Explanatory Memorandum
Circulated by authority of the Minister for Health and Ageing, the Honourable Nicola Roxon MPSchedule 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.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).