House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon. Phillip Lynch, M.P.)

Introductory Note

These Bills will amend the legislation requiring payment of a health insurance levy that was passed by the Parliament earlier in the year. The principal changes are:

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There is to be a limit (or "ceiling") on the amount of levy payable, so that it will not exceed $150 ($112.50 in 1976/77) for a person without dependants. Where a husband and wife are each a taxpayer the amount of levy payable by the couple is not to exceed $300 ($225 in 1976/77).

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There is to be a regulation-making authority that will enable relief from the levy to be given to people such as pensioners entitled to Pensioner Health Benefits.

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The system whereby private insurance funds were to issue to their contributors end- of-year certificates of insurance, for lodgment with contributors' returns, is to be replaced by other arrangements for verifying the entitlement to relief from levy of people who have taken out appropriate private insurance.

The main purpose of the first Bill - the Health Insurance Levy Assessment Bill (No. 2) 1976 - is to give effect to the second and third of these changes. The other Bill - the Health Insurance Levy Bill (No. 2) 1976 - will, in varying circumstances, fix the maximum amount of levy - the ceiling - that will be payable by a taxpayer.