Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Current HansardDownload Current Hansard    View Or Save XMLView/Save XML

Previous Fragment    Next Fragment
Thursday, 4 February 2010
Page: 440


Senator LUDWIG (Special Minister of State and Cabinet Secretary) (10:42 AM) —I move:

That the bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

The Fairer Private Health Insurance Incentives (Medicare Levy Surcharge—Fringe Benefits) Bill 2009 [No. 2] will amend the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 to give effect to the recent budget measure to introduce three new private health insurance incentives tiers.

The bill will commence immediately after the commencement of the Fairer Private Health Insurance Incentives Act 2009.

This Bill was previously introduced into the House of Representatives on 27 May, 2009 where it was passed on 2 June, 2009. This Bill was previously introduced into the Senate on 15 June, 2009. On 9 September 2009 a motion moved in the Senate that this Bill be read a second time was defeated. This Bill is being reintroduced into the House of Representatives to give effect to the budget measure to introduce the private health insurance incentives tiers that will make the private health rebate fairer.

The A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 determines whether an individual is liable to pay the Medicare levy surcharge in respect of a reportable fringe benefits total they or their spouse may have. The individual’s income for surcharge purposes determines whether a person must pay the surcharge. If the individual’s income exceeds prescribed income thresholds they will need to pay the appropriate level of surcharge.

This bill inserts the new tier system in order to determine which level of surcharge a person must pay where they do not hold appropriate private health insurance.

Debate (on motion by Senator Ludwig) adjourned.