PRIVATE HEALTH INSURANCE INCENTIVES ACT 1998

CHAPTER 2 - THE INCENTIVE PAYMENTS SCHEME  

PART 2 - ENTITLEMENT TO, AND CALCULATION OF, PAYMENTS UNDER INCENTIVE PAYMENTS SCHEME  

Division 4 - Entitlement to, and calculation of, payments  

SECTION 4-10   CALCULATION OF THE AMOUNT PAYABLE  

4-10(1)   Financial Year 1998-99.  

The amount payable under this Chapter for an amount of premium paid under a policy for the financial year that began on 1 July 1998 depends upon whether or not a person was registered, or eligible to apply for registration, before 1 January 1999 under the Private Health Insurance Incentives Act 1997 in respect of the policy for the financial year.

4-10(2)   If no-one registered or eligible for registration.  

If no person was so registered or eligible to apply for registration, the amount payable is 30% of the amount of the premium paid by you, or by your employer as a * fringe benefit for you, under the policy for the financial year.

4-10(3)   If someone registered or eligible for registration.  

If a person was so registered or eligible to apply for registration, the amount payable is the greater of the amount worked out under paragraph (a) and the amount worked out under paragraph (b):

(a) 30% of:

(i) the amount of the premium paid by you, or by your employer as a * fringe benefit for you, under the policy for the financial year; or

(ii) if, because of the operation of the Private Health Insurance Incentives Act 1997 , that amount of premium was less than the amount of premium that would otherwise have been payable - the amount of premium that would otherwise have been payable; and

(b) the * incentive amount for the policy for the financial year.

4-10(4)   Financial year 1999-2000 or later financial year.  

The amount payable under this Chapter for an amount of premium paid under a policy for a later financial year depends upon whether or not a person was registered, or eligible to apply for registration, before 1 January 1999 under the Private Health Insurance Incentives Act 1997 in respect of the policy for the financial year that began on 1 July 1998.

4-10(5)   If no-one registered or eligible to apply for registration.  

If no person was so registered or eligible to apply for registration, the amount payable is the sum of the following amounts:

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

(b) 35% of the amount of the premium paid by you, or by your employer as a * fringe benefit for you, under the policy in respect of days in the later financial 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 paid by you, or by your employer as a * fringe benefit for you, under the policy in respect of days in the later financial year on which at least one person covered by the policy was aged 70 years or over.

4-10(6)   If someone registered or eligible to apply for registration.  

If a person was so registered or eligible to apply for registration, the amount payable 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 financial year.

4-10(7)   Amount payable to be reduced by any tax offset.  

The total amount payable under this Chapter for a policy for a financial year is reduced by the amount of any tax offset received under Subdivision 61-H of the Income Tax Assessment Act 1997 for the total amount of the premium paid by you, or by your employer as a * fringe benefit for you, under the policy for that financial year.

4-10(8)   Disregard premium that relates to period before 1 January 1999.  

In working out an amount payable under this Chapter for an amount of premium paid by you, or by your employer as a * fringe benefit for you, under a policy, disregard any part of the amount of the premium paid that relates to a period before 1 January 1999.

4-10(9)   Amount payable reduced if premium reduced under 1997 Act.  

If, because of the operation of the Private Health Insurance Incentives Act 1997 , the amount of a premium paid by you, or by your employer as a * fringe benefit for you, under a policy for a period after 31 December 1998 was less than the amount that would otherwise have been payable, the amount payable under this Chapter in respect of the premium is reduced by the amount of the difference.