PRIVATE HEALTH INSURANCE INCENTIVES ACT 1997

***** Repealed 1 July 2000 *****

PART 2 - THE INCENTIVES SCHEME

Division 5 - What effect does the scheme have on insurance premiums?

SECTION 5-1   REDUCTION IN PREMIUMS  

5-1(1)  [Reduction amounts]  

Subject to subsection (1A), the amount of premium that, apart from this section, would be payable under a private health insurance policy in respect of which a person is a participant in the incentives scheme for a financial year (see section 5-2) is to be reduced by the amount (the reduction amount ) worked out under whichever of the following paragraphs is applicable:

(a)  if the premium is paid in respect of the whole of the financial year - the annual incentive amount for the policy under section 5-3; or

(b)  if the premium is paid in respect of a part of the financial year - the amount worked out using the formula:

                              Number of days in that part 
                                 of the financial year 
Annual incentive amount   x   ---------------------------
  under section 5-3           Number of days in the whole 
                                 of the financial year 
          

5-1(1A)  [Where tax offset received]  

If the person has received a tax offset under Subdivision 61-G of the Income Tax Assessment Act 1997 in respect of the amount of premium:

(a)  where the amount of the offset is less than the reduction amount - the reduction amount is to be reduced by the amount of the offset; or

(b)  otherwise - the amount of the premium is not to be reduced under subsection (1).

5-1(2)  [Limitations]  

Subsection (1) does not apply to:

(a)  the payment of a premium that is made after the policy has ceased, during the financial year in question, to be a dependent child policy (see section 5-4); or

(b)  the payment of a premium that is made in respect of a period that ends before 1 July 1997; or

(c)  if the payment of a premium is made in respect of a period that starts before 1 July 1997 and ends on or after that day but on or before 31 July 1997 - the part of the payment that relates to the part of the period before 1 July 1997; or

(d)  the payment of a premium that is made in respect of a period that starts on or before 1 July 1997 and ends after 31 July 1997; or

(e)  the payment on or before 31 December 1998 of a part of a premium that relates to a period after 30 June 1999; or

(f)  the payment of a premium that is made after 31 December 1998.