Second Reading Speech
The Fairer Private Health Insurance Incentives (Medicare Levy Surcharge-Fringe Benefits) Bill 2011 will amend the A New Tax System (Medicare Levy Surcharge- Fringe Benefits) Act 1999 to give effect to the Budget measure to introduce three new private health insurance incentives tiers.
This Bill will commence concurrently with the commencement of the Fairer Private Health Insurance Incentives Act 2011. This Bill was previously twice introduced into the House of Representatives on 27 May and 19 November 2009 where it was passed on 2 June 2009 and 3 February 2010, respectively. This Bill was previously introduced into the Senate on 15 June 2009 and 4 February 2010, and on 9 September 2009 and 24 February 2010 a motion moved in the Senate that this Bill be read a second time was defeated.
This Bill is being introduced again into the House of Representatives to give effect to the Budget measure to introduce the private health insurance incentives tiers that will make the private health rebate fairer.
The A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Act 1999 determines whether an individual is liable to pay the Medicare levy surcharge in respect of a reportable fringe benefits total they or their spouse may have. The individual's income for surcharge purposes determines whether a person must pay the surcharge. If the individual's income exceeds prescribed income thresholds they will need to pay the appropriate level of surcharge.
This Bill inserts the new tier system in order to determine which level of surcharge a person must pay where they do not hold appropriate private health insurance.