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Midwife Professional Indemnity (Commonwealth Contribution) Scheme Bill 2010

Part 2 Payment of run-off cover support payment

   

73   Who is liable to pay the run-off cover support payment?

                   A person is liable to pay a run-off cover support payment for a financial year if:

                     (a)  the person is an eligible insurer; and

                     (b)  the financial year is a contribution year; and

                     (c)  the person is not exempt from the payment under section 74.

74   Exemptions

             (1)  The Rules may provide that a person is exempt from run-off cover support payment in the circumstances specified in the Rules.

             (2)  Rules made for the purposes of subsection (1) may provide that a person is exempt from run-off cover support payment either generally or for a particular contribution year.

75   When run-off cover support payment must be paid

                   A run-off cover support payment that a person is liable to pay for a contribution year becomes due and payable on:

                     (a) 30 June in the contribution year; or

                     (b) such other day as is specified in the Rules as the payment day for the contribution year either generally for all people, for the class of people that includes the person or for the person, as the case may be.

76   Late payment penalty

             (1)  If:

                     (a)  a person is liable to pay a run-off cover support payment; and

                     (b)  the payment remains wholly or partly unpaid after it becomes due and payable;

the person is liable to pay a late payment penalty under this section.

             (2)  The late payment penalty is calculated:

                     (a)  at the rate specified in the Rules; and

                     (b)  on the unpaid amount of payment; and

                     (c)  for the period:

                              (i)  starting when the payment becomes due and payable; and

                             (ii)  ending when the payment, and the penalty payable under this section in relation to the payment, have been paid in full.

Paragraph (c) has effect subject to subsection (3).

             (3)  The Medicare Australia CEO may remit the whole or a part of an amount of late payment penalty if the Medicare Australia CEO considers that there are good reasons for doing so.

             (4)  An application may be made to the Administrative Appeals Tribunal for review of a decision of the Medicare Australia CEO not to remit, or to remit only part of, an amount of late payment penalty.

Note:          Section 27A of the Administrative Appeals Tribunal Act 1975 requires notification of a decision that is reviewable.

77   Method of paying certain amounts

             (1)  A run-off cover support payment must be paid to the Medicare Australia CEO.

             (2)  A late payment penalty payable under section 76 must be paid to the Medicare Australia CEO.

             (3)  The Rules may specify methods for paying an amount referred to in subsection (1) or (2).

78   Refund of overpaid amounts

Refund of overpaid run-off cover support payment and late payment penalty

             (1)  If a person overpays:

                     (a)  a run-off cover support payment for a contribution year; or

                     (b)  a late payment penalty in relation to a run-off cover support payment for a contribution year;

the amount overpaid must be refunded to the person unless the amount has been previously repaid to the person in accordance with an authorisation under section 33 of the Financial Management and Accountability Act 1997 .

Appropriation

             (2)  The Consolidated Revenue Fund is appropriated for the purpose of providing refunds under this section.

79   Recovery of payment debt

             (1)  A run-off cover support payment is a debt due to the Commonwealth.

             (2)  A late payment penalty payable under section 76 is a debt due to the Commonwealth.

             (3)  The Medicare Australia CEO may recover an amount referred to in subsection (1) or (2) as a debt by action in a court of competent jurisdiction.

80   Medicare Australia CEO may collect money from a person who owes money to a person

What this section does

             (1)  This section allows the Medicare Australia CEO to collect money from a person who owes money to a person (the payment debtor ) who has a debt to the Commonwealth under section 79 (a payment debt ).

The Medicare Australia CEO may give direction

             (2)  The Medicare Australia CEO may direct a person (the third party ) who owes, or may later owe, money (the available money ) to the payment debtor to pay some or all of the available money to the Medicare Australia CEO in accordance with the direction. The Medicare Australia CEO must give a copy of the direction to the payment debtor.

Limit on directions

             (3)  The direction must:

                     (a)  not require an amount to be paid to the Medicare Australia CEO at a time before it becomes owing by the third party to the payment debtor; and

                     (b)  specify a period of not less than 14 days within which the third party must comply with the direction.

Third party to comply

             (4)  The third party commits an offence if the third party fails to comply with the direction.

Penalty:  20 penalty units.

             (5)  The third party does not commit an offence against subsection (4) if the third party complies with the direction so far as the third party is able to do so.

Note:          A defendant bears an evidential burden in relation to the matter in this subsection (see subsection 13.3(3) of the Criminal Code ).

             (6)  An offence against subsection (4) is an offence of strict liability.

Note:          For strict liability, see section 6.1 of the Criminal Code .

Court orders

             (7)  If a person is convicted of an offence in relation to a failure of the third party to comply with subsection (4), the court may (in addition to imposing a penalty on the convicted person) order the convicted person to pay to the Medicare Australia CEO an amount up to the amount involved in the failure of the third party.

Indemnity

             (8)  Any payment made by the third party under this section is taken to have been made with the authority of the payment debtor and of all other persons concerned and the third party is indemnified for the payment.

Notice

             (9)  If the whole of the payment debt of the payment debtor is discharged before any payment is made by the third party, the Medicare Australia CEO must immediately give notice to the third party of that fact.

           (10)  If a part of the payment debt of the payment debtor is discharged before any payment is made by the third party, the Medicare Australia CEO must:

                     (a)  immediately give notice to the third party of that fact; and

                     (b)  make an appropriate variation to the direction; and

                     (c)  give a copy of the varied direction to the payment debtor.

When third party is taken to owe money

           (11)  The third party is taken to owe money to the payment debtor if:

                     (a)  money is due or accruing by the third party to the payment debtor; or

                     (b)  the third party holds money for or on account of the payment debtor; or

                     (c)  the third party holds money on account of some other person for payment to the payment debtor; or

                     (d)  the third party has authority from some other person to pay money to the payment debtor;

whether or not the payment of the money to the payment debtor is dependent on a pre-condition that has not been fulfilled.

81   Evidentiary certificates

             (1)  The Medicare Australia CEO may issue a written certificate:

                     (a)  stating that a person is liable to pay:

                              (i)  a run-off cover support payment; or

                             (ii)  a late payment penalty in relation to a run-off cover support payment; and

                     (b)  setting out particulars of the liability.

             (2)  In any civil proceedings under, or arising out of, this Act or the Midwife Professional Indemnity (Run-off Cover Support Payment) Act 2010 , a certificate under subsection (1) is prima facie evidence of the matters in the certificate.

             (3)  A document purporting to be a certificate under subsection (1) must, unless the contrary is established, be taken to be such a certificate and to have been properly issued.

             (4)  The Medicare Australia CEO may certify that a document is a copy of a certificate issued under subsection (1).

             (5)  This section applies to the certified copy as if it were the original.