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Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2009 [No. 2]

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2008-2009

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2009

 

No.      , 2009

 

(Treasury)

 

 

 

A Bill for an Act to amend the Medicare Levy Act 1986 , and for related purposes

   

   



Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Schedule(s)......................................................................................... 2

Schedule 1—Amendments                                                                                                 3

Medicare Levy Act 1986                                                                                              3

 



A Bill for an Act to amend the Medicare Levy Act 1986 , and for related purposes

The Parliament of Australia enacts:

1   Short title

                   This Act may be cited as the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Act 2009 .

2   Commencement

             (1)  Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day on which this Act receives the Royal Assent.

 

2.  Schedule 1

Immediately after the commencement of Schedule 1 to the Fairer Private Health Insurance Incentives Act 2009

 

Note:          This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

             (2)  Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

3   Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.



 

Schedule 1 Amendments

   

Medicare Levy Act 1986

1  Subsection 3(1)

Insert:

family tier 1 threshold has the same meaning as in the Income Tax Assessment Act 1997 .

2  Subsection 3(1) (definition of singles surcharge threshold )

Repeal the definition.

3  Subsection 3(1)

Insert:

singles tier 1 threshold has the same meaning as in the Income Tax Assessment Act 1997 .

4  Subsection 3(1)

Insert:

tier 2 earner has the meaning given by section 3A.

5  Subsection 3(1)

Insert:

tier 3 earner has the meaning given by section 3A.

6  Sections 3AA and 3A

Repeal the sections, substitute:

3A   Meaning of tier 2 earner and tier 3 earner

             (1)  Subject to this section, for the purposes of this Act:

                     (a)  tier 2 earner has the same meaning as in the Income Tax Assessment Act 1997 ; and

                     (b)  tier 3 earner has the same meaning as in that Act.

             (2)  In determining whether a person is a tier 2 earner or tier 3 earner for a year of income for the purposes of this Act, section 61-225 of the Income Tax Assessment Act 1997 operates with the modification set out in subsection (3).

             (3)  Replace paragraph 61-225(1)(b) of the Income Tax Assessment Act 1997 with the following paragraph:

                     (b)  on any day in the year, you have one or more dependants (within the meaning of the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 ), other than a dependant to whom you are married (within the meaning of that Act):

7  Subsection 8B(2)

Omit “the singles surcharge threshold”, substitute “the person’s singles tier 1 threshold”.

8  At the end of section 8B

Add:

             (3)  Increase the amount of each percentage mentioned in subsection (2) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.

             (4)  Increase the amount of each percentage mentioned in subsection (2) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.

9  Subsection 8C(3)

Omit “family surcharge threshold”, substitute “family tier 1 threshold”.

10  At the end of section 8C

Add:

             (4)  Increase the amount of each percentage mentioned in subsection (3) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.

             (5)  Increase the amount of each percentage mentioned in subsection (3) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.

11  Paragraph 8D(3)(b)

Omit “family surcharge threshold”, substitute “family tier 1 threshold”.

12  Subparagraph 8D(4)(a)(i)

Omit “family surcharge threshold”, substitute “family tier 1 threshold”.

13  Paragraph 8D(4)(b)

Omit “family surcharge threshold”, substitute “family tier 1 threshold”.

14  After subsection 8D(4)

Insert:

          (4A)  Increase the amount of each percentage mentioned in subsections (3) and (4) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.

          (4B)  Increase the amount of each percentage mentioned in subsections (3) and (4) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.

15  Subsection 8E(2)

Omit “the singles surcharge threshold”, substitute “the beneficiary’s singles tier 1 threshold”.

16  At the end of section 8E

Add:

             (3)  Increase the amount of each percentage mentioned in subsection (2) by 0.25 of a percentage point if the beneficiary is a tier 2 earner for the year of income.

             (4)  Increase the amount of each percentage mentioned in subsection (2) by 0.5 of a percentage point if the beneficiary is a tier 3 earner for the year of income.

17  Subsection 8F(2)

Omit “family surcharge threshold”, substitute “family tier 1 threshold”.

18  At the end of section 8F

Add:

             (3)  Increase the amount of each percentage mentioned in subsection (2) by 0.25 of a percentage point if the beneficiary is a tier 2 earner for the year of income.

             (4)  Increase the amount of each percentage mentioned in subsection (2) by 0.5 of a percentage point if the beneficiary is a tier 3 earner for the year of income.

19  Paragraph 8G(2)(b)

Omit “family surcharge threshold”, substitute “family tier 1 threshold”.

20  Subparagraph 8G(3)(a)(i)

Omit “family surcharge threshold”, substitute “family tier 1 threshold”.

21  Paragraph 8G(3)(b)

Omit “family surcharge threshold”, substitute “family tier 1 threshold”.

22  After subsection 8G(3)

Insert:

          (3A)  Increase the amount of each percentage mentioned in subsections (2) and (3) by 0.25 of a percentage point if the beneficiary is a tier 2 earner for the year of income.

          (3B)  Increase the amount of each percentage mentioned in subsections (2) and (3) by 0.5 of a percentage point if the beneficiary is a tier 3 earner for the year of income.

23  Application

The amendments made by this Schedule apply to the 2010-11 year of income and later years of income.