Document ID: chunk:federal_register_of_legislation:F2020C00284:body:0:p2
Version: federal_register_of_legislation:F2020C00284
Segment Type: other
Provision Reference: 
Character Range: 2691–5735

adjustment factor
                adjustment year
                complying health insurance policy
                incentive payments scheme
                participant
                participating insurer
                premiums reduction scheme
                private health insurer
                private health information statement
In these rules:
30% Rebate logo means the logo that insurers were required to use under the Private Health Insurance (Incentives) Rules 2007.
Act means the Private Health Insurance Act 2007.
Australian Government Rebate on private health insurance means:
(a) the premiums reduction scheme; or
           (b) the private health insurance tax offset.
eligible person has the same meaning as in subsection 3 (1) of the Health Insurance Act 1973 and includes a person who is treated as an eligible person under sections 6, 6A or 7 of that Act.
private health insurance tax offset means a tax offset, under the Income Tax Assessment Act 1997, for a premium, or in respect of a premium, paid under a complying health insurance policy.

rebate adjustment factor means adjustment factor.

 Rebate logo means the logo described in rule 10.

Part 2 Premiums reduction scheme

5. Application
This Part applies in relation to financial years beginning on or after 1 July 2007.

5A. Rebate Adjustment Factor
     For the purposes of paragraph 22-15(5E) of the Act the rebate adjustment factor is determined according to the following formula:

       a)      For the adjustment year commencing on 1 April 2020:

     RAF  =  1

       b)      For all other adjustment years:

     RAF = CPI factor for the relevant adjustment year

                 1 + Average premium increase for the relevant adjustment year

     Where:

     RAF = rebate adjustment factor expressed as a factor to 3 decimal places (rounding up where the fourth decimal place is 5 or more).

     CPI factor for the relevant adjustment year is the number worked out by dividing the CPI index number for the December quarter immediately preceding that year by the CPI index number for the December quarter preceding the first mentioned December quarter expressed as a factor to 4 decimal places (rounding up where the fifth decimal place is 5 or more).

     CPI index number for a quarter is the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician in respect of that quarter.

     Average premium increase for the relevant adjustment year means the figure published by the Department of Health during the course of an adjustment year that represents the industry average premium increase (including rate protection and the age-based discount factor) being the average change in premiums for each product subgroup offered by every private health insurer, weighted according to the number of people covered under complying health insurance policies in each product subgroup, expressed as a factor to 4 decimal places (rounding up where the fifth decimal place is