Income Tax Assessment Act 1936
1 Paragraph 16(4)(fb)
Repeal the paragraph, substitute:
(fb) the Chief Executive Officer of Medicare Australia for the purpose of the administration of the Private Health Insurance Incentives Act 1998 or Part 2 - 2 or 6 - 4 of the Private Health Insurance Act 2007 ;
2 Subsection 159J(6) (paragraph (aac) of the definition of separate net income )
Omit " Private Health Insurance Incentives Act 1998 ", substitute "Division 26 of the Private Health Insurance Act 2007 ".
3 Subsection 170(10AA) (table item 25)
Repeal the table item, substitute:
25 | Subdivision 61 - G | Private health insurance offset complementary to Part 2 - 2 of the Private Health Insurance Act 2007 |
4 Subsection 264BB(1)
Omit "health fund", substitute "private health insurer".
Note: The heading to section 264BB is altered by omitting " health funds " and substituting " private health insurers ".
5 Subsection 264BB(1)
Omit "an appropriate private health insurance policy issued by the fund", substitute "a complying health insurance policy issued by the insurer".
6 Subsection 264BB(2)
Repeal the subsection, substitute:
(2) The information that the Commissioner may require the private health insurer to provide includes the following:
(a) the name, address and date of birth of each person mentioned in subsection (1);
(b) the membership number of the policy;
(c) the name, address and date of birth of any spouse of a person covered by the policy (other than a spouse permanently living separately and apart from the person);
(d) whether the policy covers hospital treatment, general treatment or both;
(e) the date on which the policy was issued;
(f) whether the policy has terminated or been suspended, and, if it has, the date on which it terminated or was suspended;
(g) the amount of the premium payable under the policy;
(h) the period to which the premium relates;
(i) any increase or decrease in the premium;
(j) whether a payment in respect of a premium that was due within a period specified by the Commissioner was not paid.
7 Subsection 264BB(4)
Repeal the subsection, substitute:
(4) In this section, the following terms have the same meanings as in the Private Health Insurance Act 2007 :
"complying health insurance policy"
"general treatment"
"hospital treatment"
"private health insurer"
Income Tax Assessment Act 1997
7A Section 13 - 1 (table item headed "private health insurance")
Omit "61 - H", substitute "61 - G".
8 Section 52 - 125
Omit "Chapter 2 of the Private Health Insurance Incentives Act 1998 ", substitute "Division 26 of the Private Health Insurance Act 2007 ".
9 Subdivision 61 - H of Division 61
Repeal the Subdivision, substitute:
Subdivision 61 - G -- Private health insurance offset complementary to Part 2 - 2 of the Private Health Insurance Act 2007
61 - 200 What this Subdivision is about
You can choose to claim a tax offset for a premium, or an amount in respect of a premium, paid under a private health insurance policy instead of having the premium reduced under Division 23 of the Private Health Insurance Act 2007 or receiving a payment under Division 26 of that Act.
Table of sections
Operative provisions
61 - 205 Entitlement to the private health insurance tax offset
61 - 210 Amount of the private health insurance tax offset
61 - 215 Tax offset after a person 65 years or over ceases to be covered by policy
61 - 220 How to work out the incentive amount
61 - 205 Entitlement to the private health insurance tax offset
(1) If you are an individual (other than an individual in the capacity of an employer), you are entitled to a * tax offset for the 2007 - 08 income year or a later income year if:
(a) a premium, or an amount in respect of a premium, was paid by you, or by your employer as a * fringe benefit for you, under a complying private health insurance policy (within the meaning of the Private Health Insurance Act 2007 ), on or after 1 July 2007; and
(b) the premium, or amount in respect of a premium, was paid during the income year; and
(c) each person insured under the complying health insurance policy during the period covered by the premium or amount is, for the whole of the time that he or she is insured under the policy during that period, an eligible person within the meaning of section 3 of the Health Insurance Act 1973 , or treated as such because of section 6, 6A or 7 of that Act.
(2) You are also entitled to the * tax offset if:
(a) you are a trustee who is liable to be assessed under section 98 of the Income Tax Assessment Act 1936 in respect of a share of the net income of a trust estate; and
(b) the beneficiary who is presently entitled to the share of the income of the trust estate would be entitled to the tax offset because of subsection (1).
(3) However, you are not entitled to the * tax offset in respect of the payment of any premium, or any amount in respect of a premium, if:
(a) you have received an amount under Division 26 of the Private Health Insurance Act 2007 in relation to the payment; or
(b) the premium, or the amount in respect of a premium, was less than it would otherwise have been because of the operation of Division 23 of that Act.
Note: In certain circumstances you can get a refund of the tax offset under Division 67.
61 - 210 Amount of the private health insurance tax offset
(1) The amount of the * tax offset for an income year is the sum of:
(a) 30% of the amount of the premium, or of the amount in respect of a premium, paid by you, or by your employer as a * fringe benefit for you, under the policy in respect of days in the income year on which no person covered by the policy was aged 65 years or over; and
(b) 35% of the amount of the premium, or of the amount in respect of a premium, paid by you, or by your employer as a fringe benefit for you, under the policy in respect of days in the income year on which:
(i) at least one person covered by the policy was aged 65 years or over; and
(ii) no person covered by the policy was aged 70 years or over; and
(c) 40% of the amount of the premium, or of the amount in respect of a premium, paid by you, or by your employer as a fringe benefit for you, under the policy in respect of days in the income year on which at least one person covered by the policy was aged 70 years or over.
(2) However, if, before 1 January 1999, a person was registered, or eligible to be registered, under the Private Health Insurance Incentives Act 1997 in respect of the policy for the income year, the amount of the * tax offset for the income year is the greater of:
(a) the amount worked out under subsection (1); and
(b) the * incentive amount for the policy for the income year.
(3) If, because of the operation of Division 23 of the Private Health Insurance Act 2007 , an amount paid by you, or by your employer as a * fringe benefit for you, under a policy was less than the amount that would otherwise have been payable, the * tax offset in respect of the amount paid is reduced by the amount of the difference.
61 - 215 Tax offset after a person 65 years or over ceases to be covered by policy
(1) If:
(a) at any time, the amount of a * tax offset in respect of premiums payable under an insurance policy (the original policy ) was 35% or 40% of the premiums payable under the policy because a person aged 65 years or over (the entitling person ) was insured under the original policy; and
(b) at that time, another person (other than a dependent child) was insured under the original policy; and
(c) the entitling person subsequently ceases to be insured under the policy;
subsections 61 - 210(1) and (2) apply in relation to a complying health insurance policy (whether or not the original policy) under which the other person is insured (other than for the purposes of working out the * incentive amount) as if:
(d) the entitling person were also insured under that policy; and
(e) the entitling person were the same age as the age at which he or she ceased to be insured under the original policy.
(2) Subsection (1) ceases to apply if a person (other than a dependent child) who was not insured under the original policy at the time the entitling person ceased to be insured under it becomes insured under the complying health insurance policy.
(3) Subsection (1) does not apply if its application would result in the amount of the * tax offset under subsection 61 - 210(1) or (2) being less than it would otherwise have been.
(4) Paragraph (1)(a) applies in relation to an amount of a * tax offset that is 35% or 40% of the premiums payable under an insurance policy whether the tax offset was available under this Subdivision or Subdivision 61 - H as in force before 1 July 2007.
(5) In this section:
"complying health insurance policy" has the same meaning as in the Private Health Insurance Act 2007 .
"dependent child" :
(a) has the meaning given in the Private Health Insurance Act 2007 ; and
(b) in paragraph (1)(b), in relation to a time before 1 July 2007, includes a dependent child within the meaning of the Private Health Insurance Incentives Act 1998 .
61 - 220 How to work out the incentive amount
(1) The incentive amount for a complying private health insurance policy (within the meaning of the Private Health Insurance Act 2007 ) for an income year is the amount worked out under this table:
Incentive amount | ||||
Item | Number and kinds of people covered by the policy | Policy covers * hospital treatment but not * general treatment | Policy covers * general treatment but not * hospital treatment | Policy covers * hospital treatment and * general treatment |
1 | 3 or more people | $350 | $100 | $450 |
2 | One dependent child and one other person | $350 | $100 | $450 |
3 | 2 people neither of whom is a dependent child | $200 | $50 | $250 |
4 | One person | $100 | $25 | $125 |
(2) If the amount of the premium, or the amount in respect of a premium, paid by you, or by your employer as a * fringe benefit for you, under the policy is for part only of the income year, the incentive amount is worked out using this formula:
9A Application of item 9
The repeal of Subdivision 61 - H of the Income Tax Assessment Act 1997 and the substitution of Subdivision 61 - G by this Schedule apply in relation to the 2007 - 2008 income year and later income years.
9B Subsection 67 - 25(2)
Repeal the subsection (including the note), substitute:
Private health insurance
(2) Private health insurance tax offsets under Subdivision 61 - G, except those arising under subsection 61 - 205(2), are subject to the refundable tax offset rules.
Note: Subsection 61 - 205(2) deals with tax offsets for trustees who are assessed and liable to pay tax under section 98 of the Income Tax Assessment Act 1936 .
9C Subsection 995 - 1(1) (definition of incentive amount )
Omit "section 61 - 345", substitute "section 61 - 220".
Private Health Insurance Act 2007
Omit "Subdivision 61 - H", substitute "Subdivision 61 - G".
9E Subsection 26 - 1(4)
Omit "Subdivision 61 - H", substitute "Subdivision 61 - G".
Private Health Insurance Incentives Act 1998
10 Paragraph 4 - 5(1)(a)
Omit "1 July 1998 or a later financial year", substitute "or after 1 July 1998 and before 1 July 2007".
Before "You", insert "(1)".
12 At the end of section 11 - 10
Add:
(2) However, no - one is eligible to apply for registration under this Division after 30 June 2007.
13 At the end of section 12 - 5
Add:
(7) A reduction is not allowable under this section in respect of a premium if the premium is in respect of a financial year, or part of a financial year, beginning on or after 1 July 2007.
14 Subsection 12 - 10(2)
Omit "1 July 1999 or a later financial year", substitute "or after 1 July 1999 and before 1 July 2007".
15 At the end of section 15 - 5
Add:
(3) A * health fund may claim reimbursement under this Division only in respect of an amount of premiums that was reduced because of the operation of this Chapter.
16 Subsection 15 - 23(2)
Repeal the subsection, substitute:
(2) The application must be made:
(a) if the application relates to only one month--before the earlier of:
(i) the day that is 3 years after the last day of the month; and
(ii) 1 July 2008; and
(b) if the application relates to more than one month--before the earlier of:
(i) the day that is 3 years after the last day of the first of those months; and
(ii) 1 July 2008.
Taxation Administration Act 1953
17 Section 45 - 340 of Schedule 1 (method statement, step 1, paragraph (a))
Omit "Subdivision 61 - H", substitute "Subdivision 61 - G".
18 Section 45 - 375 of Schedule 1 (method statement, step 1, paragraph (a))
Omit "Subdivision 61 - H", substitute "Subdivision 61 - G".