Private Health Insurance (Prudential Supervision) (Consequential Amendments and Transitional Provisions) Act 2015 (87 of 2015)

Schedule 1   Consequential amendments

Part 1   Amendments

Division 1   Main amendments

Financial Institutions Supervisory Levies Collection Act 1998

18   After Part 3A

Insert:

Part 3B - Private health insurance collapsed insurer levy

26J Definitions

In this Part:

collapsed insurer levy day has the same meaning as in the Private Health Insurance (Collapsed Insurer Levy) Act 2003.

late payment penalty means penalty payable under section 26M.

levy means levy imposed by the Private Health Insurance (Collapsed Insurer Levy) Act 2003.

levy determination , in relation to a collapsed insurer levy day, means the determination under section 7 of the Private Health Insurance (Collapsed Insurer Levy) Act 2003 because of which that day is a collapsed insurer levy day.

26K Liability to levy

A private health insurer is liable to pay a levy imposed on the insurer on a collapsed insurer levy day.

26L When levy due for payment

A levy imposed on a private health insurer on a collapsed insurer levy day is due and payable on the day specified in the levy determination as the payment day in relation to that collapsed insurer levy day.

26M Late payment penalty

(1) If any levy payable by a private health insurer:

(a) is not paid on or before the day on which it is due and payable (the due day for payment ); and

(b) remains unpaid after the penalty calculation day;

the insurer is liable to pay, by way of penalty, an amount worked out at the applicable rate per year on the amount unpaid, computed from the end of the due day for payment to the end of the penalty calculation day.

(2) The penalty calculation day is:

(a) if the levy is paid on or after the first day of a month and before the sixth day of that month - the 20th day of the immediately preceding month; or

(b) if the levy is paid on or after the sixth day of a month and before the 20th day of that month - the sixth day of that month; or

(c) if the levy is paid on or after the 20th day of a month and on or before the last day of that month - the 20th day of that month.

(3) The applicable rate , in relation to an amount of unpaid levy, is:

(a) 15% (unless paragraph (b) applies); or

(b) if, under a legislative instrument made by the Minister for the purposes of this paragraph, a specified rate of less than 15% applies in relation to the unpaid levy - that specified rate.

26N Payment of levy and late payment penalty

Levy and late payment penalty are payable to APRA on behalf of the Commonwealth.

26P Waiver of levy and late payment penalty

(1) The Minister may waive the whole or a part of an amount of levy or late payment penalty.

(2) The Minister may, in writing, delegate to APRA the power under subsection (1) to waive levy or late payment penalty.

26Q Recovery of levy and late payment penalty

(1) The following amounts may be recovered by the Commonwealth as debts due to the Commonwealth:

(a) levy that is due and payable;

(b) late payment penalty that is due and payable.

(2) APRA may bring proceedings in the name of the Commonwealth (as its agent) for the recovery of a debt due to the Commonwealth as described in subsection (1).

26R Exempting laws ineffective

(1) A law made before the commencement of this section does not exempt a private health insurer from liability to pay levy.

(2) A law made on or after the commencement of this section purporting to exempt a private health insurer from liability to pay taxes under laws of the Commonwealth that would otherwise include levy does not exempt the private health insurer from liability to pay levy unless the exemption expressly refers to levy under the Act under which the levy is imposed.