1998
   The Parliament of the
   Commonwealth of Australia
   HOUSE OF REPRESENTATIVES
   Presented and read a first time
   Private Health Insurance Incentives Amendment Bill 1998
   No. , 1998
   (Health and Aged Care)
   A Bill for an Act to amend the Private Health Insurance Incentives Act
   1997, and for related purposes

   ISBN: 0642 378126

   Contents

   A Bill for an Act to amend the Private Health Insurance Incentives Act
   1997, and for related purposes

   The Parliament of Australia enacts:

      1 Short title

   This Act may be cited as the Private Health Insurance Incentives
   Amendment Act 1998.

      2 Commencement

   (1) Subject to subsection (2), this Act commences on the day on which
   it receives the Royal Assent.

   (2) Schedule 2 commences on 1 July 2000.

      3 Schedule(s)

   Subject to section 2, 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   Act is amended or repealed as set out in the applicable items in the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--Amendment of the Private Health Insurance Incentives Act
        1997

   1 Subsection 4-3(6)

   Repeal the subsection, substitute:

   (6) An application under this section may be made:

   (a) if the application is for registration in respect of a policy for
   the financial year that began on 1 July 1997--not later than 31
   December 1998; or

   (b) if the application is for registration in respect of a policy for
   the financial year that began on 1 July 1998--not later than 31
   December 1999.

   2 Subsection 5-1(1)

   Omit all the words before paragraph (a), substitute:

   Subject to subsection (1A), the amount of premium that, apart from this
   section, would be payable under a private health insurance policy in
   respect of which a person is a participant in the incentives scheme for
   a financial year (see section 5-2) is to be reduced by the amount (the
   reduction amount) worked out under whichever of the following
   paragraphs is applicable:

   3 After subsection 5-1(1)

   Insert:

   (1A) If the person has received a tax offset under Subdivision 61-G of
   the Income Tax Assessment Act 1997 in respect of the amount of premium:

   (a) where the amount of the offset is less than the reduction
   amount--the reduction amount is to be reduced by the amount of the
   offset; or

   (b) otherwise--the amount of the premium is not to be reduced under
   subsection (1).

   4 At the end of subsection 5-1(2)

   Add:

   ; or (e) the payment on or before 31 December 1998 of a part of a
   premium that relates to a period after 30 June 1999; or

   (f) the payment of a premium that is made after 31 December 1998.

   5 After paragraph 8-4(1)(b)

   Insert:

   ; and (c) policies in respect of which:

   (i) there was no reduction in premium for the relevant month; or

   (ii) the reduction in premium for the relevant month was reduced under
   subsection 5-1(1A).

   6 Schedule 1

   Insert:

   financial year means the financial year that began on 1 July 1997 or
   the financial year that began on 1 July 1998.

        Schedule 2--Repeal of the Private Health Insurance Incentives Act 1997

   1 The whole of the Act

   Repeal the Act.