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This is a Bill, not an Act. For current law, see the Acts databases.
2002-2003
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Private
Health Insurance (Collapsed Organization Levy) Bill
2003
No. ,
2003
(Health and
Ageing)
A Bill for an Act to impose a levy
to be known as the collapsed organization levy on registered health benefits
organizations, and for related purposes
Contents
A Bill for an Act to impose a levy to be known as the
collapsed organization levy on registered health benefits organizations, and for
related purposes
The Parliament of Australia enacts:
This Act may be cited as the Private Health Insurance (Collapsed
Organization Levy) Act 2003.
This Act commences on 1 July 2004.
This Act binds the Crown in each of its capacities.
This Act extends to the Territory of Cocos (Keeling) Islands and to the
Territory of Christmas Island.
In this Act, unless the contrary intention appears:
capital adequacy requirements means:
(a) the capital adequacy standard that a registered health benefits
organization is required to comply with under section 73BCI of the National
Health Act; and
(b) any capital adequacy directions given to the organization under
section 73BCJ of that Act.
capital adequacy standard means a capital adequacy standard
established by the Council under section 73BCG for the purposes of
Division 3B of Part VI of the National Health Act.
collapsed organization means a registered
health benefits organization in relation to which:
(a) a person is appointed as an administrator under section 82XD of
the National Health Act; or
(b) a winding up application is made under section 82YT of that
Act;
whether before or after the commencement of this Act.
collapsed organization levy means a collapsed organization
levy imposed under section 7.
collapsed organization levy day means a collapsed
organization levy day specified in a determination by the Minister under
section 7.
Council has the same meaning as in the National Health
Act.
levy determination means a determination by the Minister
under paragraph 7(1)(b).
National Health Act means the National Health Act
1953.
registered health benefits organization has the same meaning
as in the National Health Act.
solvency requirements means:
(a) the solvency standard that a registered health benefits organization
is required to comply with under section 73BCD of the National Health Act;
and
(b) any solvency directions given to the organization under
section 73BCE of that Act.
solvency standard means a solvency standard established by
the Council under section 73BCB for the purposes of Division 3A of
Part VI of the National Health Act.
The purpose of imposing a collapsed organization levy is to help meet a
collapsed organization’s liabilities to its contributors that it is unable
to meet itself.
(1) If:
(a) a registered health benefits organization is a collapsed organization;
and
(b) the Minister determines in writing that this section applies to the
organization;
collapsed organization levy is imposed on each registered health benefits
organization (other than an exempt organization) on each collapsed organization
levy day for a levy determination.
Note: Section 8 sets out the circumstances in which a
registered health benefits organization will be an exempt
organization.
(2) The Minister may determine in writing the day that is to be, or the
days that are to be, the collapsed organization levy day or days for a levy
determination.
(3) A determination under paragraph (1)(b) or subsection (2) is
a disallowable instrument for the purposes of section 46A of the Acts
Interpretation Act 1901.
(1) A registered health benefits organization is an exempt organization in
relation to a levy determination if:
(a) it is the collapsed organization; or
(b) the Minister determines in writing that the organization is an exempt
organization.
(2) The Minister may determine that an organization is an exempt
organization in relation to a levy determination if he or she is satisfied that
imposing the collapsed organization levy on the organization would have a
significantly adverse affect on the organization’s ability to comply
with:
(a) the solvency requirements; or
(b) the capital adequacy requirements.
(3) A determination under paragraph (1)(b) is a disallowable
instrument for the purposes of section 46A of the Acts Interpretation
Act 1901.
(1) The rate of collapsed organization levy imposed on a collapsed
organization levy day is the rate that:
(a) is determined in writing by the Minister; and
(b) applies on that day.
(2) In determining the rate of levy, the Minister must have regard to the
total value of the collapsed organization’s liabilities to its
contributors.
(3) The rate of levy:
(a) must be based on the number of contributors who contribute to the
health benefits fund conducted by the registered health benefits organization on
the day determined in writing by the Minister as the census day for the levy
day; and
(b) may be different for:
(i) contributors who contribute in respect of one person to the health
benefits fund conducted by the organization; and
(ii) contributors who contribute in respect of more than one person to the
health benefits fund conducted by the organization; and
(c) may be set at zero.
(4) A determination under subsection (1) or paragraph (3)(a) is
a disallowable instrument for the purposes of section 46A of the Acts
Interpretation Act 1901.
(1) Before making a determination under section 7, 8 or 9, the
Minister must obtain, and take into account, advice from the Council in relation
to the following matters:
(a) whether to make a levy determination;
(b) whether to make a determination under paragraph 8(1)(b);
(c) the day that is to be, or the days that are to be, specified as the
collapsed organization levy day or days;
(d) the rate that is to be specified as the rate of the collapsed
organization levy imposed on the collapsed organization levy day or
days;
(e) the day that is to be, or the days that are to be, specified as the
census day or days for the collapsed organization levy day or days;
(f) the total value of the collapsed organization’s liabilities to
its contributors.
(2) An advice given to the Minister by the Council under
subsection (1) must be laid before each House of the Parliament with the
determination to which the advice relates.
(1) This section applies to each amount that the Council purported before
1 July 2004 to impose as levy on a registered organization on a particular
date under paragraph 82G(1)(j) of the National Health Act.
(2) By force of this section, collapsed organization validation levy of an
equal amount is taken to have been imposed on the organization on that
date.
(3) The amount of collapsed organization validation levy for which the
organization is liable is:
(a) reduced by the sum of the amounts the organization paid on account of
the levy the Council purported to impose under paragraph 82G(1)(j) of the
National Health Act; and
(b) increased by so much of the sum of those amounts as the organization
recovers from the Council.
(4) Amounts paid by an organization on account of levies that the Council
purported to impose under paragraph 82G(1)(j) of the National Health Act are
taken to be applied to the collapsed organization validation levies in the order
in which the Council purported to impose the levies.
(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.