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Thursday, 5 December 2002
Page: 7312


Senator COONAN (Minister for Revenue and Assistant Treasurer) (5:04 PM) —I said that it had been carefully considered and drafted, Senator Murray, with a considerable degree of assistance from plaintiff representatives and the Structured Settlements Group. Obviously, Senator Murray, this matter has perhaps undergone some evolution, if I could put it that way, and superimposed upon its consideration has been the emergence of real difficulty with the affordability and availability of insurance. This matter has been considered in context with some consideration by the committee chaired by Mr Justice Ipp and that has in fact meant that, to reflect the issues that have arisen in the meantime, some amendments are needed. But I can assure the Senate and Senator Murray that the matter has been very carefully considered and, now I would anticipate, drafted. I seek leave to move government amendments (1) to (18), (20) to (23), (25) to (36), (38) to (42), (44), (46) to (55) and (57) to (62), which are printed on sheet DU353.

Leave granted.


Senator COONAN —I move:

(1) Title, page 1 (line 9) after “settlements”, insert “and structured orders”.

(2) Clause 1, page 1 (line 14), after “Settlements”, insert “and Structured Orders”.

(3) Schedule 1, heading, page 3 (line 2), at the end of the heading, add “and structured orders”.

(4) Schedule 1, item 1, page 3 (line 8), at the end of the heading to Division 54, add “and structured orders”.

(5) Schedule 1, item 1, page 3 (line 19), after “settlements”, insert “and structured orders”.

(6) Schedule 1, item 1, page 3 (line 20), after “settlement is”, insert “and what a structured order is”.

(7) Schedule 1, item 1, page 4 (lines 2 to 16), omit section 54-5, substitute:

54-5 Definitions

In this Division:

date of the settlement or order:

(a) for a *structured settlement, means:

(i) the date on which the agreement that is the structured settlement was entered into; or

(ii) if that agreement depends, for its effectiveness, on being approved (however described) by an order of a court, or on being embodied in a consent order made by a court, the date on which that order was made; and

(b) for a *structured order, means the date on which the order was made.

personal injury annuity means an *annuity:

(a) that is purchased under the terms of a *structured settlement as mentioned in paragraph 54-10(1)(e); or

(b) that is purchased under the terms of a *structured order as mentioned in paragraph 54-10(1A)(e).

personal injury lump sum means a lump sum:

(a) that is purchased under the terms of a *structured settlement as mentioned in paragraph 54-10(1)(e); or

(b) that is purchased under the terms of a *structured order as mentioned in paragraph 54-10(1A)(e).

(8) Schedule 1, item 1, page 4 (line 17), at the end of the heading to section 54-10, add “and structured order”.

(9) Schedule 1, item 1, page 5 (after line 17), after subsection (1), insert:

(1A) A structured order is an order of a court that satisfies the following conditions:

(a) the order is made in respect of a claim that:

(i) is for compensation or damages for, or in respect of, personal injury suffered by a person (the injured person); and

(ii) is made by the injured person or by his or her *legal personal representative;

(b) the order is not an order approving or endorsing an agreement as mentioned in paragraph (1)(d);

(c) the claim is based on the commission of a wrong, or on a right created by statute;

(d) the claim is made against a person (the defendant) and satisfies the following conditions:

(i) the claim is not made against the defendant in his or her capacity as an *employer, or *associate of an employer, of the injured person;

(ii) the claim is not made under a *workers' compensation law, and is not made as an alternative to a claim under such a law;

(e) under the terms of the order, some or all of the compensation or damages is to be used by the defendant (or by a person with whom the defendant has insurance against the liability to which the claim relates) to purchase from one or more *life insurance companies or State insurers:

(i) an *annuity or annuities to be paid to the injured person, or to a trustee for the benefit of the injured person; or

(ii) such an annuity or annuities, together with one or more lump sums that are also to be paid to the injured person, or to a trustee for the benefit of the injured person.

(10) Schedule 1, item 1, page 5 (line 18), omit “paragraph (1)(e)”, substitute “paragraphs (1)(e) and (1A)(e)”.

(11) Schedule 1, item 1, page 5 (line 28), after “agreement”, insert “, or in the order”.

(12) Schedule 1, item 1, page 5 (lines 31 and 32), omit “structured settlement annuities”, substitute “personal injury annuities”.

(13) Schedule 1, item 1, page 6 (line 8), omit “Structured settlement annuity”, substitute “Personal injury annuity”.

(14) Schedule 1, item 1, page 6 (line 9), omit “*structured settlement annuity”, substitute “*personal injury annuity”.

(15) Schedule 1, item 1, page 6 (line 17), after “settlement”, insert “or order”.

(16) Schedule 1, item 1, page 6 (line 24), after “settlement”, insert “or *structured order”.

(17) Schedule 1, item 1, page 8 (line 5) after “settlement”, insert “or order”.

(18) Schedule 1, item 1, page 8 (line 9), after “settlement”, insert “or order”.

(20) Schedule 1, item 1, page 9 (line 5), after “settlement”, insert “or *structured order”.

(21) Schedule 1, item 1, page 9 (line 12), after “settlement”, insert “or order”.

(22) Schedule 1, item 1, page 9 (line 22), after “settlement”, insert “or order”.

(23) Schedule 1, item 1, page 9 (line 33), after “settlement”, insert “or order”.

(25) Schedule 1, item 1, page 10 (line 13), after “settlement”, insert “or order”.

(26) Schedule 1, item 1, page 10 (lines 20 and 21), omit “structured settlement lump sums”, substitute “personal injury lump sums”.

(27) Schedule 1, item 1, page 11 (line 2), omit “Structured settlement lump sum”, substitute “Personal injury lump sum”.

(28) Schedule 1, item 1, page 11 (line 3), omit “*structured settlement lump sum”, substitute “*personal injury lump sum”.

(29) Schedule 1, item 1, page 11 (line 5), omit “*structured settlement annuity”, substitute “*personal injury annuity”.

(30) Schedule 1, item 1, page 11 (line 6), after “settlement”, insert “or *structured order”.

(31) Schedule 1, item 1, page 11 (line 13), omit “*structured settlement lump sum”, substitute “*personal injury lump sum”.

(32) Schedule 1, item 1, page 11 (line 14), after “settlement”, insert “or order”.

(33) Schedule 1, item 1, page 11 (line 21), omit “*structured settlement lump sum”, substitute “*personal injury lump sum”.

(34) Schedule 1, item 1, page 11 (line 23), after “settlement”, insert “or *structured order”.

(35) Schedule 1, item 1, page 12 (line 2), omit “*structured settlement lump sum”, substitute “*personal injury lump sum”.

(36) Schedule 1, item 1, page 13 (line 4), omit “*structured settlement annuity”, substitute “*personal injury annuity”.

(38) Schedule 1, item 1, page 13 (lines 17 and 18), omit “*structured settlement annuity or a *structured settlement lump sum”, substitute “*personal injury annuity or a *personal injury lump sum”.

(39) Schedule 1, item 1, page 14 (line 10), after “settlements”, insert “and orders”.

(40) Schedule 1, item 1, page 14 (lines 20 and 21), omit “structured settlement provisions”, substitute “structured settlements and orders provisions”.

(41) Schedule 1, item 1A, page 15 (line 1), omit “*structured settlement annuity”, substitute “*personal injury annuity”.

(42) Schedule 1, item 1A, page 15 (line 3), omit “*structured settlement lump sum”, substitute “*personal injury lump sum”.

(44) Schedule 1, item 2, page 15 (line 9), at the end of the heading to Division 2A, add “and structured orders”.

(46) Schedule 1, item 2, page 15 (before line 15), before the definition of structured settlement, insert:

structured order has the same meaning as it has in Division 54 of the Income Tax Assessment Act 1997.

(47) Schedule 1, item 2, page 16 (line 12), after “settlements”, insert “and structured orders”.

(48) Schedule 1, item 4, page 17 (line 10), after “settlements”, insert “and structured orders”.

(49) Schedule 1, item 5, page 17 (line 17), after “settlements”, insert “and structured orders”.

(50) Schedule 1, item 6, page 17 (lines 19 to 21), omit the item, substitute:

6 Section 11-15 (after the table item headed “social security or like payments”)

Insert:

Structured settlements and structured orders

Annuities and lump sums

Subdivisions 54-B, 54-C and 54-D

(51) Schedule 1, item 10, page 18 (lines 8 and 9), omit the definition of date of the settlement, substitute:

date of the settlement or order, for a *structured settlement or a *structured order, has the meaning given by section 54-5.

(52) Schedule 1, item 11, page 18 (line 13), after “settlement”, insert “or a *structured order”.

(53) Schedule 1, item 12, page 18 (lines 16 and 17), omit the definition of injured person, substitute:

injured person:

(a) in relation to a *structured settlement, has the meaning given by subparagraph 54-10(1)(a)(i); and

(b) in relation to a *structured order, has the meaning given by subparagraph 54-10(1A)(a)(i).

(54) Schedule 1, item 12A, page 18 (line 20), omit “*structured settlement lump sum”, substitute “*personal injury lump sum”.

(55) Schedule 1, page 18 (after line 20), after item 12A, insert:

12B Subsection 995-1(1)

Insert:

personal injury annuity has the meaning given by section 54-5.

12C Subsection 995-1(1)

Insert:

personal injury lump sum has the meaning given by section 54-5.

12D Subsection 995-1(1)

Insert:

structured order has the meaning given by section 54-10.

(57) Schedule 1, item 16, page 20 (line 9), at the end of the heading to Division 54, add “and structured orders”.

(58) Schedule 1, item 16, page 20 (line 17) after “settlement”, insert “or order”.

(59) Schedule 1, item 16A, page 21 (line 8), after “settlement”, insert “or order”.

(60) Schedule 1, item 17, page 22 (line 6), after “settlement”, insert “, or under a structured order,”.

(61) Schedule 1, item 17, page 22 (line 7), omit “date of the settlement (within the meaning of that Division)”, substitute “date of the settlement or order”.

(62) Schedule 1, item 17, page 22 (after line 8), at the end of the item, add:

(2) In subitem (1), structured settlement, structured order and date of the settlement or order have the same meanings as they have in Division 54 of the Income Tax Assessment Act 1997.