Commonwealth Numbered Acts

PRIVATE HEALTH INSURANCE INCENTIVES ACT 1997 No. 55, 1997 - SECT 3.4

(1) If the policy covers more than one person, the income test is satisfied in
respect of the financial year in question if the sum of the taxable incomes of
all of the persons whose incomes are required by subsection (2) to be taken
into account is less than the maximum amount under subsection (4). Note: For
taxable income, see section 3-5.

(2) The persons whose incomes are to be taken into account are:

   (a)  each person covered by the policy who is not a dependent child during
        the financial year; and

   (b)  the partner (if any) of each such person; and

   (c)  if all of the persons covered by the policy are dependent children at
        any time during that year-any parent of any of the persons covered,
        and the partner (if any) of the parent, but only if, in respect of
        that year:

        (i)    the parent, or his or her partner, made one or more payments of
               premiums in respect of the policy; or

        (ii)   a person (other than a parent of the dependent child or the
               partner (if any) of that parent) made one or more such
               payments, under an arrangement entered into with the parent or
               partner.

(3) For the purposes of subsection (2), a person is the partner of another
person only if, on the last day of the financial year, the person is the
partner of that person.

(4) The maximum amount is:

   (a)  if the persons covered by the policy do not include 2 or more
        dependent children at any time during the financial year concerned-
        $70,000; or

   (b)  if, at any time during the financial year, 2 or more dependent
        children are covered by the policy-the amount worked out as follows:
$70,000 + ($3,000 x (Number of dependent children - 1)). Example: If the
policy covers the members of a family that has 3 dependent children, the
maximum amount under subsection (4) is:
$70,000 + ($3,000 x (3 - 1)) = $76,000. Note: For dependent child, parent and
partner, see the Dictionary.