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This is a Bill, not an Act. For current law, see the Acts databases.
MEDICAL INDEMNITY (COMPETITIVE ADVANTAGE PAYMENT) BILL 2005
2004-2005
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Medical Indemnity (Competitive
Advantage Payment) Bill 2005
No. , 2005
(Health and Ageing)
A Bill for an Act to impose a tax on certain medical
indemnity insurers, and for related purposes
i Medical Indemnity (Competitive Advantage Payment) Bill 2005 No. , 2005
Contents
1
Short title.......................................................................................1
2
Commencement .............................................................................1
3
Definitions.....................................................................................2
4
Imposition of competitive advantage payment.................................2
5
Contribution year ...........................................................................2
6
Amount of competitive advantage payment.....................................3
7
Regulations....................................................................................3
Medical Indemnity (Competitive Advantage Payment) Bill 2005 No. , 2005 1
A Bill for an Act to impose a tax on certain medical
1
indemnity insurers, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Medical Indemnity (Competitive
5
Advantage Payment) Act 2005.
6
2 Commencement
7
This Act commences, or is taken to have commenced, on 1 July
8
2005.
9
Section 3
2 Medical Indemnity (Competitive Advantage Payment) Bill 2005 No. , 2005
3 Definitions
1
In this Act:
2
competitive advantage payment means a payment that is payable
3
under Division 2A of Part 3 of the Medical Indemnity Act 2002.
4
contribution year has the meaning given by section 5.
5
medical indemnity cover has the same meaning as in the Medical
6
Indemnity Act 2002.
7
medical indemnity insurer has the same meaning as in the Medical
8
Indemnity Act 2002.
9
net IBNR exposure of a participating MDO has the same meaning
10
as in the Medical Indemnity Act 2002.
11
participating MDO of a medical indemnity insurer means a
12
participating MDO (within the meaning of the Medical Indemnity
13
Act 2002) that has as a member a person for whom the insurer is
14
providing medical indemnity cover under an arrangement with the
15
participating MDO.
16
unfunded IBNR factor for a participating MDO has the same
17
meaning as in the Medical Indemnity Act 2002.
18
4 Imposition of competitive advantage payment
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For each contribution year, a competitive advantage payment is
20
imposed as a tax on a medical indemnity insurer if there is a
21
participating MDO of the insurer.
22
5 Contribution year
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(1) Subject to subsection (2), each financial year that starts on or after
24
1 July 2005, but not after 30 June 2015, is a contribution year.
25
(2) The regulations may declare that a financial year specified in the
26
regulations is the last contribution year. If they do so, no
27
subsequent financial year is a contribution year.
28
Section 6
Medical Indemnity (Competitive Advantage Payment) Bill 2005 No. , 2005 3
6 Amount of competitive advantage payment
1
(1) The amount of the competitive advantage payment imposed on a
2
medical indemnity insurer for a contribution year is the amount
3
worked out as follows:
4
Applicable percentage
Net IBNR exposure
Unfunded IBNR factor
5
where:
6
applicable percentage is such percentage as is specified in the
7
regulations for the contribution year.
8
net IBNR exposure means the net IBNR exposure of the insurer's
9
participating MDO as at the end of the financial year that ends
10
immediately before the start of the contribution year.
11
unfunded IBNR factor is the unfunded IBNR factor of the
12
insurer's participating MDO.
13
(2) A regulation made for the purposes of subsection (1):
14
(a) must not specify as an applicable percentage a percentage
15
that is greater than 15%; and
16
(b) must not be made before the start of the contribution year to
17
which it relates.
18
7 Regulations
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The Governor-General may make regulations prescribing matters:
20
(a) required or permitted by this Act to be prescribed; or
21
(b) necessary or convenient to be prescribed for carrying out or
22
giving effect to this Act.
23