Page 1139 - Week 04 - Thursday, 29 March 1990
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MR SPEAKER: I draw attention to the fact that there is a motion before the chamber. Based on Mr Humphries' statement, Mr Berry may wish to withdraw his motion.
Motion, by leave, withdrawn.
AMBULANCE SERVICE LEVY BILL 1990
MR DUBY (Minister for Finance and Urban Services) (5.14): I present the Ambulance Service Levy Bill 1990. I move:
That this Bill be agreed to in principle.
This Bill will establish a levy on health funds operating in the ACT for the provision of an ambulance service in the Territory. The levy scheme in New South Wales has been adopted for the ACT. Currently, the ACT Ambulance Service does not pay for itself. It is funded half through appropriations and half through its own revenue-raising activities. There is little scope for extra revenue through increasing transportation charges for non-subscribers and increasing voluntary subscription fees. Broadening the revenue base of the Ambulance Service is the most effective way of reducing subsidisation of the service.
The proposed levy arrangement on health funds will broaden the revenue base of the service through the larger number of subscribers to these funds. The imposition of the levy will automatically entitle persons with hospital insurance cover to use the ambulance service without further charge. Persons without current hospital insurance who are not intending to join a fund will be able to obtain ambulance cover through an agency arrangement with one of the health funds.
Mr Speaker, to minimise the administrative impact of the levy on the health fund organisations, the provisions of the proposed Bill have been closely modelled on the New South Wales health fund levy approach. Basically this will mean that the health funds will be required to submit the levy on a monthly basis and the New South Wales exemptions for certain recipients of social security and veterans' payments will apply in the ACT.
The levy scheme is expected to raise $1.8m in 1990-91, $2.5m in a full year, and to save approximately $100,000 in administration costs. The current voluntary subscription scheme will cease operation on 30 June 1990. Subscribers to this scheme will be refunded the balance of their subscription as at the date the levy legislation takes effect - that is 1 July 1990.
In conclusion, the proposed Bill will increase public participation in ambulance insurance and thereby increase the revenue base available to fund the ambulance service. I present the explanatory memorandum for the Bill.
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