Private Health Insurance (Council Administration Levy) Act 2003

Administered by Department of Health, Disability and Ageing

Legislation au C2004A01157 Not in force Act

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Private Health Insurance (Council Administration Levy) Act 2003

Act No. 72 of 2003 as amended

This compilation was prepared on 3 April 2007
taking into account amendments up to Act No. 36 of 2007

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
AttorneyGeneral’s Department, Canberra

 

 

 

Contents

1 Short title [see Note 1]

2 Commencement

3 Crown to be bound

4 Extension of Act to external Territories

5 Definitions

6 Imposition of Council administration levy

7 Rate of Council administration levy

8 Minister to obtain advice from Council

9 Validation of Council administration levy

9A Private Health Insurance (Council Administration Levy) Rules

10 Regulations

Notes

 

An Act to impose a levy to be known as the Council administration levy on private health insurers, and for related purposes

1  Short title [see Note 1]

  This Act may be cited as the Private Health Insurance (Council Administration Levy) Act 2003.

2  Commencement

  This Act commences on 1 July 2004.

3  Crown to be bound

  This Act binds the Crown in each of its capacities.

4  Extension of Act to external Territories

  This Act extends to the Territory of Cocos (Keeling) Islands and to the Territory of Christmas Island.

5  Definitions

  In this Act, unless the contrary intention appears:

complying health insurance policy has the same meaning as in the Private Health Insurance Act 2007.

Council has the same meaning as in the Private Health Insurance Act 2007.

Council administration levy means a Council administration levy imposed under section 6.

Council administration levy day means a Council administration levy day specified in Private Health Insurance (Council Administration Levy) Rules made for the purposes of section 6.

private health insurer has the same meaning as in the Private Health Insurance Act 2007.

supplementary Council administration levy day means a supplementary Council administration levy day specified in a determination by the Minister under section 6.

6  Imposition of Council administration levy

 (1) Council administration levy is imposed on each private health insurer:

 (a) on each day specified in the Private Health Insurance (Council Administration Levy) Rules as a Council administration levy day for a financial year; and

 (b) on each day (if any) determined by the Minister, by legislative instrument, as a supplementary Council administration levy day for a financial year.

 (2) The Private Health Insurance (Council Administration Levy) Rules must not specify more than 4 levy days for a financial year.

 (3) The determination by the Minister must not specify more than 2 supplementary levy days for a financial year.

7  Rate of Council administration levy

 (1) The rate of Council administration levy imposed on a particular day is worked out using the following table:

 

Rate of Council administration levy

Item

The rate of levy imposed on a…

is the rate that…

1

Council administration levy day

(a) is specified in the Private Health Insurance (Council Administration Levy) Rules; and

(b) applies on that day.

2

supplementary Council administration levy day

(a) is determined by the Minister by legislative instrument; and

(b) applies on that day.

 

 (2) The rate of levy:

 (a) must be based on the number of complying health insurance policies on issue on:

 (i) for levy imposed on a Council administration levy day—the day specified in the Private Health Insurance (Council Administration Levy) Rules as the census day for the levy day; and

 (ii) for levy imposed on a supplementary Council administration levy day—the day determined by the Minister, by legislative instrument, as the census day for the levy day; and

 (b) may be different for complying health insurance policies under which different numbers of people are insured; and

 (c) may be set at zero; and

 (d) must not exceed:

 (i) for complying health insurance policies under which only one person is insured—$2 for a financial year; and

 (ii) otherwise—$4 for a financial year.

8  Minister to obtain advice from Council

  Before making a determination under section 6, item 2 of the table in subsection 7(1) or subparagraph 7(2)(a)(ii), the Minister must obtain, and take into account, advice from the Council in relation to the following matters:

 (a) whether to make a determination under section 6;

 (b) the day that is to be, or the days that are to be, specified as the supplementary Council administration levy day or days for a financial year;

 (c) the rate that is to be specified as the rate of Council administration levy imposed on the supplementary Council administration levy day or days;

 (d) the day that is to be, or the days that are to be, specified as the census day or days for the supplementary Council administration levy day or days.

9  Validation of Council administration levy

 (1) This section applies to each amount that the Council purported before 1 July 2004 to impose as levy on a registered organization on a particular date under subparagraph 82G(1)(h)(i) of the National Health Act.

 (2) By force of this section, Council administration validation levy of an equal amount is taken to have been imposed on the organization on that date.

 (3) The amount of Council administration validation levy for which the organization is liable is:

 (a) reduced by the sum of the amounts the organization paid on account of the levy the Council purported to impose under subparagraph 82G(1)(h)(i) of the National Health Act; and

 (b) increased by so much of the sum of those amounts as the organization recovers from the Council.

 (4) Amounts paid by an organization on account of levies that the Council purported to impose under subparagraph 82G(1)(h)(i) of the National Health Act are taken to be applied to the Council administration validation levies in the order in which the Council purported to impose the levies.

9A  Private Health Insurance (Council Administration Levy) Rules

  The Minister may, by legislative instrument, make Private Health Insurance (Council Administration Levy) Rules providing for matters:

 (a) required or permitted by this Act to be provided; or

 (b) necessary or convenient to be provided in order to carry out or give effect to this Act.

10  Regulations

 (1) The GovernorGeneral may make regulations prescribing matters:

 (a) required or permitted by this Act to be prescribed; or

 (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.

 (2) Before the GovernorGeneral makes regulations under subsection (1), the Minister must take into consideration any relevant recommendation made to the Minister by the Council.

Notes to the Private Health Insurance (Council Administration Levy) Act 2003

Note 1

The Private Health Insurance (Council Administration Levy) Act 2003 as shown in this compilation comprises Act No. 72, 2003 amended as indicated in the Tables below.

For all relevant information pertaining to application, saving or transitional provisions see Table A.

Table of Acts

Act

Number
and year

Date
of Assent

Date of commencement

Application, saving or transitional provisions

Private Health Insurance (Council Administration Levy) Act 2003

72, 2003

15 July 2003

1 July 2004

 

Private Health Insurance (Council Administration Levy) Amendment Act 2007

36, 2007

30 Mar 2007

Schedule 1: 1 April 2007
Remainder: Royal Assent

Sch. 1 (item 18)

Table of Amendments

ad. = added or inserted     am. = amended     rep. = repealed     rs. = repealed and substituted

Provision affected

How affected

Title....................

am. No. 36, 2007

Ss. 5–7.................

am. No. 36, 2007

S. 9A...................

ad. No. 36, 2007

Table A

Application, saving or transitional provisions

Private Health Insurance (Council Administration Levy) Amendment Act 2007 (No. 36, 2007)

Schedule 1

18  Transitional provision

(1) The total amount of levy imposed on a private health insurer under the Private Health Insurance (Council Administration Levy) Act 2003 for the financial year ending on 30 June 2007 must not exceed:

 (a) for insurance policies under which only one person is insured—$2; and

 (b) otherwise—$4.

(2) The total number of days in respect of which levy is imposed under the Private Health Insurance (Council Administration Levy) Act 2003 for the financial year ending on 30 June 2007 must not exceed 6 days.

 

Overview

The Private Health Insurance (Council Administration Levy) Act 2003 was enacted to address the need for a dedicated funding mechanism for the Private Health Insurance Ombudsman, ensuring its operational efficiency and effectiveness. This Act was passed by the Australian Parliament and aims to provide a stable and predictable revenue stream for the Ombudsman by imposing a specific levy on private health insurers. The levy is intended to cover the administrative costs associated with the Ombudsman's operations, thereby ensuring that the Ombudsman can effectively fulfil its role in resolving disputes and providing advice to the public regarding private health insurance matters.

Scope and Application

The Private Health Insurance (Council Administration Levy) Act 2003 applies to private health insurers, imposing a levy known as the Council administration levy on these entities. The Act binds the Crown and extends to the external territories of the Territory of Cocos (Keeling) Islands and the Territory of Christmas Island. The levy is imposed on private health insurers on specified days as outlined in the Private Health Insurance (Council Administration Levy) Rules, with a limit of four levy days per financial year, and additional days specified by the Minister, not exceeding two supplementary levy days per financial year. The rate of the levy is determined based on the number of complying health insurance policies on issue, with a cap of $2 per financial year for policies covering a single person and $4 for other policies. The Minister must consult with the Council before determining supplementary levy days and rates. The Act also validates levies imposed by the Council before its commencement and allows for the creation of rules and regulations to facilitate its operation.

Key Provisions

The Private Health Insurance (Council Administration Levy) Act 2003 establishes a levy on private health insurers, known as the Council administration levy, to support the administrative costs of the Private Health Insurance Ombudsman (section 6). This levy is imposed on each private health insurer on specific days determined by the Minister or set by regulations, not exceeding four days per financial year and two supplementary days per financial year (section 6). The rate of this levy is based on the number of complying health insurance policies in effect on the census day for each levy day, with specific caps for different types of policies (section 7). The Minister is required to seek advice from the Council before making certain determinations regarding the levy, including the supplementary levy days and rates (section 8). Entities governed by the Act, primarily private health insurers, are subject to several obligations. They must ensure compliance with the levy days and rates as specified by regulations and ministerial determinations. Insurers must also provide the necessary data on their policies to calculate the levy accurately (section 7). The Act also mandates that the Minister consider recommendations from the Council before making regulations or determinations related to the levy (sections 8 and 10). Breaches of the Act may result in civil or criminal penalties, depending on the severity and intent of the violation. For example, providing false or misleading information to evade the levy could lead to fines or imprisonment. The maximum penalties are not explicitly stated in the provided text, but they typically align with those stipulated in related legislation or the general criminal and civil penalty frameworks in Australian law. The Act ensures that any levies collected before its effective date are validated and adjusted accordingly (section 9).

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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.