Private Health Insurance Incentives Amendment Act 2005 (9 of 2005)

Schedule 1   Changes to the private health insurance rebate for people aged 65 and over

Part 2   Amendment of the Income Tax Assessment Act 1997

5   Subsections 61-340(5) and (6)

Repeal the subsections, substitute:

(5) If no person was so registered or eligible to apply for registration, the amount of the *tax offset is the sum of the following amounts:

(a) 30% of the amount of the premium, or of the amount in respect of a premium, paid by you, or by your employer as a *fringe benefit for you, under the policy in respect of days in the later income year on which no person covered by the policy was aged 65 years or over;

(b) 35% of the amount of the premium, or of the amount in respect of a premium, paid by you, or by your employer as a *fringe benefit for you, under the policy in respect of days in the later income year on which:

(i) at least one person covered by the policy was aged 65 years or over; and

(ii) no person covered by the policy was aged 70 years or over;

(c) 40% of the amount of the premium, or of the amount in respect of a premium, paid by you, or by your employer as a *fringe benefit for you, under the policy in respect of days in the later income year on which at least one person covered by the policy was aged 70 years or over.

(6) If a person was so registered or eligible to apply for registration, the amount of the *tax offset is the greater of:

(a) the sum of the amounts referred to in paragraphs (5)(a), (b) and (c); and

(b) the incentive amount for the policy for the later income year.