National Health (Private Health Insurance Levies) Regulations 2004 2004 No. 187
EXPLANATORY STATEMENT
STATUTORY RULES 2004 NO. 187
Issued by the Authority of the Minister for Health and Ageing
National Health Act 1953
National Health (Private Health Insurance Levies) Regulations 2004
Subsection 140(1) of the National Health Act 1953 (the Act) provides in part that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters which by the Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The Regulations establish certain arrangements regarding the administration and collection of four private health insurance industry levies: the Acute Care Advisory Committee review levy (the ACAC review levy), the Private Health Insurance Administration Council (PHIAC) administration levy (the Council administration levy), the Reinsurance Trust Fund levy and the Collapsed Organization Levy.
The Regulations are made for the purposes of provisions to be inserted into the Act by the National Health Amendment (Private Health Insurance Levies) Act 2003 (the Amending Act).
Subsection 140(3) of the Act (to be inserted by the Amending Act) provides that the regulations may make provision in relation to:
• the methods for paying a private health insurance levy or a late payment penalty; and
• the extension of the payment day of a private health insurance levy; and
• the refund or other application of a private health insurance levy, or a late payment penalty, that is overpaid.
Items 1, 4 and 6 of the table in subsection 83B(1) of the Act (to be inserted by the Amending Act) provide that the day a private health insurance levy becomes due and payable is the day specified in the regulations as the payment day for the ACAC review levy, Council administration levy, and Reinsurance Trust Fund levy, respectively. The Regulations specify such payment days.
Paragraph 83C(2)(a) of the Act (to be inserted by the Amending Act) provides that late payment penalty for a private health insurance levy is to be calculated using the late payment penalty rate prescribed in the regulations. The Regulations prescribe a rate of 15% per year.
Section 83G of the Act (to be inserted by the Amending Act) provides that an application may be made for the waiver of a collapsed organization levy amount. Subsection 83G(2) provides that the application must be in writing and in the form prescribed in the regulations. The Regulations prescribe such a form.
The Regulations also prescribe matters in relation to extensions for the payment of each levy and refunds of overpayments.
The Act does not specify any conditions that need to be met before the power to make the Regulations may be exercised.
Details of the Regulations are set out in the Attachment.
The Regulations commence on 1 July 2004. The Amending Act received the Royal Assent on 15 July 2003, but will only commence on 1 July 2004.
Subsections 4(1) and 4(2A) of the Acts Interpretation Act 1901 read together, provide that regulations may be made between the passing and commencement of legislation upon which they rely for their authority, as long as such regulations do not commence before that legislation.
ATTACHMENT
DETAILS OF THE NATIONAL HEALTH (PRIVATE HEALTH INSURANCE LEVIES) REGULATIONS 2004.
Regulation 1 names the Regulations as the National Health (Private Health Insurance Levies) Regulations 2004.
Regulation 2 provides for the Regulations to commence on 1 July 2004.
Regulation 3 defines the word Act, for the purpose of the Regulations, as the National Health Act 1953.
Regulation 4 provides that for the Acute Care Advisory Committee (ACAC) review levy, the Council administration levy, and the Reinsurance Trust Fund levy the payment day is the 14th day after the levy day. The Note provides that the levy day for these levies is specified in the Private Health Insurance (ACAC Review Levy) Regulations 2004, the Private Health Insurance (Council Administration Levy) Regulations 2004 and the Private Health Insurance (Reinsurance Trust Fund Levy) Regulations 2004.
Regulation 5 provides the circumstances in which, and the method by which, a registered health benefits organization may apply to the Private Health Insurance Administration Council (the Council) for an extension of the payment day.
Subregulation 5(1) provides that an application for an extension may only be made before the payment day for the levy.
Subregulation 5(2) provides that an application for extension of the payment day must be in writing and set out the reasons for seeking the extension.
Subregulation 5(3) provides that if the Council receives an application, the Council must decide whether to grant the application and give the applicant written notice of its decision.
Subregulation 5(4) provides that the Council must comply with subregulation 5(3):
• For applications for an extension in relation to the ACAC review levy and the Council administration levy, within 7 days after receiving the application; and
• For applications in relation to the Reinsurance Trust Fund levy, within a reasonable time after receiving the application.
Subregulation 5(5) provides that a person who receives a notice of a decision under subregulation (3) must:
• If the application for extension is granted, pay the levy on or before the date specified in the notice; or
• If the application for extension is refused, pay the levy and any late payment penalty within 14 days after receiving the notice.
Regulation 6 provides that the amount prescribed as the late payment penalty in relation to the ACAC review levy, the Council administration levy, the collapsed organization levy and the Reinsurance Trust Fund levy is 15% per year.
Regulation 7 provides that applications for waiver of the collapsed organization levy amount (which may include application for waiver of late payment penalty) in relation to the collapsed organization levy must be made in accordance with Form 1 in Schedule 1 to the Regulations. Subsection 4(1) of the Act defines 'collapsed organization levy amount' to mean collapsed organization levy or a late payment penalty in respect of an unpaid amount of that levy.
Subregulation 8(1) provides that Regulation 8 applies in relation to the ACAC review levy, the collapsed organization levy and the Council administration levy.
Subregulation 8(2) provides that a registered health benefits organization may apply to the Council for a refund of the amount of a levy, or late payment penalty that is overpaid.
Subregulation 8(3) provides that the application must be made in writing and provides specified details in relation to the alleged overpayment including the reasons for the overpayment.
Subregulation 8(4) provides that the Council must decide whether an overpayment has in fact occurred and if so, decide whether to refund the amount of the overpayment to the organization, or offset the overpayment against any outstanding amounts owed in relation to any of the three aforementioned levies or associated late payment penalties. The Council is required to make its decision and give written notice of its decision to the organization within 28 days.
Schedule 1 - Forms
Form 1
This form is the form registered health benefits organizations are required to use to make applications, pursuant to regulation 7, for waiver of a collapsed organization levy amount.