MEDICAL INDEMNITY (RUN-OFF COVER SUPPORT PAYMENT) ACT 2004 NO. 76, 2004 MEDICAL INDEMNITY (RUN-OFF COVER SUPPORT PAYMENT) ACT 2004 NO. 76, 2004 - TABLE OF PROVISIONS 1. Short title 2. Commencement 3. Definitions 4. Imposition of run-off cover support payment 5. Contribution year 6. Amount of run-off cover support payment 7. Premium income 8. Regulations MEDICAL INDEMNITY (RUN-OFF COVER SUPPORT PAYMENT) ACT 2004 NO. 76, 2004 - LONG TITLE [GRAPHIC] Medical Indemnity (Run-off Cover Support Payment) Act 2004 No. 76, 2004 An Act to impose a tax on premium payments for medical indemnity cover, and for related purposes MEDICAL INDEMNITY (RUN-OFF COVER SUPPORT PAYMENT) ACT 2004 No. 76, 2004 - SECT 1 Short title This Act may be cited as the Medical Indemnity (Run-off Cover Support Payment) Act 2004. MEDICAL INDEMNITY (RUN-OFF COVER SUPPORT PAYMENT) ACT 2004 No. 76, 2004 - SECT 2 Commencement This Act commences, or is taken to have commenced, on 1 July 2004. MEDICAL INDEMNITY (RUN-OFF COVER SUPPORT PAYMENT) ACT 2004 No. 76, 2004 - SECT 3 Definitions 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. MEDICAL INDEMNITY (RUN-OFF COVER SUPPORT PAYMENT) ACT 2004 No. 76, 2004 - SECT 4 Imposition of run-off cover support payment For each contribution year, a run-off cover support payment is imposed as a tax on each medical indemnity insurer. MEDICAL INDEMNITY (RUN-OFF COVER SUPPORT PAYMENT) ACT 2004 No. 76, 2004 - SECT 5 Contribution year (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. MEDICAL INDEMNITY (RUN-OFF COVER SUPPORT PAYMENT) ACT 2004 No. 76, 2004 - SECT 6 Amount of run-off cover support payment (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. MEDICAL INDEMNITY (RUN-OFF COVER SUPPORT PAYMENT) ACT 2004 No. 76, 2004 - SECT 7 Premium income (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. MEDICAL INDEMNITY (RUN-OFF COVER SUPPORT PAYMENT) ACT 2004 No. 76, 2004 - SECT 8 Regulations 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. MEDICAL INDEMNITY (RUN-OFF COVER SUPPORT PAYMENT) ACT 2004 NO. 76, 2004 - NOTES Compilation Information [GRAPHIC] Medical Indemnity (Run-off Cover Support Payment) Act 2004 No. 76, 2004 An Act to impose a tax on premium payments for medical indemnity cover, and for related purposes [Assented to 23 June 2004] The Parliament of Australia enacts: MEDICAL INDEMNITY (RUN-OFF COVER SUPPORT PAYMENT) ACT 2004 NO. 76, 2004 - NOTES Note [Minister's second reading speech made in-- House of Representatives on 13 May 2004 Senate on 15 June 2004] (72/04)