amount equal to that amount of penalty; and
18 After subsection 73BC(5)
Insert:
(5AA) The Consolidated Revenue Fund is appropriated for the purposes of
paragraphs (5)(b) and (ba).
19 Paragraph 73BC(5C)(a)
Repeal the paragraph, substitute:
(a) the principles for determining the rate of Reinsurance Trust Fund levy
imposed on a levy day; and
20 Subsections 73BC(6) to (11)
Repeal the subsections.
21 Subsection 73BC(13)
Insert:
levy day means:
(a) a Reinsurance Trust Fund levy day specified in the regulations made
for the purposes of section 6 of the Reinsurance Trust Fund Levy Act;
or
(b) a supplementary Reinsurance Trust Fund levy day specified in a
determination by the Minister under section 6 of that Act.
22 Paragraphs 82G(1)(h) and (j)
Repeal the paragraphs.
23 At the end of Part VIAA
Add:
(1) If an amount of a kind specified in column 2 of the following table is
paid by a registered health benefits organization, an amount equal to that
amount is payable to the Council for the purpose specified in column 3 of the
table:
|
Amounts payable to Council for certain purposes |
||
|---|---|---|
|
Item |
If an amount of this kind is paid... |
an amount equal to that amount is payable to the Council for the purpose
of... |
|
1 |
ACAC review levy |
meeting the administrative costs of reviews conducted by ACAC under
section 3B of the Health Insurance Act 1973. |
|
2 |
late payment penalty in respect of unpaid ACAC review levy |
meeting the administrative costs of reviews conducted by ACAC under
section 3B of the Health Insurance Act 1973. |
|
3 |
collapsed organization levy |
helping a registered health benefits organization that is unable to meet
its liabilities to its contributors to meet those liabilities. |
|
4 |
late payment penalty in respect of unpaid collapsed organization
levy |
helping a registered health benefits organization that is unable to meet
its liabilities to its contributors to meet those liabilities. |
|
5 |
Council administration levy |
meeting the general administrative costs of the Council. |
|
6 |
late payment penalty in respect of unpaid Council administration
levy |
meeting the general administrative costs of the Council. |
(2) The Consolidated Revenue Fund is appropriated for the purposes of this
section.
24 After Part VIC
Insert:
(1) This Part contains provisions relating to the administration of the
following levies that are imposed on registered health benefits organizations by
the Levy Act:
(a) ACAC review levy;
(b) collapsed organization levy;
(c) Council administration levy;
(d) Reinsurance Trust Fund levy.
(2) The following table tells you where to find the provisions dealing
with various issues:
|
Where to find the provisions on various issues |
||
|---|---|---|
|
Item |
Issue |
Provisions |
|
1 |
what is the time for paying the levy? |
section 83B |
|
2 |
when is late payment penalty payable? |
section 83C |
|
3 |
who must the levy and late payment penalty be paid to? |
section 83D |
|
4 |
how are the levy and late payment penalty recovered? |
section 83E |
|
5 |
in what circumstance can late payment penalty in respect of certain levies
be waived? |
section 83F |
|
6 |
in what circumstances can the collapsed organization levy, and late payment
penalty in respect of that levy, be waived? |
section 83G |
|
7 |
what kind of information has to be provided to the Council or kept by an
organization? |
sections 83H to 83J |
|
8 |
when may an authorised officer enter premises and search for
documents? |
sections 83L to 83O |
(1) A private health insurance levy becomes due and payable by a
registered health benefits organization on the payment day worked out using the
following table:
|
Payment day for private health insurance levy |
|||
|---|---|---|---|
|
Item |
This kind of levy... |
imposed on this day... |
becomes due and payable on... |
|
1 |
ACAC review levy |
ACAC review levy day |
the day specified in the regulations as the payment day for the levy
day. |
|
2 |
ACAC review levy |
supplementary ACAC review levy day |
the day determined in writing by the Minister as the payment day for the
supplementary levy day. |
|
3 |
collapsed organization levy |
collapsed organization levy day |
the day determined in writing by the Minister as the payment day for the
levy day. |
|
4 |
Council administration levy |
Council administration levy day |
the day specified in the regulations as the payment day for the levy
day. |
|
5 |
Council administration levy |
supplementary Council administration levy day |
the day determined in writing by the Minister as the payment day for the
supplementary levy day. |
|
6 |
Reinsurance Trust Fund levy |
Reinsurance Trust Fund levy day |
the day specified in the regulations as the payment day for the levy
day. |
|
7 |
Reinsurance Trust Fund levy |
supplementary Reinsurance Trust Fund levy day |
the day determined in writing by the Minister as the payment day for the
supplementary levy day. |
(2) Before making a determination under item 2, 3, 5 or 7 of the
table in subsection (1), the Minister must obtain, and take into account,
advice from the Council in relation to the day that is to be specified in the
determination.
(3) An advice given to the Minister under subsection (2) in relation
to a determination under item 3 of the table in subsection (1) must be
laid before each House of the Parliament with the determination.
(4) A determination under item 2, 3 or 5 of the table in
subsection (1) is a disallowable instrument for the purposes of
section 46A of the Acts Interpretation Act 1901.
(1) If a private health insurance levy remains wholly or partly unpaid by
a registered health benefits organization after it becomes due and payable, the
organization is liable to pay a late payment penalty under this
section.
(2) The late payment penalty is calculated:
(a) at the prescribed rate; and
(b) on the unpaid amount of the levy; and
(c) for the period:
(i) starting when the levy becomes due and payable; and
(ii) ending when the levy, and the penalty payable under this section,
have been paid in full.
The following must be paid to the Council:
(a) a private health insurance levy that is due and payable;
(b) a late payment penalty.
(1) A private health insurance levy that is due and payable is a debt due
to the Commonwealth.
(2) A late payment penalty is a debt due to the Commonwealth.
(3) The Council may recover an amount referred to in subsection (1)
or (2) as a debt by action in a court of competent jurisdiction.
(1) This section applies if a late payment penalty is payable by a
registered health benefits organization in respect of an unpaid amount
of:
(a) an ACAC review levy; or
(b) a Council administration levy; or
(c) a Reinsurance Trust Fund levy.
(2) The Council may waive the whole or a part of an amount of late payment
penalty if the Council considers that there are good reasons for doing
so.
(1) If a collapsed organization levy amount is payable by a registered
health benefits organization, the organization may apply for a waiver under this
section.
(2) The application must be in writing and in the prescribed
form.
(3) The Minister may waive the whole or a part of the collapsed
organization levy amount if satisfied that the payment of the amount by the
organization would have a significantly adverse affect on the
organization’s ability to comply with:
(a) the solvency requirements; or
(b) the capital adequacy requirements.
(4) Before making a decision under subsection (3), the Minister must
obtain, and take into account, advice from the Council as to whether to waive
the collapsed organization levy amount.
(5) The Minister must notify the organization of the Minister’s
decision under subsection (3).
(6) The notification must be:
(a) in writing; and
(b) given to the organization within 28 days after the day on which the
decision under subsection (3) is made.
(7) In this section:
capital adequacy requirements means:
(a) the capital adequacy standard that a registered health benefits
organization is required to comply with under section 73BCI; and
(b) any capital adequacy directions given to the organization under
section 73BCJ.
capital adequacy standard means a capital adequacy standard
established by the Council under section 73BCG for the purposes of
Division 3B of Part VI.
solvency requirements means:
(a) the solvency standard that a registered health benefits organization
is required to comply with under section 73BCD; and
(b) any solvency directions given to the organization under
section 73BCE.
solvency standard means a solvency standard established by
the Council under section 73BCB for the purposes of Division 3A of
Part VI.
(1) A registered health benefits organization must lodge a return with the
Council for each census day for the following levies:
(a) an ACAC review levy;
(b) a collapsed organization levy;
(c) a Council administration levy.
(2) The return must:
(a) be in a form approved by the Council; and
(b) be lodged within 28 days after a census day for a levy referred to in
subsection (1); and
(c) set out the following information:
(i) the number of contributors who, on the census day, contribute to the
health benefits fund conducted by the organization;
(ii) the number of contributors who, on that day, contribute in respect of
one person to the health benefits fund conducted by the organization;
(iii) the number of contributors who, on that day, contribute in respect
of more than one person to the health benefits fund conducted by the
organization;
(iv) any other prescribed matter relating to the setting of the rate of a
levy referred to in subsection (1); and
(d) be accompanied by a statutory declaration that verifies the
information contained in the return.
(3) A registered health benefits organization commits an offence if the
organization fails to lodge the return.
Penalty: 60 penalty units.
(4) The offence created by subsection (3) is an offence of strict
liability.
Note: For strict liability, see
section 6.1 of the Criminal Code.
(5) In this section:
census day means a census day specified:
(a) in the regulations made for the purposes of:
(i) subparagraph 7(2)(a)(i) of the ACAC Review Levy Act; or
(ii) subparagraph 7(2)(a)(i) of the Council Administration Levy Act;
or
(b) in a determination by the Minister under:
(i) subparagraph 7(2)(a)(ii) of the ACAC Review Levy Act; or
(ii) paragraph 9(3)(a) of the Collapsed Organization Levy Act;
or
(iii) subparagraph 7(2)(a)(ii) of the Council Administration Levy
Act.
Records to be kept by an organization
(1) A registered health benefits organization must keep records that are
relevant to:
(a) whether the organization is liable to pay a private health insurance
levy; or
(b) the amount of the private health insurance levy that the organization
is liable to pay.
(2) The records must be kept in:
(a) an electronic form; or
(b) if the Council approves another form—that form.
Records to be retained for a certain period
(3) The records must be retained for a period of 7 years (or a shorter
period prescribed by the regulations) starting on the later of:
(a) the day on which the records were created; or
(b) the day on which this Act commences.
Offences
(4) A registered health benefits organization commits an offence if the
organization fails to:
(a) keep the records; or
(b) keep the records in the form required by or under subsection (2);
or
(c) retain the records for the period required by or under
subsection (3).
Penalty: 60 penalty units.
(5) The offence created by subsection (4) is an offence of strict
liability.
Note: For strict liability, see
section 6.1 of the Criminal Code.
Retrospective effect not intended
(6) Nothing in this section is to be taken to have required an
organization to do an act or thing before the day on which this Act
commences.
(1) If the Council believes on reasonable grounds that a registered health
benefits organization is capable of giving information that is relevant
to:
(a) whether the organization is liable to pay a private health insurance
levy; or
(b) the amount of the private health insurance levy that the organization
is liable to pay;
the Council may request the organization to the give the Council the
information.
(2) Without limiting subsection (1), the Council may request an
organization to give the information by giving the Council a record, or a copy
of a record, kept under section 83I.
(3) The request:
(a) must be made in writing; and
(b) must be served on the public officer of the organization;
and
(c) must state what information must be given to the Council;
and
(d) may require the information to be verified by statutory declaration;
and
(e) must specify the day on or before which the information must be given;
and
(f) must specify the manner in which the information must be given;
and
(g) must contain a statement to the effect that a failure to comply with
the request is an offence.
The day specified under paragraph (e) must be at least 14 days after
the day on which the request is made.
(4) A registered health benefits organization commits an offence if the
organization fails to comply with the request.
Penalty: 60 penalty units.
(5) The offence created by subsection (4) is an offence of strict
liability.
Note: For strict liability, see
section 6.1 of the Criminal Code.
In this Division, unless the contrary intention appears:
authorised officer means a person who is:
(a) a member of staff of the Council; and
(b) authorised in writing by the Minister for the purposes of this
Division.
levy-related documents means any document (including a copy
of a document) that contains information relevant to:
(a) whether a registered health benefits organization is liable to pay a
private health insurance levy; or
(b) the amount of the private health insurance levy that the organization
is liable to pay.
occupier, in relation to premises, means:
(a) the person in charge or control, or apparently in charge or control,
of the premises; or
(b) a person who represents, or apparently represents, that
person.
premises includes the following:
(a) a structure, building, vehicle or vessel;
(b) a place (whether enclosed or built on);
(c) a part of a thing referred to in paragraph (a) or (b).
search powers, in relation to levy-related documents, means
the power to search for, inspect, take extracts from, and make copies of,
levy-related documents.
warrant means a warrant issued under
section 83M.
(1) An authorised officer may enter any premises for the purpose of
exercising search powers in relation to levy-related documents if:
(a) the occupier of the premises consents to the entry; and
(b) the officer shows the occupier his or her identity card.
(2) Before obtaining the consent of the occupier, the authorised officer
must inform the occupier that he or she may refuse consent.
(3) An entry by an authorised officer with the consent of the occupier is
not lawful if the consent of the occupier is not voluntary.
(4) The authorised officer must leave the premises if the occupier asks
the officer to do so.
(1) If an authorised officer has reason to believe that there are
levy-related documents on particular premises, the officer may apply to a
magistrate for a warrant authorising the officer to enter the premises for the
purpose of exercising search powers in relation to the documents.
(2) If the magistrate is satisfied by information on oath or affirmation
that there are reasonable grounds for believing that there are levy-related
documents on the premises, the magistrate may issue a warrant.
(3) The warrant must:
(a) authorise one or more authorised officers to enter the premises for
the purpose of exercising search powers in relation to levy-related documents;
and
(b) state whether the entry is authorised at any time of the day or night
or during specified hours of the day or night; and
(c) authorise the officers to use such assistance and force as is
necessary and reasonable to enter the premises for the purpose of exercising
search powers in relation to levy-related documents.
(4) The authorised officers do not have to be named in the
warrant.
An authorised officer executing a warrant in respect of premises must,
before entering the premises under the warrant:
(a) announce that he or she is authorised to enter the premises;
and
(b) before using assistance and force under the warrant to enter the
premises—give any person on the premises an opportunity to allow the
authorised officer to enter the premises without the use of assistance and
force.
Circumstances in which this section applies
(1) This section applies if:
(a) a warrant is being executed by an authorised officer in respect of
premises; and
(b) the occupier of the premises is present.
Obligations of authorised officer executing a warrant
(2) The authorised officer must:
(a) make a copy of the warrant available to the occupier; and
(b) show the occupier his or her identity card; and
(c) inform the occupier of his or her rights and responsibilities under
subsections (3) to (7).
Persons entitled to observe execution of warrant
(3) The occupier, or a person nominated by the occupier who is readily
available, is entitled to observe the execution of the warrant.
(4) The right to observe the execution of the warrant ceases if the
occupier or the nominated person impedes that execution.
(5) Subsection (3) does not prevent the execution of the warrant in 2
or more areas of the premises at the same time.
Occupier to provide reasonable facilities and assistance
(6) The occupier must provide the authorised officer and any person
assisting that officer with all reasonable facilities and assistance for the
effective exercise of their powers under the warrant.
(7) An occupier commits an offence if the occupier fails to comply with
subsection (6).
Penalty: 10 penalty units.
(8) The offence created by subsection (7) is an offence of strict
liability.
Note: For strict liability, see
section 6.1 of the Criminal Code.
(1) For the purposes of this Division, the Council must issue an identity
card to an authorised officer in a form approved by the Council. It must contain
a recent photograph of the authorised officer.
(2) A person commits an offence if:
(a) the person has been issued with an identity card; and
(b) the person ceases to be an authorised officer; and
(c) the person does not, as soon as it is practicable after so ceasing,
return the identity card to the Council.
Penalty: 1 penalty unit.
(3) The offence created by subsection (2) is an offence of strict
liability.
Note: For strict liability, see
section 6.1 of the Criminal Code.
(4) An authorised officer must carry the identity card at all times when
exercising powers or performing functions under this Division as an authorised
officer.
25 Section 83
Renumber as section 83Z.
26 Subsection 92A(1)
Omit “section 83”, substitute
“section 83Z”.
27 Before subsection 105AB(6A)
Insert:
(6AD) An application may be made to the Tribunal for review of a decision
by the Council under subsection 83F(2) not to waive, or to waive only part of,
an amount of late payment penalty.
(6AE) An application may be made to the Tribunal for review of a decision
by the Minister under subsection 83G(3) not to waive, or to waive only a part
of, a collapsed organization levy amount.
28 At the end of
section 140
Add:
(3) The regulations may make provision in relation to:
(a) the methods for paying a private health insurance levy or a late
payment penalty; and
(b) the extension of the payment day for a private health insurance levy;
and
(c) the refund or other application of a private health insurance levy, or
a late payment penalty, that is overpaid.
29 Saving of existing Ministerial
principles
(1) This item applies if:
(a) principles determined by the Minister under subsection 73BC(5B) of the
National Health Act were in force immediately before 1 July 2004;
and
(b) the principles were principles for determining the method of, and the
matters to be taken into account in, calculating the amounts to be paid into the
Reinsurance Trust Fund by registered health benefits organizations.
(2) The principles:
(a) continue in force despite the amendment made by item 19 of this
Schedule to section 73BC of the National Health Act; and
(b) apply for the purpose of determining the rate of the Reinsurance Trust
Fund levy imposed on a levy day but only until the principles are varied under
that section.
(3) In this item:
levy day means:
(a) a Reinsurance Trust Fund levy day specified in the regulations made
for the purposes of section 6 of the Private Health Insurance
(Reinsurance Trust Fund Levy) Act 2003; or
(b) a supplementary Reinsurance Trust Fund levy day specified in a
determination by the Minister under section 6 of that Act.
National Health Act means the National Health Act
1953.
Reinsurance Trust Fund means the Health Benefits Reinsurance
Trust Fund established by subsection 73BC(2) of the National Health
Act.
Reinsurance Trust Fund levy means a Reinsurance Trust Fund
levy imposed on registered health benefits organizations under section 6 of
the Private Health Insurance (Reinsurance Trust Fund Levy) Act
2003.
registered health benefits organization means an organization
registered under Part VI of the National Health Act for the purpose of
conducting a health benefits fund.