An Act to impose a tax on certain members and former members of certain medical defence organisations, and for related purposes
1 Short title [see Note 1]
This Act may be cited as the Medical Indemnity (UMP Support Payment) Act 2002.
2 Commencement
This Act commences, or is taken to have commenced, on 1 January 2003.
3 Definitions
(1) 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).
gross medical income, of a health professional for a period, means the sum of the amounts payable in respect of health care related services rendered by, or on behalf of, the health professional during the period.
gross Medicare billable income, of a medical practitioner for a period, means the sum of the medical expenses payable in respect of professional services:
(a) that were rendered by, or on behalf of, the medical practitioner during the period; and
(b) for which medicare benefits were or are payable under Part II of the Health Insurance Act 1973.
health professional has the same meaning as in the Medical Indemnity Act 2002.
imposition day has the meaning given by subsection 5(3).
income period, for a contribution year, means:
(a) the period, of the length specified in the regulations, ending on the day, in that year, specified in the regulations; or
(b) if the regulations do not specify a period—the period of 12 months ending on 30 September in that year.
medical expenses has the same meaning as in the Health Insurance Act 1973.
medical practitioner has the same meaning as in the Medical Indemnity Act 2002.
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.
professional service has the same meaning as in the Health Insurance Act 1973.
UMP support payment means the payment that is payable under Division 1 of Part 3 of the Medical Indemnity Act 2002.
(2) For the purposes of the definitions of gross medical income and gross Medicare billable income in subsection (1):
(a) the amount payable in respect of a health care related service; or
(b) the medical expenses payable in respect of a professional service;
is, or are, taken to be the amount paid for the service, or (if no amount has been paid) the highest amount stated in the account for the service as the amount payable for the service.
4 Imposition of UMP support payment
(1) On the imposition day for each contribution year for a participating MDO, a UMP support payment is imposed as a tax on the participating members of the MDO.
(2) If there is an imposition day, for a contribution year for a participating MDO, for a particular class of participating members of the MDO, the reference in subsection (1) to the imposition day for that year for the MDO is taken, in its application to a member of that class, to be a reference to that imposition day for that class.
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) for the contribution year that starts on 1 July 2003:
(i) 1 March 2004; or
(ii) such other day as is specified in the regulations as the imposition day for the contribution year; and
(b) for a later contribution year:
(i) 1 May in the contribution year; or
(ii) such other day as is specified in the regulations as the imposition day for the contribution year.
(4) Regulations made for the purposes of subparagraph (3)(a)(ii) or (3)(b)(ii) may specify different imposition days, for a contribution year for a participating MDO, for different classes of participating members of the MDO.
6 Amount of UMP support payment
(1A) The amount of the UMP support payment imposed on a participating member of a participating MDO for the contribution year for the MDO that starts on 1 July 2003 is the least of:
(a) the applicable percentage of the member’s annual subscription for the base year; and
(b) $1,000; and
(c) if the member is a medical practitioner during the income period for that contribution year—2% of the member’s gross Medicare billable income for the income period for that contribution year; and
(d) if the member is a health professional during, but is not a medical practitioner at any time during, the income period for that contribution year—2% of the member’s gross medical income for the income period for that contribution year.
(1B) The amount of the UMP support payment imposed on a participating member of a participating MDO for the contribution year for the MDO that starts on 1 July 2004 is the amount worked out by adding:
(a) the least of:
(i) $2,500; and
(ii) half of the applicable percentage of the member’s annual subscription for the base year; and
(iii) if the member is a medical practitioner during the income period for that contribution year—1% of the member’s gross Medicare billable income for the income period for that contribution year; and
(iv) if the member is a health professional during, but is not a medical practitioner at any time during, the income period for that contribution year—1% of the member’s gross medical income for the income period for that contribution year; and
(b) the least of:
(i) $500; and
(ii) half of the applicable percentage of the member’s annual subscription for the base year; and
(iii) if the member is a medical practitioner during the income period for that contribution year—1% of the member’s gross Medicare billable income for the income period for that contribution year; and
(iv) if the member is a health professional during, but is not a medical practitioner at any time during, the income period for that contribution year—1% of the member’s gross medical income for the income period for that contribution year.
(1) The amount of the UMP support payment imposed on a participating member of a participating MDO for a contribution year for the MDO that starts on or after 1 July 2005 is the least of:
(a) $4,000; and
(b) the amount by which the applicable percentage of the member’s annual subscription for the base year exceeds $1,000; and
(c) if the member is a medical practitioner during the income period for that contribution year—2% of the amount by which the member’s gross Medicare billable income for the income period for that contribution year exceeds $50,000; and
(d) if the member is a health professional during, but is not a medical practitioner at any time during, the income period for that contribution year—2% of the amount by which the member’s gross medical income for the income period for that contribution year exceeds $50,000.
(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.
