Document ID: chunk:federal_register_of_legislation:C2014A00026:clause:1_2
Version: federal_register_of_legislation:C2014A00026
Segment Type: clause
Provision Reference: sch 1 cl 2
Character Range: 1490–2834

2  After subsection 22‑15(5)
Insert:

Annual adjustment of percentages
 (5A) For each adjustment year, each percentage specified in subsection (1), (2) or (3) is replaced by the percentage worked out as follows:
 (a) for the adjustment year starting on 1 April 2014—multiply the specified percentage by the adjustment factor for the adjustment year;
 (b) for a later adjustment year—multiply the specified percentage, as worked out under this subsection for the preceding adjustment year, by the adjustment factor for the later adjustment year.
 (5B) Percentages are to be worked out under subsection (5A) to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
 (5C) The percentages worked out under subsection (5A) for an adjustment year apply in relation to premiums, or amounts in respect of premiums, that were paid, or that are payable, at any time in the adjustment year.
 (5D) Each of the following is an adjustment year:
 (a) the period of 12 months starting on 1 April 2014;
 (b) the period of 12 months starting on each later 1 April.
 (5E) The adjustment factor for an adjustment year is to be determined in accordance with the Private Health Insurance (Incentives) Rules. However, if the factor so determined for an adjustment year is more than 1, the adjustment factor for that year is instead taken to be 1.