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Medibank Private Sale Bill 2006

Schedule 1 Amendments commencing on the day after Royal Assent

Part 1 Sale of the Commonwealth’s equity in Medibank Private Limited

Health Insurance Commission (Reform and Separation of Functions) Act 1997

1  Section 3

Omit:

•    Following separation, the Commonwealth is to retain ownership of the nominated company.

2  At the end of section 34

Add:

             (7)  To avoid doubt, this section does not prevent or limit the formulation, entering into, or carrying out, of a Medibank Private sale scheme.

             (8)  In this section:

Medibank Private sale scheme has the same meaning as in the Medibank Private Sale Act 2006 .

3  Section 35

Repeal the section.



 

Part 2 Other amendments

National Health Act 1953

4  Subsection 68(3)

Omit “established”, substitute “that is, or is to be, conducted”.

5  Paragraph 73AAD(2)(d)

Repeal the paragraph, substitute:

                     (d)  if the organization is conducted for profit:

                              (i)  to distribute profits to shareholders in the organization; or

                             (ii)  to return capital to shareholders in the organization;

6  At the end of section 73AAD

Add:

             (3)  For the purposes of subparagraph (2)(d)(i), it is immaterial whether the profits were generated at a time when the organization was not conducted for profit.

7  After section 73AAD

Insert:

73AADA   Compensation for acquisition of property

             (1)  If:

                     (a)  the operation of:

                              (i)  paragraph 73AAD(2)(d); or

                             (ii)  subsection 73AAD(3);

                            in relation to a registered organization would result in an acquisition of property from a person otherwise than on just terms; and

                     (b)  subitem 58(3) of Schedule 2 to the Medibank Private Sale Act 2006 does not apply in relation to that operation;

the organization is liable to pay a reasonable amount of compensation to the person.

             (2)  If the organization and the person do not agree on the amount of the compensation, the person may institute proceedings in the Court for the recovery from the organization of such reasonable amount of compensation as the court determines.

             (3)  The organization may make a payment from its health benefits fund for the purpose of paying compensation under this section.

             (4)  A payment, or a decision to make a payment, under subsection (3) does not contravene section 73AAC or 73AAD.

             (5)  In this section:

acquisition of property has the same meaning as in paragraph 51(xxxi) of the Constitution.

just terms has the same meaning as in paragraph 51(xxxi) of the Constitution.