{"id":"C2015A00083","name":"Private Health Insurance Supervisory Levy Imposition Act 2015","slug":"private-health-insurance-supervisory-levy-imposition-act-2015","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"83 of 2015","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":436270,"registerId":"C2015A00083-fast-fetch-1775953514715","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Private Health Insurance Supervisory Levy Imposition Act 2015","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\n \n\nPrivate Health Insurance Supervisory Levy Imposition Act 2015\n\n \n\nNo. 83, 2015\n\n \n\n \n\n \n\n \n\n \n\nAn Act to impose a levy on bodies registered as private health insurers under the Private Health Insurance (Prudential Supervision) Act 2015, and for related purposes\n\n \n\n \n\n \n\nContents\n\n1 Short title\n\n2 Commencement\n\n3 Act binds the Crown\n\n4 Norfolk Island\n\n5 Definitions\n\n6 Imposition of supervisory levy\n\n7 Amount of supervisory levy payable for quarters in the financial year starting on 1 July 2015\n\n8 Amount of supervisory levy payable for the financial year starting on 1 July 2016 or a later financial year\n\n \n\n![](image.001.png)\n\n \n\n \n\nPrivate Health Insurance Supervisory Levy Imposition Act 2015\n\nNo. 83, 2015\n\n \n\n \n\n \n\nAn Act to impose a levy on bodies registered as private health insurers under the Private Health Insurance (Prudential Supervision) Act 2015, and for related purposes\n\n[Assented to 26 June 2015]\n\nThe Parliament of Australia enacts:\n\n1  Short title\n\n  This Act may be cited as the Private Health Insurance Supervisory Levy Imposition Act 2015.\n\n2  Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this Act At the same time as section 1 of the Private Health Insurance (Prudential Supervision) Act 2015 commences. 1 July 2015\n\n\nNote:  This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.\n\n (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.\n\n3  Act binds the Crown\n\n  This Act binds the Crown in each of its capacities.\n\n4  Norfolk Island\n\n  This Act extends to Norfolk Island on and after the commencement of Part 1 of Schedule 2 to the Norfolk Island Legislation Amendment Act 2015.\n\n5  Definitions\n\n  In this Act:\n\ncensus day for a financial year means the day that, in accordance with subsection 8(5), is specified as the census day for the financial year.\n\ncomplying health insurance policy has the same meaning as in the Private Health Insurance Act 2007.\n\nlevy determination: see subsection 8(4).\n\nlevy imposition day, in relation to a private health insurer for a financial year, means:\n\n (a) if the private health insurer is a private health insurer on 1 July of the financial year—that day; or\n\n (b) in any other case—the day, during the financial year, on which the private health insurer becomes a private health insurer.\n\nprivate health insurer has the same meaning as in the Private Health Insurance (Prudential Supervision) Act 2015.\n\nsupervisory levy means levy imposed by section 6.\n\n6  Imposition of supervisory levy\n\n  Levy payable in accordance with subsection 8(4A) or (4C) of the Financial Institutions Supervisory Levies Collection Act 1998 is imposed.\n\n7  Amount of supervisory levy payable for quarters in the financial year starting on 1 July 2015\n\n (1) This section applies to levy payable, in accordance with subsection 8(4A) of the Financial Institutions Supervisory Levies Collection Act 1998, by a private health insurer for a quarter in the financial year starting on 1 July 2015.\n\n (2) The amount of supervisory levy payable by the private health insurer for the quarter is the amount of Council administration levy that would have been payable by the insurer in respect of the quarter under the Private Health Insurance (Council Administration Levy) Rules 2007 if those Rules (and the Private Health Insurance (Council Administration Levy) Act 2003), as in force immediately before the commencement of this section, had continued to apply.\n\n8  Amount of supervisory levy payable for the financial year starting on 1 July 2016 or a later financial year\n\n (1) This section applies to levy payable, in accordance with subsection 8(4C) of the Financial Institutions Supervisory Levies Collection Act 1998, by a private health insurer for the financial year starting on 1 July 2016 or a later financial year.\n\n (2) Subject to subsection (3), the amount of supervisory levy payable by the private health insurer for the financial year is the sum of the levy amounts, as determined by the levy determination for the financial year, for each complying health insurance policy on issue from the insurer on:\n\n (a) the census day for the financial year; or\n\n (b) if the levy imposition day for the insurer for the levy year is later than that census day—the levy imposition day.\n\n (3) If the levy imposition day for the private health insurer is later than 1 July in the financial year, the amount of supervisory levy payable by the insurer for the financial year is the amount worked out using the following formula:\n\n![](image.002.png)\n\nMinister to make annual determinations of levy amounts for complying health insurance policies\n\n (4) For the financial year starting on 1 July 2016, and for each later financial year, the Minister is to make a legislative instrument (a levy determination) determining the levy amount that is payable in respect of a complying health insurance policy.\n\n (5) The levy determination for a financial year must also specify a day in the financial year as the census day for the financial year.\n\n (6) The levy determination for a financial year may determine a levy amount by:\n\n (a) specifying the levy amount; or\n\n (b) specifying a method for calculating the levy amount.\n\n (7) The levy determination for a financial year:\n\n (a) must be such that each levy amount it determines is calculated having regard to the number of complying health insurance policies on issue on the census day; and\n\n (b) may determine different levy amounts for complying health insurance policies under which different numbers of people are insured; and\n\n (c) may determine a levy amount of zero; and\n\n (d) must not determine a levy amount that exceeds:\n\n (i) for a complying health insurance policy under which only one person is insured—$2; and\n\n (ii) otherwise—$4.\n\n \n\n \n\n \n\n \n\n[Minister’s second reading speech made in—\n\nHouse of Representatives on 27 May 2015\n\nSenate on 16 June 2015]\n\n \n\n(75/15)\n\n \n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: imposing a levy on private health insurers to fund prudential supervision. The 2015 Act replaced the previous Private Health Insurance (Council Administration Levy) Act 2003 when regulatory oversight moved from PHIAC to APRA, but the scope (funding industry supervision through a per-policy levy) remained consistent with the original policy intent."},"complexity_factors":["Short statute (only 8 sections, approximately 3 pages)","Minimal defined terms (only 5 definitions in section 5)","Straightforward mathematical formula in section 8(3) with clear variables","Limited cross-referencing (primarily to the Financial Institutions Supervisory Levies Collection Act 1998 and Private Health Insurance (Prudential Supervision) Act 2015)","Simple conditional logic (primarily date-based triggers in sections 7 and 8)","No nested exceptions or complex procedural requirements","Clear monetary caps ($2/$4) providing certainty"],"plain_english_summary":"This law creates a **tax (called a 'supervisory levy')** that private health insurance companies must pay to the Australian Government.\n\n**Who it affects:**\n- **Private health insurers** — companies like Bupa, Medibank, HCF, etc. that sell private health insurance policies to Australians.\n\n**What it does:**\n- **Charges a fee** based on how many health insurance policies the company has sold.\n- **From 2015-2016:** The amount was calculated using the old rules from a previous law (as a transitional arrangement).\n- **From 2016-2017 onwards:** The Health Minister sets the exact dollar amount each year through a **'levy determination'** (a formal decision published as law). The levy is calculated per policy, with caps of **$2 for single-person policies** and **$4 for family/couple policies**.\n- The money raised helps fund the **prudential supervision** (government oversight) of the private health insurance industry — basically, making sure these companies remain financially stable and can pay out claims.\n\n**Why it matters:**\nThis ensures private health insurers contribute to the cost of regulating their own industry, rather than taxpayers bearing the full cost. It replaced an older levy system administered by the Private Health Insurance Administration Council (PHIAC) when that body was abolished and its functions moved to the Australian Prudential Regulation Authority (APRA) in 2015."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The Act remains narrowly focused on imposing and structuring a supervisory levy on registered private health insurers to fund prudential supervision. It changes the mechanism used to raise the charge (moving from the earlier Council administration levy rules for the transitional period to a Minister-determined per-policy levy from 2016–17, with explicit per-policy caps and a census day regime) but does not expand the statutory purpose beyond imposing a levy to fund supervision. In other words, the instrument adjusts the levy design and collection mechanics rather than growing the law's substantive scope."},"complexity_factors":["Short overall length (eight substantive sections)","Cross-references to at least two other Acts: Private Health Insurance (Prudential Supervision) Act 2015 and the Financial Institutions Supervisory Levies Collection Act 1998 (section 6 and definitions)","Defined terms section contains multiple operative definitions used throughout (section 5: \"census day\", \"levy imposition day\", \"private health insurer\", \"supervisory levy\", etc.)","Annual ministerial legislative instrument required to set levy amounts and census day (section 8(4)–(5))","Conditional logic for transitional period (2015 quarters) versus ongoing annual regime (sections 7 and 8)","Caps and conditional exceptions: per-policy caps ($2/$4) plus allowance for zero levy and differing levy amounts by number insured (section 8(7))","Proration formula for insurers that become registrants mid‑year (section 8(3))"],"plain_english_summary":"**What this law does (mechanics)\n\n- Imposes a supervisory levy (a compulsory charge) on bodies registered as private health insurers under the Private Health Insurance (Prudential Supervision) Act 2015 (see sections 5–6).\n- For the remaining quarters of the 2015–16 financial year the amount an insurer pays for each quarter is the same as the old Council administration levy that applied immediately before this Act began (section 7).\n- For the 2016–17 financial year and each financial year after that, the levy is calculated on a per-policy basis: the Minister makes an annual legislative instrument (a \"levy determination\") that sets the levy amount payable for each complying private health insurance policy on issue on a specified census day (section 8(2)–(6)).\n  - The levy determination must specify a census day in the financial year (section 8(5)).\n  - The levy determination may set a single amount or a calculation method, may set different amounts depending on how many people are insured under a policy, and may set zero (section 8(6)–(7)(b),(c)).\n  - The levy per policy is capped: no more than $2 for single-person policies and no more than $4 for any other policy (section 8(7)(d)).\n- The levy applies to policies on the insurer's census day or, if the insurer became an insurer after the census day, on that insurer's \"levy imposition day\" (section 5 definition; section 8(2)).\n- If an insurer becomes subject to the levy part-way through the financial year, the payable amount is prorated using the formula in section 8(3).\n- The levy is collected under the Financial Institutions Supervisory Levies Collection Act 1998 (section 6).\n- The Act binds the Crown and extends to Norfolk Island once a specified Norfolk Island transitional commencement occurs (sections 3–4).\n\n\nWho pays and who decides\n\n- Who pays: registered private health insurers (as defined by the Private Health Insurance (Prudential Supervision) Act 2015) must pay the supervisory levy (sections 5–6).\n- Who decides the per-policy amounts and the census day: the Minister, by an annual legislative instrument called a levy determination (section 8(4)–(5)).\n- Who collects the levy: collection is effected under the Financial Institutions Supervisory Levies Collection Act 1998 (section 6).\n\n\nWhy the law matters (stated purpose and how it works in practice)\n\n- The stated purpose is to impose and structure a levy on private health insurers to fund prudential supervision of those insurers (this is reflected in the Act’s title and in the mechanism that replaces the previous Council administration levy with a supervisory levy tied to prudential supervision machinery).\n\n- Practical implications and mechanisms you should note:\n  - Predictability & caps: the per-policy caps ($2 / $4) limit maximum exposure per policy (section 8(7)(d)). That constrains total revenue per policy and gives insurers an upper bound on per-policy cost.\n  - Ministerial discretion and annual variability: the Minister sets the levy amounts annually by legislative instrument and may change the method or amounts year-to-year (section 8(4)–(6)). That creates a recurring administrative step and some regulatory discretion over levy design.\n  - Transitional arrangement: the quarter-by-quarter transitional rule for 2015–16 keeps continuity with the prior Council administration levy for that short period (section 7).\n  - Entry/exit and proration: a new insurer that becomes registered part-way through a year has its liability prorated by the formula in section 8(3); the levy imposition day governs whether an insurer is assessed on the census day or that later day (sections 5 definition, 8(2)–(3)).\n  - Administrative and compliance requirements: insurers must be able to identify and count complying policies on the census day (or their imposition day) and pay the assessed levy under the FISL collection framework (sections 6, 8(5)–(7)).\n\n\nCosts, incentives and trade-offs (mechanisms, not judgments)\n\n- Who pays the cost: the statutory obligor is the insurer (sections 5–6). Insurers may pass costs onto customers (premiums) or adjust product offerings; the Act sets the mechanism but does not prescribe who ultimately bears the economic cost.\n- Incentives created by the per-policy basis: a per-policy charge creates an incentive for insurers to manage the number and structure of policies (for example product design or bundling) because the levy is assessed by policy and may differ by the number of people covered (section 8(7)(b)).\n- Limited revenue per policy: the explicit caps ($2/$4) limit the levy’s revenue potential per policy and therefore limit funding available from this source absent growth in policy counts (section 8(7)(d)).\n- Ministerial choice vs certainty: annual ministerial determinations enable responsiveness (e.g. adjusting to supervisory cost needs) but introduce year-to-year uncertainty for insurers who must budget for the levy (section 8(4)–(6)).\n- Implementation and compliance burden: insurers must maintain accurate records for the census day, report counts, and comply with collection procedures under the Financial Institutions Supervisory Levies Collection Act 1998 (section 6; section 8(5)–(7)).\n\n\nImplementation risk and discretion\n\n- The Levy Determination is a legislative instrument: it is subject to the formal rules for legislative instruments (sourcing, tabling), but the content — including the census day, method, and amounts — is set by the Minister (section 8(4)–(6)). That concentrates substantive rate-setting discretion in the executive within the statutory caps.\n- The Act relies on cross‑referenced collection machinery in another Act (the Financial Institutions Supervisory Levies Collection Act 1998) which creates inter‑Act dependence for timing, payment, enforcement and recovery procedures (section 6).\n\n\nNet effect (mechanical summary)\n\n- The Act replaces the prior Council administration levy arrangements (for the transitional period it keeps last rules for 2015 quarters) with a Minister‑determined, per-policy supervisory levy from 2016–17 onward, subject to per‑policy caps and proration rules, collected under the general supervisory levies collection framework (sections 6–8)."}},"importantCases":[],"_links":{"self":"/api/acts/private-health-insurance-supervisory-levy-imposition-act-2015","history":"/api/acts/private-health-insurance-supervisory-levy-imposition-act-2015/history","analysis":"/api/acts/private-health-insurance-supervisory-levy-imposition-act-2015/analysis","conflicts":"/api/acts/private-health-insurance-supervisory-levy-imposition-act-2015/conflicts","importantCases":"/api/acts/private-health-insurance-supervisory-levy-imposition-act-2015/important-cases","documents":"/api/acts/private-health-insurance-supervisory-levy-imposition-act-2015/documents"}}