EXPLANATORY STATEMENT
Issued by the Authority of the Private Health Insurance Administration Council
Private Health Insurance Act 2007
Private Health Insurance (Health Benefits Fund Administration) Amendment Rules 2007 (No. 1)
Authority for the Rules
The Private Health Insurance (Health Benefits Fund Administration) Amendment Rules 2007 (No. 1) (the Rules) are made by the Private Health Insurance Administration Council (the Council) under item 3 of the table in section 333-25, for the purposes of Part 4-4 of the Private Health Insurance Act 2007 (the Act).
Section 333-25 of the Act provides that the Council may make rules providing for:
(a) matters required or permitted by the corresponding Chapter, Part or section of the Act to be provided; or
(b) necessary or convenient to be provided in order to carry out or give effect to that Chapter, Part or section.
The Rules are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
All legal and other requirements for making the Rules have been met.
Purpose of the Amendment
The purpose of this amendment is to ensure that the Private Health Insurance (Health Benefits Fund Administration) Rules 2007 are simplified in certain circumstances where a private health insurer transfers all assets and liabilities from an incorporated association to a corporation under the Corporations Act 2001. This will normally occur as part of the registration process under Division 126-10(1) of the Private Health Insurance Act 2007.
An explanation of each of the rules is set out in the Attachment.
Consultation
This issue has arisen after consultation with a private health insurer as part of the registration process. At least one fund is experiencing difficulties. The fund is an incorporated association under state legislation and is prevented by that legislation from achieving the necessary status under the Corporations Act 2001 that would enable it to re-register under the Private Health Insurance Act 2007. No other consultation was undertaken in relation to the Amending Rules as the changes will simplify and streamline requirements for a private health insurer when becoming a company for registration purposes.
ATTACHMENT
DETAILS OF THE PRIVATE HEALTH INSURANCE (HEALTH BENEFITS FUND ADMINISTRATION) AMENDMENT RULES 2007 (No. 1)
- Name of Rules
Rule 1 provides that the title of the Rules is the Private Health Insurance (Health Benefits Fund Administration) Amendment Rules 2007 (No. 1).
2. Commencement
Rule 2 provides that the Amending Rules are to commence the day after they are registered.
3. Amendment of the Private Health Insurance (Health Benefits Fund Administration) Rules 2007
Rule 3 provides that the Schedule of the Amending Rules amends the Private Health Insurance (Health Benefits Fund Administration) Rules 2007.
Schedule – Amendments
Item 1 - Rule 12A Transfer from an incorporated association
This clause clarifies requirements where an incorporated association transfers a fund to a corporation under the Corporations Act 2001 subject to certain conditions.