 In May 2009, the Rudd Labor government announced that Medibank would become a 'for profit' business and would pay tax on its earnings.The process of converting the status of the business was completed on 1 October 2009, following approval from the then regulator, the Private Health Insurance Administration Council (PHIAC), an independent statutory authority that regulated the Australian private health insurance industry until 2014.Private health insurance policy is set down by the Federal Department of Health.