Private Health Insurance (ACAC Review Levy) Regulations 2004
Statutory Rules 2004 No. 188 as amended
made under the
Private Health Insurance (ACAC Review Levy) Act 2003
This compilation was prepared on 1 July 2005
taking into account amendments up to SLI 2005 No. 113
Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra
Contents
1 Name of Regulations
2 Commencement
3 Definitions
4 ACAC review levy day
5 Rate of ACAC review levy
6 Census day
Notes
1 Name of Regulations
These Regulations are the Private Health Insurance (ACAC Review Levy) Regulations 2004.
2 Commencement
These Regulations commence on 1 July 2004.
3 Definitions
In these Regulations:
Act means the Private Health Insurance (ACAC Review Levy) Act 2003.
quarter means the period of 3 months ending on the last day of March, June, September or December.
4 ACAC review levy day
For paragraph 6 (1) (a) of the Act, the 28th day of the second month of each quarter in a financial year is specified as an ACAC review levy day for that financial year.
5 Rate of ACAC review levy
(1) For item 1 of the table in subsection 7 (1) of the Act, and subject to paragraph 7 (2) (c) of the Act, the rate of ACAC review levy imposed on a registered health benefits organization on an ACAC review levy day is as set out in this regulation.
(2) The rate of levy in respect of each contributor who contributes in respect of 1 person to the health benefits fund conducted by the organization on the census day for the levy day is the rate in cents, calculated using the formula:
where:
single contributors is the total number of contributors who contribute in respect of 1 person to all health benefits funds conducted by all registered health benefits organizations on the census day for the levy day.
family contributors is the total number of contributors who contribute in respect of more than 1 person to all health benefits funds conducted by all registered health benefits organizations on the census day for the levy day.
(3) The rate of levy in respect of each contributor who contributes in respect of more than 1 person to the health benefits fund conducted by the organization on the census day for the levy day is the rate in cents, calculated using the formula:
where single contributors and family contributors have the meaning given by subregulation (2).
Note Paragraph 7 (2) (c) of the Act provides that the rate of levy must not exceed for a financial year — 50 cents for a contributor who contributes in respect of 1 person and $1 for a contributor who contributes in respect of more than 1 person.
6 Census day
For subparagraph 7 (2) (a) (i) of the Act, the 28th day of the first month of a quarter is specified as the census day for the ACAC review levy day that occurs in that quarter.
Notes to the Private Health Insurance (ACAC Review Levy) Regulations 2004
Note 1
The Private Health Insurance (ACAC Review Levy) Regulations 2004 (in force under the Private Health Insurance (ACAC Review Levy) Act 2003) as shown in this compilation comprise Statutory Rules 2004 No. 188 amended as indicated in the Tables below.
Under the Legislative Instruments Act 2003, which came into force on 1 January 2005, it is a requirement for all non-exempt legislative instruments to be registered on the Federal Register of Legislative Instruments. From 1 January 2005 the Statutory Rules series ceased to exist and was replaced with Select Legislative Instruments (SLI series). Numbering conventions remain the same, ie Year and Number.
Table of Instruments
Year and
number | Date of notification
in Gazette or FRLI registration | Date of
commencement | Application, saving or
transitional provisions |
2004 No. 188 | 1 July 2004 | 1 July 2004 | |
2005 No. 113 | 8 June 2005 (see F2005L01408) | 1 July 2005 | — |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
R. 5................. | am. 2005 No. 113 |
Overview
The Private Health Insurance (ACAC Review Levy) Regulations 2004 were enacted under the Private Health Insurance (ACAC Review Levy) Act 2003 by the Parliament of Australia to establish a mechanism for imposing a levy on registered health benefits organisations. This levy was introduced to address the financial costs associated with the Australian Competition and Consumer Commission's (ACCC) review of the private health insurance industry, ensuring that the burden of such reviews does not fall solely on the government. The regulations specify the rate of levy and the days on which it is imposed, calculated based on the number of single and family contributors to health benefits funds. The levy is designed to be proportionate, with a maximum set at 50 cents for single contributors and $1 for family contributors per financial year. The regulations came into effect on 1 July 2004 and have been amended to align with changes in legislative instruments registration practices post-2005.
Scope and Application
The Private Health Insurance (ACAC Review Levy) Regulations 2004 apply to registered health benefits organizations, which are entities involved in the conduct of private health insurance funds in Australia. These regulations are made under the Private Health Insurance (ACAC Review Levy) Act 2003 and commenced on 1 July 2004. They are designed to impose a levy on these organizations for the purpose of funding the activities of the Australian Competition and Consumer Commission (ACAC) in reviewing private health insurance matters. The levy is applicable nationally across Australia, and its rate is determined based on the number of contributors to health funds as of the census day, which is the 28th day of the first month of each quarter. The levy day is set as the 28th day of the second month of each quarter. The regulations include specific formulas for calculating the levy rate for both single and family contributors, with a cap of 50 cents per single contributor and $1 per family contributor per financial year. Any amendments to these regulations are reflected in subsequent legislative instruments and are registered on the Federal Register of Legislative Instruments.
Key Provisions
The Private Health Insurance (ACAC Review Levy) Regulations 2004 (the Regulations), made under the Private Health Insurance (ACAC Review Levy) Act 2003 (the Act), set out the specific details for the ACAC review levy that applies to registered health benefits organisations. These Regulations commenced on 1 July 2004. The Act establishes a levy to fund the Australian Competition and Consumer Commission's (ACAC) review of the private health insurance industry. The Regulations detail the rate and timing of the levy, as well as the census day, which is used to determine the number of contributors for the levy calculation.
The Regulations impose obligations on registered health benefits organisations to pay the ACAC review levy on specified dates, known as ACAC review levy days, which are set for the 28th day of the second month of each quarter in a financial year (Regulation 4). Additionally, the Regulations require these organisations to determine the number of single and family contributors on the census day, which is the 28th day of the first month of each quarter (Regulation 6). These figures are essential for calculating the rate of the levy applicable to each contributor, which is done using formulas outlined in the Regulations (Regulation 5).
Breach of the requirements set out in these Regulations can result in financial penalties. The Act itself, which the Regulations implement, stipulates that the rate of the levy must not exceed 50 cents for a contributor who contributes for one person and $1 for a contributor who contributes for more than one person in a financial year (Regulation 5(3) and Note to Regulation 7). Non-compliance with the levy requirements or incorrect calculations can lead to financial discrepancies and may attract further scrutiny or corrective action by the relevant authorities.
In summary, the Regulations establish the framework for the ACAC review levy, detailing the levy days, the census day, and the formula for calculating the levy based on the number of contributors. Registered health benefits organisations are required to adhere to these provisions to ensure they contribute appropriately towards the funding of the ACAC's reviews. Non-compliance or incorrect application of the levy may lead to penalties, with the maximum rates of the levy specified to prevent overcharging.