House of Representatives

Health Insurance Levy Assessment Amendment Bill 1978

Health Insurance Levy Assessment Amendment Act 1978

Second Reading Speech

by the Minister for Health, the Hon. Ralph Hunt, M.P.

This Bill will amend certain health insurance levy provisions of the taxation law.

It provides that, commencing in the 1978-79 income year, where a child of a divorced or separated couple would, under the existing law, be taken to be a dependant for levy purposes of both parents, the child will be taken to be a dependant solely of the parent who is paid family allowances for the child. This will avoid the situation that could arise at present where both parents may be required to pay levy up to the full family ceiling through the same child being taken as a dependant of each of them.

The Bill will also exempt from levy for the 1978-79 and subsequent years foreign Government representatives in Australia, and their families, unless the person concerned is an Australian Citizen or a person who ordinarily resides in Australia. At present these people may be liable for the levy but not eligible for standard Medibank benefits.

Another change to the Health Insurance Levy arrangements will follow from an amendment of the Health Insurance Act that has just been proposed by me as Minister for Health. Under that amendment, an Australian resident temporarily overseas, or a non-resident temporarily in Australia, who has adequate health care cover under an overseas health fund or plan, may be treated as a privately insured person. Broadly, the effect of this will be that such persons will be exempt from the Health Insurance Levy. At present only those whose private insurance is with an Australian health fund qualify for exemption from the levy in this way.

The Bill also makes some changes of a technical kind, which I do not think I need discuss in this introductory address.

A memorandum explaining the Bill in detail is being circulated to Honourable Members.

I commend the Bill to the House.