Medical Indemnity (IBNR Indemnity) Contribution Act 2002

No. 135, 2002

An Act to impose a tax on certain members and former members of certain medical defence organisations, and for related purposes

Medical Indemnity (IBNR Indemnity) Contribution Act 2002

No. 135, 2002

An Act to impose a tax on certain members and former members of certain medical defence organisations, and for related purposes

[Assented to 19 December 2002]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Medical Indemnity (IBNR Indemnity) Contribution Act 2002.

2 Commencement

This Act commences, or is taken to have commenced, on 1 January 2003.

3 Definitions

In this Act, unless the contrary intention appears:

annual subscription for a participating member of a participating MDO has the same meaning as in section 54 of the Medical Indemnity Act 2002.

base year for a participating member of a participating MDO has the meaning given by section 54 of the Medical Indemnity Act 2002.

contribution year has the meaning given by subsections 5(1) and (2).

IBNR indemnity contribution means the contribution that is payable under Division 1 of Part 3 of the Medical Indemnity Act 2002.

imposition day has the meaning given by subsection 5(3).

participating MDO has the same meaning as in the Medical Indemnity Act 2002.

participating member of a participating MDO has the same meaning as in the Medical Indemnity Act 2002.

4 Imposition of IBNR indemnity contribution

On the imposition day for each contribution year for a participating MDO, an IBNR indemnity contribution is imposed as a tax on the participating members of the MDO.

5 Contribution years and imposition days

(1) Subject to subsection (2), each financial year that starts on or after 1 July 2003 is a contribution year for a participating MDO.

(2) The regulations may declare that a financial year specified in the regulations is the last contribution year for a particular participating MDO. If they do so, no subsequent financial year is a contribution year for that MDO.

(3) The imposition day for a contribution year for a participating MDO is:

(a) 1 August in the contribution year; or

(b) such other day as is specified in the regulations as the imposition day for the contribution year.

6 Amount of IBNR indemnity contribution

(1) The amount of the IBNR indemnity contribution imposed on a participating member of a participating MDO for a contribution year for the MDO is the applicable percentage of the member’s annual subscription for the base year.

(2) The applicable percentage is:

(a) 50%; or

(b) such lower percentage as is specified in the regulations in relation to the MDO for the contribution year.

(3) Without limiting paragraph (2)(b), regulations made for the purposes of that paragraph may specify different percentages for different contribution years for the MDO.

(4) The regulations made for the purposes of paragraph (2)(b) may not specify a percentage for a contribution year for an MDO (other than the first contribution year) that is higher than the percentage applicable to the MDO for the first contribution year.

7 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.