House of Representatives

Explanatory Memorandum

Circulated by authority of the Minister for Health and Ageing, the Honourable Nicola Roxon MP

Schedule 3 - The requirement for private health insurers to be companies

Part 1 - Amendments

Private Health Insurance Act 2007

Item 1 Paragraph 126-10(1)(a )

Item 1 omits the words "or a registered body within the meaning of that Act" from paragraph 126-10(1)(a) of the Act so that a body must be a company within the meaning of the Corporations Act to apply for registration as a private health insurer.

Item 2 At the end of subsection 126-45(1 )

Item 2 adds a new paragraph (c) at the end of subsection 126-45(1) of the Act specifying that the Council must cancel the registration of a private health insurer if the insurer is not a company within the meaning of the Corporations Act on or after 1 January 2010.

Part 2 - Transitional provisions

Item 3 Applications for registration for which decisions are pending

Item 3 provides that an application for registration as a private health insurer made before the commencement of this item by a body that is not a company within the meaning of the Corporations Act, and which has not yet been decided by the Council under section 126-20 of the Act, will not be a valid application under section 126-10 of the Act.

Item 4 Exemption from stamp duty etc. relating to certain private health insurers becoming companies

Item 4 protects bodies from the imposition of stamp duty, or any other tax, otherwise imposed under a law of a State of Territory, in respect of a thing done for the purpose of registering a body as a company if:

a)

it is done after the commencement of this item and before 1 January 2010; and

b)

at the time the body is a private health insurer; and

c)

the registration of the body as a company was done solely for the purpose of avoiding the body's registration as a private health insurer being cancelled under paragraph 126-45(1)(c) of the Act.

Also, (2) in this item defines the meaning of company and private health insurer for the purposes of the item.