Fairer Private Health Insurance Incentives (Medicare Levy Surcharge—Fringe Benefits) Act 2012

No. 28, 2012

An Act to amend the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999, and for related purposes

Contents

An Act to amend the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999, and for related purposes

[Assented to 4 April 2012]

The Parliament of Australia enacts:
1 Short title

This Act may be cited as the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge—Fringe Benefits) Act 2012.
2 Commencement 1

Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information Commencement information Commencement information
Column 1 Column 2 Column 3
Provision(s) Commencement Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 4 April 2012
2. Schedule 1 At the same time as Schedule 1 to the Fairer Private Health Insurance Incentives Act 2012 commences. 1 July 2012

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 2

Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Amendments

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

 1 Subsection 3(1) (definition of family surcharge threshold)

Repeal the definition.

 2 Subsection 3(1)

Insert:

family tier 1 threshold, of a person for a year of income, means the family tier 1 threshold (within the meaning of the Private Health Insurance Act 2007) of the person for the financial year corresponding to the year of income.

 3 Subsection 3(1) (definition of singles surcharge threshold)

Repeal the definition.

 4 Subsection 3(1)

Insert:

singles tier 1 threshold, of a person for a year of income, means the singles tier 1 threshold (within the meaning of the Private Health Insurance Act 2007) of the person for the financial year corresponding to the year of income.

 5 Subsection 3(1)

Insert:

tier 2 earner has the meaning given by section 6.

 6 Subsection 3(1)

Insert:

tier 3 earner has the meaning given by section 6.

 7 Sections 5A and 6

Repeal the sections, substitute:

 6 What is a tier 2 earner and tier 3 earner 1

(1) Subject to this section, for the purposes of this Act:

 a

(a) tier 2 earner, for a year of income, means a tier 2 earner (within the meaning of the Private Health Insurance Act 2007) for the financial year corresponding to the year of income; and

 b

(b) tier 3 earner, for a year of income, means a tier 3 earner (within the meaning of that Act) for the financial year corresponding to the year of income.

 2

(2) In determining whether a person is a tier 2 earner or tier 3 earner for a year of income for the purposes of this Act, section 22-30 of the Private Health Insurance Act 2007 operates with the modification set out in subsection (3).

 3

(3) Replace paragraph 22-30(1)(b) of the Private Health Insurance Act 2007 with the following paragraph:

 b

(b) on any day in the year, the person has one or more dependants (within the meaning of the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999), other than a dependant to whom the person is married (within the meaning of that Act):

 8 Paragraph 12(1)(a)

Omit “the singles surcharge threshold”, substitute “the person’s singles tier 1 threshold”.

 9 At the end of section 12

Add:

 4

Increase the amount of each percentage mentioned in subsections (2) and (3) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.

 5

Increase the amount of each percentage mentioned in subsections (2) and (3) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.

 10 Paragraph 13(1)(a)

Omit “family surcharge threshold”, substitute “family tier 1 threshold”.

 11 At the end of section 13

Add:

 5

Increase the amount of each percentage mentioned in subsections (3) and (4) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.

 6

Increase the amount of each percentage mentioned in subsections (3) and (4) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.

 12 Paragraph 15(1)(b)

Omit “family surcharge threshold”, substitute “family tier 1 threshold”.

 13 At the end of section 15

Add:

 3

Increase the amount of the percentage mentioned in subsection (1) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.

 4

Increase the amount of the percentage mentioned in subsection (1) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.

 14 Paragraph 16(2)(b)

Omit “family surcharge threshold”, substitute “family tier 1 threshold”.

 15 Paragraph 16(3)(b)

Omit “family surcharge threshold”, substitute “family tier 1 threshold”.

 16 After subsection 16(4)

Insert:

 4A

Increase the amount of the percentage mentioned in subsection (4) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.

 4B

Increase the amount of the percentage mentioned in subsection (4) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.

 17 Application

The amendments made by this Schedule apply to the 2012-13 year of income and later years of income.

[Minister’s second reading speech made in—

House of Representatives on 7 July 2011

Senate on 27 February 2012]