Private Health Insurance (Collapsed Insurer Levy) Act 2003

No. 71, 2003

Compilation No.   3

Compilation date: 1 July 2016

Includes amendments up to: Act No. 86, 2015

Registered: 21 July 2016

About this compilation

This compilation

This is a compilation of the Private Health Insurance (Collapsed Insurer Levy) Act 2003 that shows the text of the law as amended and in force on 1 July 2016 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self - repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

1 Short title 1

2 Commencement 1

3 Crown to be bound 1

4 Extension of Act to external Territories 1

5 Definitions 1

6 Purpose of imposing collapsed insurer levy 2

7 Imposition of collapsed insurer levy 2

8 Exempt insurers 3

9 Rate of collapsed insurer levy 3

10 Minister to obtain advice from APRA 4

12 Regulations 5

Endnotes 6

Endnote 1—About the endnotes 6

Endnote 2—Abbreviation key 8

Endnote 3—Legislation history 9

Endnote 4—Amendment history 10

An Act to impose a levy to be known as the collapsed insurer levy on private health insurers, and for related purposes
1 Short title

This Act may be cited as the Private Health Insurance (Collapsed Insurer 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 Norfolk Island, to the (Keeling) and to the .
5 Definitions

In this Act, unless the contrary intention appears:

APRA means the Australian Prudential Regulation Authority.

collapsed insurer: a private health insurer is a collapsed insurer if at least one of the following paragraphs applies in relation to at least one of the insurer’s health benefits funds:

 a

(a) APRA has approved the termination of the health benefits fund under Private Health Insurance (Prudential Supervision) Act 2015;section 37 of the

b

(b) APRA has appointed an external manager of the health benefits fund under Private Health Insurance (Prudential Supervision) Act 2015;section 51 of the

c

(c) the Federal Court of Australia has ordered the appointment of a terminating manager of the health benefits fund under Private Health Insurance (Prudential Supervision) Act 2015.section 67 of the

collapsed insurer levy means a collapsed insurer levy imposed under section 7.

collapsed insurer levy day means a collapsed insurer levy day specified in a determination under section 7.

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

health benefits fund has the same meaning as in the Private Health Insurance Act 2007.

levy determination means a determination by the Minister under paragraph 7(1)(b).

private health insurer has the same meaning as in the Private Health Insurance (Prudential Supervision) Act 2015.
6 Purpose of imposing collapsed insurer levy

The purpose of imposing a collapsed insurer levy is to help meet a collapsed insurer’s liabilities to the people insured under its complying health insurance policies that it is unable to meet itself.
7 Imposition of collapsed insurer levy 1

If:

 a

a private health insurer is a collapsed insurer; and

 b

the Minister determines, by legislative instrument, that this section applies to the insurer;

collapsed insurer levy is imposed on each private health insurer (other than an exempt insurer) on each collapsed insurer levy day for the levy determination.

Note: Section 8 deals with exempt insurers.

 2

The Minister may determine, by legislative instrument, the day that is, or the days that are, to be the collapsed insurer levy day or days for the levy determination.

 3

A determination specifying a collapsed insurer levy day must also specify the payment day for levy imposed on that collapsed insurer levy day.

Note: The payment day is the day on which the levy is due and payable under Financial Institutions Supervisory Levies Collection Act 1998.Part 3B of the

8 Exempt insurers 1

A private health insurer is an exempt insurer in relation to a levy determination if:

 a

it is the collapsed insurer; or

 b

the Minister determines, by legislative instrument, that the insurer is an exempt insurer.

 2

The Minister may make a determination under paragraph (1)(b) if the Minister is satisfied that imposing the collapsed insurer levy on the insurer would have a significantly adverse effect on the insurer’s ability to comply with:

 a

(a) a prudential standard (within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015) relating to capital adequacy or solvency that applies in relation to the insurer; or

 b

a direction given to the insurer under section 96 of that Act.
9 Rate of collapsed insurer levy 1

The rate of collapsed insurer levy imposed on a collapsed insurer levy day is the rate that:

 a

is determined by the Minister by legislative instrument; and

 b

applies on that day.

 2

In determining the rate of levy, the Minister must have regard to the total value of the collapsed insurer’s liabilities to people insured under its complying health insurance policies.

 3

The rate of levy:

 a

must be based on the number of complying health insurance policies that are on issue on 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.
10 Minister to obtain advice from APRA 1

Before making a determination under the Minister must obtain, and take into account, advice from APRA in relation to the following matters:section 7, 8 or 9,

a

whether to make a levy determination;

 b

whether to make a determination under paragraph 8(1)(b);

 c

the day that is to be, or the days that are to be, specified as the collapsed insurer levy day or days;

 ca

the day that is to be specified as the payment day in relation to a collapsed insurer levy day;

 d

the rate that is to be specified as the rate of the collapsed insurer levy imposed on the collapsed insurer levy day or days;

 e

the day that is to be, or the days that are to be, specified as the census day or days for the collapsed insurer levy day or days;

 f

the total value of the collapsed insurer’s liabilities to people insured under its complying health insurance policies.

 2

An advice given to the Minister by APRA under subsection (1) must be laid before each House of the Parliament with the determination to which the advice relates.
12 Regulations 1

The Governor-General 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 Governor-General makes regulations under subsection (1), the Minister must take into consideration any relevant recommendation made to the Minister by APRA.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.

If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history.

Endnote 2—Abbreviation key
ad = added or inserted o = order(s)
am = amended Ord = Ordinance
amdt = amendment orig = original
c = clause(s) par = paragraph(s)/subparagraph(s)
C[x] = Compilation No. x /sub-subparagraph(s)
Ch = Chapter(s) pres = present
def = definition(s) prev = previous
Dict = Dictionary (prev…) = previously
disallowed = disallowed by Parliament Pt = Part(s)
Div = Division(s) r = regulation(s)/rule(s)
ed = editorial change reloc = relocated
exp = expires/expired or ceases/ceased to have renum = renumbered
effect rep = repealed
F = Federal Register of Legislation rs = repealed and substituted
gaz = gazette s = section(s)/subsection(s)
LA = Legislation Act 2003 Sch = Schedule(s)
LIA = Legislative Instruments Act 2003 Sdiv = Subdivision(s)
(md) = misdescribed amendment can be given SLI = Select Legislative Instrument
effect SR = Statutory Rules
(md not incorp) = misdescribed amendment Sub-Ch = Sub-Chapter(s)
cannot be given effect SubPt = Subpart(s)
mod = modified/modification underlining = whole or part not
No. = Number(s) commenced or to be commenced

Endnote 3—Legislation history
Act Number and year Assent Commencement Application, saving and transitional provisions
Private Health Insurance (Collapsed Organization Levy) Act 2003 71, 2003 15 July 2003 1 July 2004 (s 2)
Private Health Insurance (Collapsed Organization Levy) Amendment Act 2007 34, 2007 Sch 1: 1 Apr 2007 (s 2(1) item 2) Remainder: 30 Mar 2007 (s 2(1) item 1) —
Private Health Insurance (Collapsed Insurer Levy) Amendment Act 2015 86, 2015 26 June 2015 Sch 1 (items 1–14): 1 July 2015 (s 2(1) item 2) Sch 1 (item 15): 1 July 2016 (s 2(1) item 3) Sch 1 (item 14)

Endnote 4—Amendment history
Provision affected How affected
Title am. No. 34, 2007
s. 1 am. No. 34, 2007
s 4 am No 86, 2015
s. 5 am. No. 34, 2007; No 86, 2015
s. 6 rs. No. 34, 2007
s. 7 rs. No. 34, 2007
am No 86, 2015
s. 8 rs. No. 34, 2007
am No 86, 2015
s. 9 am. No. 34, 2007
s. 10 am. No. 34, 2007; No 86, 2015
s 11 rep No 86, 2015
s 12 am No 86, 2015