Compilation #3 | Effective 2020-07-01
FRBR Work URI: /akn/au/act/2004/76
This Act may be cited as the Medical Indemnity (Run-off Cover Support Payment) Act 2004.
This Act commences, or is taken to have commenced, on 1 July 2004.
In this Act, unless the contrary intention appears:
contribution year has the meaning given by section 5.
medical indemnity insurer has the same meaning as in the Medical Indemnity Act 2002.
premium income, for a contribution year, has the meaning given by section 7.
run-off cover support payment means a payment that is payable under Division 2 of Part 3 of the Medical Indemnity Act 2002.
For each contribution year, a run-off cover support payment is imposed as a tax on each medical indemnity insurer.
Subject to subsection (2), each:
financial year; or
other period of 12 months specified in the regulations;
that starts on or after 1 July 2004 is a contribution year.
The regulations may declare that a financial year specified in the regulations is the last contribution year. If they do so, no subsequent financial year, or period of 12 months specified in the regulations for the purposes of paragraph (1)(b), is a contribution year.
Regulations made for the purposes of paragraph (1)(b) may specify a different period for a particular medical indemnity insurer or class of medical indemnity insurers. If they do so, the reference in subsection (1) to the period is taken, in its application to that insurer or to an insurer of that class, to be a reference to that period for that insurer or class.
The amount of the run-off cover support payment imposed on a medical indemnity insurer for a contribution year is the applicable percentage of the insurer’s premium income for:
the period of 12 months ending on 31 May in the contribution year; or
such other period as is specified in the regulations.
The applicable percentage is:
15%; or
such lower percentage as is specified in the regulations for the contribution year.
Regulations made for the purposes of paragraph (1)(b) may specify a different period for a particular medical indemnity insurer or class of medical indemnity insurers. If they do so, the reference in subsection (1) to the period is taken, in its application to that insurer or to an insurer of that class, to be a reference to that period for that insurer or class.
Regulations made for the purposes of paragraph (2)(b) may specify a different applicable percentage for a particular medical indemnity insurer or class of medical indemnity insurers. If they do so, the reference in subsection (1) to the applicable percentage is taken, in its application to that insurer or to an insurer of that class, to be a reference to that percentage for that insurer or class.
(1) A medical indemnity insurer’s premium income for a period is the sum of all of the premiums paid during the period to the insurer for medical indemnity cover provided for medical practitioners by contracts of insurance with the insurer, and includes:
the sum of all amounts that:
(i) were paid to the insurer during the period under one or more schemes under subsection 43(1) of the Medical Indemnity Act 2002; and
were payments of a kind referred to in paragraph 43(1)(a) of that Act; and
the sum of all amounts paid to the insurer during the period that are amounts of a kind specified in the regulations for the purposes of this subsection.
However, the amount of a medical indemnity insurer’s premium income for a period under subsection (1) is reduced by:
any amount of GST payable during the period for any supply made by the insurer for which premiums and other amounts referred to in subsection (1) are consideration; and
the sum of all amounts of stamp duty payable during the period, under a law of a State or Territory, in connection with medical indemnity cover, or contracts of insurance, referred to in subsection (1); and
the sum of all amounts payable during the period that are amounts of a kind specified in the regulations for the purposes of this subsection; and
the amount worked out under subsection (2A).
The amount referred to in paragraph (2)(d) is worked out as follows:
where:
applicable rate is the applicable percentage under subsection 6(2) for the insurer, expressed as a decimal fraction.
net premium is the sum of all the premiums referred to in subsection (1) reduced by the amounts referred to in paragraphs (2)(a), (b) and (c) in relation to those premiums.
In this section:
consideration has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.
GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.
medical indemnity cover has the same meaning as in the Medical Indemnity Act 2002.
medical practitioner has the same meaning as it has for the purposes of Division 2B of Part 2 of the Medical Indemnity Act 2002.
supply has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.
Note: See subsections 4(1) and (6) of the Medical Indemnity Act 2002.
The Governor-General may make regulations prescribing matters:
required or permitted by this Act to be prescribed; or
necessary or convenient to be prescribed for carrying out or giving effect to this Act.
Endnotes
Endnote 1—About the endnotes
The endnotes provide information about this compilation and the compiled law.
The following endnotes are included in every compilation:
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Abbreviation key—Endnote 2
The abbreviation key sets out abbreviations that may be used in the endnotes.
Legislation history and amendment history—Endnotes 3 and 4
Amending laws are annotated in the legislation history and amendment history.
The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.
The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.
Editorial changes
The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.
If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.
Misdescribed amendments
A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.
If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history.
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history