Commonwealth Consolidated Acts

TAXATION LAWS AMENDMENT ACT (NO. 6) 2000 - SCHEDULE 3

A New Tax System (Medicare Levy Surcharge--Fringe Benefits) Act 1999

1   Subsection 3(1)

Insert:

"covered" by an insurance policy that provides private patient hospital cover has a meaning affected by section   4.

Note:   For limited purposes, sections   12, 13 and 14 also treat certain persons as being covered by an insurance policy that provides private patient hospital cover.

2   Subsection 3(1) (definition of provides )

Repeal the definition.

3   Section   4

Repeal the section, substitute:

4   When does a person have private patient hospital cover?

  (1)   For the purposes of this Act, a person is covered by an insurance policy that provides private patient hospital cover if the policy is an applicable benefits arrangement, within the meaning of section   5A of the National Health Act 1953 , to which paragraph 5A(1)(a) of that Act applies.

  (2)   However, for the purposes of this Act a person is not covered by an insurance policy that provides private patient hospital cover if:

  (a)   the insurance policy that covers the person is an applicable benefits arrangement that:

  (i)   is modified in accordance with an election described in paragraph   ( ba) of Schedule   1 to the National Health Act 1953 ; and

  (ii)   is associated with a health benefits fund conducted by a registered organization under that Act; and

  (b)   the difference between the lesser benefits mentioned in that paragraph and the benefits payable in accordance with a corresponding applicable benefits arrangement not modified in accordance with such an election is more than:

  (i)   $1,000; or

  (ii)   $500, if there is only one contributor (as defined in that Act) to the health benefits fund for the applicable benefits arrangement mentioned in paragraph   ( a) of this subsection and benefits are not payable under the arrangement in respect of the contributor's dependants (as defined in that Act), if any.

  (3)   Subsection   ( 2) does not prevent a person from being covered by an insurance policy that provides private patient hospital cover if:

  (a)   the person has been covered by the policy continuously since the end of 24   May 2000; and

  (b)   the election mentioned in subparagraph   ( 2)(a)(i) was made before the end of 24   May 2000.

  (4)   For the purposes of this Act, a person is also covered by an insurance policy that provides private patient hospital cover if:

  (a)   the policy is issued by a person to whom subsection 67(3) of the National Health Act 1953 applies; and

  (b)   if the person referred to in paragraph   ( a) were a registered organization within the meaning of that Act--the policy would be an applicable benefits arrangement, within the meaning of section   5A of that Act, to which paragraph 5A(1)(a) of that Act would apply.

  (5)   However, for the purposes of this Act a person is not covered by an insurance policy that provides private patient hospital cover if:

  (a)   the person is covered by an insurance policy described in subsection   ( 4); and

  (b)   under subsection   ( 2), the person would not be covered by an insurance policy that provides private patient hospital cover for the purposes of this Act, assuming that:

  (i)   the policy mentioned in paragraph   ( a) of this subsection were a policy described in subsection   ( 1); and

  (ii)   the person issuing the policy were a registered organization conducting a health benefits fund under the National Health Act 1953 ; and

  (iii)   the policy were associated with the fund.

  (6)   Subsections   ( 2) and (5) do not limit the circumstances in which, for the purposes of this Act, a person is not covered by an insurance policy that provides private patient hospital cover.

Example:   For the purposes of this Act, a person is also not covered by an insurance policy that provides private patient hospital cover if the person is not covered by an insurance policy described in subsection   ( 1) or (4).

Medicare Levy Act 1986

4   After subsection 3(5)

Insert:

  (5A)   However, for the purposes of this Act a person is not covered by an insurance policy that provides private patient hospital cover if:

  (a)   the insurance policy that covers the person is an applicable benefits arrangement that:

  (i)   is modified in accordance with an election described in paragraph   ( ba) of Schedule   1 to the National Health Act 1953 ; and

  (ii)   is associated with a health benefits fund conducted by a registered organization under that Act; and

  (b)   the difference between the lesser benefits mentioned in that paragraph and the benefits payable in accordance with a corresponding applicable benefits arrangement not modified in accordance with such an election is more than:

  (i)   $1,000; or

  (ii)   $500, if there is only one contributor (as defined in that Act) to the health benefits fund for the applicable benefits arrangement mentioned in paragraph   ( a) of this subsection and benefits are not payable under the arrangement in respect of the contributor's dependants (as defined in that Act), if any.

  (5B)   Subsection   ( 5A) does not prevent a person from being covered by an insurance policy that provides private patient hospital cover if:

  (a)   the person has been covered by the policy continuously since the end of 24   May 2000; and

  (b)   the election mentioned in subparagraph   ( 5A)(a)(i) was made before the end of 24   May 2000.

5   At the end of section   3

Add:

  (7)   However, for the purposes of this Act a person is not covered by an insurance policy that provides private patient hospital cover if:

  (a)   the person is covered by an insurance policy described in subsection   ( 6); and

  (b)   under subsection   ( 5A), the person would not be covered by an insurance policy that provides private patient hospital cover for the purposes of this Act, assuming that:

  (i)   the policy mentioned in paragraph   ( a) of this subsection were a policy described in subsection   ( 5); and

  (ii)   the person issuing the policy were a registered organization conducting a health benefits fund under the National Health Act 1953 ; and

  (iii)   the policy were associated with the fund.

  (8)   Subsections   ( 5A) and (7) do not limit the circumstances in which, for the purposes of this Act, a person is not covered by an insurance policy that provides private patient hospital cover.

Example:   For the purposes of this Act, a person is also not covered by an insurance policy that provides private patient hospital cover if the person is not covered by an insurance policy described in subsection   ( 5) or (6).

6   Application of amendments

The amendments made by this Schedule apply for the purposes of working out Medicare levy and surcharge (as defined in Part   VIIB of the Income Tax Assessment Act 1936 ) for financial years starting on or after 1   July 2000.

Notes to the Taxation Laws Amendment Act (No. 6) 2000

Note 1

The Taxation Laws Amendment Act (No.   6) 2000 as shown in this compilation comprises Act No.   76, 2000 amended as indicated in the Tables below.

Table of Acts

Table of Amendments