Health Insurance Levy Act 1976

Legislation au C2004A01485 Not in force Act

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HEALTH INSURANCE LEVY ACT 1976

No. 54 of 1976

An Act to impose a Health Insurance Levy upon certain Incomes.

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:—

Short title.

1. This Act may be cited as the Health Insurance Levy Act 1976.

Commencement.

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Interpretation.

3. (1) In this Act, unless the contrary intention appears—

“Assessment Act” means the Income Tax Assessment Act 1936-1976;

“levy” means health insurance levy referred to in section 5.

(2) In this Act, a reference to net income or taxable income shall be read as a reference to net income or taxable income, as the case may be, of the year of income.

Incorporation.

4. The Assessment Act is incorporated, and shall be read as one, with this Act.

Imposition of health insurance levy.

5. Health insurance levy, to the extent that that levy is payable in accordance with Part VIIb of the Assessment, Act, is imposed in accordance with this Act at the rates applicable in accordance with this Act.

Rate of levy.

6. (1) The rate of levy payable by a person upon a taxable income of a year of income is—

(a) where the person was not a prescribed person for the purposes of Part VIIb of the Assessment Act at any time during the year of income—1.875 per centum; or

(b) where the person was a prescribed person for the purposes of Part VIIb of the Assessment Act during a part of the year of income but not during the whole of the year of income—the rate per centum that bears to 1.875 per centum the same proportion as the number of whole weeks in the part of the year of income during which the person was not a prescribed person bears to 39.

(2) The rate of levy payable by a person in the capacity of a trustee of a trust estate upon a share of the net income of the trust estate to which a beneficiary is presently entitled, being income in respect of which the trustee is liable to be assessed in pursuance of section 98 of the Assessment Act, is—

(a) where the beneficiary was not a prescribed person for the purposes of Part VIIb of the Assessment Act at any time during the year of income—1.875 per centum; or

(b) where the beneficiary was a prescribed person for the purposes of Part VIIb of the Assessment Act during a part of the year of income but not during the whole of the year of income—the rate per centum that bears to 1.875 per centum the same proportion as the number of whole weeks in the part of the year of income during which the beneficiary was not a prescribed person bears to 39.

(3) Subject to sub-section (4), the rate of levy payable by a person in the capacity of a trustee of a trust estate upon the net income of the trust estate or a part of that net income, being income in respect of which the trustee is liable to be assessed and pay tax in pursuance of section 99 or 99a of the Assessment Act, is 1.875 per centum.

(4) The amount of levy payable by a person in the capacity of a trustee of a trust estate upon the net income of the trust estate or a part of that net income, being income in respect of which the trustee is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act, shall not exceed 7.5 per centum of the amount by which that net income or that part of that net income, as the case may be, exceeds $416.


Financial years for which levy is payable.

7. (1) The levy imposed by this Act is levied, and shall be paid, for the financial year commencing on 1 July 1976.

(2) Until the Parliament otherwise provides, the levy imposed by this Act is also levied, and shall be paid, for the financial year commencing on 1 July 1977.

(3) For the purposes of its application in accordance with sub-section (2), this Act has effect as if in section 6—

(a) references to 1.875 per centum were references to 2.5 per centum;

(b) references to 39 were references to 52; and

(c) the reference in sub-section (4) to 7.5 per centum were a reference to 10 per centum.

 

Overview

The Health Insurance Levy Act 1976 was enacted to impose a health insurance levy on certain incomes, providing a financial mechanism to support the Australian health care system. This Act was enacted by the Queen, in accordance with the authority of the Senate and House of Representatives of the Commonwealth of Australia, and it came into effect upon receiving Royal Assent. The primary purpose of this legislation is to introduce a financial contribution from individuals and entities based on their taxable income, which aids in funding health insurance schemes. The Act integrates with the Income Tax Assessment Act 1936-1976, ensuring that the levy is calculated and collected in conjunction with income tax obligations. The levy rates are specified within the Act, varying based on the duration an individual or entity is classified as a "prescribed person" under the relevant tax legislation, thereby creating a tiered system of financial contribution.

Scope and Application

The Health Insurance Levy Act 1976 applies to individuals and trustees of trust estates who are liable to be assessed under the Income Tax Assessment Act 1936-1976. The Act imposes a health insurance levy on certain incomes, with the rates and thresholds defined within the Act and the linked Assessment Act. The Act is geographically applicable within the Commonwealth of Australia and operates under federal jurisdiction. The levy is specifically tailored for financial years commencing on 1 July 1976 and 1 July 1977, with rates varying for different categories of taxpayers. The Act also incorporates the Assessment Act, ensuring that its provisions are read as one with the Assessment Act. There are no stated exclusions or exemptions within the provided text, but the levy may be subject to modification or extension through subordinate instruments.

Key Provisions

The Health Insurance Levy Act 1976 (Act) outlines the imposition of a health insurance levy on certain incomes. Section 5 establishes the levy, which is applied in accordance with Part VIIb of the Income Tax Assessment Act 1936-1976. The rates of levy are specified in section 6. For individuals who were not prescribed persons under Part VIIb of the Assessment Act for the entire financial year, the levy is set at 1.875 per cent of their taxable income. For those who were prescribed persons for part of the year, the levy rate is proportional, based on the number of weeks they were not prescribed persons out of a total of 39 weeks. Trustees of trust estates are subject to similar rates when dealing with beneficiaries’ shares of net income, though with an upper limit of 7.5 per cent for certain net incomes exceeding $416. The Act imposes specific obligations on taxpayers and trustees to calculate and pay the levy as per the prescribed rates. Section 4 incorporates the Assessment Act, ensuring that the levy is read and applied in conjunction with it. Financial institutions and trustees must accurately determine the levy owed based on the individuals' or beneficiaries' status as prescribed persons and the duration of their status within the financial year. This includes calculating the proportional levy for those who were prescribed persons for only part of the year and ensuring that the levy does not exceed the specified maximum for trustees. Non-compliance with the Health Insurance Levy Act 1976 can result in significant penalties. Section 7 stipulates that the levy is applicable for specific financial years, with provisions for adjustments by Parliament. Failure to accurately calculate and pay the levy as required can lead to civil consequences, including fines and interest on unpaid amounts. The Act does not specify criminal penalties, but it does provide for the recovery of unpaid levies through legal action. The maximum fines and interest rates are not explicitly stated in the provided sections, but they would typically be determined by other related legislation or administrative guidelines. In summary, the Health Insurance Levy Act 1976 mandates the imposition of a health insurance levy on certain incomes, with specific rates and conditions outlined in the Act. It places the responsibility of calculation and payment on taxpayers and trustees, with the threat of financial penalties for non-compliance. The Act is designed to ensure that the levy is applied correctly, reflecting the duration of prescribed person status within the financial year.

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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.