Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon. John Howard, M.P.)Main Features
Dependants of divorced or separated couples (Clause 3)
Under the existing health insurance levy provisions, where each of a child's parents contributes to the child's maintenance, each parent is taken to have that child as a dependant for levy purposes. This can result, in circumstances where the child's parents are divorced or separated, in each of the parents being liable to pay levy up to the "family" ceiling. It is proposed by this Bill to amend the law to provide that, in these circumstances, the child is to be taken for levy purposes as being a dependant solely of the parent who receives family allowances (child endowment) for the child.
Foreign Government representatives and their dependants (Clause 5)
Under the existing health insurance levy provisions a representative in Australia of a foreign Government or a member of his or her family may be liable to levy while not being eligible for standard Medibank benefits. It is proposed by this Bill to amend the law to exempt these representatives and their families (except where they are Australian citizens or persons who ordinarily reside in Australia) from levy.
The following are notes on each of the clauses of the Bill.