Health Insurance Levy Assessment Act (No. 2) 1976

Administered by Department of the Treasury

Legislation au C2004A01529 Not in force Act

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HEALTH INSURANCE LEVY ASSESSMENT ACT (No. 2) 1976

 

No. 98 of 1976

An Act to amend the Law relating to Income Tax in relation to the Imposition, Assessment and Collection of a Health Insurance Levy.

 

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

Short title, &c.

1. (1) This Act may be cited as the Health Insurance Levy Assessment Act (No. 2) 1976.

(2) The Income Tax Assessment Act 1936 is in this Act referred to as the Principal Act.

Commencement.

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

Interpretation.

3. Section 251r of the Principal Act is amended—

(a) by omitting from sub-section (1) the definitions of “address”, “levy relief certificate” and “Medibank contributor”;

(b) by omitting sub-section (2) and substituting the following sub-sections:—

“(1a) For the purposes of this Part and of any Act imposing levy—

(a) a woman shall be taken to have been the dependent wife of a man at a particular time if, at that time, she was legally married to, and was a dependant of, that man; and

(b) a man shall be taken to have been the dependent husband of a woman at a particular time if, at that time, he was legally married to, and was a dependant of, that woman.

“(1b) Where, during any period, a man and a woman have lived together as husband and wife on a bona fide domestic basis although they were not legally married to each other, this Part and any Act imposing levy have effect in relation to that period as if those persons were legally married to each other and neither of them was married to any other person.

“(2) Subject to sub-sections (3) and (4), a person shall be taken to have been a dependant of another person for the purposes of this Part and of any Act imposing levy during any part of the year of income in which—

(a) the first-mentioned person was a resident of Australia;

(b) the first-mentioned person was—

(i) the spouse of the other person;

(ii) a child of the other person less than 16 years of age; or

(iii) a child of the other person not less than 16 years of age but less than 25 years of age and receiving full-time education at a school, college or univer­sity; and

(c) the other person contributed to the maintenance of the first-mentioned person.”;

(c) by omitting from sub-sections (3) and (4) the word “taxpayer” (wherever occurring) and substituting the word “person”; and

(d) by inserting in sub-sections (3) and (7), after the word “Part”, the words “and of any Act imposing levy”.

Prescribed person. 

4. Section 251v of the Principal Act is amended—

(a) by inserting in sub-sections (1), (2) and (3), after the word “Part” (wherever occurring), the words “and of any Act imposing levy”;

(b) by omitting from paragraph (a) of sub-section (1) the words “or a Medibank contributor”; and


(c) by adding at the end of paragraph (d) of sub-section (1) the words “or was a resident solely by virtue of sub-section (2) of section 7a”.

5. Sections 251w, 251x, 251y, 251z, 251za, 251zb, 251zc, 251zc and 251ze of the Principal Act are repealed and the following sections substituted:—

Penalty for false statement.

“251w. (1) A taxpayer who includes in his return a false statement as to any matter affecting his liability to pay levy or the amount of levy properly payable by him is liable to pay as additional levy an amount equal to—

(a) if no levy was or would have been payable under an assessment made upon the basis of the false statement—twice the amount of levy properly payable by him; or

(b) if an amount of levy was or would have been payable under an assessment made upon the basis of the false statement—twice the difference between that amount and the amount of levy properly payable by him,

or $2, whichever is the greater.

“(2) The Commissioner may, in any case, for reasons that he thinks sufficient, and either before or after making any assessment, remit the whole or any part of the additional levy.

“(3) Notwithstanding sub-section (2) of section 193, a Board of Review has power to review decisions of the Commissioner relating to the remission of additional levy payable under sub-section (1) where the additional levy payable, after the making by the Commissioner of his decision, exceeds the greater of the following amounts, namely, $2 or an amount calculated, in respect of the period commencing on the last day allowed for furnishing the return and ending on the day upon which the assessment of the additional levy is made, at the rate of 10 per centum per annum of one-half of the amount of the additional levy payable under sub-section (1).

“(4) If in any case in which a taxpayer is liable to pay additional levy under this section a taxation prosecution is instituted in respect of the same subject matter, the additional levy is not payable unless and until the prosecution is withdrawn.

“(5) In this section, ‘taxation prosecution’ means a proceeding by the Crown for the recovery of a pecuniary penalty under this Act.

Regulations.

“251x. (1) The regulations may make provision for and in relation to requiring any person to supply to the Commissioner for the purposes of this Part or of any Act imposing levy such information as is prescribed, being information that is in the possession of the person or to which the person has access.

“(2) The regulations may make provision for and in relation to—

(a) exempting each person included in a class of persons prescribed by the regulations for the purposes of this paragraph from pay­ment of the amount of the levy that, but for the regulations, would be payable by him in respect of income of a year of income or of so much of that amount as is specified in, or ascertained in accordance with, the regulations; and

(b) granting to each person included in a class of persons prescribed by the regulations for the purposes of this paragraph a rebate in his assessment in respect of income of a year of income equal to the amount of the levy that, but for the regulations, would be payable by him in respect of that income or so much of that amount as is specified in, or ascertained in accordance with, the regulations.

“(3) In sub-section (1), ‘person’ includes a registered organization and any authority or officer of the Commonwealth or of a State.


6. Section 251zh of the Principal Act is repealed and the following section substituted:—

Calculation of provisional tax on, estimated income.

“251zh. Where section 221yda applies for the purpose of determining the provisional tax payable by a taxpayer in respect of income of a year of income, the Commissioner may make such assumptions as he thinks appropriate as to any matters that are likely to affect the liability of the taxpayer to pay levy in respect of that year of income or to affect the amount of the levy properly payable by the taxpayer.”.

Provisional levy for financial year 1976-1977.

7. Section 6 of the Health Insurance Levy Assessment Act 1976 is amended—

(a) by omitting sub-section (1) and substituting the following sub-section:—

“(1) Subject to this section, for the purposes of the application of sub-section 221yc(1) of the Income Tax Assessment Act 1936 in ascertaining the amount of provisional tax payable by a taxpayer in respect of income of the year of income that commenced on 1 July 1976—

(a) if paragraph (a) of that sub-section applies to the taxpayer—the amount of provisional tax payable by him in respect of the income of that year of income by virtue of that paragraph as affected by section 17 of the Income Tax Assessment Amendment Act (No. 2) 1976 shall be increased by the amount that would have been payable as health insurance levy in respect of his taxable income of the year next preceding that year of income if Part VIIb of the Income Tax Assessment Act 1936, and the Health Insurance Levy Act (No. 2) 1976 (other than sub-sections 9(2) to (4), inclusive, sections 10 and 11 and sub-section 13(3)), had been in force and had applied in relation to income of that preceding year of income; and

(b) if paragraph (b) of that sub-section applies to the taxpayer—the amount of provisional tax payable by him in respect of the income of that year of income by virtue of that paragraph as affected by section 17 of the Income Tax Assessment Amendment Act (No. 2) 1976 shall be increased by the amount that would have been payable as health insurance levy in respect of his taxable income of the year next preceding that year of income if—

(i) his taxable income of that next preceding year had been equal to his provisional income; and

(ii) Part VIIb of the Income Tax Assessment Act 1936, and the Health Insurance Levy Act (No. 2) 1976 (other than sub-sections 9(2) to (4), inclusive, sections 10 and 11 and sub-section 13(3)), had been in force and had applied in relation to income of that next preceding year.”; and

(b) by inserting in sub-section (2), before the words “the tax payable”, the words “or for any other reasons,”.

Application.

8. Section 7 of the Health Insurance Levy Assessment Act 1976 is amended by omitting paragraph (b) of sub-section (2) and substituting the following paragraph:—

“(b) in relation to amounts paid by a person before that date to an organization registered as a medical benefits organization or as a hospital benefits organization under Part VI of the National Health Act 1953, being payments that entitled the person to benefits in accordance with the standard medical benefits table or the standard hospital benefits table referred to in sub-section (1) of section 4 of that Act.”.

Application.

9. The amendments made by sections 3 and 4 apply to assessment in respect of income of the year of income that commenced on 1 July 1976 and in respect of income of all subsequent years of income.

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Overview

The Health Insurance Levy Assessment Act (No. 2) 1976 was enacted to amend the law relating to income tax in relation to the imposition, assessment, and collection of a health insurance levy. This Act was passed by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia. The primary objective of this Act is to provide for the assessment and collection of a health insurance levy as part of the income tax system. It amends the Income Tax Assessment Act 1936 to include provisions related to the levy, ensuring that the health insurance levy is appropriately accounted for in the tax assessment process. This legislation aims to address the need for a structured and legally binding mechanism for the assessment and collection of a health insurance levy, thereby ensuring that the levy is effectively integrated into the broader income tax framework. The amendments made by this Act apply to assessments in respect of income from the year of income that commenced on 1 July 1976 and subsequent years.

Scope and Application

The Health Insurance Levy Assessment Act (No. 2) 1976 applies to taxpayers who are subject to income tax and health insurance levies under the Principal Act, which is the Income Tax Assessment Act 1936. The Act specifically addresses the imposition, assessment, and collection of a health insurance levy, and it includes amendments to the Principal Act to that effect. The provisions of the Act extend to individuals who are deemed to be dependants of another person for the purposes of calculating the health insurance levy, as well as entities that may be required to supply information to the Commissioner for the purposes of levy assessment. The Act applies on a Commonwealth level, impacting taxpayers within Australia. The Act does not specify any exclusions or exemptions but allows for the possibility of exemptions and rebates through regulations. The Act's application may be extended or modified through subordinate instruments, such as regulations, which can prescribe classes of persons exempt from levy payments or eligible for rebates. The Act's provisions are effective from the date it receives Royal Assent, and the amendments made by sections 3 and 4 apply to assessments of income from the year commencing on 1 July 1976 onwards.

Key Provisions

The Health Insurance Levy Assessment Act (No. 2) 1976 modifies the Income Tax Assessment Act 1936, primarily by altering the definitions related to the health insurance levy. Section 3 redefines terms such as "dependant" and "spouse" for the purposes of levy imposition and assessment. It specifies that a person is considered a dependant if they reside in Australia, are either a spouse, a child under 16, or a child aged 16 to 25 and in full-time education, and the other person contributes to their maintenance. Furthermore, it recognises de facto relationships as if the parties were legally married, provided they lived together on a bona fide domestic basis. The Act imposes specific obligations on taxpayers concerning the accuracy of their statements regarding their levy liability. Section 251w stipulates that any taxpayer who submits a false statement in their return is liable to pay additional levy. The amount of this additional levy is calculated based on the extent of the false statement's impact on the taxpayer's levy liability. Additionally, Section 251x empowers the Commissioner to require taxpayers to provide information necessary for levy assessment and allows for the exemption or rebate of levies through regulations. In terms of enforcement, Section 251w outlines penalties for providing false statements, including the imposition of additional levy which can be remitted by the Commissioner under certain circumstances. A Board of Review can also review decisions regarding the remission of additional levy if the amount exceeds specified thresholds. Moreover, if a prosecution is initiated for the same matter, the additional levy is not payable until the prosecution is withdrawn. The Act also includes provisions for provisional levies and their calculation for the financial year 1976-1977. Section 7 amends the Health Insurance Levy Assessment Act 1976 to specify how provisional tax is to be calculated for that particular year, taking into account the health insurance levy that would have been payable under certain conditions. This amendment ensures that provisional tax is adjusted to reflect the levy that would have applied had the relevant legislation been in force for the preceding 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.