Financial Sector (Collection of Data) (reporting standard) determination No. 22 of 2016 - HRS 601.0 Statistical Data by State

Administered by Department of the Treasury

Legislation au F2016L01394 Not in force Legislative Instrument

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Financial Sector (Collection of Data) (reporting standard) determination
No. 22 of 2016

EXPLANATORY STATEMENT

Prepared by the Australian Prudential Regulation Authority (APRA)

Financial Sector (Collection of Data) Act 2001, subsection 13(1)

Acts Interpretation Act 1901, section 33

Under subsection 13(1) of the Financial Sector (Collection of Data) Act 2001 (the Act), APRA has the power to determine reporting standards, in writing, with which financial sector entities must comply. Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to issue an instrument the power shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to revoke any such instrument. 

On 31 August 2016, APRA made Financial Sector (Collection of Data) (reporting standard) determination No. 22 of 2016, which revokes Reporting Standard HRS 601.0 Statistical Data by State made under Financial Sector (Collection of Data) (reporting standard) determination No. 31 of 2015 and determines Reporting Standard HRS 601.0 Statistical Data by State (HRS 601.0). 

This instrument commences upon registration on the Federal Register of Legislation.

  1.    Background

On 1 July 2015, APRA assumed responsibility for the prudential regulation of private health insurers, and the administration of the Risk Equalisation Trust Fund (RETF) via the Private Health Insurance (Risk Equalisation Levy) Act 2003.

The RETF and the associated risk equalisation levy support the principle of community rating (which prohibits private health insurers from discriminating against persons seeking private health insurance). APRA calculates the levy on the basis of risk equalisation jurisdictions based on the Australian states and territories.

On 1 July 2016, the Department of Health enacted the Private Health Insurance Legislation Amendment (Risk Equalisation Jurisdiction) Rules 2016 to amend the Private Health Insurance (Health Benefits Fund Policy) Rules 2015 and the Private Health Insurance (Risk Equalisation Policy) Rules 2015 to add Norfolk Island into the combined risk equalisation jurisdiction of NSW/ACT and to adjust the Lifetime Health Cover penalty provisions for Norfolk Island residents. This change necessitates various changes to the reporting standard HRS 601.0

2.      Purpose and operation of the instrument

The purpose of this legislative instrument is make the necessary changes to HRS 601.0.  It does this by requiring the submission of data by private health insurers that replicates the current required data, other than to require reporting of data on Norfolk Island policy holders in the NSW section of the reporting form rather than considering them as overseas visitors.[1]  A number of miscellaneous changes have been made to the reporting instructions to provide guidance on the reporting of Norfolk Island policy holders and to update outdated references.

The reporting standard specifies the information that must be provided, and attaches the related instructions specifying how the form is to be completed. It sets out:

  • the purpose for which data is being collected;
  • the legal authority under which it is collected;
  • that specified data in an attached form is to be provided according to prescribed instructions;
  • the method and timing for submission;
  • the required approach to auditing and quality control; and
  • who can authorise the submission of data on behalf of a private health insurer.

3.      Consultation

The private health insurance industry and the Department of Health were consulted in the preparation of this reporting standard. APRA released a draft of this instrument for a four week consultation period on 25 July 2016. All submissions were supportive of the document and no changes were necessary.

4.  Regulation Impact Statement

The Office of Best Practice Regulation has advised that a Regulation Impact Statement is not required for this legislative instrument.

5. Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

A Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is provided at Attachment A to this Explanatory Statement.


Attachment A

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Financial Sector (Collection of Data) (reporting standard) determination No 22 of 2016

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (HRPS Act).

Overview of the Legislative Instrument

This Legislative Instrument prescribes requirements applicable to private health insurers, to provide for the administration of the RETF and provides for the collection of data relating to Norfolk Island residents.

Human rights implications

APRA has assessed this Legislative Instrument and is of the view it does not engage any of the applicable rights or freedoms recognised or declared in the international instruments listed in section 3 of the HRPS Act. Accordingly, in APRA’s assessment, the instrument is compatible with human rights.

Conclusion

This Legislative Instrument is compatible with human rights because it does not raise any human rights issues.

 

[1]  Due to the changes made in the Private Health Insurance Legislation Amendment (Risk Equalisation Jurisdiction) Rules 2016, APRA must determine whether data should be reported in the NSW section of the form or the ACT section of the form.  The requirement to report in the NSW section has no impact on the amount payable or receivable because the NSW and ACT are data combined before calculating the levy.

Overview

The Financial Sector (Collection of Data) (reporting standard) determination No. 22 of 2016, issued under the Financial Sector (Collection of Data) Act 2001, was enacted to address the need for updated reporting standards in light of changes to risk equalisation jurisdictions, particularly concerning Norfolk Island. This instrument was created by the Australian Prudential Regulation Authority (APRA) and aims to ensure that data collected from private health insurers is aligned with the latest regulatory requirements and accurately reflects the new risk equalisation jurisdiction. The policy objective is to facilitate the administration of the Risk Equalisation Trust Fund and uphold the principle of community rating in private health insurance, ensuring that insurers do not discriminate against individuals seeking private health coverage. This determination revises the reporting standard HRS 601.0 to include data for Norfolk Island policyholders within the NSW section, reflecting their inclusion in the combined risk equalisation jurisdiction of NSW/ACT.

Scope and Application

The Financial Sector (Collection of Data) (reporting standard) determination No. 22 of 2016, made under the Financial Sector (Collection of Data) Act 2001, applies specifically to private health insurers operating within Australia. This legislative instrument is aimed at ensuring that these entities comply with the requirements for the collection and reporting of data necessary for the administration of the Risk Equalisation Trust Fund (RETF). The RETF supports the principle of community rating in private health insurance by preventing insurers from discriminating against individuals seeking private health insurance. The instrument revokes the previous reporting standard HRS 601.0 Statistical Data by State and establishes the new HRS 601.0 Statistical Data by State, which includes adjustments to accommodate Norfolk Island residents within the NSW/ACT risk equalisation jurisdiction. This change is a result of the Private Health Insurance Legislation Amendment (Risk Equalisation Jurisdiction) Rules 2016. The instrument mandates that private health insurers submit data that aligns with the prescribed format and includes detailed instructions for reporting. The instrument also clarifies that Norfolk Island policyholders should be reported in the NSW section of the form, rather than being considered overseas visitors. The instrument is designed to facilitate the collection of accurate data for the administration of the RETF, ensuring that the risk equalisation process is effective and equitable.

Key Provisions

The Financial Sector (Collection of Data) (reporting standard) determination No. 22 of 2016, made under the Financial Sector (Collection of Data) Act 2001, introduces a new reporting standard for private health insurers, specifically HRS 601.0 Statistical Data by State, which replaces the previous reporting standard HRS 601.0 Statistical Data by State made in 2015 (sections 2 and 3). This new standard requires private health insurers to submit data that reflects the current requirements but with a crucial change: data relating to policyholders from Norfolk Island must now be reported under the NSW section of the form rather than being considered as overseas visitors. The determination also includes miscellaneous changes to reporting instructions to provide guidance on reporting for Norfolk Island policyholders and to update outdated references. The obligations imposed by this determination on private health insurers include the submission of specific data as prescribed by the new reporting standard HRS 601.0. Insurers must adhere to the instructions detailing how the form is to be completed, including the purpose for which data is being collected, the legal authority under which it is collected, the method and timing for submission, the approach to auditing and quality control, and the criteria for authorising the submission of data. These obligations are designed to ensure accurate and timely data collection that supports the administration of the Risk Equalisation Trust Fund and the calculation of the risk equalisation levy. Failure to comply with the reporting requirements set out in this determination may result in enforcement actions. While the explanatory statement does not detail specific penalties for non-compliance, breaches of reporting requirements under the Financial Sector (Collection of Data) Act 2001 could generally lead to enforcement actions by the Australian Prudential Regulation Authority (APRA). Such actions might include fines, public reprimands, or other regulatory measures deemed necessary to ensure compliance. The severity of these actions would depend on the nature and extent of the non-compliance. Additionally, persistent or significant breaches could potentially have civil or criminal consequences, including financial penalties or legal proceedings, although these are not explicitly detailed in the explanatory statement.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.