Private Health Insurance Complaints Levy Amendment Regulations 2000 (No. 1) 2000 No. 9
EXPLANATORY STATEMENT
STATUTORY RULES 2000 No. 9
Issued by authority of the Minister for Health and Aged Care
Private Health Insurance Complaints Levy Act 1995
Private Health Insurance Complaints Levy Amendment Regulations 2000 (No. 1)
Section 9 of the Private Health Insurance Complaints Levy Act 1995 (the Act) provides that the Governor-General may make Regulations for the purposes of the Act.
The Act imposes a levy on registered organisations conducting health insurance business. The levy is used to meet the costs of the operation of the Private Health Insurance Ombudsman (PHIO).
Subsection 6(1) of the Act provides that the rate of levy is the rate prescribed by the regulations.
Subsection 6(2) of the Act provides for the rate of levy to be based on the number of contributors who contribute to a health benefits fund.
Subsection 6(3) of the Act provides that the Regulations may prescribe different rates of levy in respect of those contributors who contribute to a health benefits fund in respect of one person (single contributors) and those who contribute in respect of more than one person (family contributors).
Subsection 6(4) of the Act provides that the rate of levy must not exceed 25 cents per quarter for a single contributor and 50 cents per quarter for a family contributor.
Section 8 of the Act provides that levy is payable on the days prescribed by the regulations.
The Private Health Insurance Complaints Levy Regulations prescribe rates of levy calculated in accordance with the given formula to raise $700,000 from registered organisations for each financial year after 30 June 1996 (the old rate). Although calculated quarterly, the levy is payable twice a year, i.e.,
* levy for the quarters commencing on 1 January and 1 April is payable on 17 March; and
* levy for the quarters commencing on 1 July and 1 October is payable on 16 September.
A decision was made in the 1999-2000 budget to increase funding to the PHIO to $950,000 and that this increase was to be paid for by an increase in the levy. Registered organisations have paid levy at the increased rate in respect of the 1 July and 1 October quarters.
The Amending Regulations:
* prescribe rates of levy calculated in accordance with the given formula to raise $930,000 from registered organisations for each financial year after 30 June 2000 (the new rate). The levy will be payable once a year, on 17 December, Based on the number of contributors to health benefits funds as at 30 June 1999, the levy rate payable by a registered organisation per quarter for a single contributor and a family contributor will be 4-42 cents and 8.84 cents respectively; and
* prescribe rates of levy calculated in accordance with the given formula in respect of the second two quarters of 1999-2000. The formula covers the increased annual costs associated with the PHIO in respect of the second two quarters of 1999-2000 as well as the difference between the old rate and the new rate paid by registered organisations in respect of the first two quarters of 1999-2000. Payments made by registered organisations in respect of the first two quarters of 1999-2000 will be credited against the amount of levy payable in respect of the second two quarters of 1999-2000.
Details of the Amending Regulations are set out in the Attachment.
The Amending Regulations commenced on 10 March 2000.
ATTACHMENT
NOTES ON CLAUSES
Regulation 1 provides that the Regulations may be cited as the Private Health Insurance Complaints Levy Amendment Regulations 2000 (No. 1).
Regulation 2 provides that the Regulations commence on 10 March 2000.
Regulation 3 provides that the Private Health Insurance Complaints Regulations are amended by Schedule 1,
Item 1 substitutes a new regulation 1 renaming the Principal Regulations the Private Health Insurance Complaints Levy Regulations 1995.
Item 2 substitutes a new regulation 4 providing a formula for the imposition of levy for the quarters ending 31 March 2000 and 30 June 2000 which is payable on 17 March 2000.
The formula covers the increased annual costs associated with the PHIO in respect of the second two quarters of 1999-2000 as well as the difference between the old rate and the new rate paid by registered organisations in respect of the first two quarters of 1999-2000. Payments made by registered organisations in respect of the first two quarters of 1999-2000 will be credited against the amount of levy payable in respect of the second two quarters of 1999-2000.
Item 3 substitutes a new regulation 5 providing a formula for the imposition of levy for each financial year after 30 June 2000 which will be payable once a year, on 17 December each year.
The formula has been set to raise 5950,000 from registered organisations for each financial year after 30 June 2000. Based on the number of contributors to health benefits funds as at 30 June 1999, the levy rate payable by a registered organisation per quarter for a single contributor and a family contributor will be 4.42 cents and 8.84 cents respectively;