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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION

PART 2-20 - TAX OFFSETS

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History Pt 2-20 inserted by No 56 of 1997.

Division 61 - Generally applicable tax offsets

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History Div 61 inserted by No 56 of 1997.

Subdivision 61-G - Private health insurance offset complementary to Part 2-2 of the Private Health Insurance Act 2007

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History Subdiv 61-G substituted for Subdiv 61-H by No 32 of 2007, s 3 and Sch 3 item 9, applicable in relation to the 2007-2008 income year and later income years.

Archived: Former Subdiv 61-G repealed as inoperative by No 101 of 2006, s 3 and Sch 1 item 231, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive.

Operative provisions

SECTION 61-210  Amount of the private health insurance tax offset

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61-210(1)

The amount of the *tax offset is your *share of the PHII benefit in respect of the premium or amount.

Reduction because PHII benefit received in another form

61-210(2)

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Subsections (3), (4) and (5) apply if the amount of the premium was reduced because of the operation or purported operation of Division 23 of the Private Health Insurance Act 2007.

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History S 61-210(2) substituted by No 105 of 2013, s 3 and Sch 2 item 25, effective 1 July 2013. For saving provision see note under Subdiv 52-D heading. S 61-210(2) formerly read: Reduction because PHII benefit received in other forms 61-210(2) Subsections (3), (4) and (5) apply if any of the following paragraphs apply: (a) the amount of the premium was reduced because of the operation or purported operation of Division 23 of the Private Health Insurance Act 2007; (b) a payment was made to a person because of the operation or purported operation of Division 26 of the Private Health Insurance Act 2007 in relation to the premium.

61-210(3)

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Divide the total of the reduction by the number of persons who are *PHIIBs in respect of the premium or amount.

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History S 61-210(3) amended by No 105 of 2013, s 3 and Sch 2 item 26, by omitting "(if any) and payment (if any)" after "the reduction", effective 1 July 2013. For saving provision see note under Subdiv 52-D heading.

61-210(4)

Reduce your *tax offset under subsection (1) to nil if the amount worked out under subsection (3) equals or exceeds your *share of the PHII benefit in respect of the premium or amount.

Note:

If the amount worked out under subsection (3) exceeds your share of the PHII benefit, you are liable to pay the excess to the Commonwealth. See section 282-18 of the Private Health Insurance Act 2007 (Liability for excess private health insurance premium reduction or refund).

61-210(5)

Otherwise, reduce your *tax offset under subsection (1) by the amount worked out under subsection (3).

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History S 61-210 substituted by No 26 of 2012, s 3 and Sch 1 item 5, applicable in relation to premiums, and amounts in respect of premiums, paid on and after 1 July 2012. S 61-210 formerly read: SECTION 61-210 Amount of the private health insurance tax offset   61-210(1) The amount of the *tax offset for an income year is the sum of: (a) 30% of the amount of the premium, or of the amount in respect of a premium, paid by you, or by your employer as a *fringe benefit for you, under the policy in respect of days in the income year on which no person covered by the policy was aged 65 years or over; and (b) 35% of the amount of the premium, or of the amount in respect of a premium, paid by you, or by your employer as a fringe benefit for you, under the policy in respect of days in the income year on which: (i) at least one person covered by the policy was aged 65 years or over; and (ii) no person covered by the policy was aged 70 years or over; and (c) 40% of the amount of the premium, or of the amount in respect of a premium, paid by you, or by your employer as a fringe benefit for you, under the policy in respect of days in the income year on which at least one person covered by the policy was aged 70 years or over. 61-210(2) However, if, before 1 January 1999, a person was registered, or eligible to be registered, under the Private Health Insurance Incentives Act 1997 in respect of the policy for the income year, the amount of the *tax offset for the income year is the greater of: (a) the amount worked out under subsection (1); and (b) the *incentive amount for the policy for the income year. 61-210(3) If, because of the operation of Division 23 of the Private Health Insurance Act 2007, an amount paid by you, or by your employer as a *fringe benefit for you, under a policy was less than the amount that would otherwise have been payable, the *tax offset in respect of the amount paid is reduced by the amount of the difference. S 61-210 inserted by No 32 of 2007, s 3 and Sch 3 item 9, applicable in relation to the 2007-2008 income year and later income years.