Commonwealth: Private Health Insurance (Prudential Supervision) (Consequential Amendments and Transitional Provisions) Act 2015 (Cth)

Private Health Insurance (Prudential Supervision) (Consequential Amendments and Transitional Provisions) Act 2015 No. 87, 2015 An Act to deal with consequential and transitional matters arising from the enactment of the Private Health Insurance (Prudential Supervision) Act 2015, and for related purposes Contents 1 Short title 2 Commencement 3 Schedules Schedule 1—Consequential amendments Part 1—Amendments Division 1—Main amendments Australian Prudential Regulation Authority Act 1998 Financial Institutions Supervisory Levies Collection Act 1998 Financial Sector (Collection of Data) Act 2001 Income Tax Assessment Act 1997 Life Insurance Act 1995 Medibank Private Sale Act 2006 Private Health Insurance Act 2007 Division 2—Other amendments Ombudsman Act 1976 Private Health Insurance Act 2007 Private Health Insurance (Prudential Supervision) Act 2015 Part 2—Repeals Private Health Insurance (Council Administration Levy) Act 2003 Schedule 2—Transitional provisions Part 1—Introduction Part 2—Specific transitional provisions Division 1—Registration of private health insurers Division 2—Health benefits funds—restructures, mergers and acquisitions, and terminating and external management Division 3—Other obligations of private health insurers Division 4—Enforcement Division 5—Financial matters Division 6—Other matters Part 3—General transitional provisions Division 1—Transitional functions Division 2—Transfer of assets and liabilities Division 3—Transfer of other matters Division 4—Staff and officers of the Council Division 5—Annual reporting obligation Part 4—Miscellaneous Private Health Insurance (Prudential Supervision) (Consequential Amendments and Transitional Provisions) Act 2015 No. 87, 2015 An Act to deal with consequential and transitional matters arising from the enactment of the Private Health Insurance (Prudential Supervision) Act 2015, and for related purposes [Assented to 26 June 2015] The Parliament of Australia enacts: 1 Short title This Act may be cited as the Private Health Insurance (Prudential Supervision) (Consequential Amendments and Transitional Provisions) Act 2015. 2 Commencement (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. Commencement information Column 1 Column 2 Column 3 Provisions Commencement Date/Details 1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 26 June 2015 2. Schedule 1, Part 1, Division 1 At the same time as section 1 of the Private Health Insurance (Prudential Supervision) Act 2015 commences. 1 July 2015 3. Schedule 1, item 178 The later of: 1 July 2015 (a) the commencement of the provisions covered by table item 2; and (b) immediately after the commencement of item 10 of Schedule 1 to the Private Health Insurance Amendment Act 2015. 4. Schedule 1, item 179 The later of: 1 July 2015 (a) the commencement of the provisions covered by table item 2; and (b) immediately after the commencement of item 17 of Schedule 1 to the Private Health Insurance Amendment Act 2015. 5. Schedule 1, item 180 The later of: 1 July 2015 (a) the commencement of the provisions covered by table item 2; and (b) immediately after the commencement of item 19 of Schedule 1 to the Private Health Insurance Amendment Act 2015. 6. Schedule 1, item 181 The later of: 1 July 2016 (a) the commencement of the provisions covered by table item 2; and (b) the commencement of Part 1 of Schedule 2 to the Norfolk Island Legislation Amendment Act 2015. 7. Schedule 1, item 182 The later of: 5 March 2016 (a) immediately after the commencement of section 92 of the Private Health Insurance (Prudential Supervision) Act 2015; and (paragraph (b) applies) (b) the commencement of Schedule 1 to the Acts and Instruments (Framework Reform) Act 2015. 8. Schedule 1, Part 2 At the same time as the provisions covered by table item 2. 1 July 2015 9. Schedule 2 The day after this Act receives the Royal Assent. 27 June 2015 Note: 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. (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. 3 Schedules Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. Schedule 1—Consequential amendments Part 1—Amendments Division 1—Main amendments Australian Prudential Regulation Authority Act 1998 1 Subsection 3(1) Insert: Collapsed Insurer Special Account: see subsection 54F(1). 2 Subsection 3(1) (definition of prudential regulation framework law) Omit "Acts". 3 Subsection 3(1) (after paragraph (j) of the definition of prudential regulation framework law) Insert: (ja) the Private Health Insurance (Prudential Supervision) Act 2015 or the risk equalisation levy legislation (within the meaning of that Act); 4 After paragraph 3(2)(e) Insert: (ea) a private health insurer, within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015; 5 Subsection 8(1) Omit "APRA exists for the following purposes:", substitute "The main purposes for which APRA exists are as follows:" 6 Subsection 50(6) (definition of levy) Repeal the definition, substitute: levy means levy paid or payable under the Financial Institutions Supervisory Levies Collection Act 1998, other than levy imposed by the following Acts: (a) the Financial Claims Scheme (ADIs) Levy Act 2008; (b) the Financial Claims Scheme (General Insurers) Levy Act 2008; (c) the Private Health Insurance (Collapsed Insurer Levy) Act 2003; (d) the Superannuation (Financial Assistance Funding) Levy Act 1993. 7 Subsection 54(3) Repeal the subsection, substitute: (3) However, payments of the following kinds must not be debited from the APRA Special Account: (a) payments to meet entitlements described in section 54C (Purposes of the Financial Claims Scheme Special Account), and other payments referred to in that section; (b) collapsed insurer assistance payments within the meaning of section 54H (Purposes of the Collapsed Insurer Special Account); (c) payments described in subsection 318‑10(1) of the Private Health Insurance Act 2007 (Purpose of the Risk Equalisation Special Account). Note 1: APRA's administrative costs associated with making a payment referred to in paragraph (a), (b) or (c) may be debited from the APRA Special Account. However, the payment itself can be debited only from the Special Account referred to in that paragraph. Note 2: In the case of APRA's administrative costs associated with making a payment referred to in paragraph (b), such costs may alternatively be debited from the Collapsed Insurer Special Account (see paragraph 54H(1)(c)). 8 After Division 2 of Part 5 Insert: Division 2A—Collapsed insurer special account 54F Private Health Insurance Collapsed Insurer Special Account (1) The Private Health Insurance Collapsed Insurer Special Account (the Collapsed Insurer Special Account) is established by this section. (2) The Collapsed Insurer Special Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013. 54G Credits to the Collapsed Insurer Special Account There must be credited to the Collapsed Insurer Special Account amounts equal to amounts received by APRA, under Part 3B of the Financial Institutions Supervisory Levies Collection Act 1998, by way of: (a) collapsed insurer levy; or (b) late payment penalty in respect of unpaid amounts of collapsed insurer levy. Note: An Appropriation Act may contain a provision to the effect that, if any of the purposes of a special account is a purpose that is covered by an item in the Appropriation Act (whether or not the item expressly refers to the special account), then amounts may be debited against the appropriation for that item and credited to that special account. 54H Purposes of the Collapsed Insurer Special Account (1) The purposes of the Collapsed Insurer Special Account are as follows: (a) APRA making payments (collapsed insurer assistance payments) to help meet a collapsed insurer's liabilities to the people insured under its complying health insurance policies that the collapsed insurer is unable to meet itself; (b) APRA making payments by way of refund, in accordance with regulations made for the purpose of this paragraph, of amounts paid (or purportedly paid) by way of: (i) collapsed insurer levy; or (ii) late payment penalty in respect of unpaid amounts of collapsed insurer levy; (c) meeting APRA's administrative costs associated with APRA making payments referred to in paragraph (a) or (b). Note: See section 80 of the Public Governance, Performance and Accountability Act 2013 (which deals with special accounts). (2) The Minister may, by written notice to a collapsed insurer (or to an external manager or terminating manager of a collapsed insurer), determine conditions on which collapsed insurer assistance payments in respect of the insurer are made. The conditions may include conditions under which the insurer is liable to repay such payments to APRA. Note: Repayments of collapsed insurer assistance payments are required to be credited to the Risk Equalisation Special Account: see section 318‑5 of the Private Health Insurance Act 2007. (3) A notice under subsection (2) is not a legislative instrument. (4) In this section: collapsed insurer has the same meaning as in the Private Health Insurance (Collapsed Insurer Levy) Act 2003. complying health insurance policy has the same meaning as in the Private Health Insurance Act 2007. Financial Institutions Supervisory Levies Collection Act 1998 9 Section 6 Insert: private health insurer has the same meaning as in the Private Health Insurance (Prudential Supervision) Act 2015. 10 Section 7 (after paragraph (d) of the definition of leviable body) Insert: (da) a private health insurer; 11 Section 7 (after paragraph (d) of the definition of levy) Insert: (da) in respect of a leviable body that is a private health insurer—levy imposed by the Private Health Insurance Supervisory Levy Imposition Act 2015; or 12 After subsection 8(4) Insert: Private health insurers: 2015‑16 financial year (4A) A body corporate that is a private health insurer on the liability day in a quarter in the financial year starting on 1 July 2015 is liable to pay a levy in respect of that quarter. However, this subsection does not apply to a quarter if the liability day for the quarter is before the commencement of this subsection. (4B) In subsection (4A): liability day in a quarter means the 28th day of the second month of the quarter. quarter means a period of 3 months starting on 1 July, 1 October, 1 January or 1 April. Private health insurers: 2016‑17 financial year and later financial years (4C) A body corporate that is a private health insurer at any time during the financial year starting on 1 July 2016 or a later financial year is liable to pay a levy in respect of that financial year. 13 Subsection 9(1) Omit "(other than a superannuation entity) for a financial year under section 8", substitute "for a financial year (other than levy payable under subsection 8(4A) or (6))". 14 At the end of section 9 Add: (3) Levy payable by a private health insurer for a quarter under subsection 8(4A) is payable on the 14th day after the liability day for the quarter. Note: For the meaning of quarter and liability day, see subsection 8(4B). 15 Subsection 10(1) Omit "rate of 20%", substitute "applicable rate". 16 At the end of section 10 Add: (3) The applicable rate, in relation to an amount of unpaid levy, is: (a) 20% (unless the levy was imposed by the Private Health Insurance Supervisory Levy Imposition Act 2015); or (b) if the levy was imposed by the Private Health Insurance Supervisory Levy Imposition Act 2015: (i) 15% (unless subparagraph (ii) applies); or (ii) if, under a legislative instrument made by the Minister for the purposes of this subparagraph, a specified rate of less than 15% applies in relation to the unpaid levy—that specified rate. 17 At the end of section 14 Add: (3) This section applies in relation to levy imposed by the Private Health Insurance Supervisory Levy Imposition Act 2015 as if subsections (1) and (2) referred to the time when this subsection commences (rather than to the commencement of this section). 18 After Part 3A Insert: Part 3B—Private health insurance collapsed insurer levy 26J Definitions In this Part: collapsed insurer levy day has the same meaning as in the Private Health Insurance (Collapsed Insurer Levy) Act 2003. late payment penalty means penalty payable under section 26M. levy means levy imposed by the Private Health Insurance (Collapsed Insurer Levy) Act 2003. levy determination, in relation to a collapsed insurer levy day, means the determination under section 7 of the Private Health Insurance (Collapsed Insurer Levy) Act 2003 because of which that day is a collapsed insurer levy day. 26K Liability to levy A private health insurer is liable to pay a levy imposed on the insurer on a collapsed insurer levy day. 26L When levy due for payment A levy imposed on a private health insurer on a collapsed insurer levy day is due and payable on the day specified in the levy determination as the payment day in relation to that collapsed insurer levy day. 26M Late payment penalty (1) If any levy payable by a private health insurer: (a) is not paid on or before the day on which it is due and payable (the due day for payment); and (b) remains unpaid after the penalty calculation day; the insurer is liable to pay, by way of penalty, an amount worked out at the applicable rate per year on the amount unpaid, computed from the end of the due day for payment to the end of the penalty calculation day. (2) The penalty calculation day is: (a) if the levy is paid on or after the first day of a month and before the sixth day of that month—the 20th day of the immediately preceding month; or (b) if the levy is paid on or after the sixth day of a month and before the 20th day of that month—the sixth day of that month; or (c) if the levy is paid on or after the 20th day of a month and on or before the last day of that month—the 20th day of that month. (3) The applicable rate, in relation to an amount of unpaid levy, is: (a) 15% (unless paragraph (b) applies); or (b) if, under a legislative instrument made by the Minister for the purposes of this paragraph, a specified rate of less than 15% applies in relation to the unpaid levy—that specified rate. 26N Payment of levy and late payment penalty Levy and late payment penalty are payable to APRA on behalf of the Commonwealth. 26P Waiver of levy and late payment penalty (1) The Minister may waive the whole or a part of an amount of levy or late payment penalty. (2) The Minister may, in writing, delegate to APRA the power under subsection (1) to waive levy or late payment penalty. 26Q Recovery of levy and late payment penalty (1) The following amounts may be recovered by the Commonwealth as debts due to the Commonwealth: (a) levy that is due and payable; (b) late payment penalty that is due and payable. (2) APRA may bring proceedings in the name of the Commonwealth (as its agent) for the recovery of a debt due to the Commonwealth as described in subsection (1). 26R Exempting laws ineffective (1) A law made before the commencement of this section does not exempt a private health insurer from liability to pay levy. (2) A law made on or after the commencement of this section purporting to exempt a private health insurer from liability to pay taxes under laws of the Commonwealth that would otherwise include levy does not exempt the private health insurer from liability to pay levy unless the exemption expressly refers to levy under the Act under which the levy is imposed. 19 Subsection 27(10) (paragraph (b) of the definition of decision maker) After "section 22", insert "or subsection 26P(1)". 20 Subsection 27(10) (at the end of paragraph (b) of the definition of reviewable decision) Add "or subsection 26P(1)". Financial Sector (Collection of Data) Act 2001 21 Paragraph 3(1)(a) Omit "in the prudential regulation or monitoring of bodies in the financial sector", substitute "to perform its functions or exercise its powers under other laws". 22 Paragraph 7(2)(d) Omit "Private Health Insurance Act 2007", substitute "Private Health Insurance (Prudential Supervision) Act 2015". Income Tax Assessment Act 1997 23 Section 50‑30 (table item 6.3) Omit "Private Health Insurance Act 2007", substitute "Private Health Insurance (Prudential Supervision) Act 2015". 24 Paragraph 315‑5(b) Omit "Private Health Insurance Act 2007", substitute "Private Health Insurance (Prudential Supervision) Act 2015". 25 Paragraph 315‑15(a)(note) Omit "Private Health Insurance Act 2007", substitute "Private Health Insurance (Prudential Supervision) Act 2015". 26 Paragraph 315‑15(b) Repeal the paragraph, substitute: (b) an application by the entity to convert to being registered as a for profit insurer (within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015) is approved under subsection 20(5) of that Act; and 27 Paragraph 315‑15(c) Omit "126‑42(2)(b)", substitute "20(2)(a)". 28 Paragraph 315‑90(1)(a) Omit "Private Health Insurance Act 2007", substitute "Private Health Insurance (Prudential Supervision) Act 2015". 29 Paragraph 315‑140(a) Omit "paragraph 126‑42(2)(b) of the Private Health Insurance Act 2007", substitute "paragraph 20(2)(a) of the Private Health Insurance (Prudential Supervision) Act 2015". 30 Subparagraph 315‑140(c)(i) Omit "Private Health Insurance Act 2007", substitute "Private Health Insurance (Prudential Supervision) Act 2015". 31 Paragraph 315‑310(2)(a) Omit "Private Health Insurance Act 2007", substitute "Private Health Insurance (Prudential Supervision) Act 2015". 32 Subparagraph 316‑5(a)(i) Omit "Private Health Insurance Act 2007", substitute "Private Health Insurance (Prudential Supervision) Act 2015". 33 Subsection 316‑65(1) (definitions of embedded value of the friendly society's other business (if any) and market value of the friendly society's health insurance business (if any)) Omit "Private Health Insurance Act 2007", substitute "Private Health Insurance (Prudential Supervision) Act 2015". Life Insurance Act 1995 34 Subsection 16ZB(2) (note) After "Private Health Insurance Act 2007", insert "and the Private Health Insurance (Prudential Supervision) Act 2015". Medibank Private Sale Act 2006 35 After paragraph 9(7)(ba) of Schedule 2 Insert: (bb) a provision of the Private Health Insurance (Prudential Supervision) Act 2015; or 36 Subitem 10(8) of Schedule 2 Omit "section 137‑10 of the Private Health Insurance Act 2007", substitute "section 28 of the Private Health Insurance (Prudential Supervision) Act 2015". 37 At the end of subitems 14(1) and 14(2) of Schedule 2 Add: ; or (e) a provision of the Financial Sector (Collection of Data) Act 2001; or (f) a provision of the Private Health Insurance (Prudential Supervision) Act 2015. 38 After paragraph 15(3)(ba) of Schedule 2 Insert: (bb) a provision of the Private Health Insurance (Prudential Supervision) Act 2015; or 39 Subitems 16(2) and 21(2) of Schedule 2 Omit "section 137‑10 of the Private Health Insurance Act 2007", substitute "section 28 of the Private Health Insurance (Prudential Supervision) Act 2015". 40 After paragraph 22(3)(ba) of Schedule 2 Insert: (bb) a provision of the Private Health Insurance (Prudential Supervision) Act 2015; or 41 Subitems 23(2) and 58(8) of Schedule 2 Omit "section 137‑10 of the Private Health Insurance Act 2007", substitute "section 28 of the Private Health Insurance (Prudential Supervision) Act 2015". Private Health Insurance Act 2007 42 Subsection 1‑10(6) (table item 1) Repeal the item. 43 Paragraph 3‑1(b) Omit "*products; and", substitute "*products.". 44 Paragraph 3‑1(c) Repeal the paragraph. 45 At the end of section 3‑1 Add: Note: The Private Health Insurance (Prudential Supervision) Act 2015 sets out the registration process for private health insurers, imposes requirements about how private health insurers conduct health insurance business and deals with other matters in relation to the prudential supervision of private health insurers. 46 Section 3‑15 Repeal the section, substitute: 3‑15 Health insurance business, health benefits funds and miscellaneous obligations of private health insurers (Chapter 4) Chapter 4 defines the key concepts of *health insurance business and *health benefits funds. It also deals with some related matters and imposes miscellaneous obligations on private health insurers. 47 Paragraph 84‑10(3)(b) Repeal the paragraph. 48 Section 90‑1 Omit ", the Council". 49 Subsection 93‑20(4) (note) Omit "Division 146", substitute "Division 4 of Part 3 of the Private Health Insurance (Prudential Supervision) Act 2015". 50 Division 96 (heading) Repeal the heading, substitute: Division 96—Giving information to the Department and the Private Health Insurance Ombudsman 51 Paragraphs 96‑1(b), 96‑5(b), 96‑10(b) and 96‑15(1)(b) Repeal the paragraphs. 52 Section 96‑20 (heading) Repeal the heading, substitute: 96‑20 Failure to give information to Department or Private Health Insurance Ombudsman 53 Paragraph 96‑25(b) Omit ", the Council". 54 Chapter 4 (heading) Repeal the heading, substitute: Chapter 4—Health insurance business, health benefits funds and miscellaneous obligations of private health insurers 55 Section 110‑1 Repeal the section, substitute: 110‑1 What this Chapter is about This Chapter defines the key concepts of health insurance business and health benefits funds. It also deals with some related matters and imposes miscellaneous obligations on private health insurers. 56 Part 4‑2 (heading) Repeal the heading, substitute: Part 4‑2—Health insurance business 57 Section 115‑1 Repeal the section, substitute: 115‑1 What this Part is about This Part defines the key concept of health insurance business. Note: Entities are only permitted to carry on health insurance business if they are registered under Division 3 of Part 2 of the Private Health Insurance (Prudential Supervision) Act 2015. 58 Section 115‑5 Repeal the section, substitute: 115‑5 Private Health Insurance (Health Insurance Business) Rules (1) The Private Health Insurance (Health Insurance Business) Rules also deal with matters relating to *health insurance business. The provisions of this Part indicate when a particular matter is or may be dealt with in these Rules. Note: The Private Health Insurance (Health Insurance Business) Rules are made by the Minister under section 333‑20. (2) Before making Private Health Insurance (Health Insurance Business) Rules, the Minister must consult *APRA. However, a failure to consult APRA does not affect the validity of those Rules. Note: This consultation requirement also applies to any repeal or amendment of such Rules: see subsection 33(3) of the Acts Interpretation Act 1901. 59 Division 118 Repeal the Division. 60 Part 4‑3 Repeal the Part. 61 Division 131 (heading) Repeal the heading, substitute: Division 131—Health benefits funds 62 Section 131‑1 Repeal the section, substitute: 131‑1 What this Part is about This Part defines the key concept of a health benefits fund. This Part also defines the concepts of health‑related business and risk equalisation jurisdictions, and deals with some related matters (including the operation of health‑related businesses through health benefits funds). Note: The Private Health Insurance (Prudential Supervision) Act 2015 requires private health insurers to have health benefits funds. Health benefits funds must be operated in accordance with the requirements of that Act. 63 Section 131‑5 Repeal the section, substitute: 131‑5 Private Health Insurance (Health Benefits Fund Policy) Rules (1) *Health benefits funds (and some related matters) are also dealt with in the Private Health Insurance (Health Benefits Fund Policy) Rules. The provisions of this Part indicate when a particular matter is or may be dealt with in these Rules. Note: The Private Health Insurance (Health Benefits Fund Policy) Rules are made by the Minister under section 333‑20. (2) Before making Private Health Insurance (Health Benefits Fund Policy) Rules for the purposes of section 131‑15, the Minister must consult *APRA. However, a failure to consult APRA does not affect the validity of those Rules. Note: This consultation requirement also applies to any repeal or amendment of such Rules: see subsection 33(3) of the Acts Interpretation Act 1901. 64 After section 131‑15 Insert: 131‑20 Risk equalisation jurisdictions (1) An area is a risk equalisation jurisdiction if the Private Health Insurance (Health Benefits Fund Policy) Rules so provide. (2) The Private Health Insurance (Health Benefits Fund Policy) Rules may specify circumstances in which a private health insurer may (despite subsection 23(2) of the Private Health Insurance (Prudential Supervision) Act 2015) have more than one *health benefits fund in respect of a particular *risk equalisation jurisdiction. 131‑25 Operation of health‑related businesses through health benefits funds If a private health insurer has a *health benefits fund in respect of its *health insurance business and some or all of its *health‑related businesses, the insurer must comply with any requirements specified in the Private Health Insurance (Health Benefits Fund Policy) Rules relating to how the health‑related businesses are to be conducted. 65 Divisions 134 to 152 Repeal the Divisions. 66 Part 4‑5 (heading) Repeal the heading, substitute: Part 4‑5—Miscellaneous obligations of private health insurers 67 Section 157‑1 Repeal the section, substitute: 157‑1 What this Part is about This Part imposes miscellaneous notification and other obligations on private health insurers. 68 Section 157‑5 (heading) Repeal the heading, substitute: 157‑5 Private Health Insurance (Data Provision) Rules 69 Section 157‑5 Omit "Private Health Insurance (Insurer Obligations) Rules and the". 70 Section 157‑5 (note) Omit "The Private Health Insurance (Insurer Obligations) Rules are made by the Council under section 333‑25." 71 Divisions 160, 163 and 166 Repeal the Divisions. 72 Division 169 (heading) Repeal the heading, substitute: Division 169—Notification obligations 73 Sections 169‑1 and 169‑5 Repeal the sections. 74 Subsection 169‑10(3) Omit "and the Council", substitute "and *APRA". 75 Section 169‑15 Repeal the section. 76 Division 172 (heading) Repeal the heading, substitute: Division 172—Other obligations 77 Section 172‑1 Repeal the section. 78 Subparagraphs 172‑15(a)(ii) and (b)(ii) Omit "Division 149, 152, 203 or 293", substitute "Division 203". 79 Section 180‑1 Omit "Both the Minister and the Council have powers under this Chapter." 80 Section 185‑1 Repeal the section, substitute: 185‑1 Introduction This Part gives the Minister powers to enable him or her to find out whether a private health insurer is complying with its enforceable obligations and to encourage or compel an insurer to comply with those obligations. The Minister can: (a) set performance indicators for insurers; or (b) seek explanations from insurers; or (c) investigate insurers; or (d) obtain enforceable undertakings from insurers; or (e) direct insurers to do particular things; or (f) seek remedies in the Federal Court; or (g) revoke an insurer's entitlement to offer tax rebates as premium reductions. 81 Paragraph 185‑5(b) Omit "or 333‑25". 82 Paragraph 185‑5(e) Omit "subsection 126‑20(6)", substitute "subsection 15(3) of the Private Health Insurance (Prudential Supervision) Act 2015". 83 Section 185‑10 Repeal the section. 84 Section 191‑1 Repeal the section, substitute: 191‑1 Minister may seek an explanation from a private health insurer (1) If, having regard to information available to the Minister or to any performance indicators under the Private Health Insurance (Complying Product) Rules, the Minister believes that a private health insurer may have contravened an *enforceable obligation, the Minister may write to the private health insurer: (a) explaining the Minister's concerns; and (b) asking the insurer to explain its operations in relation to those concerns; and (c) specifying the period within which the Minister requires the insurer's response. (2) The private health insurer must respond within the specified period, or any longer period that the Minister, in writing before the end of the specified period, allows. (3) If the Minister refuses a request by the private health insurer for a longer period to respond, the Minister must state the Minister's reasons for refusing. Note: Refusals of requests for longer periods to respond are reviewable under Part 6‑9. 85 Section 191‑5 (heading) Repeal the heading, substitute: 191‑5 Minister must respond to insurer's explanation 86 Section 191‑5 Omit "writer under subsection 191‑1(1)", substitute "Minister". 87 Paragraphs 191‑5(a) and (b) Omit "writer" (wherever occurring), substitute "Minister". 88 Before section 194‑1 Insert: 194‑1A Purposes for which powers may be exercised etc. (1) The powers in this Division may only be exercised for the purposes of this Act. (2) The powers in this Division cannot be exercised for the purposes of this Act, as it applies in relation to: (a) levy imposed under the Private Health Insurance (Risk Equalisation Levy) Act 2003; or (b) the Risk Equalisation Special Account. 89 Section 194‑1 (heading) Repeal the heading, substitute: 194‑1 Minister may investigate a private health insurer 90 Subsection 194‑1(1) Omit "(1)". 91 Subsection 194‑1(2) Repeal the subsection. 92 Subsection 194‑5(1) Omit ", or, if subsection 194‑1(2) applies, the Council," 93 Subsections 194‑5(1), (2) and (3) Omit "notice‑giver" (wherever occurring), substitute "Minister". 94 Subsections 194‑10(1) and 194‑15(1) Omit ", or, if subsection 194‑1(2) applies, the Council,". 95 Subsections 194‑15(1), (2) and (3) Omit "notice‑giver" (wherever occurring), substitute "Minister". 96 Subsection 194‑25(1) Omit ", or, if subsection 194‑1(2) applies, the Council,". 97 Section 194‑30 Repeal the section. 98 Section 194‑35 (heading) Repeal the heading, substitute: 194‑35 Minister must notify outcome of investigation 99 Section 194‑35 Omit "or the Council (whichever was the investigator)". 100 Paragraphs 194‑35(a) and (b) Omit "investigator" (wherever occurring), substitute "Minister". 101 Section 197‑1 (heading) Repeal the heading, substitute: 197‑1 Minister may accept written undertakings given by a private health insurer 102 Paragraph 197‑1(1)(a) After "of the insurer", insert "in relation to one or more matters of a kind regulated by this Act". 103 Subsection 197‑1(2) Repeal the subsection. 104 Subsection 197‑5(1) Repeal the subsection, substitute: (1) If the Minister considers that a private health insurer that gave an undertaking under this Division has contravened any of its terms, the Minister may apply to the Federal Court for an order under subsection (2). 105 Division 200 (heading) Repeal the heading, substitute: Division 200—Ministerial directions 106 Section 200‑1 (heading) Repeal the heading, substitute: 200‑1 Minister may give directions 107 Subsections 200‑1(1) and (2) Repeal the subsections, substitute: (1) If, at any time and for any reason, the Minister considers that it will assist in the prevention of *improper discrimination to do so, the Minister may give a direction to a private health insurer requiring it: (a) to modify its day‑to‑day operations in a particular respect; or (b) to modify its *rules in a particular respect; or (c) if the insurer is a *restricted access insurer—to modify the provisions included in its constitution or *rules in order to comply with subsection 15(3) of the Private Health Insurance (Prudential Supervision) Act 2015 in a particular respect. Note: A decision to give a direction is reviewable under Part 6‑9. (2) If, at any time and for any reason, the Minister considers that there appears to be a contravention of an *enforceable obligation involving *improper discrimination by a private health insurer, the Minister may give a direction to the insurer requiring it to address the contravention by: (a) modifying its day‑to‑day operations; or (b) modifying its *rules; or (c) if the insurer is a *restricted access insurer—modifying the provisions included in its constitution or *rules in order to comply with subsection 15(3) of the Private Health Insurance (Prudential Supervision) Act 2015. Note: A decision to give a direction is reviewable under Part 6‑9. 108 Subsection 200‑1(3) Omit "person who gives the direction", substitute "Minister". 109 Subsection 200‑1(5) Repeal the subsection, substitute: (5) A direction given under this section must be published on the Department's website not later than 5 working days after the direction is given. 110 Paragraph 200‑5(b) Omit "person giving the direction", substitute "Minister". 111 Section 200‑5 (note) Repeal the note. 112 Section 203‑1 (heading) Repeal the heading, substitute: 203‑1 Minister may apply to the Federal Court 113 Subsection 203‑1(1) Omit "(1)". 114 Subsection 203‑1(2) Repeal the subsection. 115 Subsection 203‑10(1) Omit "(whether on application by the Minister or the Council)". 116 Subsections 203‑15(1) and 203‑20(1) Omit "on application by the Minister". 117 Subsection 203‑25(1) Omit "(whether on application by the Minister or the Council)". 118 Section 203‑60 (heading) Repeal the heading, substitute: 203‑60 Minister may require person to assist 119 Paragraph 203‑60(1)(a) Omit "by the Minister". 120 Subsection 203‑60(2) Repeal the subsection. 121 Subsections 203‑60(3) and (5) Omit "or Council" (wherever occurring). 122 Subsection 203‑60(7) Omit "and the Council". 123 Part 5‑3 Repeal the Part. 124 Paragraphs 230‑1(b) and (d) Repeal the paragraphs. 125 Paragraph 230‑1(f) Omit "Risk Equalisation Trust Fund", substitute "Risk Equalisation Special Account". 126 Parts 6‑3 and 6‑5 Repeal the Parts. 127 Paragraphs 304‑10(a) and (c) Repeal the paragraphs. 128 At the end of section 304‑10 Add: Note: Private health insurers are also liable to pay levies imposed by the Private Health Insurance Supervisory Levy Imposition Act 2015 and the Private Health Insurance (Collapsed Insurer Levy) Act 2003. This Part does not apply to those levies. The collection of those levies is dealt with in the Financial Institutions Supervisory Levies Collection Act 1998. 129 Subparagraphs 307‑1(1)(a)(i) and (ii) Repeal the subparagraphs. 130 Subsection 307‑1(2) Repeal the subsection, substitute: (2) The Minister must obtain, and take into account, advice from *APRA in relation to the day that is to be specified as the payment day in a determination made under subparagraph (1)(a)(iv). 131 Subsection 307‑1(3) Repeal the subsection. 132 Subsections 307‑10(2) and (3) Repeal the subsections, substitute: (2) The following must be paid to *APRA, on behalf of the Commonwealth: (a) *risk equalisation levy; (b) *late payment penalty in respect of risk equalisation levy. Note: These amounts are to be credited to the Risk Equalisation Special Account: see section 318‑5. 133 Paragraph 307‑15(3)(b) Repeal the paragraph, substitute: (b) *APRA (as agent of the Commonwealth), in respect of a debt payable under subsection 307‑10(2). 134 Section 307‑20 (heading) Repeal the heading, substitute: 307‑20 Waiver of late payment penalty 135 Subsection 307‑20(2) Repeal the subsection, substitute: (2) *APRA may waive the whole or part of an amount of *late payment penalty in respect of an unpaid amount of *risk equalisation levy if APRA considers that there are good reasons for doing so. 136 Section 307‑25 Repeal the section. 137 Section 310‑1 (heading) Repeal the heading, substitute: 310‑1 Returns relating to complaints levy 138 Subsections 310‑1(1) and (2) Repeal the subsections, substitute: (1) A private health insurer must lodge a return for each day that, under the Private Health Insurance (Complaints Levy) Act 1995, is a census day. 139 Paragraphs 310‑1(3)(b) and (c) Repeal the paragraphs, substitute: (b) be lodged with the Secretary of the Department within 28 days after the census day. 140 Paragraph 310‑5(2)(b) Repeal the paragraph, substitute: (b) another form approved by: (i) the Secretary of the Department, if the records relate to *complaints levy; or (ii) *APRA, if the records relate to *risk equalisation levy. 141 Section 310‑10 (heading) Repeal the heading, substitute: 310‑10 Power to request information from insurer 142 Subsection 310‑10(1) Repeal the subsection, substitute: (1) *APRA may, if it believes on reasonable grounds that a private health insurer is capable of giving information that is relevant to: (a) whether the insurer is liable to pay *risk equalisation levy; or (b) the amount of risk equalisation levy that the insurer is liable to pay; request the insurer to give APRA the information or records that are specified in the request, before the end of the period specified in the request. 143 Division 313 (heading) Repeal the heading, substitute: Division 313—Power to enter premises and search for documents related to complaints levy 144 Subsection 313‑1(1) Omit "A person who is a member of staff of the Council or authorised in writing by the Minister for this purpose (both of these kinds of persons are authorised officers)", substitute "A person (an authorised officer) who is authorised in writing by the Minister for this purpose". 145 Paragraphs 313‑1(2)(a) and (b) Repeal the paragraphs, substitute: (a) whether a private health insurer is liable to pay *complaints levy; or (b) the amount of complaints levy that the insurer is liable to pay. 146 Subsections 313‑20(1) and (2) Omit "Council", substitute "Secretary of the Department". 147 Part 6‑7 Repeal the Part, substitute: Part 6‑7—Private Health Insurance Risk Equalisation Special Account Division 318—Private Health Insurance Risk Equalisation Special Account 318‑1 Private Health Insurance Risk Equalisation Special Account (1) The Private Health Insurance Risk Equalisation Special Account (the Risk Equalisation Special Account) is established by this section. (2) The *Risk Equalisation Special Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013. 318‑5 Credits to the Risk Equalisation Special Account There must be credited to the *Risk Equalisation Special Account amounts equal to the following: (a) amounts received by *APRA by way of: (i) *risk equalisation levy; or (ii) *late payment penalty in respect of unpaid amounts of risk equalisation levy; (b) any of the following other amounts received by APRA: (i) amounts received under paragraph 45(b), or section 46, of the Private Health Insurance (Prudential Supervision) Act 2015; (ii) repayments of collapsed insurer assistance payments (within the meaning of section 54H of the Australian Prudential Regulation Authority Act 1998); (c) amounts paid to the Commonwealth or APRA, by a State or Territory, for crediting to the Risk Equalisation Special Account. Note: An Appropriation Act may contain a provision to the effect that, if any of the purposes of a special account is a purpose that is covered by an item in the Appropriation Act (whether or not the item expressly refers to the special account), then amounts may be debited against the appropriation for that item and credited to that special account. 318‑10 Purpose of the Risk Equalisation Special Account (1) The purpose of the *Risk Equalisation Special Account is for *APRA to make payments to private health insurers in accordance with the Private Health Insurance (Risk Equalisation Policy) Rules. Note: See section 80 of the Public Governance, Performance and Accountability Act 2013 (which deals with special accounts). (2) The Private Health Insurance (Risk Equalisation Policy) Rules must specify: (a) the circumstances in which private health insurers are to be paid amounts debited from the *Risk Equalisation Special Account; and (b) the method for working out the amount to be so debited from the Account for payment to a private health insurer; and (c) the method for working out the amount to be paid, for crediting to the Account, by private health insurers as *risk equalisation levy. (3) Before making Private Health Insurance (Risk Equalisation Policy) Rules, the Minister must consult *APRA. However, a failure to consult APRA does not affect the validity of those Rules. Note: This consultation requirement also applies to any repeal or amendment of such Rules: see subsection 33(3) of the Acts Interpretation Act 1901. 318‑15 Record keeping The Private Health Insurance (Risk Equalisation Administration) Rules may set out requirements for private health insurers that are liable to *risk equalisation levy to keep particular kinds of records, and requirements relating to how those records are to be kept. 148 After paragraph 323‑1(1)(a) Insert: (aa) the duty, function or power is not an *APRA private health insurance duty, function or power; and 149 After subsection 323‑1(1) Insert: (1A) An APRA private health insurance duty, function or power is a duty, function or power of *APRA, or that a person has in the person's capacity as an officer (within the meaning of section 56 of the Australian Prudential Regulation Authority Act 1998), under any of the following: (a) this Act; (b) the Private Health Insurance (Prudential Supervision) Act 2015; (c) the Financial Institutions Supervisory Levies Collection Act 1998, as that Act applies in relation to levies imposed on private health insurers; (d) the Financial Sector (Collection of Data) Act 2001, as that Act applies in relation to private health insurers. Note: The disclosure of information regime for information obtained under APRA private health insurance duties, functions and powers is Part 6 of the Australian Prudential Regulation Authority Act 1998 (rather than this Division). 150 Subparagraph 323‑1(2)(a)(i) Omit "performing duties or functions, or exercising powers, under this Act", substitute "performing or exercising a duty, function or power under this Act, other than an *APRA private health insurance duty, function or power". 151 Subsection 323‑1(3) Omit ", 323‑30 or 323‑35", substitute "or 323‑30". 152 Paragraph 323‑5(a) Omit "performing a duty or function, or exercising a power, under this Act", substitute "performing or exercising a duty, function or power under this Act, other than an *APRA private health insurance duty, function or power". 153 After paragraph 323‑5(a) Insert: (aa) for the purpose of enabling a person to perform or exercise an *APRA private health insurance duty, function or power; or 154 Paragraphs 323‑10(2)(d) and (e) Repeal the paragraphs. 155 Section 323‑25 (heading) Repeal the heading, substitute: 323‑25 Authorised disclosure: by the Secretary if authorised by affected person 156 Section 323‑25 Omit "or the Council". 157 Section 323‑35 Repeal the section. 158 Section 328‑5 (table items 5 to 30) Repeal the items. 159 Section 328‑5 (table item 43) Omit "(other than late payment penalty in respect of an amount of *collapsed insurer levy)". 160 Section 328‑5 (table item 44) Repeal the item. 161 Paragraph 333‑1(1)(b) Omit "Department; or", substitute "Department.". 162 Paragraph 333‑1(1)(c) Repeal the paragraph. 163 Subsection 333‑10(1) (table item 3) Repeal the item. 164 Subsection 333‑20(1) (table items 7, 10, 12 and 13) Repeal the items. 165 At the end of subsection 333‑20(1) Add: Note: There are consultation requirements that apply in relation to the making of Rules mentioned in items 6, 8 and 15 of the above table: see subsections 115‑5(2), 131‑5(2) and 318‑10(3). 166 Section 333‑25 Repeal the section, substitute: 333‑25 Private Health Insurance Rules made by APRA (1) *APRA may, by legislative instrument, make Private Health Insurance Rules, known as Private Health Insurance (Risk Equalisation Administration) Rules, providing for matters mentioned in section 318‑15. (2) To the extent that Private Health Insurance Rules made under this section deal with a matter that is dealt with in Private Health Insurance Rules made under section 333‑20, they must do so in a way that is not inconsistent with the Rules made under section 333‑20. 167 Clause 1 of Schedule 1 Repeal the following definitions: (a) definition of ADI; (b) definition of application provision; (c) definition of applied Corporations Act provision; (d) definition of appointed actuary. 168 Clause 1 of Schedule 1 Insert: APRA means the Australian Prudential Regulation Authority. APRA private health insurance duty, function or power: see subsection 323‑1(1A). 169 Clause 1 of Schedule 1 Repeal the following definitions: (a) definition of assets; (b) definition of capital adequacy direction; (c) definition of capital adequacy standard; (d) definition of census day; (e) definition of Chief Executive Officer; (f) definition of collapsed insurer levy; (g) definition of Commissioner; (h) definition of Council; (i) definition of Council administration levy; (j) definition of Council‑supervised obligation; (k) definition of Deputy Commissioner; (l) definition of disqualified person; (m) definition of external management; (n) definition of external manager; (o) definition of fringe benefit; (p) definition of Human Services Department; (q) definition of Human Services Minister; (r) definition of inspector; (s) definition of makes a capital payment; (t) definition of manager; (u) definition of member; (v) definition of net asset position; (w) definition of policy group; (x) definition of policy liability. 170 Clause 1 of Schedule 1 (definition of private health insurer) Repeal the definition, substitute: private health insurer means a body that is registered under Division 3 of Part 2 of the Private Health Insurance (Prudential Supervision) Act 2015. 171 Clause 1 of Schedule 1 Repeal the following definitions: (a) definition of prudential direction; (b) definition of prudential matters; (c) definition of prudential standard. 172 Clause 1 of Schedule 1 (definition of referable) Omit "Division 146"(wherever occurring), substitute "Division 4 of Part 3 of the Private Health Insurance (Prudential Supervision) Act 2015". 173 Clause 1 of Schedule 1 Repeal the following definitions: (a) definition of registered as a for profit insurer; (b) definition of responsible insurer; (c) definition of restricted access group. 174 Clause 1 of Schedule 1 (definition of restricted access insurer) Repeal the definition, substitute: restricted access insurer has the same meaning as in the Private Health Insurance (Prudential Supervision) Act 2015. 175 Clause 1 of Schedule 1 (definition of risk equalisation jurisdiction) Omit "subsection 146‑1(6)", substitute "subsection 131‑20(1)". 176 Clause 1 of Schedule 1 Insert: Risk Equalisation Special Account: see subsection 318‑1(1). 177 Clause 1 of Schedule 1 Repeal the following definitions: (a) definition of Risk Equalisation Trust Fund; (b) definition of senior manager; (c) definition of solvency direction; (d) definition of solvency standard; (e) definition of terminating management; (f) definition of terminating manager; (g) definition of termination day; (h) definition of voluntary deed of arrangement. Division 2—Other amendments Ombudsman Act 1976 178 Paragraphs 35(6D)(d) and (e) Repeal the paragraphs, substitute: (d) an APRA member, within the meaning of the Australian Prudential Regulation Authority Act 1998; (e) an APRA staff member, within the meaning of the Australian Prudential Regulation Authority Act 1998; Private Health Insurance Act 2007 179 After paragraph 323‑10(1A)(c) Insert: or (d) *APRA; or (e) an APRA member or APRA staff member (within the meaning of the Australian Prudential Regulation Authority Act 1998); 180 Section 328‑1 Omit "the Council", substitute "*APRA". Private Health Insurance (Prudential Supervision) Act 2015 181 After section 5 Insert: 5A Norfolk Island This Act extends to Norfolk Island. 182 Paragraph 92(7)(b) Omit "Legislative Instruments Act 2003", substitute "Legislation Act 2003". Part 2—Repeals Private Health Insurance (Council Administration Levy) Act 2003 183 The whole of the Act Repeal the Act. Schedule 2—Transitional provisions Part 1—Introduction 1 Interpretation (1) In this Schedule: APRA means the Australian Prudential Regulation Authority. APRA Act means the Australian Prudential Regulation Authority Act 1998. APRA Minister means the Minister administering the APRA Act. APRA Special Account has the same meaning as it has in the APRA Act. asset means: (a) any legal or equitable estate or interest in real or personal property, whether actual, contingent or prospective; and (b) any right, power, privilege or immunity, whether actual, contingent or prospective. assets official, in relation to an asset other than land, means the person or authority who: (a) under a law of the Commonwealth, a State or a Territory; or (b) under a trust instrument; or (c) otherwise; has responsibility for keeping a register in relation to assets of the kind concerned. collapsed insurer levy has the same meaning as it had in the PHI Act as in force immediately before the transition time. Collapsed Insurer Special Account has the same meaning as it has in the APRA Act as amended by this Act. Council means the Private Health Insurance Administration Council. Council administration levy has the same meaning as it had in the PHI Act as in force immediately before the transition time. Council money: see subitem 16(1). Council‑supervised obligation has the same meaning as it had in the PHI Act as in force immediately before the transition time. Federal Court means the Federal Court of Australia. Health Minister means the Minister administering the PHI Act. imposition day has the same meaning as it had in section 307‑1 of the PHI Act as in force immediately before the transition time. land means any legal or equitable estate or interest in real property, whether actual, contingent or prospective. land registration official, in relation to land, means the Registrar of Titles or other proper officer of the State or Territory in which the land is situated. liability means any liability, duty or obligation, whether actual, contingent or prospective. PHI Act means the Private Health Insurance Act 2007. Prudential Supervision Act means the Private Health Insurance (Prudential Supervision) Act 2015. Risk Equalisation Special Account has the same meaning as it has in the PHI Act as amended by this Act. Risk Equalisation Trust Fund has the same meaning as it had in the PHI Act as in force immediately before the transition time. transferring employee has the meaning given by subitem 31(2). transition time means the commencement of section 1 of the Prudential Supervision Act. (2) Unless rules made under item 43 provide otherwise, if this Schedule provides that an Act (or a Part, Division or provision of an Act) as in force immediately before the transition time, continues to apply in relation to a matter, then: (a) any rules, determinations or other instruments as in force, immediately before the transition time, under or for the purposes of the Act (or the Part, Division or provision) are also taken to continue to apply in relation to the matter; and (b) that continued application of the rules, determinations or other instruments is subject to the same general modifications (if any) as apply under this Schedule in relation to the Act (or the Part, Division or provision). Part 2—Specific transitional provisions Division 1—Registration of private health insurers 2 Proceedings for injunctions relating to carrying on health insurance business without registration (1) This item applies if, immediately before the transition time, proceedings for an injunction are pending in the Federal Court under section 118‑5 of the PHI Act. (2) If the proceedings were commenced by application made by the Health Minister or by the Council, then, from the transition time, the proceedings continue, with APRA substituted for the Health Minister or the Council as a party, as if the proceedings had been commenced by application made by APRA under section 11 of the Prudential Supervision Act. (3) If the proceedings were commenced by application made by some other person, then, from the transition time, the proceedings continue as if the person had standing to commence the proceedings under section 11 of the Prudential Supervision Act, and had so commenced the proceedings under that section. 3 Continuing the registration of private health insurers (1) If, immediately before the transition time, the registration of a body is in force under Part 4‑3 of the PHI Act then, from the transition time: (a) the registration is taken to be a registration of the body under Division 3 of Part 2 of the Prudential Supervision Act subject to the same terms and conditions (the body's registration terms and conditions) as apply immediately before the transition time; and (b) the body is taken to be registered under that Division as a restricted access insurer if, immediately before the transition time, the body had that status under the PHI Act; and (c) the body is taken to be registered under that Division as a for profit insurer if, immediately before the transition time, the body had that status under the PHI Act. (2) Subitem (1) has effect subject to Division 3 of Part 2 of the Prudential Supervision Act. Note: For example, under Division 3 of Part 2 of the Prudential Supervision Act, the status of the body's registration may change, or the body's registration may be cancelled. (3) After the transition time, the body may, in writing, request APRA to vary the body's registration terms and conditions by: (a) amending one or more of those terms and conditions; or (b) revoking one or more of those terms and conditions. Note: A request to impose additional terms and conditions cannot be made under subitem (3). (4) If the body makes a request under subitem (3), APRA may, by written notice to the body, vary the body's registration terms and conditions in accordance with the request. 4 Applications for registration as private health insurer (1) If an application for registration that was made under section 126‑10 of the PHI Act before the transition time has not been decided by the transition time, the Prudential Supervision Act applies in relation to the application as if it had been made under section 12 of that Act. (2) For the purposes of sections 13 and 17 of the Prudential Supervision Act, the application is taken to have been made at the transition time. (3) If, before the transition time, the Council gave the applicant notice under section 126‑15 of the PHI Act requiring the provision of further information, and that information has not been provided by the transition time, the notice is taken to have been given by APRA, at the transition time, under section 13 of the Prudential Supervision Act. 5 Conversion to for profit status (1) An approval that is in force under section 126‑42 of the PHI Act immediately before the transition time has effect from the transition time as if it were an approval by APRA under section 20 of the Prudential Supervision Act. (2) If an application made to the Council before the transition time under section 126‑42 of the PHI Act has not been decided by the transition time, then: (a) the Prudential Supervision Act applies in relation to the application as if the application had been made under section 20 of the Prudential Supervision Act; and (b) if, before the transition time, the Council caused a notice to be published in relation to the application in accordance with paragraph 126‑42(4)(a) of the PHI Act, then APRA is taken to have complied with paragraph 20(4)(a) of the Prudential Supervision Act in relation to the application; and (c) if, before the transition time: (i) the Council gave the applicant a notice under paragraph 126‑42(4)(b) of the PHI Act requiring the applicant to provide further information; and (ii) that information has not been provided to the Council by the transition time; then the notice is taken to have been given by APRA under paragraph 20(4)(b) of the Prudential Supervision Act. Division 2—Health benefits funds—restructures, mergers and acquisitions, and terminating and external management 6 Restructures of health benefits funds (1) An approval that is in force under section 146‑1 of the PHI Act immediately before the transition time has effect from the transition time as if it were an approval by APRA under section 32 of the Prudential Supervision Act. (2) If an application made to the Council before the transition time under section 146‑1 of the PHI Act has not been decided by the transition time, the Prudential Supervision Act applies in relation to the application as if it had been made under section 32 of the Prudential Supervision Act. 7 Mergers and acquisitions of health benefits funds (1) An approval that is in force under section 146‑5 of the PHI Act immediately before the transition time has effect from the transition time as if it were an approval by APRA under section 33 of the Prudential Supervision Act. (2) If an application made to the Council before the transition time under section 146‑5 of the PHI Act has not been decided by the transition time, the Prudential Supervision Act applies in relation to the application as if it had been made under section 33 of the Prudential Supervision Act. 8 Terminating management and external management of health benefits funds Approvals of termination of health benefits funds (1) An approval that is in force under section 149‑10 of the PHI Act immediately before the transition time has effect from the transition time as if it were an approval by APRA under section 37 of the Prudential Supervision Act. Applications for approval of termination of health benefits funds (2) If an application made to the Council before the transition time under section 149‑1 of the PHI Act has not been decided by the transition time, the Prudential Supervision Act applies in relation to the application as if it had been made under section 35 of the Prudential Supervision Act. (3) For the purposes of sections 36 and 38 of the Prudential Supervision Act, the application is taken to have been made at the transition time. (4) If, before the transition time, the Council gave the applicant notice under section 149‑5 of the PHI Act requiring the provision of further information, and that information has not been provided by the transition time, the notice is taken to have been given by APRA, at the transition time, under section 36 of the Prudential Supervision Act. Appointments of terminating managers and external managers (5) An appointment of a terminating manager that is in force under the PHI Act immediately before the transition time has effect from the transition time as if it were: (a) if the appointment was made under section 149‑10 of the PHI Act—an appointment made under section 37 of the Prudential Supervision Act; or (b) if the appointment was made under Division 220 of the PHI Act—an appointment made under Division 7 of Part 3 of the Prudential Supervision Act. Other things done in relation to the terminating management or external management of health benefits funds (6) Subject to subitem (7), if a health benefits fund is under terminating management or external management immediately before the transition time, then the terminating management or external management continues after the transition time, under the Prudential Supervision Act, as if: (a) a thing done, by or in relation to the Council for the purposes of the terminating management or external management, under a provision of the PHI Act had been done, by or in relation to APRA, under the corresponding provision of the Prudential Supervision Act; and (b) a thing done, by or in relation to the terminating manager or external manager, under a provision of the PHI Act had been done, by or in relation to the terminating manager or external manager, under the corresponding provision of the Prudential Supervision Act. (7) Rules made under item 43 may make provision for or in relation to how a terminating management or external management is to continue under the Prudential Supervision Act. Division 3—Other obligations of private health insurers 9 Directions (1) This item applies in relation to a direction given to a private health insurer, under any of the following provisions of the PHI Act, that is in force immediately before the transition time: (a) section 140‑20 (solvency directions); (b) section 143‑20 (capital adequacy directions); (c) section 163‑15 (directions to comply with standards); (d) section 200‑1 (other directions). (2) The direction has effect from the transition time as if it were a direction given by APRA to the private health insurer under section 96 of the Prudential Supervision Act. However, section 104 (non‑compliance with a direction) does not apply in relation to the direction unless it was given under section 163‑15 of the PHI Act. Note: The direction may be varied or revoked under section 99 of the Prudential Supervision Act. (3) If the direction specifies a period f