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Inquiry into the Fairer Private Health Insurance Incentives Bill 2009 and two related bills

Information about this Inquiry

The Fairer Private Health Insurance Incentives Bill 2009, the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2009 and the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge — Fringe Benefits) Bill 2009 taper the rate of the private health insurance rebate and increase the Medicare levy surcharge for higher income earners. The bills are intended to ensure that those with a greater capacity to pay make a larger contribution towards the cost of their private health insurance.

The bills give effect to three new Private Health Insurance Tiers. For those with a private health insurance policy:

• Singles earning more than $75,000 per annum and couples/families earning more than $150,000 per annum will have their private health insurance rebate reduced by 10 per cent. The Medicare levy surcharge will remain at 1 per cent for those singles and couples/families that do not hold appropriate private health insurance.
• Singles earning more than $90,000 per annum and couples/families earning more than $180,000 per annum with a private health insurance policy will have their private health insurance rebate reduced by 20 per cent. The Medicare levy surcharge will be increased by 0.25 percentage points for those singles and couples/families that do not hold appropriate private health insurance.
• Singles earning more than $120,000 per annum and couples/families earning more than $240,000 per annum will no longer receive any private health insurance rebate. The Medicare levy surcharge will be increased by 0.5 percentage points for those singles and couples/families that do not hold appropriate private health insurance.
• Existing private health insurance rebate arrangements will remain unchanged for singles with income of less than $75,000 per annum and couples/families with a combined income of less than $150,000 per annum.

These amendments apply to income years starting on or after 1 July 2010.

Reporting date is 16 June 2009.

The Committee invites written submissions which should be sent to:

Committee Secretary
Senate Economics Committee
Department of the Senate
PO Box 6100
Parliament House
Canberra ACT 2600
Australia

The closing date for submissions is Tuesday, 9 June 2009.

The Committee requests that where possible, submissions should also be provided by email to economics.sen@aph.gov.au. Notes to assist in preparing submissions are available from the website http://www.aph.gov.au/senate/committee/wit_sub/index.htm or telephone the Secretariat on 02 6277 3540, fax: 02 6277 5719, or email at the above address.

Once the Committee accepts your submission, it becomes a confidential committee document and is protected by Parliamentary Privilege. You must not release your submission without the Committee's permission. If you do, it is not protected by Parliamentary Privilege. At some stage during the inquiry, the Committee normally makes submissions public. Please indicate if you want your submission to be kept confidential.

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For further information, contact:

Committee Secretary
Senate Standing Committees on Economics
PO Box 6100
Parliament House
Canberra ACT 2600
Australia

Phone:	+61 2 6277 3540
Fax:	+61 2 6277 5719
Email:	economics.sen@aph.gov.au

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