NATIONAL HEALTH AMENDMENT (PRIVATE HEALTH INSURANCE LEVIES) ACT 2003 NO. 69, 2003 - SCHEDULE 1

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NATIONAL HEALTH AMENDMENT (PRIVATE HEALTH INSURANCE LEVIES) ACT 2003 NO. 69, 2003 - SCHEDULE 1

- Private health insurance levies Part 1—Amendments

National Health Act 1953

1
Subsection 4(1)

Insert:

"ACAC" means an Acute Care Advisory Committee established under section 3B of the Health Insurance Act 1973 .

2 Subsection 4(1)

Insert:

"ACAC review levy" means an ACAC review levy imposed on registered health benefits organizations under section 6 of the ACAC Review Levy Act.

Note: ACAC review levy may be imposed on an ACAC review levy day and on a supplementary ACAC review levy day.

3 Subsection 4(1)

Insert:

"ACAC Review Levy Act" means the Private Health Insurance (ACAC Review Levy) Act 2003 .

4 Subsection 4(1)

Insert:

"collapsed organization levy "means a collapsed organization levy imposed on registered health benefits organizations under section 7 of the Collapsed Organization Levy Act.

5 Subsection 4(1)

Insert:

"Collapsed Organization Levy Act" means the Private Health Insurance (Collapsed Organization Levy) Act 2003 .

6 Subsection 4(1)

Insert:

"Council administration levy" means a Council administration levy imposed on registered health benefits organizations under section 6 of the Council Administration Levy Act.

Note: Council administration levy may be imposed on a Council administration levy day and on a supplementary Council administration levy day.

7 Subsection 4(1)

Insert:

"Council Administration Levy Act" means the Private Health Insurance (Council Administration Levy) Act 2003 .

8 Subsection 4(1)

Insert:

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

9 Subsection 4(1)

Insert:

"late payment penalty" means a penalty payable under section 83C.

10 Subsection 4(1)

Insert:

"Levy Act "means:

(a) the ACAC Review Levy Act; or
(b) the Collapsed Organization Levy Act; or
(c) the Council Administration Levy Act; or
(d) the Reinsurance Trust Fund Levy Act.
11 Subsection 4(1)

Insert:

"collapsed organization levy amount" means:

(a) a collapsed organization levy; or
(b) a late payment penalty in respect of an unpaid amount of that levy.
12 Subsection 4(1)

Insert:

"private health insurance levy" means:

(a) an ACAC review levy; or
(b) a collapsed organization levy; or
(c) a Council administration levy; or
(d) a Reinsurance Trust Fund levy.
13 Subsection 4(1)

Insert:

"Reinsurance Trust Fund levy" means a Reinsurance Trust Fund levy imposed on registered health benefits organizations under section 6 of the Reinsurance Trust Fund Levy Act.

Note: Reinsurance Trust Fund levy may be imposed on a Reinsurance Trust Fund levy day and on a supplementary Reinsurance Trust Fund levy day.

14 Subsection 4(1)

Insert:

"Reinsurance Trust Fund Levy Act" means the Private Health Insurance (Reinsurance Trust Fund Levy) Act 2003 .

15 After section 73ABB

Insert:

73ABBA
Registered health benefits organization to pay Reinsurance
Trust Fund levy and late payment penalty

It is a condition of registration of a registered health benefits organization that the organization pay:

(a) any Reinsurance Trust Fund levy it is liable to pay; and
(b) a late payment penalty in respect of an unpaid amount of that levy.
16 Subsection 73BC(1)

Repeal the subsection, substitute:

(1): This section provides for:

(a) the establishment of the Health Benefits Reinsurance Trust Fund; and
(b) payments to be made into the Fund in relation to amounts that registered health benefits organizations pay by way of:
(i) Reinsurance Trust Fund levy; and
(ii) late payment penalty in respect of an unpaid amount of that levy; and
(c) payments to be made out of the Fund to registered health benefits organizations for the purpose of reallocating the amounts of benefits paid by the organizations.

The Commonwealth, States and Territories may also make payments into the Fund.

17 Paragraph 73BC(5)(b)

Repeal the paragraph, substitute:

(b) if an amount of Reinsurance Trust Fund levy is paid by a registered health benefits organization—an amount equal to that amount of levy; and
(ba) if an amount of late payment penalty in respect of an unpaid amount of that levy is paid by a registered health benefits organization—an amount equal to that amount of penalty; and
18 After subsection 73BC(5)

Insert:

(5AA): The Consolidated Revenue Fund is appropriated for the purposes of paragraphs (5)(b) and (ba).

19 Paragraph 73BC(5C)(a)

Repeal the paragraph, substitute:

(a) the principles for determining the rate of Reinsurance Trust Fund levy imposed on a levy day; and
20 Subsections 73BC(6) to (11)

Repeal the subsections.

21 Subsection 73BC(13)

Insert:

"levy day" means:

(a) a Reinsurance Trust Fund levy day specified in the regulations made for the purposes of section 6 of the Reinsurance Trust Fund Levy Act; or
(b) a supplementary Reinsurance Trust Fund levy day specified in a determination by the Minister under section 6 of that Act.
22 Paragraphs 82G(1)(h) and (j)

Repeal the paragraphs.

23 At the end of Part VIAA

Add:

Division 8—Finance

82PO Amounts payable to Council for certain purposes

(1): If an amount of a kind specified in column 2 of the following table is paid by a registered health benefits organization, an amount equal to that amount is payable to the Council for the purpose specified in column 3 of the table:

Amounts payable to Council for certain purposes
Item	If an amount of this kind is paid...	an amount equal to that amount is payable to the Council for the purpose of...
1	ACAC review levy	meeting the administrative costs of reviews conducted by ACAC under section 3B of the Health Insurance Act 1973 .
2	late payment penalty in respect of unpaid ACAC review levy	meeting the administrative costs of reviews conducted by ACAC under section 3B of the Health Insurance Act 1973 .
3	collapsed organization levy	helping a registered health benefits organization that is unable to meet its liabilities to its contributors to meet those liabilities.
4	late payment penalty in respect of unpaid collapsed organization levy	helping a registered health benefits organization that is unable to meet its liabilities to its contributors to meet those liabilities.
5	Council administration levy	meeting the general administrative costs of the Council.
6	late payment penalty in respect of unpaid Council administration levy	meeting the general administrative costs of the Council.

(2): The Consolidated Revenue Fund is appropriated for the purposes of this section.

24 After Part VIC

Insert:

Part VID—Private health insurance levy

Division 1—Introduction
83A Guide to this Part

(1): This Part contains provisions relating to the administration of the following levies that are imposed on registered health benefits organizations by the Levy Act:

(a) ACAC review levy;
(b) collapsed organization levy;
(c) Council administration levy;
(d) Reinsurance Trust Fund levy.

(2): The following table tells you where to find the provisions dealing with various issues:

Where to find the provisions on various issues
Item	Issue	Provisions
1	what is the time for paying the levy?	section 83B
2	when is late payment penalty payable?	section 83C
3	who must the levy and late payment penalty be paid to?	section 83D
4	how are the levy and late payment penalty recovered?	section 83E
5	in what circumstance can late payment penalty in respect of certain levies be waived?	section 83F
6	in what circumstances can the collapsed organization levy, and late payment penalty in respect of that levy, be waived?	section 83G
7	what kind of information has to be provided to the Council or kept by an organization?	sections 83H to 83J
8	when may an authorised officer enter premises and search for documents?	sections 83L to 83O

Division 2—Collection and recovery of private health insurance levy
83B When private health insurance levy must be paid

(1): A private health insurance levy becomes due and payable by a registered health benefits organization on the payment day worked out using the following table:

Payment day for private health insurance levy
Item	This kind of levy...	imposed on this day...	becomes due and payable on...
1	ACAC review levy	ACAC review levy day	the day specified in the regulations as the payment day for the levy day.
2	ACAC review levy	supplementary ACAC review levy day	the day determined in writing by the Minister as the payment day for the supplementary levy day.
3	collapsed organization levy	collapsed organization levy day	the day determined in writing by the Minister as the payment day for the levy day.
4	Council administration levy	Council administration levy day	the day specified in the regulations as the payment day for the levy day.
5	Council administration levy	supplementary Council administration levy day	the day determined in writing by the Minister as the payment day for the supplementary levy day.
6	Reinsurance Trust Fund levy	Reinsurance Trust Fund levy day	the day specified in the regulations as the payment day for the levy day.
7	Reinsurance Trust Fund levy	supplementary Reinsurance Trust Fund levy day	the day determined in writing by the Minister as the payment day for the supplementary levy day.

(2): Before making a determination under item 2, 3, 5 or 7 of the table in subsection (1), the Minister must obtain, and take into account, advice from the Council in relation to the day that is to be specified in the determination.
(3): An advice given to the Minister under subsection (2) in relation to a determination under item 3 of the table in subsection (1) must be laid before each House of the Parliament with the determination.
(4): A determination under item 2, 3 or 5 of the table in subsection (1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 .

83C Late payment penalty

(1): If a private health insurance levy remains wholly or partly unpaid by a registered health benefits organization after it becomes due and payable, the organization is liable to pay a late payment penalty under this section.
(2): The late payment penalty is calculated:

(a) at the prescribed rate; and
(b) on the unpaid amount of the levy; and
(c) for the period:
(i) starting when the levy becomes due and payable; and
(ii) ending when the levy, and the penalty payable under this section, have been paid in full.
83D Payment of levy and late payment penalty

The following must be paid to the Council:

(a) a private health insurance levy that is due and payable;
(b) a late payment penalty.
83E Recovery of levy and late payment penalty

(1): A private health insurance levy that is due and payable is a debt due to the Commonwealth.
(2): A late payment penalty is a debt due to the Commonwealth.
(3): The Council may recover an amount referred to in subsection (1) or
(2): as a debt by action in a court of competent jurisdiction.

83F Council may waive late payment penalty in respect of certain levies

(1): This section applies if a late payment penalty is payable by a registered health benefits organization in respect of an unpaid amount of:

(a) an ACAC review levy; or
(b) a Council administration levy; or
(c) a Reinsurance Trust Fund levy.

(2): The Council may waive the whole or a part of an amount of late payment penalty if the Council considers that there are good reasons for doing so.

83G Waiver of collapsed organization levy and late payment penalty in respect of that levy

(1): If a collapsed organization levy amount is payable by a registered health benefits organization, the organization may apply for a waiver under this section.
(2): The application must be in writing and in the prescribed form.
(3): The Minister may waive the whole or a part of the collapsed organization levy amount if satisfied that the payment of the amount by 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.

(4): Before making a decision under subsection (3), the Minister must obtain, and take into account, advice from the Council as to whether to waive the collapsed organization levy amount.
(5): The Minister must notify the organization of the Minister's decision under subsection (3).
(6): The notification must be:

(a) in writing; and
(b) given to the organization within 28 days after the day on which the decision under subsection (3) is made.

(7): In this section:

"capital adequacy requirements" means:

(a) the capital adequacy standard that a registered health benefits organization is required to comply with under section 73BCI; and
(b) any capital adequacy directions given to the organization under section 73BCJ.

"capital adequacy standard "means a capital adequacy standard established by the Council under section 73BCG for the purposes of Division 3B of Part VI.

"solvency requirements "means:

(a) the solvency standard that a registered health benefits organization is required to comply with under section 73BCD; and
(b) any solvency directions given to the organization under section 73BCE.

"solvency standard" means a solvency standard established by the Council under section 73BCB for the purposes of Division 3A of Part VI.

Division 3—Returns, requesting information and keeping records
83H Returns must be lodged with Council

(1): A registered health benefits organization must lodge a return with the Council for each census day for the following levies:

(a) an ACAC review levy;
(b) a collapsed organization levy;
(c) a Council administration levy.

(2): The return must:

(a) be in a form approved by the Council; and
(b) be lodged within 28 days after a census day for a levy referred to in subsection (1); and
(c) set out the following information:
(i) the number of contributors who, on the census day, contribute to the health benefits fund conducted by the organization;
(ii) the number of contributors who, on that day, contribute in respect of one person to the health benefits fund conducted by the organization;
(iii) the number of contributors who, on that day, contribute in respect of more than one person to the health benefits fund conducted by the organization;
(iv) any other prescribed matter relating to the setting of the rate of a levy referred to in subsection (1); and
(d) be accompanied by a statutory declaration that verifies the information contained in the return.

(3): A registered health benefits organization commits an offence if the organization fails to lodge the return.

Penalty: 60 penalty units.

(4): The offence created by subsection (3) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .

(5): In this section:

"census day" means a census day specified:

(a) in the regulations made for the purposes of:
(i) subparagraph 7(2)(a)(i) of the ACAC Review Levy Act; or
(ii) subparagraph 7(2)(a)(i) of the Council Administration Levy Act; or
(b) in a determination by the Minister under:
(i) subparagraph 7(2)(a)(ii) of the ACAC Review Levy Act; or
(ii) paragraph 9(3)(a) of the Collapsed Organization Levy Act; or
(iii) subparagraph 7(2)(a)(ii) of the Council Administration Levy Act.
83I Organization must keep records

Records to be kept by an organization

(1): A registered health benefits organization must keep records that are relevant to:

(a) whether the organization is liable to pay a private health insurance levy; or
(b) the amount of the private health insurance levy that the organization is liable to pay.

(2): The records must be kept in:

(a) an electronic form; or
(b) if the Council approves another form—that form.

Records to be retained for a certain period

(3): The records must be retained for a period of 7 years (or a shorter period prescribed by the regulations) starting on the later of:

(a) the day on which the records were created; or
(b) the day on which this Act commences.

Offences

(4): A registered health benefits organization commits an offence if the organization fails to:

(a) keep the records; or
(b) keep the records in the form required by or under subsection (2); or
(c) retain the records for the period required by or under subsection (3).

Penalty: 60 penalty units.

(5): The offence created by subsection (4) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .

Retrospective effect not intended

(6): Nothing in this section is to be taken to have required an organization to do an act or thing before the day on which this Act commences.

83J Council may request information from organization

(1): If the Council believes on reasonable grounds that a registered health benefits organization is capable of giving information that is relevant to:

(a) whether the organization is liable to pay a private health insurance levy; or
(b) the amount of the private health insurance levy that the organization is liable to pay;

the Council may request the organization to the give the Council the information.

(2): Without limiting subsection (1), the Council may request an organization to give the information by giving the Council a record, or a copy of a record, kept under section 83I.
(3): The request:

(a) must be made in writing; and
(b) must be served on the public officer of the organization; and
(c) must state what information must be given to the Council; and
(d) may require the information to be verified by statutory declaration; and
(e) must specify the day on or before which the information must be given; and
(f) must specify the manner in which the information must be given; and
(g) must contain a statement to the effect that a failure to comply with the request is an offence.

The day specified under paragraph (e) must be at least 14 days after the day on which the request is made.

(4): A registered health benefits organization commits an offence if the organization fails to comply with the request.

Penalty: 60 penalty units.

(5): The offence created by subsection (4) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .

Division 4—Power to enter premises and search for documents
83K Definitions

In this Division, unless the contrary intention appears:

"authorised officer" means a person who is:

(a) a member of staff of the Council; and
(b) authorised in writing by the Minister for the purposes of this Division.

"levy-related documents" means any document (including a copy of a document) that contains information relevant to:

(a) whether a registered health benefits organization is liable to pay a private health insurance levy; or
(b) the amount of the private health insurance levy that the organization is liable to pay.

"occupier", in relation to premises, means:

(a) the person in charge or control, or apparently in charge or control, of the premises; or
(b) a person who represents, or apparently represents, that person.

"premises" includes the following:

(a) a structure, building, vehicle or vessel;
(b) a place (whether enclosed or built on);
(c) a part of a thing referred to in paragraph (a) or (b).

"search powers", in relation to levy-related documents, means the power to search for, inspect, take extracts from, and make copies of, levy-related documents.

"warrant" means a warrant issued under section 83M.

83L Authorised officer may enter premises with consent

(1): An authorised officer may enter any premises for the purpose of exercising search powers in relation to levy-related documents if:

(a) the occupier of the premises consents to the entry; and
(b) the officer shows the occupier his or her identity card.

(2): Before obtaining the consent of the occupier, the authorised officer must inform the occupier that he or she may refuse consent.
(3): An entry by an authorised officer with the consent of the occupier is not lawful if the consent of the occupier is not voluntary.
(4): The authorised officer must leave the premises if the occupier asks the officer to do so.

83M Authorised officer may enter premises under warrant

(1): If an authorised officer has reason to believe that there are levy-related documents on particular premises, the officer may apply to a magistrate for a warrant authorising the officer to enter the premises for the purpose of exercising search powers in relation to the documents.
(2): If the magistrate is satisfied by information on oath or affirmation that there are reasonable grounds for believing that there are levy-related documents on the premises, the magistrate may issue a warrant.
(3): The warrant must:

(a) authorise one or more authorised officers to enter the premises for the purpose of exercising search powers in relation to levy-related documents; and
(b) state whether the entry is authorised at any time of the day or night or during specified hours of the day or night; and
(c) authorise the officers to use such assistance and force as is necessary and reasonable to enter the premises for the purpose of exercising search powers in relation to levy-related documents.

(4): The authorised officers do not have to be named in the warrant.

83N Announcement before entry

An authorised officer executing a warrant in respect of premises must, before entering the premises under the warrant:

(a) announce that he or she is authorised to enter the premises; and
(b) before using assistance and force under the warrant to enter the premises—give any person on the premises an opportunity to allow the authorised officer to enter the premises without the use of assistance and force.
83O Executing a warrant to enter premises

Circumstances in which this section applies

(1): This section applies if:

(a) a warrant is being executed by an authorised officer in respect of premises; and
(b) the occupier of the premises is present.

Obligations of authorised officer executing a warrant

(2): The authorised officer must:

(a) make a copy of the warrant available to the occupier; and
(b) show the occupier his or her identity card; and
(c) inform the occupier of his or her rights and responsibilities under subsections (3) to (7).

Persons entitled to observe execution of warrant

(3): The occupier, or a person nominated by the occupier who is readily available, is entitled to observe the execution of the warrant.
(4): The right to observe the execution of the warrant ceases if the occupier or the nominated person impedes that execution.
(5): Subsection (3) does not prevent the execution of the warrant in 2 or more areas of the premises at the same time.

Occupier to provide reasonable facilities and assistance

(6): The occupier must provide the authorised officer and any person assisting that officer with all reasonable facilities and assistance for the effective exercise of their powers under the warrant.
(7): An occupier commits an offence if the occupier fails to comply with subsection (6).

Penalty: 10 penalty units.

(8): The offence created by subsection (7) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .

83P Identity cards

(1): For the purposes of this Division, the Council must issue an identity card to an authorised officer in a form approved by the Council. It must contain a recent photograph of the authorised officer.
(2): A person commits an offence if:

(a) the person has been issued with an identity card; and
(b) the person ceases to be an authorised officer; and
(c) the person does not, as soon as it is practicable after so ceasing, return the identity card to the Council.

Penalty: 1 penalty unit.

(3): The offence created by subsection (2) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .

(4): An authorised officer must carry the identity card at all times when exercising powers or performing functions under this Division as an authorised officer.

25 Section 83

Renumber as section 83Z.

26 Subsection 92A(1)

Omit "section 83", substitute "section 83Z".

27 Before subsection 105AB(6A)

Insert:

(6AD): An application may be made to the Tribunal for review of a decision by the Council under subsection 83F(2) not to waive, or to waive only part of, an amount of late payment penalty.
(6AE): An application may be made to the Tribunal for review of a decision by the Minister under subsection 83G(3) not to waive, or to waive only a part of, a collapsed organization levy amount.

28 At the end of section 140

Add:

(3): The regulations may make provision in relation to:

(a) the methods for paying a private health insurance levy or a late payment penalty; and
(b) the extension of the payment day for a private health insurance levy; and
(c) the refund or other application of a private health insurance levy, or a late payment penalty, that is overpaid.

Part 2—Saving provision
29 Saving of existing Ministerial principles

(1) This item applies if:

(a) principles determined by the Minister under subsection 73BC(5B) of the National Health Act were in force immediately before 1 July 2004; and
(b) the principles were principles for determining the method of, and the matters to be taken into account in, calculating the amounts to be paid into the Reinsurance Trust Fund by registered health benefits organizations.

(2) The principles:

(a) continue in force despite the amendment made by item 19 of this Schedule to section 73BC of the National Health Act; and
(b) apply for the purpose of determining the rate of the Reinsurance Trust Fund levy imposed on a levy day but only until the principles are varied under that section.

(3) In this item:

levy day means:

(a) a Reinsurance Trust Fund levy day specified in the regulations made for the purposes of section 6 of the Private Health Insurance (Reinsurance Trust Fund Levy) Act 2003 ; or
(b) a supplementary Reinsurance Trust Fund levy day specified in a determination by the Minister under section 6 of that Act.

National Health Act means the National Health Act 1953 .
"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 on registered health benefits organizations under section 6 of the Private Health Insurance (Reinsurance Trust Fund Levy) Act 2003 .
"registered health benefits organization" means an organization registered under Part VI of the National Health Act for the purpose of conducting a health benefits fund.

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