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This is a Bill, not an Act. For current law, see the Acts databases.
2002-2003-2004
The Parliament
of the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Medical
Indemnity (Run-off Cover Support Payment) Bill
2004
No. ,
2004
(Health and
Ageing)
A Bill for an Act to impose a tax
on premium payments for medical indemnity cover, and for related
purposes
Contents
A Bill for an Act to impose a tax on premium payments for
medical indemnity cover, and for related purposes
The Parliament of Australia enacts:
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.
(1) Subject to subsection (2), each:
(a) financial year; or
(b) other period of 12 months specified in the regulations;
that starts on or after 1 July 2004 is a contribution year.
(2) 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.
(3) 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.
(1) 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:
(a) the period of 12 months ending on 31 May in the contribution
year; or
(b) such other period as is specified in the regulations.
(2) The applicable percentage is:
(a) 15%; or
(b) such lower percentage as is specified in the regulations for the
contribution year.
(3) 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.
(4) 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:
(a) the sum of all amounts that:
(i) were paid to the insurer during the period under one or more schemes
formulated under subsection 43(1) of the Medical Indemnity Act 2002;
and
(ii) were payments of a kind referred to in paragraph 43(1)(a) of that
Act; and
(b) 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.
(2) However, the amount of a medical indemnity insurer’s premium
income for a period under subsection (1) is reduced by:
(a) 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
(b) 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
(c) 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.
(3) 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.
Note: See subsections 4(1) and (6) of the Medical
Indemnity Act 2002.
supply has the same meaning as in the A New Tax System
(Goods and Services Tax) Act 1999.
The Governor-General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving
effect to this Act.