Explanatory Memorandum(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP, and the Minister for Health and Ageing, the Hon Nicola Roxon MP)
General outline and financial impact
Introduction of Private Health Insurance Incentives Tiers
Schedule 1 to the Fairer Private Health Insurance Incentives Bill 2011 amends various Acts to give effect to the measure, announced in the 2009-10 Budget, to introduce three new 'Private Health Insurance Incentive Tiers'. These changes will ensure that those with a greater capacity to pay make a larger contribution towards the cost of their private health insurance. It will also ensure that Government support for private health insurance remains fair and sustainable in the future.
Schedule 1 to the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2011 and the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge - Fringe Benefits) Bill 2011 amends the Medicare Levy Act 1986 and the A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999 respectively to give effect to the introduction of the three new private health insurance tiers.
Date of effect : These amendments apply from 1 January 2012.
Proposal announced : This measure was announced in the Treasurer and the Minister for Health and Ageing's joint Media Release No. 048 of 12 May 2009.
Financial impact : The changes to the private health insurance rebate and Medicare levy surcharge will have these budgetary implications:
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