PRIVATE HEALTH INSURANCE INCENTIVES ACT 1997

***** Repealed 1 July 2000 *****

PART 2 - THE INCENTIVES SCHEME

Division 3 - Who is eligible to participate in the scheme?

SECTION 3-4   INCOME TEST - POLICIES COVERING MORE THAN ONE PERSON  

3-4(1)  [Criteria for income test]  

If the policy covers more than one person, the income test is satisfied in respect of the financial year in question if the sum of the taxable incomes of all of the persons whose incomes are required by subsection (2) to be taken into account is less than the maximum amount under subsection (4).

Note:

For taxable income , see section 3-5.

3-4(2)  [Persons whose incomes are to be taken into account]  

The persons whose incomes are to be taken into account are:

(a)  each person covered by the policy who is not a dependent child during the financial year; and

(b)  the partner (if any) of each such person; and

(c)  if all of the persons covered by the policy are dependent children at any time during that year - any parent of any of the persons covered, and the partner (if any) of the parent, but only if, in respect of that year:

(i) the parent, or his or her partner, made one or more payments of premiums in respect of the policy; or

(ii) a person (other than a parent of the dependent child or the partner (if any) of that parent) made one or more such payments, under an arrangement entered into with the parent or partner.

3-4(3)  [Partners]  

For the purposes of subsection (2), a person is the partner of another person only if, on the last day of the financial year, the person is the partner of that person.

3-4(4)  [Maximum amount]  

The maximum amount is:

(a)  if the persons covered by the policy do not include 2 or more dependent children at any time during the financial year concerned - $70,000; or

(b)  if, at any time during the financial year, 2 or more dependent children are covered by the policy - the amount worked out as follows:

$70,000 + ($3,000 x (Number of dependent children - 1)).
          

Example:

EXPARAIf the policy covers the members of a family that has 3 dependent children, the maximum amount under subsection (4) is:

$70,000 + ($3,000 x (3 - 1)) = $76,000.
          

Note:

For dependent child , parent and partner , see the Dictionary.