Commonwealth Numbered Regulations - Explanatory Statements

[Index] [Search] [Download] [Related Items] [Help]

PRIVATE HEALTH INSURANCE INCENTIVES AMENDMENT REGULATIONS 2001 (NO. 1) 2001 NO. 124

STATUTORY RULES 2001 No. 124

Issued by authority of the Minister for Health and Aged Care

Private Health Insurance Incentives Act 1998

Private Health Insurance Incentives Amendment Regulations 2001 (No. 1)

Section 19-40 of the Private Health Insurance Incentives Act 1998 (the Act) provides that the Governor-General may make Regulations prescribing matters for the purposes of the Act.

Paragraph 14A-1 (1)(b) of the Act specifies that a health fund will lose its status as a participating fund in the premiums reduction scheme if the health fund fails to comply with a condition of participation prescribed in the Regulations.

Paragraph 4(1)(a) of the Private Health Insurance Incentives Regulations 1998 (the PHII Regulations) requires health funds, on or before 15 July of each year, to issue to each participating contributor an annual written statement setting out the amount of the premium paid and the amount of the reduction under the premiums reduction scheme for the previous financial year. If a health fund does not provide an annual written statement, then under paragraph 14A-1 (1)(b) of the Act that health fund may lose its status as a participating fund in the premiums reduction scheme.

The purpose of the regulations is to allow information relating to the Medicare Levy Surcharge to be included on or with the annual statement issued by health funds to members under paragraph 4(1)(a) of the PHII Regulations. Previously, the regulations specified that the annual statement must not include, be included with, or accompany other information that does not relate specifically to the Federal Government 30% Rebate on private health insurance, except as provided by subregulation 10(5) of the National Health (Lifetime Health Cover) Regulations 2000.

The requirement that high income earners must hold private patient hospital cover to be exempt from the Medicare Levy Surcharge equal to 1% of taxable income is set out in the Medicare Levy Act 1986 and A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999. Allowing health funds to include in the annual statement details of the number of days in the previous financial year that the member was covered by private patient hospital cover will assist members in the preparation of their annual taxation return. This approach is efficient from the perspective of health funds, their members and the Australian Taxation Office.

Details of the regulations are in the Attachment.

The regulations commenced on gazettal.

ATTACHMENT

Details of the Private Health Insurance Incentives Amendment Regulations 2001 (No. 1)

Regulation 1 provides that the Regulations maybe cited as the Private Health Insurance Incentives Amendment Regulations 2001 (No. 1).

Regulation 2 provides that the Regulations commence on gazettal.

Regulation 3 provides that the PHII Regulations are amended by Schedule 1.

Item 1 of Schedule 1 substitutes Regulation 6 of the PHII Regulations. The new wording preserves all of the provisions of the former regulation, expressing them in clearer terms. The revised Regulation 6 also incorporates an item (Paragraph 6(2)(c)) which provides that in addition to information given under regulation 10 of the National Health (Lifetime Health Cover) Regulations 2000, a statement issued under paragraph 4(1)(a) of the PHII Regulations can include, or be included with, information about the medicare levy surcharge imposed under the Medicare Levy Act 1986 or the A New Tax System (Medicare Levy Surcharge Fringe Benefits) Act 1999.