Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Schedule 7 - Health Insurance Act 1973
This Schedule amends the Health Insurance Act 1973 (the Health Insurance Act) to make various amendments that are consequential on the new family assistance structure and the repeal of the current forms of assistance to families.
This Schedule makes several amendments as a consequence of the repeal of family Allowance.
Family Allowance is currently used as a reference point in the Health Insurance Act 1973 (the HIA) in working out who should be declared as a disadvantaged person. The purpose of these amendments is to ensure that the changes achieved by the A New Tax System (Family Assistance) Bill 1999 (the Family Assistance Bill) do not have the undesired consequence that:
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- people who meet the current criteria of a disadvantaged person become ineligible; and
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- people who do not currently meet the criteria are declared eligible.
The amendments change terms and definitions contained in HIA that were relevant prior to the abolition of family allowance. Those provisions are changed so that the terms and definitions now reflect those introduced by the Family Assistance Bill.