Private Health Insurance Amendment (Income Thresholds) Act 2021

No. 52, 2021

An Act to amend the Private Health Insurance Act 2007, and for related purposes

Contents

1 Short title 1

2 Commencement 2

3 Schedules 2

Schedule 1—Amendments 3

Private Health Insurance Act 2007 3

Private Health Insurance Amendment (Income Thresholds) Act 2021

No. 52, 2021

An Act to amend the Private Health Insurance Act 2007, and for related purposes

[Assented to 24 June 2021]

The Parliament of Australia enacts:
1 Short title

This Act is the Private Health Insurance Amendment (Income Thresholds) Act 2021.
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
Provisions Commencement Date/Details
1. The whole of this Act 1 July 2021. 1 July 2021

Note: This table relates only to the provisions of this Act as originally enacted.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 Schedules

Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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

Private Health Insurance Act 2007

 1 Section 22-35

Repeal the section, substitute:

 22-35 Private health insurance singles thresholds 1

(1) A person’s singles tier 1 threshold for the 2021-22 and 2022-23 financial year is $90,000. This amount is indexed for later financial years under section 22-45.

 2

(2) A person’s singles tier 2 threshold for the 2021-22 and 2022-23 financial year is $105,000. This amount is indexed for later financial years under section 22-45.

 3

(3) A person’s singles tier 3 threshold for the 2021-22 and 2022-23 financial year is $140,000. This amount is indexed for later financial years under section 22-45.

Note: A person may be a tier 1 earner, tier 2 earner or tier 3 earner if the person’s income for surcharge purposes exceeds the applicable threshold for that tier: see section 22-30.

 2 Subsection 22-40(4) (example)

Repeal the example, substitute:

Example: If the person has 3 such dependants who are children, the person’s family tier 2 threshold for the 2021-22 and 2022-23 financial year is:

 3 Subsection 22-45(1)

Repeal the subsection, substitute:

 1

An amount mentioned in section 22-35 is indexed for the 2023-24 financial year, and later financial years, in accordance with this section.

 4 Paragraph 22-45(2)(a)

Repeal the paragraph, substitute:

 a

firstly, multiplying the amount by the *indexation factor for the financial year under subsection (4); and

 5 Subsection 22-45(2) (examples 1 and 2)

Repeal the examples, substitute:

Example 1: If the amount to be indexed is $105,000 and the indexation factor increases this to an indexed amount of $107,500, the indexed amount is rounded back down to $107,000.

Example 2: If the amount to be indexed is $140,000 and the indexation factor increases this to an indexed amount of $142,500, the indexed amount is rounded down to $142,000.

 6 Subsections 22-45(3) to (3B)

Repeal the subsections, substitute:

 3

However, do not index the amount for a financial year if the amount worked out under subsection (2) for the financial year is less than the amount applicable under section 22-35 or this section for the previous financial year.

 3A

If the amount is not indexed for a financial year because of subsection (3), the amount for the financial year is the same as the amount for the previous financial year.

 7 Subsection 22-45(4)

Repeal the subsection, substitute:

 4

(4) For the purposes of this section, the indexation factor for a financial year is:

 8 Subsection 22-45(5)

Repeal the subsection.

 9 Subsection 22-45(6)

Omit “mentioned in subsection (4) or (5)”.

 10 Application

The amendments of the Private Health Insurance Act 2007 made by this Schedule apply in relation to the 2021-22 financial year and later financial years.

[Minister’s second reading speech made in—

House of Representatives on 12 May 2021

Senate on 15 June 2021]

(48/21)