15th Feb 2012, 11:24 AM – Representatives Fairer Private Health Insurance Incentives Bill 2011 - Consideration in Detail - Agree to the bill

The majority voted in favour of a motion to agree with the bill as amended.(Read more about the stages that a bill must pass through to become law here. ) This means that the majority agree with the bill and that the House can now decide on whether to read the bill for a third time.

Following the vote on this bill, it was agreed without further division to agree to the two related bills as well.(Read more about why a division does not always take place in our FAQ Section. )

Background to the bill

The Fairer Private Health Insurance Incentives Bill 2012 was introduced along with the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2012 and the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge—Fringe Benefits) Bill 2012. These bills were introduced as a package to reduce the private health insurance rebate and increase the Medicare levy surcharge for certain taxpayers. To this end, the bills:

• create three private health insurance tiers with different levels of private health insurance rebate to reduce the amount of rebate eligible taxpayers with complying private health insurance are entitled to when their income for surcharge purposes is above the relevant Medicare levy surcharge threshold;(Read more about the Fairer Private Health Insurance Incentives Bill 2012 in its bills digest.

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• increase the rate of Medicare levy surcharge for certain taxpayers who do not have complying health insurance and whose income for surcharge purposes is above the relevant Medicare levy surcharge threshold;(Read more about the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2012 in its bills digest.

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• increase the rate of Medicare levy surcharge for taxpayers who do not have complying health insurance and whose income (including reportable fringe benefits) for surcharge purposes is above the relevant Medicare levy surcharge threshold.(Read more about the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge—Fringe Benefits) Bill 2012 in its bills digest.)