However, payments of the following kinds must not be debited from the APRA Special Account:

(1) The Private Health Insurance Collapsed Insurer Special Account (the Collapsed Insurer Special Account) is established by this section.

(2) The Collapsed Insurer Special Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.

The purposes of the Collapsed Insurer Special Account are as follows:

The Minister may, by written notice to a collapsed insurer (or to an external manager or terminating manager of a collapsed insurer), determine conditions on which collapsed insurer assistance payments in respect of the insurer are made. The conditions may include conditions under which the insurer is liable to repay such payments to APRA.

A notice under subsection (2) is not a legislative instrument.

In this section:

A body corporate that is a private health insurer on the liability day in a quarter in the financial year starting on 1 July 2015 is liable to pay a levy in respect of that quarter. However, this subsection does not apply to a quarter if the liability day for the quarter is before the commencement of this subsection.

In subsection (4A):

A body corporate that is a private health insurer at any time during the financial year starting on 1 July 2016 or a later financial year is liable to pay a levy in respect of that financial year.

Levy payable by a private health insurer for a quarter under subsection 8(4A) is payable on the 14th day after the liability day for the quarter.

(3) The applicable rate, in relation to an amount of unpaid levy, is:

(3) This section applies in relation to levy imposed by the Private Health Insurance Supervisory Levy Imposition Act 2015 as if subsections (1) and (2) referred to the time when this subsection commences (rather than to the commencement of this section).

If any levy payable by a private health insurer:

(2) The penalty calculation day is:

(3) The applicable rate, in relation to an amount of unpaid levy, is:

The Minister may waive the whole or a part of an amount of levy or late payment penalty.

The Minister may, in writing, delegate to APRA the power under subsection (1) to waive levy or late payment penalty.

The following amounts may be recovered by the Commonwealth as debts due to the Commonwealth:

APRA may bring proceedings in the name of the Commonwealth (as its agent) for the recovery of a debt due to the Commonwealth as described in subsection (1).

A law made before the commencement of this section does not exempt a private health insurer from liability to pay levy.

A law made on or after the commencement of this section purporting to exempt a private health insurer from liability to pay taxes under laws of the Commonwealth that would otherwise include levy does not exempt the private health insurer from liability to pay levy unless the exemption expressly refers to levy under the Act under which the levy is imposed.

The Private Health Insurance (Health Insurance Business) Rules also deal with matters relating to *health insurance business. The provisions of this Part indicate when a particular matter is or may be dealt with in these Rules.

Before making Private Health Insurance (Health Insurance Business) Rules, the Minister must consult *APRA. However, a failure to consult APRA does not affect the validity of those Rules.

*Health benefits funds (and some related matters) are also dealt with in the Private Health Insurance (Health Benefits Fund Policy) Rules. The provisions of this Part indicate when a particular matter is or may be dealt with in these Rules.

Before making Private Health Insurance (Health Benefits Fund Policy) Rules for the purposes of the Minister must consult *APRA. However, a failure to consult APRA does not affect the validity of those Rules.section 131-15,

(1) An area is a risk equalisation jurisdiction if the Private Health Insurance (Health Benefits Fund Policy) Rules so provide.

(2) The Private Health Insurance (Health Benefits Fund Policy) Rules may specify circumstances in which a private health insurer may (despite subsection 23(2) of the Private Health Insurance (Prudential Supervision) Act 2015) have more than one *health benefits fund in respect of a particular *risk equalisation jurisdiction.

If, having regard to information available to the Minister or to any performance indicators under the Private Health Insurance (Complying Product) Rules, the Minister believes that a private health insurer may have contravened an *enforceable obligation, the Minister may write to the private health insurer:

The private health insurer must respond within the specified period, or any longer period that the Minister, in writing before the end of the specified period, allows.

If the Minister refuses a request by the private health insurer for a longer period to respond, the Minister must state the Minister’s reasons for refusing.

The powers in this Division may only be exercised for the purposes of this Act.

The powers in this Division cannot be exercised for the purposes of this Act, as it applies in relation to:

If the Minister considers that a private health insurer that gave an undertaking under this Division has contravened any of its terms, the Minister may apply to the Federal Court for an order under subsection (2).

If, at any time and for any reason, the Minister considers that it will assist in the prevention of *improper discrimination to do so, the Minister may give a direction to a private health insurer requiring it:

If, at any time and for any reason, the Minister considers that there appears to be a contravention of an *enforceable obligation involving *improper discrimination by a private health insurer, the Minister may give a direction to the insurer requiring it to address the contravention by:

A direction given under this section must be published on the Department’s website not later than 5 working days after the direction is given.

The Minister must obtain, and take into account, advice from *APRA in relation to the day that is to be specified as the payment day in a determination made under subparagraph (1)(a)(iv).

The following must be paid to *APRA, on behalf of the Commonwealth:

*APRA may waive the whole or part of an amount of *late payment penalty in respect of an unpaid amount of *risk equalisation levy if APRA considers that there are good reasons for doing so.

(1) A private health insurer must lodge a return for each day that, under the Private Health Insurance (Complaints Levy) Act 1995, is a census day.

*APRA may, if it believes on reasonable grounds that a private health insurer is capable of giving information that is relevant to:

(1) The Private Health Insurance Risk Equalisation Special Account (the Risk Equalisation Special Account) is established by this section.

(2) The *Risk Equalisation Special Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.

The purpose of the *Risk Equalisation Special Account is for *APRA to make payments to private health insurers in accordance with the Private Health Insurance (Risk Equalisation Policy) Rules.

The Private Health Insurance (Risk Equalisation Policy) Rules must specify:

Before making Private Health Insurance (Risk Equalisation Policy) Rules, the Minister must consult *APRA. However, a failure to consult APRA does not affect the validity of those Rules.

(1A) An APRA private health insurance duty, function or power is a duty, function or power of *APRA, or that a person has in the person’s capacity as an officer (within the meaning of section 56 of the Australian Prudential Regulation Authority Act 1998), under any of the following:

*APRA may, by legislative instrument, make Private Health Insurance Rules, known as Private Health Insurance (Risk Equalisation Administration) Rules, providing for matters mentioned in section 318-15.

To the extent that Private Health Insurance Rules made under this section deal with a matter that is dealt with in Private Health Insurance Rules made under section 333-20, they must do so in a way that is not inconsistent with the Rules made under section 333-20.

In this Schedule:

Unless rules made under item 43 provide otherwise, if this Schedule provides that an Act (or a Part, Division or provision of an Act) as in force immediately before the transition time, continues to apply in relation to a matter, then:

This item applies if, immediately before the transition time, proceedings for an injunction are pending in the Federal Court under section 118-5 of the PHI Act.

If the proceedings were commenced by application made by the Health Minister or by the Council, then, from the transition time, the proceedings continue, with APRA substituted for the Health Minister or the Council as a party, as if the proceedings had been commenced by application made by APRA under section 11 of the Prudential Supervision Act.

If the proceedings were commenced by application made by some other person, then, from the transition time, the proceedings continue as if the person had standing to commence the proceedings under section 11 of the Prudential Supervision Act, and had so commenced the proceedings under that section.

If, immediately before the transition time, the registration of a body is in force under Part 4-3 of the PHI Act then, from the transition time:

Subitem (1) has effect subject to Division 3 of Part 2 of the Prudential Supervision Act.

After the transition time, the body may, in writing, request APRA to vary the body’s registration terms and conditions by:

If the body makes a request under subitem (3), APRA may, by written notice to the body, vary the body’s registration terms and conditions in accordance with the request.

If an application for registration that was made under section 126-10 of the PHI Act before the transition time has not been decided by the transition time, the Prudential Supervision Act applies in relation to the application as if it had been made under section 12 of that Act.

For the purposes of sections 13 and 17 of the Prudential Supervision Act, the application is taken to have been made at the transition time.

If, before the transition time, the Council gave the applicant notice under section 126-15 of the PHI Act requiring the provision of further information, and that information has not been provided by the transition time, the notice is taken to have been given by APRA, at the transition time, under section 13 of the Prudential Supervision Act.

An approval that is in force under section 126-42 of the PHI Act immediately before the transition time has effect from the transition time as if it were an approval by APRA under section 20 of the Prudential Supervision Act.

If an application made to the Council before the transition time under section 126-42 of the PHI Act has not been decided by the transition time, then:

An approval that is in force under section 146-1 of the PHI Act immediately before the transition time has effect from the transition time as if it were an approval by APRA under section 32 of the Prudential Supervision Act.

If an application made to the Council before the transition time under section 146-1 of the PHI Act has not been decided by the transition time, the Prudential Supervision Act applies in relation to the application as if it had been made under section 32 of the Prudential Supervision Act.

An approval that is in force under section 146-5 of the PHI Act immediately before the transition time has effect from the transition time as if it were an approval by APRA under section 33 of the Prudential Supervision Act.

If an application made to the Council before the transition time under section 146-5 of the PHI Act has not been decided by the transition time, the Prudential Supervision Act applies in relation to the application as if it had been made under section 33 of the Prudential Supervision Act.

An approval that is in force under section 149-10 of the PHI Act immediately before the transition time has effect from the transition time as if it were an approval by APRA under section 37 of the Prudential Supervision Act.

If an application made to the Council before the transition time under section 149-1 of the PHI Act has not been decided by the transition time, the Prudential Supervision Act applies in relation to the application as if it had been made under section 35 of the Prudential Supervision Act.

For the purposes of sections 36 and 38 of the Prudential Supervision Act, the application is taken to have been made at the transition time.

If, before the transition time, the Council gave the applicant notice under section 149-5 of the PHI Act requiring the provision of further information, and that information has not been provided by the transition time, the notice is taken to have been given by APRA, at the transition time, under section 36 of the Prudential Supervision Act.

An appointment of a terminating manager that is in force under the PHI Act immediately before the transition time has effect from the transition time as if it were:

Subject to subitem (7), if a health benefits fund is under terminating management or external management immediately before the transition time, then the terminating management or external management continues after the transition time, under the Prudential Supervision Act, as if:

Rules made under item 43 may make provision for or in relation to how a terminating management or external management is to continue under the Prudential Supervision Act.

This item applies in relation to a direction given to a private health insurer, under any of the following provisions of the PHI Act, that is in force immediately before the transition time:

The direction has effect from the transition time as if it were a direction given by APRA to the private health insurer under section 96 of the Prudential Supervision Act. However, section 104 (non-compliance with a direction) does not apply in relation to the direction unless it was given under section 163-15 of the PHI Act.

If the direction specifies a period for which it remains in force, the direction ceases to have effect at the end of the specified period.

(1) The Prudential Supervision Act has effect as if the definition of disqualified person in subsection 119(1) of that Act also included a person in relation to whom a disqualification under section 166-20 of the PHI Act was in force immediately before the transition time.

Subitem (1) ceases to apply if APRA revokes the disqualification under subitem (3).

APRA may revoke the disqualification on application by the person or on its own initiative. A revocation takes effect on the day on which it is made.

APRA must give the person written notice of a revocation of the disqualification, or of a refusal to revoke the disqualification. APRA may also give notice of the revocation or refusal in any other way that it considers appropriate.

Section 168 of the Prudential Supervision Act (review of decisions) applies to a decision under this item to refuse to revoke the disqualification as if the decision were a reviewable decision as defined in that section.

If an investigation commenced by the Council under Division 194 of the PHI Act before the transition time has not been completed by that time, then Division 194 of the PHI Act, as in force immediately before the transition time, is taken to continue to apply in relation to the investigation (despite the amendments of that Division made by this Act), as if:

If an investigation commenced by the Council under Division 214 of the PHI Act before the transition time has not been completed by that time, then Division 214 of the PHI Act, as in force immediately before the transition time, is taken to continue to apply in relation to the investigation (despite the repeal of that Division by this Act), as if:

Without limiting subitem (2), an appointment of an inspector under subsection 214-1(1) of the PHI Act that is in force immediately before the transition time has effect, after the transition time, as if it were an appointment of the inspector by APRA under that subsection as it continues to apply because of subitem (2).

Rules made under item 43 may make provision for or in relation to how an investigation to which subitem (1) or (2) applies is to continue after the transition time.

Division 3 of Part 6 of the Prudential Supervision Act has effect as if the reference in paragraph 130(1)(b) of that Act to an enforceable obligation included a reference to a Council-supervised obligation.

If, immediately before the transition time, proceedings commenced by the Council are pending in the Federal Court under Division 203 of the PHI Act, then the proceedings continue after the transition time in accordance with subitem (2), with APRA substituted for the Council as a party.

Division 203 of the PHI Act, as in force immediately before the transition time, is taken to continue to apply (despite the amendments of that Division made by this Act) in relation to the proceedings as if:

Part 8 of the Prudential Supervision Act has effect as if references in that Part to enforceable obligations also included references to Council-supervised obligations.

(1) Council money means all money held by the Council immediately before the transition time.

Amounts equal to the following amounts must be credited to the Risk Equalisation Special Account after the transition time:

Amounts equal to the following amounts must be credited to the Collapsed Insurer Special Account after the transition time:

An amount equal to all Council money that is not covered by subitem (2) or (3) must be credited to the APRA Special Account after the transition time.

(1) This item applies if the imposition day for an amount (the levy amount) of Council administration levy, or collapsed insurer levy, is before the transition time, but the amount has not been paid by that time.

The following provisions of the PHI Act as in force immediately before the transition time:

If:

If:

This item applies if, immediately before the transition time, a private health insurer has an entitlement to be paid an amount out of the Risk Equalisation Fund that has not been met.

APRA must, after the transition time, pay that amount to the private health insurer. The amount paid must be debited from the Risk Equalisation Special Account.

This item applies if, in relation to a financial year ending at or before the transition time, the Council has not, by the transition time, given a report in relation to that year under section 264-15 of the PHI Act as in force immediately before the transition time.

That section of the PHI Act is taken to continue in force in relation to that financial year, as if the reference to the Council were instead a reference to APRA.

During the transition period, the functions of the Council include the function of taking such steps as may be necessary or convenient to prepare for or give effect to, or assist APRA or the Commonwealth to prepare for or give effect to:

During the transition period, APRA’s functions include the function of taking such steps as may be necessary or convenient to prepare for or give effect to, or assist the Council or the Commonwealth to prepare for or give effect to:

In this item:

This item applies to the assets of the Council immediately before the transition time.

At the transition time, the assets cease to be assets of the Council and become assets of APRA, without any conveyance, transfer or assignment. APRA becomes the successor in law in relation to the assets.

Before the transition time, the APRA Minister may determine, in writing, that a specified asset to which this item applies is to become an asset of the Commonwealth.

If the APRA Minister makes a determination under subitem (3), then, at the transition time and despite subitem (2), the asset ceases to be an asset of the Council and becomes an asset of the Commonwealth, without any conveyance, transfer or assignment. The Commonwealth becomes the successor in law in relation to the asset.

A determination made under subitem (3) is not a legislative instrument.

This item applies to the liabilities of the Council immediately before the transition time.

At the transition time, the liabilities cease to be liabilities of the Council and become liabilities of APRA without any conveyance, transfer or assignment. APRA becomes the successor in law in relation to the liabilities.

Before the transition time, the APRA Minister may determine, in writing, that a specified liability to which this item applies is to become a liability of the Commonwealth.

If the APRA Minister makes a determination under subitem (3), then, at the transition time and despite subitem (2), the liability ceases to be a liability of the Council and becomes a liability of the Commonwealth, without any conveyance, transfer or assignment. The Commonwealth becomes the successor in law in relation to the liability.

A determination made under subitem (3) is not a legislative instrument.

This item applies if:

The land registration official may:

A certificate under paragraph (1)(b) is not a legislative instrument.

This item applies if:

The assets official may:

A certificate made under paragraph (1)(b) is not a legislative instrument.

This item applies to anything done by, or in relation to, the Council before the transition time.

At and after the transition time, the thing has effect as if it had been done by, or in relation to, APRA.

The APRA Minister may determine, in writing, that:

A determination made under subitem (3) has effect accordingly, despite subitem (2).

The APRA Minister may make a determination under subitem (3) before or after the transition time.

A determination made under subitem (3) is not a legislative instrument.

This item does not limit the operation of items 22 and 23.

This item applies to an instrument that:

If the instrument relates to:

If the instrument relates to:

The APRA Minister may determine, in writing, that the reference to the Council has effect, at and after the transition time, as if it were a reference to APRA or the Commonwealth.

A determination made under subitem (4) has effect accordingly, despite subitems (2) and (3) (if otherwise applicable).

The APRA Minister may make a determination under subitem (4) before or after the transition time.

A determination made under subitem (4) is not a legislative instrument.

In this item:

This item applies if any proceedings to which the Council was a party were pending in any court or tribunal immediately before the transition time.

APRA is substituted for the Council, from the transition time, as a party to those proceedings.

The APRA Minister may determine, in writing, that the Commonwealth is substituted for the Council as a party to those proceedings.

A determination under subitem (3) has effect accordingly, despite subitem (2).

The APRA Minister may make a determination under subitem (3) before or after the transition time.

A determination made under subitem (3) is not a legislative instrument.

This item applies to any records or documents that were in the possession of the Council immediately before the transition time.

The records and documents are to be transferred to APRA after the transition time.

The APRA Minister may determine, in writing, that a record or document to which this item applies is to be transferred after the transition time to the Commonwealth.

A determination made under subitem (3) has effect accordingly, despite subitem (2).

The APRA Minister may make a determination under subitem (3) before or after the transition time.

A determination made under subitem (3) is not a legislative instrument.

(7) Sections 37 and 41 of the Public Governance, Performance and Accountability Act 2013 apply in relation to records or documents transferred to an entity (within the meaning of that Act) under this item as if the records or documents related to that entity.

At the transition time, a transferring employee:

(2) A person is a transferring employee if the person was employed by the Council under subsection 273-15(1) of the PHI Act immediately before the transition time.

A transferring employee is not entitled to receive any payment or other benefit merely because he or she stopped being an employee of the Council as a result of this item.

A transferring employee is entitled to terms and conditions of appointment as an employee of APRA that are no less favourable, considered on an overall basis, than the terms and conditions of employment to which the employee was entitled, immediately before the transition time, as an employee of the Council.

(2) Subitem (1) ceases to have effect on the next occasion when an enterprise agreement (within the meaning of the Fair Work Act 2009) comes into operation that is:

The first determination (if any) that the Chair of APRA makes under subsection 45(2) of the APRA Act for a transferring employee may:

To avoid doubt:

APRA must recognise leave accrued by a transferring employee immediately before the transition time, in relation to a transferring employee’s employment by the Council, as if it were leave in relation to periods of service as an employee of APRA appointed under section 45 of the APRA Act.

(2) The service of a transferring employee as an employee of the Council is taken, for all purposes, to have been continuous with his or her service as an employee of APRA appointed under section 45 of the APRA Act.

Without limiting item 43, rules made under that item may provide for:

In this item:

This item applies in relation to a person if:

The SRC Act applies, after the transition time, as if the person had been an employee of APRA appointed under subsection 45(1) of the APRA Act during the period that the person was employed by the Council as mentioned in paragraph (1)(a).

This item does not limit item 26 or 27 of this Schedule.

Nothing in this Part produces the result that the appointment of a Council officer immediately before the transition time has effect at or after the transition time as if it were an appointment of the person in relation to APRA or the Commonwealth.

(2) Each of the following is a Council officer:

Nothing in this Part produces the result that a person engaged as a consultant to the Council under subsection 273-15(3) of the PHI Act immediately before the transition time becomes engaged at or after that time as a consultant under subsection 47(1) of the APRA Act.

(1) The Chair of APRA must prepare and give to the APRA Minister, for presentation to the Parliament, a report (the final report) on the activities of the Council during the final reporting period.

(2) Sections 39, 40, 42, 43 and 46 of the Public Governance, Performance and Accountability Act 2013, and rules made for the purposes of those sections, apply subject to this item in relation to the Council and the final reporting period as if:

The Chair of APRA must give the final report to the APRA Minister by the 15th day of the fourth month after the end of the final reporting period. The APRA Minister may grant an extension of time in special circumstances.

The APRA Minister must table the final report in each House of the Parliament as soon as practicable after receiving the report.

APRA must publish the final report on its website as soon as practicable after the report is tabled in the House of Representatives.

In this item:

No stamp duty or other tax is payable under a law of a State or a Territory in respect of an exempt matter, or anything connected with an exempt matter.

(2) For the purposes of this item, an exempt matter is:

The APRA Minister may certify in writing:

In all courts, and for all purposes (other than for the purposes of criminal proceedings), a certificate under subitem (3) is prima facie evidence of the matters stated in the certificate.

A certificate under subitem (3) is not a legislative instrument.

The APRA Minister may, by writing, delegate all or any of his or her powers and functions under this Schedule to:

In exercising powers or functions under a delegation, the delegate must comply with any directions of the APRA Minister.

Subitem (1) does not apply to a power to make, vary or revoke a legislative instrument.

If the operation of this Act would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph), the Commonwealth is liable to pay a reasonable amount of compensation to the person.

If the Commonwealth and the person do not agree on the amount of the compensation, the person may institute proceedings in a court of competent jurisdiction for the recovery from the Commonwealth of such reasonable amount of compensation as the court determines.

The APRA Minister may, by legislative instrument (and subject to subitem (3)), make rules prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to:

The rules may allow the APRA Minister or APRA to determine matters in relation to anything in relation to which rules may be made.

To avoid doubt, the rules may not do the following:

This Act (other than subitem (3)) does not limit the rules that may be made for the purposes of subitem (1).