Midwife Professional Indemnity (Commonwealth Contribution) Scheme Amendment Act 2024

Administered by Department of Health, Disability and Ageing

Legislation au C2024A00126 In force Act

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Midwife Professional Indemnity (Commonwealth Contribution) Scheme Amendment Act 2024

No. 126, 2024

 

 

 

 

 

An Act to amend the Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010, and for related purposes

 

 

 

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Amendments

Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010

 

 

 

Midwife Professional Indemnity (Commonwealth Contribution) Scheme Amendment Act 2024

No. 126, 2024

 

 

 

An Act to amend the Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010, and for related purposes

[Assented to 10 December 2024]

The Parliament of Australia enacts:

1  Short title

  This Act is the Midwife Professional Indemnity (Commonwealth Contribution) Scheme Amendment Act 2024.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this Act

The later of:

(a) 1 July 2025; and

(b) the day after this Act receives the Royal Assent.

1 July 2025

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

 

Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010

1  Paragraph 3(2)(a)

After “midwives”, insert “(other than in the circumstances set out in paragraph (aa))”.

2  After paragraph 3(2)(a)

Insert:

 (aa) meeting the full cost of settlements or awards paid by eligible insurers that indemnify eligible midwives (or in certain circumstances eligible entities) in relation to intrapartum care outside of a hospital; and

3  Subsection 5(1)

Insert:

Aboriginal or Torres Strait Islander child means a child who is:

 (a) an Aboriginal person; or

 (b) a Torres Strait Islander.

Aboriginal or Torres Strait Islander person means:

 (a) an Aboriginal person; or

 (b) a Torres Strait Islander.

Aboriginal person has the same meaning as in the Aboriginal and Torres Strait Islander Act 2005.

Birthing on Country model means a model designed to provide continuous, culturally safe care to:

 (a) an Aboriginal or Torres Strait Islander person who is pregnant; or

 (b) a person who is pregnant with an Aboriginal or Torres Strait Islander child.

Birthing on Country outofhospital incident means an outofhospital incident that occurs in relation to intrapartum care provided under a Birthing on Country model.

eligible entity, for a midwife, means a person:

 (a) specified in the Rules; and

 (b) that employs or engages the midwife to provide intrapartum care under a Birthing on Country model; and

 (c) to which any circumstances prescribed by the rules do not apply.

hospital has the same meaning as in the Private Health Insurance Act 2007.

intrapartum care means care provided:

 (a) at any time during the period from the onset of labour to delivery of the placenta; and

 (b) in the course of a person’s practice as an eligible midwife; and

 (c) in accordance with any other requirements prescribed by the Rules.

outofhospital incident means an incident that occurs or occurred in the course of an eligible midwife providing intrapartum care outside of a hospital.

Note: For example, an incident that occurs in the course of an eligible midwife attending a homebirth.

Torres Strait Islander has the same meaning as in the Aboriginal and Torres Strait Islander Act 2005.

4  At the end of section 7

Add:

 (4) To avoid doubt, the Rules may set a different Level 1 termination date, Level 2 termination date or runoff cover termination date for claims in relation to outofhospital incidents.

5  Subsection 9(1)

Omit “more than a particular”, substitute “an”.

6  At the end of subsection 9(1)

Add:

 ; and (c) for a claim that relates to an incident that is not an outofhospital incident—exceed the Level 1 claim threshold.

Note: The Level 1 claim threshold does not apply to a Level 1 Commonwealth contribution in relation to a claim for an outofhospital incident: see subsection 10(1A).

7  Subsection 9(2)

After “a midwife”, insert “or, in certain circumstances, the liability of the eligible entity for the midwife,”.

8  Subparagraph 9(2)(a)(i)

Omit “person’s”, substitute “midwife’s”.

9  Paragraph 9(2)(b)

Omit “in relation to a particular claim against the midwife”, substitute “for a particular claim in relation to the midwife”.

10  Subsection 10(1) (heading)

After “threshold”, insert “for claims that are not outofhospital claims”.

11  Subsection 10(1)

After “threshold”, insert “for a claim that relates to an incident that is not an outofhospital incident”.

12  After subsection 10(1)

Insert:

No Level 1 claim threshold for outofhospital claims

 (1A) There is no Level 1 claim threshold for a claim that relates to an outofhospital incident.

13  Paragraph 11(3)(a)

Repeal the paragraph, substitute:

 (a) for a claim that relates to an incident that is not a Birthing on Country outofhospital incident—the claim is or was made against a person (the midwife); or

 (aa) for a claim that relates to a Birthing on Country outofhospital incident—the claim is or was made against:

 (i) a person (also the midwife); or

 (ii) the eligible entity for a person (also the midwife); and

Note 1: A claim may be made against a midwife and the eligible entity that employed or engaged the midwife in relation to the same incident.

Note 2: A claim may be made against a midwife in relation to an incident that occurs or occurred in the course of the midwife attending a homebirth under a Birthing on Country model.

14  Paragraph 11(3)(e)

Before “the claim”, insert “if the claim relates to an incident that is not an outofhospital incident—”.

15  Paragraph 11(3)(h)

After “certificate”, insert “for a claim that relates to an incident that is not an outofhospital incident”.

16  After paragraph 11(3)(h)

Insert:

 (ha) if the application is for a Level 1 qualifying certificate for a claim that relates to an outofhospital incident, the incident occurs or occurred:

 (i) on or after 1 July 2025; and

 (ii) on or before the Level 1 termination date for claims in relation to outofhospital incidents (if any); and

17  Paragraph 11(3)(i)

After “certificate”, insert “for a claim that relates to an incident that is not an outofhospital incident,”.

18  After paragraph 11(3)(i)

Insert:

 (ia) if the application is for a Level 2 qualifying certificate for a claim that relates to an outofhospital incident, the incident occurs or occurred:

 (i) on or after 1 July 2025; and

 (ii) on or before the Level 2 termination date for claims in relation to outofhospital incidents (if any); and

19  Paragraph 11(3)(j)

Repeal the paragraph, substitute:

 (j) the claim is not in substance an aggregation of:

 (i) two or more separate claims against the midwife; or

 (ii) for a claim made against the eligible entity—two or more separate claims against the entity in relation to the midwife; and

20  Subparagraph 11(6)(a)(iii)

After “certificate is a”, insert “Level 1 qualifying claim certificate in relation to an outofhospital incident or a”.

21  At the end of paragraph 11(6)(a)

Add:

 (iv) if the claim is made against the eligible entity—the entity; and

22  Paragraph 11(6)(b)

Repeal the paragraph, substitute:

 (b) if the certificate is a Level 1 qualifying claim certificate for a claim that relates to an incident that is not an outofhospital incident—specify the Level 1 claim threshold; and

 (c) if the certificate is a Level 2 qualifying claim certificate—specify the Level 2 claim threshold.

23  At the end of subsection 11(6)

Add:

Note: The Level 1 claim threshold does not apply to a Level 1 Commonwealth contribution in relation to a claim for an outofhospital incident: see subsection 10(1A).

24  After paragraph 12(3)(b)

Insert:

 (ba) if the application relates to an outofhospital incident—specify that fact; and

 (bb) specify whether the application relates to a claim that is or was made against:

 (i) if the claim relates to an incident that is not a Birthing on Country outofhospital incident—the midwife concerned; or

 (ii) if the claim relates to a Birthing on Country outofhospital incident—the eligible entity concerned for the midwife concerned, or the midwife concerned; and

25  Paragraph 12(3)(c)

After “the midwife concerned”, insert “or, in the case of an application in relation to a claim against the eligible entity, the entity concerned”.

26  Subparagraph 14(1)(c)(ii)

Omit “Level 1 or”, substitute “a”.

27  Paragraph 16(1)(a)

Repeal the paragraph, substitute:

 (a) a claim (the current claim) is, or was, made against:

 (i) for a claim that relates to an incident that is not a Birthing on Country outofhospital incident—a person (the midwife); or

 (ii) for a claim that relates to a Birthing on Country outofhospital incident—a person (also the midwife), or the eligible entity for a person (also the midwife); and

28  Paragraph 16(1)(c)

After “the midwife”, insert “(in the case of a claim made against the midwife) or the eligible entity (in the case of a claim made against the entity)”.

29  Paragraph 16(1)(e)

Before “the amount”, insert “if the current claim relates to an incident that is not an outofhospital incident—”.

30  After paragraph 16(1)(e)

Insert:

Note: The Level 1 claim threshold does not apply to a Level 1 Commonwealth contribution in relation to a claim for an outofhospital incident: see subsection 10(1A).

31  Paragraph 16(3)(b)

After “the midwife”, insert “or, in the case of a claim against the eligible entity, the entity”.

32  Paragraph 16(3)(d)

After “the midwife”, insert “or, in the case of a claim against the eligible entity, the entity,”.

33  Section 17 (after the heading)

Insert:

Claims for incidents that are not outofhospital incidents

34  Section 17

Before “The”, insert “(1)”.

35  Section 17

After “a claim”, insert “for an incident that is not an outofhospital incident”.

36  At the end of section 17

Add:

Claims for outofhospital incidents

 (2) The amount of a Level 1 Commonwealth contribution in relation to a claim for an outofhospital incident is 100% of the eligible insurer’s qualifying payment, or the sum of the eligible insurer’s qualifying payments, for the claim, if the amount does not exceed the Level 2 claim threshold.

37  Paragraph 18(1)(a)

Repeal the paragraph, substitute:

 (a) a claim (the current claim) is, or was, made against the following person by another person:

 (i) for a claim that relates to an incident that is not a Birthing on Country outofhospital incident—the midwife;

 (ii) for a claim that relates to a Birthing on Country outofhospital incident—the eligible entity for the midwife, or the midwife; and

38  Paragraph 18(1)(d)

After “the midwife”, insert “(in the case of a claim made against the midwife) or the eligible entity (in the case of a claim made against the entity)”.

39  Subsection 19(1)

After “(the midwife)”, insert “or, in the case of a claim against the eligible entity for a midwife in relation to a Birthing on Country outofhospital incident, the entity”.

40  Subsection 19(1)

Omit “made against the midwife”.

41  Subparagraph 19(1)(a)(iii)

Omit “of the midwife”.

42  Paragraph 19(1)(b)

Omit “against the midwife”.

43  Paragraph 19(1)(d)

After “midwife”, insert “or entity”.

44  Paragraph 19(2)(a)

Omit “midwife’s”, substitute “midwife or entity’s”.

45  Paragraph 19(2)(b)

After “by the midwife” (wherever occurring), insert “or entity”.

46  Subsection 19(3) (definition of defence of the claim)

After “midwife”, insert “or eligible entity”.

47  Paragraph 24(1)(b)

Repeal the paragraph, substitute:

 (b) another amount (not being an amount referred to in subsection (2)) has been paid in relation to the incident to which the liability relates:

 (i) if the incident is not a Birthing on Country outofhospital incident—to a person covered by subsection (3); or

 (ii) if the incident is a Birthing on Country outofhospital incident—to a person covered by subsection (4); and

48  At the end of section 24

Add:

Recipients of amounts—incidents that are not Birthing on Country outofhospital incidents

 (3) A person is covered by this subsection if the person is:

 (a) the midwife; or

 (b) the eligible insurer; or

 (c) another person.

Recipients of amounts—Birthing on Country outofhospital incidents

 (4) A person is covered by this subsection if the person is:

 (a) the midwife; or

 (b) the eligible insurer; or

 (c) the eligible entity for a midwife; or

 (d) another person.

49  Paragraph 25(1)(a)

After “(the midwife)”, insert “or an eligible entity”.

50  Paragraph 25(1)(b)

Repeal the paragraph, substitute:

 (b) another amount (not being an amount referred to in subsection (5)) has been paid in relation to the incident to which the claim relates:

 (i) if the incident is not a Birthing on Country outofhospital incident—to a person covered by subsection 24(3); or

 (ii) if the incident is a Birthing on Country outofhospital incident—to a person covered by subsection 24(4); and

51  Paragraph 26(1)(a)

After “(the midwife)”, insert “or an eligible entity”.

52  Paragraph 26(1)(b)

Repeal the paragraph, substitute:

 (b) the person (the applicant) who applied for the Level 2 Commonwealth contribution becomes aware that another amount has been paid in relation to the incident to which the claim relates:

 (i) if the incident is not a Birthing on Country outofhospital incident—to a person covered by subsection 24(3); or

 (ii) if the incident is a Birthing on Country outofhospital incident—to a person covered by subsection 24(4); and

53  Paragraphs 27(1)(a) and (b)

Repeal the paragraphs, substitute:

 (a) an amount of Level 2 Commonwealth contribution has been paid in relation to a qualifying liability that relates to a claim made against:

 (i) for a claim that relates to an incident that is not a Birthing on Country outofhospital incident—a person (the midwife); or

 (ii) for a claim that relates to a Birthing on Country outofhospital incident—a person (also the midwife) or the eligible entity for a person (also the midwife); and

 (b) another amount is paid in relation to the incident to which the claim relates:

 (i) if the incident is not a Birthing on Country outofhospital incident—to a person covered by subsection 24(3); or

 (ii) if the incident is a Birthing on Country outofhospital incident—to a person covered by subsection 24(4); and

54  At the end of subsection 31(1)

Add:

Note: A claim is not an eligible runoff claim if it is a claim made against an eligible entity in relation to a person to whom subsection (2) applies.

55  Paragraph 31(1)(b)

Before “it”, insert “for an incident that is not an outofhospital incident—”.

56  After paragraph 31(1)(b)

Insert:

 (ba) for an incident that is an outofhospital incident—it relates to an incident that occurred:

 (i) on or after 1 July 2025; and

 (ii) on or before the runoff cover termination date (if any); and

57  Paragraph 32(1)(e)

Before “either”, insert “for an incident that is not an outofhospital incident—”.

58  After paragraph 32(1)(e)

Insert:

 (ea) for an incident that is an outofhospital incident—either the incident occurs or occurred:

 (i) on or after 1 July 2025; and

 (ii) on or before the runoff cover termination date (if any); and

59  Subsection 51(1)

After “a midwife”, insert “or eligible entity for a midwife”.

60  Subparagraph 51(1)(a)(ii)

Before “the”, insert “for a claim against a midwife—”.

61  Paragraph 51(1)(b)

Before “the Chief”, insert “for a claim against a midwife—”.

62  After paragraph 51(1)(b)

Insert:

 (ba) for a claim against an eligible entity—the Chief Executive Medicare is satisfied that there is a person, other than the entity, against whom a claim has been or is reasonably likely to be made, in relation to the incident to which the claim relates; and

63  At the end of subsection 51(1)

Add:

Note: For claims relating to a Birthing on Country outofhospital incident, a person referred to in paragraph (b) may include the eligible entity for the midwife, and a person referred to in paragraph (ba) may include the midwife concerned.

64  Paragraph 51(2)(a)

After “midwife”, insert “or eligible entity”.

65  Subsection 52(1)

After “against an eligible midwife”, insert “or eligible entity for an eligible midwife”.

66  Paragraph 52(1)(b)

After “midwife”, insert “or eligible entity”.

67  Paragraph 52(1)(d)

After “midwife”, insert “or entity”.

68  Paragraph 52(2)(a)

Omit “midwife’s”, substitute “midwife or entity’s”.

69  Paragraph 52(2)(b)

After “midwife” (wherever occurring), insert “or entity”.

70  Subsection 52(3) (at the end of the definition of defence of the claim)

Add “or entity”.

71  Subsection 53(1)

Repeal the subsection, substitute:

 (1) An eligible insurer in relation to a claim made against a midwife or eligible entity for a midwife must apply for the issue of an apportionment certificate in relation to the claim if the eligible insurer considers that:

 (a) for a claim made against a midwife—there is a person other than the midwife against whom a claim has been, or is reasonably likely to be, made in relation to the incident to which the claim relates; or

 (b) for a claim made against an eligible entity—there is a person other than the entity against whom a claim has been, or is reasonably likely to be, made in relation to the incident to which the claim relates.

Note: For claims relating to a Birthing on Country outofhospital incident, a person referred to in paragraph (a) may include the eligible entity for the midwife, and a person referred to in paragraph (b) may include the midwife concerned.

72  Subparagraph 53(2)(b)(i)

After “the midwife”, insert “or entity”.

 

[Minister’s second reading speech made in—

House of Representatives on 20 November 2024

Senate on 28 November 2024]

(145/24)

 

Overview

The Midwife Professional Indemnity (Commonwealth Contribution) Scheme Amendment Act 2024 was enacted by the Parliament of Australia to address gaps in the coverage and administration of professional indemnity for midwives, particularly in out-of-hospital settings and under the Birthing on Country model. This amendment act seeks to refine the existing Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010 by introducing specific provisions to cater to incidents occurring outside of a hospital environment, including homebirths and Birthing on Country models. The policy objective is to ensure that midwives, and in certain cases eligible entities, receive adequate support and coverage for their professional indemnity, particularly in scenarios where the risk profile and circumstances differ markedly from those within a hospital setting. This act aims to enhance the clarity and effectiveness of the indemnity scheme, thereby supporting the provision of safe and culturally appropriate maternity care.

Scope and Application

The Midwife Professional Indemnity (Commonwealth Contribution) Scheme Amendment Act 2024 amends the Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010, extending its application to include midwives providing intrapartum care under the Birthing on Country model, which is designed to offer continuous, culturally safe care to Aboriginal or Torres Strait Islander persons who are pregnant or are pregnant with an Aboriginal or Torres Strait Islander child. This amendment introduces new definitions and provisions to accommodate out-of-hospital incidents occurring in such settings. The Act applies to midwives and eligible entities that employ or engage midwives under the Birthing on Country model, and it comes into effect on 1 July 2025. Notably, the Act introduces specific provisions for claims related to out-of-hospital incidents, such as eliminating the Level 1 claim threshold for these claims, thereby ensuring full Commonwealth contributions for eligible insurers indemnifying midwives or entities for such incidents. The rules under the Act can set different termination dates for claims related to out-of-hospital incidents, providing flexibility in managing these specific cases.

Key Provisions

The Midwife Professional Indemnity (Commonwealth Contribution) Scheme Amendment Act 2024 (C2024A00126) amends the Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010 (the "original Act"). The amendments primarily address claims and contributions related to out-of-hospital incidents, particularly those occurring under the Birthing on Country model. Section 3(2)(a) of the original Act now excludes certain circumstances where midwives are not eligible for contributions, such as when they meet the full cost of settlements or awards for intrapartum care outside of a hospital (section 2). New definitions are introduced, including terms like "Aboriginal or Torres Strait Islander child," "Birthing on Country model," and "Birthing on Country out-of-hospital incident" (section 4). The rules can now set different termination dates for claims related to out-of-hospital incidents (section 7(4)). The Act imposes several obligations on parties involved. Eligible entities must meet specific criteria to be eligible for contributions (section 4). Midwives and eligible entities must ensure claims are made against the appropriate party, either the midwife or the eligible entity, depending on the circumstances (section 11(3)). Additionally, eligible insurers must apply for apportionment certificates if they believe another party might be liable for the claim (section 53). The Act also stipulates conditions for qualifying claims and certificates, such as the timing of the incident and the thresholds applicable to different types of claims (sections 10, 11). Breaching the provisions of this Act can lead to various consequences. While the Act does not explicitly detail specific offences or penalties, non-compliance with the rules and conditions set out could potentially result in disputes over eligibility for contributions, delays in processing claims, or other administrative issues. For instance, failing to correctly identify the liable party for a claim or not applying for the appropriate certificates could impact the processing and payment of contributions. Given that the Act focuses on administrative and procedural aspects rather than penal consequences, the primary repercussions of non-compliance would likely involve administrative penalties or denial of contributions rather than criminal or civil penalties.

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