{"id":"C2004A01156","name":"Private Health Insurance (Collapsed Insurer Levy) Act 2003","slug":"private-health-insurance-collapsed-insurer-levy-act-2003","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"71 of 2003","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":32777,"registerId":"commonwealth-C2004A01156-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"1  Short title\n\n  This Act may be cited as the Private Health Insurance (Collapsed Insurer Levy) Act 2003.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"2  Commencement\n\n  This Act commences on 1 July 2004.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Crown to be bound","content":"3  Crown to be bound\n\n  This Act binds the Crown in each of its capacities.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Extension of Act to external Territories","content":"4  Extension of Act to external Territories\n\n  This Act extends to Norfolk Island, to the Territory of Cocos (Keeling) Islands and to the Territory of Christmas Island.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Definitions","content":"5  Definitions\n\n  In this Act, unless the contrary intention appears:\n\nAPRA means the Australian Prudential Regulation Authority.\n\ncollapsed insurer: a private health insurer is a collapsed insurer if at least one of the following paragraphs applies in relation to at least one of the insurer’s health benefits funds:\n\n (a) APRA has approved the termination of the health benefits fund under section 37 of the Private Health Insurance (Prudential Supervision) Act 2015;\n\n (b) APRA has appointed an external manager of the health benefits fund under section 51 of the Private Health Insurance (Prudential Supervision) Act 2015;\n\n (c) the Federal Court of Australia has ordered the appointment of a terminating manager of the health benefits fund under section 67 of the Private Health Insurance (Prudential Supervision) Act 2015.\n\ncollapsed insurer levy means a collapsed insurer levy imposed under section 7.\n\ncollapsed insurer levy day means a collapsed insurer levy day specified in a determination under section 7.\n\ncomplying health insurance policy has the same meaning as in the Private Health Insurance Act 2007.\n\nhealth benefits fund has the same meaning as in the Private Health Insurance Act 2007.\n\nlevy determination means a determination by the Minister under paragraph 7(1)(b).\n\nprivate health insurer has the same meaning as in the Private Health Insurance (Prudential Supervision) Act 2015.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Purpose of imposing collapsed insurer levy","content":"6  Purpose of imposing collapsed insurer levy\n\n  The purpose of imposing a collapsed insurer levy is to help meet a collapsed insurer’s liabilities to the people insured under its complying health insurance policies that it is unable to meet itself.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Imposition of collapsed insurer levy","content":"7  Imposition of collapsed insurer levy\n\n (1) If:\n\n (a) a private health insurer is a collapsed insurer; and\n\n (b) the Minister determines, by legislative instrument, that this section applies to the insurer;\n\ncollapsed insurer levy is imposed on each private health insurer (other than an exempt insurer) on each collapsed insurer levy day for the levy determination.\n\nNote: Section 8 deals with exempt insurers.\n\n (2) The Minister may determine, by legislative instrument, the day that is, or the days that are, to be the collapsed insurer levy day or days for the levy determination.\n\n (3) A determination specifying a collapsed insurer levy day must also specify the payment day for levy imposed on that collapsed insurer levy day.\n\nNote: The payment day is the day on which the levy is due and payable under Part 3B of the Financial Institutions Supervisory Levies Collection Act 1998.","sortOrder":6},{"sectionNumber":"8","sectionType":"section","heading":"Exempt insurers","content":"8  Exempt insurers\n\n (1) A private health insurer is an exempt insurer in relation to a levy determination if:\n\n (a) it is the collapsed insurer; or\n\n (b) the Minister determines, by legislative instrument, that the insurer is an exempt insurer.\n\n (2) The Minister may make a determination under paragraph (1)(b) if the Minister is satisfied that imposing the collapsed insurer levy on the insurer would have a significantly adverse effect on the insurer’s ability to comply with:\n\n (a) a prudential standard (within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015) relating to capital adequacy or solvency that applies in relation to the insurer; or\n\n (b) a direction given to the insurer under section 96 of that Act.","sortOrder":7},{"sectionNumber":"9","sectionType":"section","heading":"Rate of collapsed insurer levy","content":"9  Rate of collapsed insurer levy\n\n (1) The rate of collapsed insurer levy imposed on a collapsed insurer levy day is the rate that:\n\n (a) is determined by the Minister by legislative instrument; and\n\n (b) applies on that day.\n\n (2) In determining the rate of levy, the Minister must have regard to the total value of the collapsed insurer’s liabilities to people insured under its complying health insurance policies.\n\n (3) The rate of levy:\n\n (a) must be based on the number of complying health insurance policies that are on issue on the day determined by the Minister, by legislative instrument, as the census day for the levy day; and\n\n (b) may be different for complying health insurance policies under which different numbers of people are insured; and\n\n (c) may be set at zero.","sortOrder":8},{"sectionNumber":"10","sectionType":"section","heading":"Minister to obtain advice from APRA","content":"10  Minister to obtain advice from APRA\n\n (1) Before making a determination under section 7, 8 or 9, the Minister must obtain, and take into account, advice from APRA in relation to the following matters:\n\n (a) whether to make a levy determination;\n\n (b) whether to make a determination under paragraph 8(1)(b);\n\n (c) the day that is to be, or the days that are to be, specified as the collapsed insurer levy day or days;\n\n (ca) the day that is to be specified as the payment day in relation to a collapsed insurer levy day;\n\n (d) the rate that is to be specified as the rate of the collapsed insurer levy imposed on the collapsed insurer levy day or days;\n\n (e) the day that is to be, or the days that are to be, specified as the census day or days for the collapsed insurer levy day or days;\n\n (f) the total value of the collapsed insurer’s liabilities to people insured under its complying health insurance policies.\n\n (2) An advice given to the Minister by APRA under subsection (1) must be laid before each House of the Parliament with the determination to which the advice relates.","sortOrder":9},{"sectionNumber":"12","sectionType":"section","heading":"Regulations","content":"12  Regulations\n\n (1) The Governor‑General may make regulations prescribing matters:\n\n (a) required or permitted by this Act to be prescribed; or\n\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n\n (2) Before the Governor‑General makes regulations under subsection (1), the Minister must take into consideration any relevant recommendation made to the Minister by APRA.","sortOrder":10}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"This Act’s core scope — a ministerially‑administered levy on surviving private health insurers to meet a failed insurer’s unpaid policy liabilities — remains the same as its original purpose. Later textual updates reference the current prudential statute (Private Health Insurance (Prudential Supervision) Act 2015) for the triggers that define a \"collapsed insurer\" and for prudential standards, but those cross‑references align the Act with the modern regulatory framework rather than expanding the Act’s substantive purpose or the universe of potential levy payers. The operative powers (who pays, who decides, what may be imposed) have not been significantly broadened beyond that original rescue‑finance function."},"complexity_factors":["12 substantive sections (short, concentrated statute)","About 8 formal defined terms in the definitions section (APRA; collapsed insurer; collapsed insurer levy; levy day; complying health insurance policy; health benefits fund; levy determination; private health insurer)","Cross-references to at least 3 other Acts: Private Health Insurance (Prudential Supervision) Act 2015 (for collapse triggers and prudential standards), Private Health Insurance Act 2007 (policy/fund definitions), and Financial Institutions Supervisory Levies Collection Act 1998 (collection/payment mechanics)","Ministerial determinations by legislative instrument required for core choices (whether to levy, levy day(s), payment day, rate, census day, exemptions)","Mandatory but non‑binding regulator input: APRA advice must be obtained and laid before Parliament (adds procedural steps and transparency requirements)","Exemption rule with a qualifying test ('significantly adverse effect' on ability to meet prudential capital/solvency standards) introduces conditional discretion","Rate calculation has multiple variables (total liabilities to consider, census day counts, permitted differentiation by policy type, rate may be zero)","Delegation point: regulations may fill procedural or technical gaps, increasing detail outside the primary Act"],"plain_english_summary":"When a private health insurer is formally declared collapsed, the law lets the Minister impose a temporary levy on other private health insurers to meet the collapsed insurer’s unpaid liabilities to its policyholders. APRA must advise the Minister and that advice is tabled in Parliament.\n\nThe Minister sets rate, timing and exemptions (to protect insurers’ solvency). The measure spreads the collapsed insurer’s costs across remaining insurers, who may in turn adjust premiums or business plans."}},"importantCases":[],"_links":{"self":"/api/acts/private-health-insurance-collapsed-insurer-levy-act-2003","history":"/api/acts/private-health-insurance-collapsed-insurer-levy-act-2003/history","analysis":"/api/acts/private-health-insurance-collapsed-insurer-levy-act-2003/analysis","conflicts":"/api/acts/private-health-insurance-collapsed-insurer-levy-act-2003/conflicts","importantCases":"/api/acts/private-health-insurance-collapsed-insurer-levy-act-2003/important-cases","documents":"/api/acts/private-health-insurance-collapsed-insurer-levy-act-2003/documents"}}