Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Private Health Insurance Incentives Bill 1998

Part 8 Dictionary of defined expressions

Division 20 Defined expressions

20-5   Definitions

                   In this Act, unless the contrary intention appears:

ancillary cover : a * private health insurance policy provides ancillary cover if people covered by the policy are covered (wholly or partly) for liability to pay fees and charges for ancillary health benefits within the meaning of section 67 of the National Health Act 1953 .

appropriate private health insurance policy means a * private health insurance policy that satisfies the following conditions:

                     (a)  it provides * hospital cover, * ancillary cover or * combined cover;

                     (b)  the person, or each of the persons, covered by it is an eligible person within the meaning of section 3 of the Health Insurance Act 1973 , or is treated as such a person because of section 6 of that Act.

business day means a day other than a Saturday, a Sunday or a public holiday in the place concerned.

combined cover : a * private health insurance policy provides combined cover if it provides both * hospital cover and * ancillary cover.

Commissioner means the Commissioner of Taxation.

dependent child , in relation to an * appropriate private health insurance policy, means a person:

                     (a)  who is covered by the policy; and

                     (b)  whom the * health fund that issued the policy accepts as a dependent child for the purposes of the policy;

but does not include:

                     (c)  a person who is the * partner of another person; or

                     (d)  a person (other than a full-time student) who is 18 years of age or older; or

                     (e)  a full-time student who is 25 years of age or older.

fringe benefit means:

                     (a)  a fringe benefit as defined by subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 ; and

                     (b)  a benefit that would be a fringe benefit (as defined by subsection 136(1) of that Act) if paragraphs (d) and (e) of the definition of employer in that subsection of that Act were omitted.

health fund means a registered organisation within the meaning of Part VI of the National Health Act 1953 .

HIC means the Health Insurance Commission.

hospital cover : a * private health insurance policy provides hospital cover if it is an applicable benefits arrangement, within the meaning of section 5A of the National Health Act 1953 , to which paragraph 5A(1)(a) of that Act applies.

incentive amount has the meaning given by section 20-10.

incentive payments scheme means the scheme provided for by Chapter 2.

Managing Director means the Managing Director of the Health Insurance Commission within the meaning of the Health Insurance Act 1973 .

notification period , in relation to a month, means the period starting on the first day of the month and finishing on the seventh day of the month.

parent of a dependent child means:

                     (a)  unless the dependent child is a full-time student who is 18 years of age or older—a person who has the right (whether alone or jointly with another person):

                              (i)  to have the daily care and control of the child; and

                             (ii)  to make decisions about the daily care and control of the child; or

                     (b)  if the dependent child is a full-time student who is 18 years of age or older—a person who is primarily responsible (whether alone or jointly with another person) for the maintenance and support of the student.

participant in the premiums reduction scheme has the meaning given by section 12-10.

participating fund for a financial year means a health fund referred to in subsection 14-5(3) in respect of that year.

partner , in relation to another person, means:

                     (a)  a person who is legally married to the other person and is not living separately and apart from the other person on a permanent basis; or

                     (b)  a person who, although not legally married to the other person, lives with the other person on a bona fide domestic basis as the husband or wife of the other person.

pay a premium includes make a payment in respect of a premium.

premiums reduction scheme means the scheme provided for by Chapter 3.

private health insurance policy means a contract of insurance that was entered into by a * health fund in the course of carrying on a health insurance business within the meaning of section 67 of the National Health Act 1953 .

tax file number means a tax file number as defined in section 202A of the Income Tax Assessment Act 1936 .

type of cover , in relation to a private health insurance policy, means:

                     (a)  * hospital cover; or

                     (b)  * ancillary cover; or

                     (c)  * combined cover.

you : see subsection 1-15(5).

20-10   Meaning of incentive amount

             (1)  For the purposes of this Act, the incentive amount for an * appropriate private health insurance policy for a financial year is worked out in accordance with the following table:

 

Incentive amounts

Item

Number and kinds of people covered by the policy

Policy provides * hospital cover but not * ancillary cover

Policy provides * ancillary cover but not * hospital cover

Policy provides * combined cover

1

3 or more people

$350

$100

$450

2

One dependent child and one other person

$350

$100

$450

3

2 people neither of whom is a dependent child

$200

$50

$250

4

One person

$100

$25

$125

             (2)  If the amount of the premium paid by a person, or by a person’s employer as a * fringe benefit for the person, under the * appropriate private health insurance policy is for part only of the financial year, the incentive amount is worked out using the following formula: