Commonwealth Consolidated Acts

A NEW TAX SYSTEM (MEDICARE LEVY SURCHARGE--FRINGE BENEFITS) ACT 1999 - SECT 14

Application

  (1)   This Division applies to a person for a period in a year of income if, during the whole of the period:

  (a)   the person is a married person; and

  (b)   the person, or at least one of the person's dependants, is not covered by an insurance policy that provides private patient hospital cover; and

  (c)   the person is not a prescribed person.

Special rules for applying paragraph   (1)(b)

  (2)   For the purposes of paragraph   (1)(b):

  (a)   the person is taken to be covered during the whole of the period by an insurance policy that provides private patient hospital cover if, apart from subsection   251U(2) of the Assessment Act, the person would be a prescribed person for the period because of paragraph   251U(1)(a), (b), (ca), (caa) or (cb) of that Act; and

  (b)   disregard each of the person's dependants who:

  (i)   is a prescribed person for the period; or

  (ii)   would be a prescribed person for the period apart from subsection   251U(2) of the Assessment Act.

Note:   Paragraphs 251U(1)(a), (b), (ca), (caa) and (cb) of the Assessment Act provide that the following are prescribed persons:

• defence personnel and members of their families who can get free medical treatment;
• people who can get free medical treatment under the Veterans' Entitlements Act 1986 , the Military Rehabilitation and Compensation Act 2004 , the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 or the Treatment Benefits (Special Access) Act 2019 ;
• people who receive certain payments under the Social Security Act 1991 or the Veterans' Entitlements Act 1986 .

  Subsection   251U(2) of the Assessment Act provides that a person who would otherwise be a prescribed person is not a prescribed person if one or more of his or her dependants are not prescribed persons.