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Private Health Insurance (Reinsurance Trust Fund Levy) Bill 2003
WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have
any official legal status. Other sources should be consulted to determine
the subsequent official status of the Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer & Copyright Details
Private Health Insurance (Reinsurance Trust Fund Levy) Bill 2003
Date Introduced:
House: House of Representatives
Portfolio: Health and Ageing
To reimpose the Reinsurance Trust Fund Levy.
This is one of four Bills reimposing existing levies on private health insurers. Full background is set out in Bills Digest No. 139, 2002-03 (National Health Amendment (Private Health Insurance Levies) Bill 2003). Separate Bills are required for each levy because they could be construed as imposing taxation and the Constitution requires that such Bills 'deal with one subject of taxation only'.(1)
This levy is imposed on each registered health benefits organization to provide for internal cross-subsidisation within the private health insurance industry for aged, chronic and long-term acute care patients. Participation in the Reinsurance Trust Fund is mandatory for registered health insurance providers.
The rate of the Reinsurance Trust Fund levy is set by the Private Health Administration Council ('PHIAC') according to principles determined by the Minister for Health under section 73BC of the National Health Act 1953. The Explanatory Memorandum notes that the fund 'operates as a zero sum equation. The amount of money paid into it is the amount that is redistributed to industry.'(2)
Clause 6 imposes the Reinsurance Trust Fund levy on 'each registered health benefits organization'. The levy is imposed 'on each day specified in the Regulations as a Reinsurance Trust Fund levy day'. There cannot be more than four such days in a financial year, although the Minister for Health can specify up to two supplementary levy days. The Explanatory Memorandum notes that the latter provision 'is included to cover unforeseen needs in relation to the Reinsurance Trust Fund.'(3)
Clause 9 validates all previous Reinsurance Trust Fund payments made before the commencement of the current Bill.
Section 55.
Explanatory Memorandum, p. 2.
This paper has been prepared for general distribution to Senators and Members of the Australian Parliament. While great care is taken to ensure that the paper is accurate and balanced, the paper is written using information publicly available at the time of production. The views expressed are those of the author and should not be attributed to the Information and Research Services (IRS). Advice on legislation or legal policy issues contained in this paper is provided for use in parliamentary debate and for related parliamentary purposes. This paper is not professional legal opinion. Readers are reminded that the paper is not an official parliamentary or Australian government document.
ISSN 1328-8091
© Commonwealth of Australia 2003
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Published by the Department of the Parliamentary Library, 2003.