Title Private Health Insurance (Reinsurance Trust Fund Levy) Bill 2003
Database Bills & Legislation
Long Title a Bill for an Act to impose a levy to be known as the Reinsurance Trust Fund levy on registered health benefits organizations, and for related purposes
Date 26-03-2003
Source House of Reps
Parl No. 40
Bill Number 03039
Bill Type Government
Portfolio Health and Ageing portfolio
Reps Bill Code T
Status Act
System Id legislation/bills/r1778_act/0001


Private Health Insurance (Reinsurance Trust Fund Levy) Bill 2003

 

 

 

 

 

 

Private Health Insurance (Reinsurance Trust Fund Levy) Act 2003

 

No. 73, 2003

 

 

 

 

 

An Act to impose a levy to be known as the Reinsurance Trust Fund levy on registered health benefits organizations, and for related purposes

  

  

  


Contents

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

2............ Commencement.................................................................................. 2

3............ Crown to be bound............................................................................. 2

4............ Extension of Act to external Territories............................................. 2

5............ Definitions.......................................................................................... 2

6............ Imposition of Reinsurance Trust Fund levy...................................... 3

7............ Rate of Reinsurance Trust Fund levy................................................. 3

8............ Minister to obtain advice from Council.............................................. 4

9............ Validation of Reinsurance Trust Fund levy........................................ 4

10.......... Validation of late payment penalty in respect of Reinsurance Trust Fund levy     5

11.......... Regulations......................................................................................... 5

 


 

 

Private Health Insurance (Reinsurance Trust Fund Levy) Act 2003

No. 73, 2003

 

 

 

An Act to impose a levy to be known as the Reinsurance Trust Fund levy on registered health benefits organizations, and for related purposes

[Assented to 15 July 2003]

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Private Health Insurance (Reinsurance Trust Fund Levy) Act 2003.

2  Commencement

                   This Act commences on 1 July 2004.

3  Crown to be bound

                   This Act binds the Crown in each of its capacities.

4  Extension of Act to external Territories

                   This Act extends to the Territory of Cocos (Keeling) Islands and to the Territory of Christmas Island.

5  Definitions

                   In this Act, unless the contrary intention appears:

Council has the same meaning as in the National Health Act.

National Health Act means the National Health Act 1953.

registered health benefits organization has the same meaning as in the National Health Act.

Reinsurance Trust Fund means the Health Benefits Reinsurance Trust Fund established by subsection 73BC(2) of the National Health Act.

Reinsurance Trust Fund levy means a Reinsurance Trust Fund levy imposed under section 6.

Reinsurance Trust Fund levy day means a Reinsurance Trust Fund levy day specified in the regulations made for the purposes of section 6.

supplementary Reinsurance Trust Fund levy day means a supplementary Reinsurance Trust Fund levy day specified in a determination by the Minister under section 6.

6  Imposition of Reinsurance Trust Fund levy

             (1)  Reinsurance Trust Fund levy is imposed on each registered health benefits organization:

                     (a)  on each day specified in the regulations as a Reinsurance Trust Fund levy day for a financial year; and

                     (b)  on each day (if any) determined in writing by the Minister as a supplementary Reinsurance Trust Fund levy day for a financial year.

             (2)  The regulations must not specify more than 4 levy days for a financial year.

             (3)  The determination by the Minister must not specify more than 2 supplementary levy days for a financial year.

7  Rate of Reinsurance Trust Fund levy

             (1)  The rate of Reinsurance Trust Fund levy imposed on a particular day is worked out using the following table:

 

Rate of Reinsurance Trust Fund levy

Item

The rate of levy imposed on a…

is the rate that…

1

Reinsurance Trust Fund levy day

(a) is determined in writing by the Council; and

(b) applies on that day.

2

supplementary Reinsurance Trust Fund levy day

(a) is determined in writing by the Minister; and

(b) applies on that day.

 

             (2)  In determining the rate of levy, the Council and the Minister must follow the Ministerial principles determined under subsection 73BC(5B) of the National Health Act.

             (3)  The rate of levy may be set at zero.

8  Minister to obtain advice from Council

                   Before making a determination under section 6 or item 2 of the table in subsection 7(1), the Minister must obtain, and take into account, advice from the Council in relation to the following matters:

                     (a)  whether to make a determination under section 6;

                     (b)  the day that is to be, or the days that are to be, specified as the supplementary Reinsurance Trust Fund levy day or days for a financial year;

                     (c)  the rate that is to be specified as the rate of Reinsurance Trust Fund levy imposed on the supplementary Reinsurance Trust Fund levy day or days.

9  Validation of Reinsurance Trust Fund levy

             (1)  This section applies to the amount of each payment that the Council purported before 1 July 2004 to determine that a registered health benefits organization was to make into the Reinsurance Trust Fund on a particular date under subsection 73BC(6) of the National Health Act.

             (2)  By force of this section, Reinsurance Trust Fund validation levy of an equal amount is taken to have been imposed on the organization on that date.

             (3)  The amount of Reinsurance Trust Fund validation levy for which the organization is liable is:

                     (a)  reduced by the sum of the amounts the organization paid into the Reinsurance Trust Fund in accordance with the determination the Council purported to make under subsection 73BC(6) of the National Health Act; and

                     (b)  increased by so much of the sum of those amounts as the organization recovers from the Council or the Reinsurance Trust Fund.

             (4)  Amounts paid by an organization in accordance with determinations the Council purported to make under subsection 73BC(6) of the National Health Act are taken to be applied to the Reinsurance Trust Fund validation levies in the order in which the Council purported to make the determinations.

10  Validation of late payment penalty in respect of Reinsurance Trust Fund levy

             (1)  This section applies to the amount of each payment that the Council purported before 1 July 2004 to determine that a registered health benefits organization was to make into the Reinsurance Trust Fund on a particular date under subsection 73BC(9) of the National Health Act.

             (2)  By force of this section, late payment validation penalty of an equal amount is taken to have been imposed on the organization on that date.

             (3)  The amount of late payment validation penalty for which the organization is liable is:

                     (a)  reduced by the sum of the amounts the organization paid into the Reinsurance Trust Fund in accordance with the determination the Council purported to make under subsection 73BC(9) of the National Health Act; and

                     (b)  increased by so much of the sum of those amounts as the organization recovers from the Council or the Reinsurance Trust Fund.

             (4)  Amounts paid by an organization in accordance with determinations the Council purported to make under subsection 73BC(9) of the National Health Act are taken to be applied to the late payment validation penalties in the order in which the Council purported to make the determinations.

11  Regulations

             (1)  The Governor‑General may make regulations prescribing matters:

                     (a)  required or permitted by this Act to be prescribed; or

                     (b)  necessary or convenient to be prescribed for carrying out or giving effect to this Act.

             (2)  Before the Governor‑General makes regulations under subsection (1), the Minister must take into consideration any relevant recommendation made to the Minister by the Council.

 

(39/03)

 

 

[Minister’s second reading speech made in—

House of Representatives on 26 March 2003

Senate on 23 June 2003]