{"id":"professional-standards-act-2004","name":"Professional Standards Act 2004","slug":"professional-standards-act-2004","collection":"act","jurisdiction":"nt","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":30454,"registerId":"nt-professional-standards-act-2004-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Professional Standards Act 2004","content":"NORTHERN TERRITORY OF AUSTRALIA\nPROFESSIONAL STANDARDS ACT 2004\nAs in force at 1 January 2022\nTable of provisions\nPart 1 Preliminary\n1 Short title ......................................................................................... 1\n2 Commencement .............................................................................. 1\n3 Objects of Act .................................................................................. 1\n4 Interpretation ................................................................................... 1\n5 Exclusions from Act ......................................................................... 3\n6 Act binds Crown .............................................................................. 4\nPart 2 Limitation of liability\nDivision 1 Making, amending and revoking schemes\n7 Preparation and approval of schemes ............................................. 4\n8 Public notification of schemes ......................................................... 4\n9 Making of comments and submissions concerning schemes .......... 5\n10 Consideration of comments, submissions and other matters .......... 5\n11 Public hearings ................................................................................ 6\n12 Submission of schemes to Minister ................................................. 6\n13 Notification, tabling and disallowance of schemes........................... 6\n14 Commencement of schemes ........................................................... 7\n15 Challenges to schemes ................................................................... 7\n16 Review of schemes ......................................................................... 8\n17 Amendment and revocation of schemes ......................................... 8\n17A Notification of revocation of schemes .............................................. 9\n17B Termination of operation of interstate schemes in this\njurisdiction...................................................................................... 10\nDivision 2 Contents of schemes\n18 Persons to whom scheme applies ................................................. 10\n19 Officers or partners of persons to whom scheme applies .............. 11\n20 Employees of persons to whom scheme applies ........................... 11\n21 Other persons to whom scheme applies ....................................... 11\n22 Limitation of liability by insurance arrangements ........................... 12\n23 Limitation of liability by reference to amount of business\nassets ............................................................................................ 12\n24 Limitation of liability by multiple of charges .................................... 13\n25 Specification of different limits of liability ....................................... 14\n26 Combination of provisions under sections 22, 23 and 24 .............. 14\n27 Liability that cannot be limited by scheme ..................................... 14\n\nProfessional Standards Act 2004 ii\n27A Liability in damages not reduced to below relevant limit ................ 15\n28 Insurance to be of requisite standard ............................................ 15\nDivision 3 Effect of schemes\n29 Limit of occupational liability by schemes ...................................... 15\n30 Limitation of amount of damages................................................... 16\n31 Effect of scheme on other parties to proceedings.......................... 17\n32 Proceedings to which scheme applies........................................... 17\n33 Duration of scheme ....................................................................... 17\n34 Notification of limitation of liability .................................................. 18\nPart 3 Compulsory insurance\n35 Occupational association may compel its members to insure ....... 19\n36 Monitoring claims........................................................................... 19\nPart 4 Risk management\n37 Risk management strategies ......................................................... 19\n38 Reporting ....................................................................................... 20\n39 Compliance audits ......................................................................... 20\nPart 5 Complaints and disciplinary matters\n40 Complaints and discipline code ..................................................... 21\nPart 6 Professional Standards Council\nDivision 1 Constitution of Council\n41 Constitution of Council ................................................................... 21\nDivision 2 Membership and procedure of Council\n42 Membership of Council .................................................................. 22\n43 Provisions relating to members of Council..................................... 22\n44 Provisions relating to procedure of Council ................................... 22\nDivision 3 Functions of Council\n45 Functions of Council ...................................................................... 23\n45A Cooperation with authorities in other jurisdictions.......................... 24\nDivision 4 Other provisions\n46 Requirement to provide information............................................... 25\n47 Referral of complaints .................................................................... 25\n48 Committees of Council .................................................................. 25\n49 Staff of Council .............................................................................. 26\n\nProfessional Standards Act 2004 iii\n50 Engagement of consultants ........................................................... 26\n51 Accountability of Council................................................................ 26\n52 Professional Standards Council Fund ........................................... 26\n53 Annual report ................................................................................. 27\n53A Agreement with States or other Territories .................................... 27\nPart 7 General\n54 Characterisation of Act .................................................................. 27\n55 Application of Act ........................................................................... 27\n56 No contracting out of Act ............................................................... 27\n57 No limitation on other insurance .................................................... 28\n58 Regulations.................................................................................... 28\n59 Rules of court ................................................................................ 28\n60 Review of Act................................................................................. 29\nPart 8 Transitional matters for Professional\nStandards Amendment Act 2007\n61 Definitions ...................................................................................... 29\n62 Validation of schemes etc. ............................................................. 29\nSchedule 1 Complaints and disciplinary matters\nSchedule 2 Provisions relating to members of Council\nSchedule 3 Provisions relating to procedure of Council\nSchedule 4\nENDNOTES\n\n\n\nNORTHERN TERRITORY OF AUSTRALIA\n____________________\nAs in force at 1 January 2022\n____________________\nPROFESSIONAL STANDARDS ACT 2004\nAn Act to provide for the limitation of liability of members of\noccupational associations in certain circumstances and to facilitate\nimprovement in the standards of services provided by those members\nPart 1 Preliminary\n1 Short title\nThis Act may be cited as the Professional Standards Act 2004.\n2 Commencement\nThis Act comes in to operation on the date, or respective dates,\nfixed by the Administrator by notice in the Gazette.\n3 Objects of Act\nThe objects of this Act are as follows:\n(a) to enable the creation of schemes to limit the civil liability of\nprofessionals and others;\n(b) to facilitate the improvement of occupational standards of\nprofessionals and others;\n(c) to protect the consumers of the services provided by\nprofessionals and others;\n(d) to constitute the Professional Standards Council to supervise\nthe preparation and application of schemes and to assist in\nthe improvement of occupational standards and protection of\nconsumers.\n4 Interpretation\n(1) In this Act, unless the contrary intention appears:\nanother jurisdiction means a State or another Territory.\n\nPart 1 Preliminary\nProfessional Standards Act 2004 2\nappropriate Council, in relation to another jurisdiction, means the\nauthority that, under the corresponding law of that jurisdiction, has\nfunctions that are substantially the same as the Council's functions\nunder this Act.\nbusiness assets means the property of a person that is used in the\nperformance of the person's occupation and that is able to be taken\nin proceedings to enforce a judgment of a court.\ncorresponding law means a law of another jurisdiction that\ncorresponds to this Act, and includes a law of another jurisdiction\nthat is declared by the Regulations to be a corresponding law of\nthat jurisdiction for the purposes of this Act.\ncosts includes fees, charges, disbursements and expenses.\nCouncil means the Professional Standards Council constituted by\nthis Act.\ncourt includes a tribunal and an arbitrator.\ndamages means:\n(a) damages awarded in respect of a claim or counter-claim or\nclaim by way of a set-off; and\n(b) costs in or in relation to the proceedings ordered to be paid in\nconnection with such an award (other than costs incurred in\nenforcing a judgment or incurred on an appeal made by a\ndefendant); and\n(c) any interest payable on the amount of those damages or\ncosts.\nexercise of a function includes, where the function is a duty, the\nperformance of the duty.\nfunction includes a power, authority and duty.\ninterstate scheme means a scheme:\n(a) that has been prepared under the corresponding law of\nanother jurisdiction; and\n(b) that operates, or indicates an intention to operate, as a\nscheme of this jurisdiction.\njudgment includes:\n(a) a judgment given by consent;\n\nPart 1 Preliminary\nProfessional Standards Act 2004 3\n(b) a determination of a tribunal; and\n(c) an award of an arbitrator.\noccupational association means a body corporate:\n(a) that represents the interests of persons who are members of\nthe same occupational group or related occupational group;\nand\n(b) the membership of which is limited principally to members of\nthat occupational group or related occupational group.\noccupational group includes a professional group and a trade\ngroup.\noccupational liability means civil liability arising (in tort, contract or\notherwise) directly or vicariously from anything done or omitted by a\nmember of an occupational association acting in the performance of\nhis or her occupation.\nscheme means a scheme for limiting the occupational liability of\nmembers of an occupational association, and includes an interstate\nscheme.\nthis jurisdiction means the Territory.\n(2) A reference in this Act to the amount payable under an insurance\npolicy in respect of an occupational liability includes a reference to:\n(a) defence costs payable in respect of a claim, or notification that\nmay lead to a claim (other than reimbursement of the\ndefendant for time spent in relation to the claim), but only if\nthose costs are payable out of the one sum insured under the\npolicy in respect of the occupational liability; and\n(b) the amount payable under or in relation to the policy by way of\nexcess.\n5 Exclusions from Act\n(1) This Act does not apply to liability for damages arising from any of\nthe following:\n(a) the death of or personal injury to a person;\n(b) any negligence or other fault of a legal practitioner in acting for\na client in a personal injury claim;\n(c) a breach of trust;\n\nPart 2 Limitation of liability\nDivision 1 Making, amending and revoking schemes\nProfessional Standards Act 2004 4\n(d) fraud or dishonesty.\n(2) This Act does not apply to liability that may be the subject of\nproceedings under Part 9, Division 2, Subdivision 3 of the Land\nTitle Act 2000.\n(3) This Act does not apply to any cause of action arising under, or with\nrespect to, a contract, or contractual relations, entered into before\nthe commencement of this Act (whether or not the action lies in\ncontract) unless the parties, after the commencement of this Act,\nvary the relevant contract so as to make express provision for the\napplication of this Act.\n6 Act binds Crown\nThis Act binds the Crown in right of the Territory and, to the extent\nthe legislative power of the Legislative Assembly permits, the\nCrown in all its other capacities.\nPart 2 Limitation of liability\nDivision 1 Making, amending and revoking schemes\n7 Preparation and approval of schemes\n(1) An occupational association may prepare a scheme.\n(2) The Council may, on the application of an occupational association,\nprepare a scheme.\n(3) The Council may, on the application of an occupational association,\napprove a scheme prepared under this section.\n(4) A scheme prepared under this section may indicate an intention to\noperate as a scheme of this jurisdiction only, or of both this\njurisdiction and another jurisdiction.\n8 Public notification of schemes\n(1) Before approving a scheme, the Council must publish a notice in a\ndaily newspaper circulating throughout the Territory:\n(a) explaining the nature and significance of the scheme;\n(b) advising where a copy of the scheme may be obtained or\ninspected; and\n(c) inviting comments and submissions within a specified time,\nbut not less than 21 days after publication of the notice.\n\nPart 2 Limitation of liability\nDivision 1 Making, amending and revoking schemes\nProfessional Standards Act 2004 5\n(2) If the scheme indicates an intention to operate as a scheme of both\nthis jurisdiction and another jurisdiction, the Council must also\npublish a similar notice in the other jurisdiction in accordance with\nthe requirements of the corresponding law of that jurisdiction that\nrelate to the approval of a scheme prepared in that jurisdiction.\n9 Making of comments and submissions concerning schemes\n(1) Any person may make a comment or submission to the Council\nconcerning a scheme of which notice has been published under\nsection 8.\n(2) A comment or submission must be made within the period specified\nfor that purpose in the notice or within any further time that the\nCouncil may allow.\n10 Consideration of comments, submissions and other matters\n(1) Before approving a scheme, the Council must consider the\nfollowing:\n(a) all comments and submissions made to it in accordance with\nsection 9;\n(b) the position of persons who may be affected by limiting the\noccupational liability of members of the occupational\nassociation concerned;\n(c) the nature and level of claims relating to occupational liability\nmade against members of the occupational association\nconcerned;\n(d) the risk management strategies of the occupational\nassociation concerned;\n(e) the means by which those strategies are intended to be\nimplemented;\n(f) the cost and availability of insurance against occupational\nliability for members of the occupational association\nconcerned;\n(g) the standards (referred to in section 28) determined by the\noccupational association concerned in relation to insurance\npolicies;\n(h) the provisions contained in the proposed scheme for making\nand determining complaints and imposing and enforcing\ndisciplinary measures against members of the occupational\nassociation concerned.\n\nPart 2 Limitation of liability\nDivision 1 Making, amending and revoking schemes\nProfessional Standards Act 2004 6\n(2) If the scheme indicates an intention to operate as a scheme of both\nthis jurisdiction and another jurisdiction:\n(a) the Council must also consider any matter that the appropriate\nCouncil for the other jurisdiction would have to consider under\nthe provisions of the corresponding law of that jurisdiction that\nrelate to the approval of a scheme prepared in that jurisdiction;\nand\n(b) the matters to be considered by the Council, whether under\nsubsection (1) or paragraph (a), are to be considered in the\ncontext of each of the jurisdictions concerned.\n11 Public hearings\n(1) The Council may conduct a public hearing concerning a scheme if\nthe Council thinks it appropriate.\n(2) A public hearing may be conducted in any manner that the Council\ndetermines.\n12 Submission of schemes to Minister\n(1) The Council may submit a scheme approved by it to the Minister.\n(2) If the scheme indicates an intention to operate as a scheme of both\nthis jurisdiction and another jurisdiction, the Council may also\nsubmit the scheme to the Minister administering the corresponding\nlaw of the other jurisdiction.\n13 Notification, tabling and disallowance of schemes\n(1) The Minister may notify a scheme approved by the Council (or, if it\nis an interstate scheme, by the appropriate Council for the\njurisdiction in which the scheme was prepared) in the Gazette.\n(2) Sections 63A to 63C of the Interpretation Act 1978 apply to a\nscheme notified under subsection (1) as though:\n(a) the proposed scheme were a proposed rule; and\n(b) the notification were notification under section 63A(2)(a)(ii) of\nthat Act.\n(3) Section 57 of the Interpretation Act 1978 does not apply to a\nscheme notified under subsection (1).\n\nPart 2 Limitation of liability\nDivision 1 Making, amending and revoking schemes\nProfessional Standards Act 2004 7\n(4) In this section:\ninterstate scheme includes an instrument amending an interstate\nscheme.\nNote\nThis definition applies subsections (1) and (2) to instruments that amend an\ninterstate scheme. Those subsections already apply, because of section 17(5), to\ninstruments that amend a scheme that is not an interstate scheme.\n14 Commencement of schemes\n(1) A scheme notified in the Gazette commences:\n(a) on the day (subsequent to the date of notification) specified in\nthe scheme; or\n(b) if no day is specified – 2 months after the date of notification.\n(2) This section is subject to any order of the Supreme Court under\nsection 15(2) and any order of the Supreme Court of another\njurisdiction under the corresponding law of that jurisdiction.\n(3) This section applies despite section 63B of the Interpretation Act\n1978.\n(4) In this section, a reference to a scheme includes, in relation to an\ninterstate scheme, a reference to an instrument amending that\nscheme.\n15 Challenges to schemes\n(1) A person who is or is reasonably likely to be affected by a scheme\nnotified in the Gazette (including a person who is or is reasonably\nlikely to be affected by a scheme that operates as a scheme of\nanother jurisdiction) may apply to the Supreme Court for an order\nthat the scheme is void for want of compliance with this Act.\n(2) The Court may, on the making of the application or at any time\nbefore the scheme commences, order that the commencement of\nthe scheme is stayed until further order of the Court.\n(3) The Court, in relation to an application, may do any of the following:\n(a) make an order that a scheme is void for want of compliance\nwith this Act;\n(b) decline to make an order referred to in paragraph (a);\n\nPart 2 Limitation of liability\nDivision 1 Making, amending and revoking schemes\nProfessional Standards Act 2004 8\n(c) give directions as to the things that are required to be done in\norder that a scheme, the commencement of which is stayed\nunder this section, may commence;\n(d) make any other order it thinks fit.\n(4) The Court may not make an order that an interstate scheme is void\nfor want of compliance with this Act on the ground that the scheme\nfails to comply with Division 2, but may do so on the ground that the\nscheme fails to comply with the provisions of the corresponding law\nof the jurisdiction in which it was prepared that relate to the\ncontents of schemes prepared in that jurisdiction.\n(5) This section does not prevent a scheme from being challenged or\ncalled into question otherwise than under this section.\n(6) In this section, a reference to a scheme includes, if it is an interstate\nscheme, a reference to an instrument amending that scheme.\n16 Review of schemes\n(1) The Minister may direct the Council to review the operation of a\nscheme.\n(2) The Council must comply with a direction under subsection (1) but\nmay on its own initiative at any time (whether before or after the\nscheme ceases to have effect) review the operation of a scheme.\n(3) A review may, but need not, be conducted in order to decide:\n(a) in relation to a scheme prepared under this Act – whether the\nscheme should be amended or revoked or whether a new\nscheme should be made; or\n(b) in relation to an interstate scheme – whether the operation of\nthe scheme should be terminated in relation to this jurisdiction.\n(4) Without limiting subsection (2), the Council may review the\noperation of a scheme that relates to the members of an\noccupational association if the association proposes under\nsection 28 an alteration in the standards applying in relation to an\ninsurance policy or kind of insurance policy that would, in the\nopinion of the Council, result in less stringent standards.\n17 Amendment and revocation of schemes\n(1) An occupational association may prepare an instrument amending\nor revoking a scheme that relates to its members.\n\nPart 2 Limitation of liability\nDivision 1 Making, amending and revoking schemes\nProfessional Standards Act 2004 9\n(2) The Council may, on the application of an occupational association,\nprepare or approve an instrument amending or revoking a scheme\nthat relates to the members of the association.\n(3) The Minister may direct the Council to prepare an instrument\namending or revoking a scheme.\n(4) The Council must comply with a direction under subsection (3) but\nmay on its own initiative, at any time while the scheme remains in\nforce, prepare an instrument amending or revoking a scheme.\n(5) Sections 7 to 15 extend (with the necessary changes) to the\namendment of a scheme by an instrument under this section.\n(6) Sections 7 to 14, other than section 12(2), extend (with the\nnecessary changes) to the revocation of a scheme by an instrument\nunder this section.\n(7) This section does not apply to an interstate scheme.\nNote\nAn instrument that amends a scheme operating in another jurisdiction may be\nsubmitted to the Minister administering the corresponding law of that jurisdiction\nunder section 12 with a view to the instrument being published under that law. An\ninstrument made under the corresponding law of another jurisdiction that amends\nan interstate scheme may be submitted to the Minister administering this Act with\na view to the instrument being notified under section 13.\n17A Notification of revocation of schemes\n(1) On notification in the Gazette of an instrument revoking a scheme\n(other than an interstate scheme) that operates as a scheme of\nanother jurisdiction, the Minister must give notice of the revocation\nto the Minister administering the corresponding law of that\njurisdiction.\n(2) On receipt of a notice that an interstate scheme has been revoked\nunder the corresponding law of the jurisdiction in which it was\nprepared, the Minister must publish a notice of the revocation in the\nGazette.\nNote\nUnder section 33(1B), an interstate scheme will cease to have effect in this\njurisdiction when it ceases to have effect in the other jurisdiction.\n\nPart 2 Limitation of liability\nDivision 2 Contents of schemes\nProfessional Standards Act 2004 10\n17B Termination of operation of interstate schemes in this\njurisdiction\n(1) The Council may, on the application of an occupational association,\nprepare an instrument terminating, in relation to this jurisdiction, the\noperation of an interstate scheme that relates to members of the\nassociation.\n(2) The Minister may direct the Council to prepare an instrument\nterminating the operation of an interstate scheme in relation to this\njurisdiction.\n(3) The Council must comply with a direction under subsection (2), but\nmay on its own initiative, at any time while an interstate scheme\nremains in force, prepare an instrument terminating the operation of\nthe scheme in relation to this jurisdiction.\n(4) Sections 8 to 13, other than section 12(2), extend (with the\nnecessary changes) to the termination of the operation of an\ninterstate scheme under an instrument under this section.\n(5) The operation of an interstate scheme in respect of which an\ninstrument under this section is notified under section 13, as\napplied by subsection (4), is terminated in relation to this\njurisdiction:\n(a) on the day (subsequent to the date of notification) specified in\nthe instrument; or\n(b) if no day is specified – on the day 2 months after the date of\nnotification.\nDivision 2 Contents of schemes\n18 Persons to whom scheme applies\n(1) A scheme may provide that it applies to all persons within an\noccupational association or to a specified class or classes of\npersons within an occupational association.\n(2) A scheme may provide that the occupational association concerned\nmay, on application by a person, exempt the person from the\nscheme.\n(3) A scheme ceases to apply to a person exempted from the scheme\nas referred to in subsection (2) on and from the date on which the\nexemption is granted or on and from a later date specified in the\nexemption.\n\nPart 2 Limitation of liability\nDivision 2 Contents of schemes\nProfessional Standards Act 2004 11\n(4) Subsection (2) does not apply to a person to whom a scheme\napplies by virtue of section 19, 20 or 21.\n19 Officers or partners of persons to whom scheme applies\n(1) If a scheme applies to a body corporate, the scheme also applies to\neach officer of the body corporate.\n(2) If a scheme applies to a person, the scheme also applies to each\npartner of the person.\n(3) However, if an officer of a body corporate or a partner of a person is\nentitled to be a member of the same occupational association as\nthe body corporate or person but is not a member, the scheme\ndoes not apply to the officer or partner.\n(4) In this section:\nofficer, in relation to a body corporate:\n(a) that is a corporation, within the meaning of the Corporations\nAct 2001, has the same meaning as in section 82A of that Act;\nor\n(b) that is not a corporation within the meaning of the\nCorporations Act 2001, means any person (by whatever name\ncalled) who is concerned in or takes part in the management\nof the body corporate.\n20 Employees of persons to whom scheme applies\n(1) If a scheme applies to a person, the scheme also applies to each\nemployee of the person.\n(2) However, if an employee of a person is entitled to be a member of\nthe same occupational association as the person but is not a\nmember, the scheme does not apply to the employee.\n21 Other persons to whom scheme applies\nIf persons are prescribed by the Regulations for section 30(4) as\nbeing associated with persons to whom a scheme applies, the\nscheme also applies to the prescribed persons.\n\nPart 2 Limitation of liability\nDivision 2 Contents of schemes\nProfessional Standards Act 2004 12\n22 Limitation of liability by insurance arrangements\nA scheme may provide that if a person to whom the scheme applies\nand against whom a proceeding relating to occupational liability is\nbrought is able to satisfy the court that:\n(a) the person has the benefit of an insurance policy insuring the\nperson against the occupational liability to which the cause of\naction relates; and\n(b) the amount payable under the policy in respect of that\noccupational liability is not less than the amount of the\nmonetary ceiling specified in the scheme in relation to the\nperson;\nthe person is not liable in damages in relation to that cause of\naction above the amount of the monetary ceiling.\n23 Limitation of liability by reference to amount of business\nassets\nA scheme may provide that, if a person to whom the scheme\napplies and against whom a proceeding relating to occupational\nliability is brought is able to satisfy the court:\n(a) that the person has business assets the net current market\nvalue of which is not less than the amount of the monetary\nceiling specified in the scheme in relation to the person; or\n(b) that:\n(i) the person has business assets and the benefit of an\ninsurance policy insuring the person against that\noccupational liability; and\n(ii) the net current market value of the business assets and\nthe amount payable under the policy in respect of that\noccupational liability, if combined, would total an amount\nthat is not less than the amount of the monetary ceiling\nspecified in the scheme in relation to the person;\nthe person is not liable in damages in relation to the cause of action\nabove the amount so specified.\n\nPart 2 Limitation of liability\nDivision 2 Contents of schemes\nProfessional Standards Act 2004 13\n24 Limitation of liability by multiple of charges\n(1) A scheme may provide that if a person to whom the scheme applies\nand against whom a proceeding relating to occupational liability is\nbrought is able to satisfy the court:\n(a) that the person has the benefit of an insurance policy:\n(i) insuring the person against that occupational liability;\nand\n(ii) under which the amount payable in respect of that\noccupational liability is not less than an amount (the\nlimitation amount), being a reasonable charge for the\nservices provided by the person or which the person\nfailed to provide and to which the cause of action relates,\nmultiplied by the multiple specified in the scheme in\nrelation to the person; or\n(b) that the person has business assets the net current market\nvalue of which is not less than the limitation amount; or\n(c) that:\n(i) the person has business assets and the benefit of an\ninsurance policy that insures the person against that\noccupational liability; and\n(ii) the net current market value of the assets and the\namount payable under the policy in respect of that\noccupational liability, if combined, would total an amount\nthat is not less than the limitation amount;\nthe person is not liable in damages in relation to the cause of action\nabove the limitation amount or, if the scheme specifies a minimum\ncap determined by the Council for the purposes of the scheme that\nis higher than the limitation amount, above the amount of the\nminimum cap so specified.\n(2) In determining the amount of a reasonable charge for the purposes\nof such a provision, a court must have regard to any amount\nactually charged and to:\n(a) the amount that would ordinarily be charged in accordance\nwith a scale of charges accepted by the occupational\nassociation of which the person is a member; or\n(b) if there is no such scale – the amount that a competent person\nof the same qualifications and experience as the person would\nbe likely to charge in the same circumstances.\n\nPart 2 Limitation of liability\nDivision 2 Contents of schemes\nProfessional Standards Act 2004 14\n(3) This section does not limit an amount of damages to which a\nperson is liable if the amount is less than the amount specified for\nthe purpose in the scheme in relation to the person.\n25 Specification of different limits of liability\nA scheme may:\n(a) specify the same maximum amount of liability for all cases to\nwhich the scheme applies or different maximum amounts of\nliability for different cases or classes of case or for the same\ncase or class of case for different purposes; and\n(b) confer a discretionary authority on an occupational\nassociation, on application by a person to whom the scheme\napplies, to specify in relation to the person a higher maximum\namount of liability than would otherwise apply under the\nscheme in relation to the person either in all cases or in any\nspecified case or class of case.\n26 Combination of provisions under sections 22, 23 and 24\nIf, in a scheme, provisions of the kind referred to in section 24 and\nprovisions of the kind referred to in section 22 or 23 (or both) apply\nto a person at the same time in respect of the same occupation, the\nscheme must provide that the damages that may be awarded\nagainst the person are to be determined in accordance with\nsection 24 but must not exceed the amount of the monetary ceiling\nspecified in relation to the person in the provisions of the kind\nreferred to in section 22 or 23.\n27 Liability that cannot be limited by scheme\n(1) A scheme can only affect the liability for damages arising from a\nsingle cause of action to the extent to which the liability results in\ndamages exceeding such amount (but not less than $500 000) as is\ndetermined for the purposes of the scheme by the Council and\nspecified in the scheme.\n(2) In making a determination, the Council must have regard to:\n(a) the number and amounts of claims made against persons\nwithin the occupational association concerned; and\n(b) the need to adequately protect consumers.\n(3) A Council determination applies only to a cause of action that arises\nafter the determination takes effect.\n\nPart 2 Limitation of liability\nDivision 3 Effect of schemes\nProfessional Standards Act 2004 15\n27A Liability in damages not reduced to below relevant limit\nThe liability in damages of a person to whom a scheme applies is\nnot reduced below the relevant limitation imposed by a scheme in\nforce under this Act because the amount available to be paid to the\nclaimant under the insurance policy required for the purposes of\nthis Act in respect of that liability is less than the relevant limitation.\nNote for section 27A\nSection 4(2) permits a defence costs inclusive policy for the purposes of this Act,\nwhich may reduce the amount available to be paid to a client in respect of\noccupational liability covered by the policy. This section makes it clear that this\ndoes not reduce the cap on the liability of the scheme participant to the client,\nand accordingly the scheme participant will continue to be liable to the client for\nthe amount of any difference between the amount payable to the client under the\npolicy and the amount of the cap.\n28 Insurance to be of requisite standard\n(1) For the purposes of a scheme, an insurance policy must be a\npolicy, or a policy of a kind, that complies with standards\ndetermined by the occupational association whose members may\nbe insured under such a policy, or a policy of such a kind.\n(2) While a scheme remains in force relating to its members, if an\noccupational association proposes to alter the standards previously\ndetermined by it in relation to an insurance policy or a kind of\ninsurance policy, it must submit the proposal to the Council for\napproval.\n(3) The Council may approve, or refuse to approve, a proposal\nsubmitted to it under subsection (2).\n(4) If the Council refuses to approve the proposal, the standards\nremain as previously determined by the occupational association.\nDivision 3 Effect of schemes\n29 Limit of occupational liability by schemes\n(1) To the extent provided by this Act and the provisions of the\nscheme, a scheme limits the occupational liability, in respect of a\ncause of action founded on an act or omission occurring during the\nperiod when the scheme is in force, of any person to whom the\nscheme applied at the time when the act or omission occurred.\n\nPart 2 Limitation of liability\nDivision 3 Effect of schemes\nProfessional Standards Act 2004 16\n(2) A scheme does not limit the liability of a person (the professional)\nto another person (the client) if, at no stage before the time when\nthe act or omission giving rise to the cause of action concerned\noccurred, did the professional:\n(a) give, or cause to be given, to the client a document that\ncarried a statement of a kind referred to in section 34(1); or\n(b) otherwise inform the client, whether orally or in writing, that the\nprofessional's liability was limited in accordance with this Part.\n(3) Subsection (2) does not affect any limitation of the liability of a\nprofessional to a person other than the client.\n(4) The applicable limitation of liability is the limitation specified by the\nscheme as in force at the time when the act or omission giving rise\nto the cause of action concerned occurred.\n(5) A limitation of liability that, in accordance with this section, applies\nin respect of an act or omission continues to apply to every cause\nof action founded on it, irrespective of when the cause of action\narises or proceedings are brought in respect of it, and even if the\nscheme has been amended or has, in accordance with section 33,\nceased to be in force.\n(6) A person to whom a scheme applies cannot choose not to be\nsubject to the scheme, except in accordance with provisions\nincluded in the scheme under section 18(2).\n30 Limitation of amount of damages\n(1) A limitation imposed by a scheme in force under this Act of an\namount of damages is a limitation of the amount of damages that\nmay be awarded for a single claim and is not a limitation of the\namount of damages that may be awarded for all claims arising out\nof a single event.\n(2) Claims by a number of persons who have a joint interest in a cause\nof action are to be treated as a single claim for the purposes of this\nAct despite the fact that they may also have several interests.\n(3) Two or more claims by the same person arising out of a single\nevent against persons to whom a scheme in force under this Act\napplies and who are associated are to be treated as a single claim\nfor the purposes of this Act.\n(4) Persons are associated if they are:\n(a) officers, within the meaning of section 19, of the same body\ncorporate;\n\nPart 2 Limitation of liability\nDivision 3 Effect of schemes\nProfessional Standards Act 2004 17\n(b) partners, employees of the same employer or in the\nrelationship of employer and employee; or\n(c) persons who are prescribed by the Regulations for the\npurposes of this subsection.\n31 Effect of scheme on other parties to proceedings\nA scheme does not limit the liability of a person who is a party to\nproceedings if the scheme does not apply to the person.\n32 Proceedings to which scheme applies\nA scheme in force under this Act applies to proceedings relating to\nan act or omission that occurred after the commencement of the\nscheme.\n33 Duration of scheme\n(1) A scheme must specify the period (not exceeding 5 years) for which\nit is to remain in force after its commencement.\n(1A) Subject to subsection (2), a scheme (other than an interstate\nscheme) remains in force until:\n(a) the period specified under subsection (1) ends; or\n(b) the scheme is revoked; or\n(c) the scheme's operation ceases because of the operation of\nanother Act; or\n(d) the scheme is declared void, either by an order made by the\nSupreme Court under section 15 or by an order made by the\nSupreme Court of another jurisdiction under the corresponding\nlaw of that jurisdiction; or\n(e) the scheme is disallowed under section 63C of the\nInterpretation Act 1978.\n(1B) Subject to subsection (2), an interstate scheme remains in force in\nthis jurisdiction until:\n(a) the period specified under subsection (1) ends; or\n(b) the scheme's operation in relation to this jurisdiction is\nterminated under section 17B; or\n(c) the scheme ceases to have effect in the jurisdiction in which it\nwas prepared; or\n\nPart 2 Limitation of liability\nDivision 3 Effect of schemes\nProfessional Standards Act 2004 18\n(d) the scheme is disallowed under section 63C of the\nInterpretation Act 1978.\n(2) The Minister may, by notice published in the Gazette, extend the\nperiod for which a scheme is in force.\n(3) The notice must be published on or before the day when the\noriginal period ends.\n(4) Only one extension may be effected under subsection (2) in respect\nof any particular scheme, and the maximum period of such an\nextension is 12 months.\n(5) The period for which a scheme is to remain in force, as determined\nby the Council under subsection (1) before the commencement of\nthe Professional Standards Amendment (Mutual Recognition)\nAct 2008, is taken to be specified in the scheme.\n34 Notification of limitation of liability\n(1) If a person's occupational liability is limited in accordance with this\nPart, the person must ensure that all documents given by the\nperson to a client or prospective client that promote or advertise the\nperson or person's occupation, including official correspondence\nordinarily used by the person in the performance of the person's\noccupation and similar documents, carry a statement indicating that\nthe person's liability is so limited.\nMaximum penalty: 50 penalty units.\n(2) The Regulations may prescribe a form of statement for the\npurposes of this section.\n(3) A person does not commit an offence against this section if the\nstatement carried on the person's documents is in the prescribed\nform.\n(4) If the occupational liability of a person is limited in accordance with\nthis Part, the person must ensure that a copy of the scheme\nconcerned is given, or caused to be given, to any client or\nprospective client who requests a copy.\nMaximum penalty: 50 penalty units.\n(5) In this section, a document does not include a business card.\n(6) In this section, a client is a person who engages another to carry\nout work (and, if the person is acting on behalf of a third person,\nthen the person will be taken to be the client rather than the third\nperson).\n\nPart 4 Risk management\nProfessional Standards Act 2004 19\nPart 3 Compulsory insurance\n35 Occupational association may compel its members to insure\n(1) An occupational association may require its members to hold\ninsurance against occupational liability.\n(2) Such a requirement may be imposed as a condition of membership\nor otherwise.\n(3) The occupational association may set the standards with which the\ninsurance must comply (for example, as to the amount of the\ninsurance).\n(4) The occupational association may specify different standards of\ninsurance for different classes of members.\n36 Monitoring claims\n(1) An occupational association may establish a committee for\nmonitoring and analysing claims made against its members for\noccupational liability or 2 or more occupational associations may\nestablish a common committee for that purpose.\n(2) It is not necessary for all the committee members to be members of\nthe occupational association or associations concerned (for\nexample, members may include representatives of insurers).\n(3) An occupational association may, through such a committee or\notherwise, issue practice advice to its members with a view to\nminimising claims for occupational liability.\n(4) A committee may request an insurer to give it any information or a\ncopy of any document that the committee considers will assist it in\ncarrying out its function.\nPart 4 Risk management\n37 Risk management strategies\n(1) If an occupational association seeks the approval of the Council\nunder section 7 to a scheme, it must provide the Council with:\n(a) a detailed list of the risk management strategies intended to\nbe implemented in respect of its members; and\n(b) the means by which those strategies are intended to be\nimplemented.\n\nPart 4 Risk management\nProfessional Standards Act 2004 20\n(2) The means of implementation may be imposed as a condition of\nmembership or otherwise.\n(3) The strategies are to apply in addition to other statutory\nrequirements and must not be inconsistent with them.\n38 Reporting\n(1) An occupational association must provide information to the Council\nconcerning its risk management strategies if requested to do so by\nthe Council.\n(2) An occupational association must provide an annual report to the\nCouncil as to the implementation and monitoring of its risk\nmanagement strategies, the effect of those strategies and any\nchanges made or proposed to be made to them.\n(3) An occupational association's annual report must include details of\nany findings made, or conclusions drawn, by a committee\nestablished by it (whether solely or jointly with another association\nor 2 or more other associations) under section 36.\n(4) The occupational association's annual report must be incorporated\ninto the Council's annual report in the form that the Council\ndetermines.\n39 Compliance audits\n(1) An audit (a compliance audit) of the compliance of members, or of\nspecified members or a specified class or classes of members, of\nan occupational association with the association's risk management\nstrategies:\n(a) may be conducted at any time by the Council or the\nassociation; or\n(b) must be conducted by the association if requested to do so by\nthe Council.\n(2) If a compliance audit is conducted by the Council:\n(a) the occupational association must give, and ensure that its\nmembers give, the Council any information or a copy of any\ndocument that the Council reasonably requests in connection\nwith the conduct of the audit; and\n(b) the Council must provide a copy of a report of the audit to the\nassociation.\n\nPart 6 Professional Standards Council\nDivision 1 Constitution of Council\nProfessional Standards Act 2004 21\n(3) If a compliance audit is conducted by the occupational association,\nit must provide a copy of a report of the audit to the Council.\nPart 5 Complaints and disciplinary matters\n40 Complaints and discipline code\n(1) A scheme may adopt the provisions of the Model Code set out in\nSchedule 1 with such additions, omissions or other modifications (if\nany) as may be approved by the Council.\n(2) The modifications may include provisions relating to the making and\ndetermination of complaints and the imposition and enforcement of\ndisciplinary measures against members of an occupational\nassociation, including (but not limited to) the following:\n(a) the establishment of committees for the purpose of\nimplementing the Model Code or any of its provisions;\n(b) the procedure at meetings of any such committee;\n(c) whether any such committee may require evidence to be\ngiven on oath;\n(d) the application or exclusion of the rules of and practice as to\nevidence;\n(e) the grounds on which a complaint may be made;\n(f) the verification of complaints by statutory declaration;\n(g) the suspension of members from membership or from\npractice;\n(h) the imposition of fines;\n(i) the making of appeals;\n(j) the exchanging of information with other occupational\nassociations (within or outside the Territory).\nPart 6 Professional Standards Council\nDivision 1 Constitution of Council\n41 Constitution of Council\n(1) The Professional Standards Council is established.\n\nPart 6 Professional Standards Council\nDivision 2 Membership and procedure of Council\nProfessional Standards Act 2004 22\n(2) The Council:\n(a) is a body corporate with perpetual succession;\n(b) has a common seal;\n(c) may sue and be sued in its corporate name;\n(d) may acquire, hold and dispose of real and personal property;\nand\n(e) may do and suffer all acts and things that a body corporate\nmay by law do and suffer.\n(3) All courts must take judicial notice of the common seal of the\nCouncil affixed to a document and, until the contrary is proved,\nmust presume that it was duly affixed.\n(4) The common seal of the Council must be kept in such custody as\nthe Council directs and must not be used except as authorised by it.\nDivision 2 Membership and procedure of Council\n42 Membership of Council\n(1) The Council consists of 11 persons appointed by the Minister.\n(2) The members must be persons who have experience, skills and\nqualifications that the Minister considers appropriate to enable them\nto make a contribution to the work of the Council.\n(3) An act or decision of the Council is not invalid merely because of:\n(a) a defect or irregularity in, or in connection with, the\nappointment of a member; or\n(b) a vacancy in the membership of the Council, including a\nvacancy arising from the failure to appoint an original member.\n43 Provisions relating to members of Council\nSchedule 2 has effect with respect to the members of the Council.\n44 Provisions relating to procedure of Council\nSchedule 3 has effect with respect to the procedure of the Council.\n\nPart 6 Professional Standards Council\nDivision 3 Functions of Council\nProfessional Standards Act 2004 23\nDivision 3 Functions of Council\n45 Functions of Council\n(1) The Council has the following functions:\n(a) to give advice to the Minister concerning the following:\n(i) the notification in the Gazette of a scheme, or of an\ninstrument amending or revoking a scheme;\n(ii) the operation of this Act;\n(iii) any other matter relating to the occupational liability of\nmembers of occupational associations;\n(b) to give advice to occupational associations concerning policies\nof insurance for the purposes of Part 2;\n(c) to encourage and assist in the improvement of occupational\nstandards of members of occupational associations;\n(d) to encourage and assist in the development of self-regulation\nof occupational associations, including the giving of advice\nand assistance concerning the following:\n(i) codes of ethics;\n(ii) codes of practice;\n(iii) quality management;\n(iv) risk management;\n(v) resolution of complaints by clients;\n(vi) voluntary mediation services;\n(vii) membership requirements;\n(viii) discipline of members;\n(ix) continuing occupational education;\n(e) to monitor the occupational standards of persons to whom this\nAct applies;\n(f) to monitor the compliance by an occupational association with\nits risk management strategies;\n\nPart 6 Professional Standards Council\nDivision 3 Functions of Council\nProfessional Standards Act 2004 24\n(g) to publish advice and information concerning the matters\nreferred to in this section;\n(h) to conduct forums, approved by the Minister, on issues of\ninterest to members of occupational groups;\n(i) to collect, analyse and provide the Minister with information on\nissues and policies concerning the standards of occupational\ngroups;\n(j) to institute proceedings in its own name for the prosecution of\nan offence against this Act or the Regulations that comes to its\nnotice or for injunctive or other relief in respect of such\noffences.\n(2) The Council is not empowered to give advice concerning\noccupational standards contained in any other Act or an instrument\nof a legislative or administrative character.\n(3) Any advice given to the Minister by the Council may be given either\nat the request of the Minister or without any such request.\n(4) The Council has such other functions as are conferred or imposed\non it by or under this or any other Act or law.\n(5) The Council is taken to have locus standi for the purpose of\npursuing any injunctive or other relief in accordance with\nsubsection (1)(j), and is not to be required to give any undertaking\nas to damages in connection with the grant of any interlocutory\nrelief.\n45A Cooperation with authorities in other jurisdictions\nFor the purpose of dealing with a scheme that operates, or\nindicates an intention to operate, as a scheme of both this\njurisdiction and another jurisdiction, the Council:\n(a) may, in the exercise of its functions under this Act, act in\nconjunction with the appropriate Council for the other\njurisdiction; and\n(b) may act in conjunction with the appropriate Council for the\nother jurisdiction in the exercise of that Council's functions\nunder the corresponding law of that jurisdiction.\n\nPart 6 Professional Standards Council\nDivision 4 Other provisions\nProfessional Standards Act 2004 25\nDivision 4 Other provisions\n46 Requirement to provide information\n(1) The Council may, by notice in writing, require an occupational\nassociation whose members are subject to a scheme in force under\nthis Act or that seeks the approval of the Council under section 7 to\na scheme, or an amendment to or revocation of a scheme, to\nprovide information to it which it may reasonably require in order to\nperform its functions.\n(2) An occupational association that does not comply with a notice\nunder this section is guilty of an offence.\nMaximum penalty: 20 penalty units.\n47 Referral of complaints\n(1) An occupational association may refer to the Council any complaint\nor other evidence received by it that a member or former member of\nthe association has committed an offence against section 34 or an\noffence against the Regulations.\n(2) An occupational association must provide information to the Council\non:\n(a) any complaint or other evidence covered by subsection (1)\nthat it did not refer to the Council; and\n(b) particulars of any action taken by it in respect of any such\ncomplaint or other evidence and of the outcome of that action.\n(3) Nothing that is done in good faith under this section by or on behalf\nof an association subjects the association, any member of the\nassociation's executive body or any person acting under the\ndirection of the association or its executive body to any action,\nliability, claim or demand.\n48 Committees of Council\n(1) The Council may, with the approval of the Minister, establish\ncommittees to assist it in performing its functions.\n(2) It does not matter that any or all of the members of a committee are\nnot members of the Council.\n(3) The procedure for calling committee meetings and for the conduct\nof business at those meetings is to be as determined by the Council\nor (subject to any determination of the Council) by the committee.\n\nPart 6 Professional Standards Council\nDivision 4 Other provisions\nProfessional Standards Act 2004 26\n49 Staff of Council\nThe Council may, with the approval of the Minister, arrange for the\nuse of the services of any staff or facilities of a government\ndepartment, an administrative office or a local government council\nor public authority.\n50 Engagement of consultants\nThe Council, or a committee established under section 48, may\nengage as consultants to it persons with suitable qualifications and\nexperience either in an honorary capacity or for remuneration.\n51 Accountability of Council\n(1) The Council must exercise its functions subject to:\n(a) the general direction and control of the Minister; and\n(b) any specific written directions given to it by the Minister.\n(2) Without limiting subsection (1)(b), a direction under that subsection\nmay require the Council to give the Minister, or provide the Minister\nwith access to, information in its possession about a matter or class\nof matter specified in the direction.\n(3) If the Council is given a written direction, the Council:\n(a) may cause the direction to be published in the Gazette; and\n(b) must publish the direction in its next annual report under\nsection 53.\n52 Professional Standards Council Fund\n(1) There is established an account to be known as the Professional\nStandards Council Fund.\n(2) There must be paid into the Professional Standards Council Fund:\n(a) any money appropriated for the purposes of the Fund;\n(b) any fees paid to the Council under this Act; and\n(c) any other money lawfully received by, made available to, or\npaid to, the Council.\n(3) The money standing to the credit of the Professional Standards\nCouncil Fund is to be applied as directed by the Council in the\npayment of the expenses incurred by it, or by a committee\nestablished by it under section 48, in carrying out its functions.\n\nPart 7 General\nProfessional Standards Act 2004 27\n53 Annual report\n(1) As soon as practicable after 30 June, but before 1 October, in each\nyear, the Council must prepare and forward to the Minister a report\non the Council's work and activities for the period of 12 months\nending on 30 June in that year.\n(2) The Minister must table the report in the Legislative Assembly as\nsoon as practicable after receiving the report.\n53A Agreement with States or other Territories\n(1) The Chief Executive Officer may enter into the agreements the\nChief Executive Officer considers appropriate with a person acting\nfor a State or another Territory for the exercise and discharge by an\nofficer or authority of the State or other Territory for the Territory of\nthe powers and functions of the Council under this Act.\n(2) The agreement may make provision for all or any matters\nnecessary or convenient to be provided for or incidental to carrying\nout the agreement.\nExample for subsection (2)\nThe agreement may specify the extent to which a person acting for a State or\nanother Territory must comply with Territory legislation, including the Audit\nAct 1995, Financial Management Act 1995 and Procurement Act 1995.\nPart 7 General\n54 Characterisation of Act\nThe provisions of this Act are to be regarded as part of the\nsubstantive law of the Territory.\n55 Application of Act\n(1) If a provision made by or under Parts 3, 4 and 5 is inconsistent with\na provision made by or under another Act, the other provision\nprevails and the provision made by or under this Act is (to the\nextent of the inconsistency) of no force or effect.\n(2) Except as provided by subsection (1), this Act has effect despite\nany other law to the contrary.\n56 No contracting out of Act\n(1) This Act applies in relation to a person to whom a scheme in force\nunder this Act applies despite any contract to the contrary.\n\nPart 7 General\nProfessional Standards Act 2004 28\n(2) Subsection (1) does not apply to a contract entered into before the\ncommencement of this Act.\n57 No limitation on other insurance\nThis Act does not limit the insurance arrangements a person may\nmake apart from those made for the purposes of this Act.\n58 Regulations\n(1) The Administrator may make regulations, not inconsistent with this\nAct, prescribing matters:\n(a) required or permitted by this Act to be prescribed; or\n(b) necessary or convenient to be prescribed for carrying out or\ngiving effect to this Act.\n(2) The Regulations may provide for the following:\n(a) the fees for applications for the Council's approval under\nPart 2, Division 1 of a scheme or an amendment to or\nrevocation of a scheme;\n(b) the annual fee to be paid to the Council by an occupational\nassociation whose members are subject to a scheme in force\nunder this Act.\n(3) A regulation may create an offence punishable by a maximum\npenalty of not more than 50 penalty units.\n(4) Schedule 4 has effect until the first day on which any provision of\nregulations made under this Act comes into operation.\n59 Rules of court\n(1) Rules of court may be made with respect to any matter arising\nunder Part 2.\n(2) A rule of court may specify:\n(a) matters relating to section 15; and\n(b) the means by which the net current market value of assets\nmay be determined for the purposes of section 23 or 24.\n(3) This section does not limit the rule-making powers of any court.\n\nPart 8 Transitional matters for Professional Standards Amendment Act 2007\nProfessional Standards Act 2004 29\n60 Review of Act\n(1) The Minister must review this Act to determine whether the policy\nobjectives of the Act remain valid and whether the terms of the Act\nremain appropriate for securing those objectives.\n(2) The review must be undertaken as soon as possible after the\nperiod of 5 years from the date of assent to this Act.\n(3) A report of the outcome of the review is to be tabled in the\nLegislative Assembly within 12 months after the end of the period of\n5 years.\nPart 8 Transitional matters for Professional\nStandards Amendment Act 2007\n61 Definitions\nIn this Part:\namendments means the amendments made by the Professional\nStandards Amendment Act 2007.\nrelevant insurance policy means an insurance policy required by\nthis Act before a limitation on liability in damages of a person to\nwhom a validated scheme applies is reduced.\nvalidated, in relation to a scheme or an act or omission, means a\nscheme or an act or omission taken under section 62(1) or (2) to be\nvalid or validly done or omitted.\n62 Validation of schemes etc.\n(1) A scheme approved under this Act before the commencement of\nthis Part is taken to be, and always to have been, a valid scheme if\nit would have been valid had the amendments been in force when\nthe scheme was approved.\n(2) Anything done or omitted to be done in respect of a validated\nscheme is taken to be, and always to have been, validly done or\nomitted.\n(3) A relevant insurance policy is taken to comply, and always to have\ncomplied with this Act, if it would have complied had the\namendments been in force when the policy was issued (a\ncompliant policy).\n\nPart 8 Transitional matters for Professional Standards Amendment Act 2007\nProfessional Standards Act 2004 30\n(4) This section extends to a validated scheme, validated act or\nomission or compliant policy, even if proceedings in relation to the\nscheme, act, omission or policy are pending in a court on the\ncommencement of the Professional Standards Amendment\nAct 2007.\n\nSchedule 1 Complaints and disciplinary matters\nProfessional Standards Act 2004 31\nSchedule 1 Complaints and disciplinary matters\nsection 40\nMODEL CODE\n1. Citation\nThis Code may be cited as the Occupational Associations\n(Complaints and Discipline) Code.\n2. Definition\nIn this Code:\nCouncil means the Professional Standards Council constituted by\nthe Professional Standards Act 2004.\n3. What actions may be the subject of a complaint?\n(1) A complaint may be made that a member of the occupational\nassociation has acted (or has failed to act) in such a way as to\njustify the taking of disciplinary action against the member under\nthis Code.\n(2) A complaint may be made and dealt with even though the person\nabout whom it is made has ceased to be a member.\n4. Who may make a complaint?\nAny person may make a complaint (including the occupational\nassociation and the Council).\n5. How is a complaint made?\n(1) A complaint may be made to the occupational association.\n(2) The complaint must be in writing and contain the particulars of the\nallegations on which it is founded.\n(3) The occupational association must notify the Council of each\ncomplaint made to it (other than a complaint made by the Council).\n6. What happens after a complaint is made?\n(1) The occupational association must consider a complaint as soon as\npracticable after the complaint is made to it or notified to it by the\nCouncil.\n\nSchedule 1 Complaints and disciplinary matters\nProfessional Standards Act 2004 32\n(2) The association may then do one or more of the following:\n(a) it may require the complainant to provide further particulars of\nthe complaint;\n(b) it may carry out an investigation into the complaint;\n(c) it may attempt to resolve the complaint by conciliation;\n(d) it may decline to entertain the complaint (because, for\nexample, the complaint is frivolous, vexatious, misconceived\nor lacking in substance);\n(e) it may conduct a hearing into the complaint.\n(3) The occupational association is bound by the rules of natural justice\nif it conducts a hearing into the complaint.\n7. What action may be taken after a hearing into a complaint?\n(1) After an occupational association has conducted a hearing into a\ncomplaint against a person, it may, if it finds the complaint\nsubstantiated, do one or more of the following:\n(a) caution or reprimand the person;\n(b) impose conditions as to the carrying out of the person's\noccupation;\n(c) require the person to complete specified courses of training or\ninstruction;\n(d) require the person to report as to the carrying out of the\nperson's occupation at the times, in the manner and to the\npersons specified by the association;\n(e) order the person to obtain advice as to the carrying out of the\nperson's occupation, from such persons as are specified by\nthe association;\n(f) expel the person from membership of the association.\n(2) If the association does not find the complaint substantiated, it must\ndismiss the complaint.\n(3) The association is not entitled to make an award of compensation.\n\nSchedule 1 Complaints and disciplinary matters\nProfessional Standards Act 2004 33\n8. Notices of decisions\n(1) Within 30 days after a decision is made by an occupational\nassociation concerning a complaint, the complainant and the\nperson against whom the complaint is made must be given a\nwritten statement of the decision.\n(2) The statement must include the reasons for the decision.\n9. What rights of representation do parties to a complaint have?\nThe complainant and the person about whom the complaint is\nmade are not entitled to legal representation during attempts to\nresolve the complaint by conciliation but are entitled to legal\nrepresentation during a hearing into the complaint.\n10. How may the functions of the occupational association under\nthis Code be exercised?\nA function of an occupational association under this Code may, in\naccordance with a resolution of the association, be exercised by the\nexecutive body of the association or by a person or persons\nappointed for the purpose.\n11. Immunity\n(1) A member of the executive body of an occupational association or a\nperson acting in accordance with a resolution of an occupational\nassociation is not personally liable for anything done or omitted to\nbe done in good faith:\n(a) for the purpose of implementing this Code; or\n(b) in the reasonable belief that the act or omission was for the\npurpose of implementing this Code.\n(2) Any liability resulting from an act or omission that, but for\nsubclause (1), would attach to a person attaches instead to the\noccupational association.\n\nSchedule 2 Provisions relating to members of Council\nProfessional Standards Act 2004 34\nSchedule 2 Provisions relating to members of Council\nsection 43\n1. Chairperson and Deputy Chairperson of Council\n(1) The Minister must appoint 2 of the members of the Council (in and\nby their respective instruments of appointment or in and by other\ninstruments executed by the Minister) as Chairperson and Deputy\nChairperson of the Council, respectively.\n(2) The Minister may remove a member from the office of Chairperson\nor Deputy Chairperson of the Council at any time.\n(3) A person holding office as Chairperson or Deputy Chairperson of\nthe Council vacates that office if the person:\n(a) is removed from that office by the Minister;\n(b) resigns that office in writing addressed to the Minister; or\n(c) ceases to be a member.\n2. Deputies of members\n(1) The Minister may appoint a person to be the deputy of a member,\nand the Minister may revoke any such appointment.\n(2) In the absence of a member, the member's deputy:\n(a) is, if available, to act in the place of the member; and\n(b) while so acting – has all the functions of the member and is\ntaken to be a member.\n(3) The deputy of a member who is Chairperson or Deputy\nChairperson of the Council does not (because of this clause) have\nthe member's functions as Chairperson or Deputy Chairperson.\n(4) A person while acting in the place of a member is entitled to be paid\nsuch allowances as the Minister may determine in respect of the\nperson.\n3. Term of office\nSubject to this Schedule, a member holds office for the period (not\nexceeding 3 years) that is specified in the member's instrument of\nappointment, but is eligible (if otherwise qualified) for\nre-appointment.\n\nSchedule 2 Provisions relating to members of Council\nProfessional Standards Act 2004 35\n4. Vacancy in office of member\n(1) The office of a member becomes vacant if the member:\n(a) completes a term of office and is not re-appointed;\n(b) resigns the office in writing addressed to the Minister;\n(c) is removed from office by the Minister under this clause;\n(d) is absent from 4 consecutive meetings of the Council of which\nreasonable notice has been given to the member personally or\nin the ordinary course of post, except on leave granted by the\nCouncil or unless, before the expiration of 4 weeks after the\nlast of those meetings, the member is excused by the Council\nfor having been absent from those meetings;\n(e) becomes insolvent under administration within the meaning of\nthe Corporations Act 2001; or\n(f) is convicted in the Territory of an offence that is punishable by\nimprisonment for 12 months or more or is convicted elsewhere\nthan in the Territory of an offence that, if committed in the\nTerritory, would be an offence so punishable.\n(2) The Minister may remove a member from office:\n(a) for incompetence or misbehaviour;\n(b) for mental or physical incapacity to carry out the duties of\noffice satisfactorily; or\n(c) for breach of, or non-compliance with, a condition of\nappointment.\n5. Filling of vacancy in office of member\nIf the office of a member becomes vacant, a person may, subject to\nthis Act, be appointed to fill the vacancy.\n6. Effect of certain other Acts\n(1) A provision made by or under any Act:\n(a) requiring a person who is the holder of a specified office to\ndevote the whole of his or her time to the duties of that office;\nor\n(b) prohibiting the person from engaging in employment outside\nthe duties of that office,\n\nSchedule 2 Provisions relating to members of Council\nProfessional Standards Act 2004 36\ndoes not operate to disqualify the person from holding that office\nand also the office of a member or from accepting and retaining any\nremuneration payable to the person under this Act as such a\nmember.\n(2) The office of a member is not, for the purposes of any Act, an office\nor place of profit under the Crown.\n7. Immunity\n(1) This section applies to a person who is:\n(a) a member;\n(b) a deputy of a member; or\n(c) a person acting under the direction of the Council or of a\nmember or a deputy of a member.\n(2) The person is not personally liable for anything done or omitted to\nbe done in good faith:\n(a) in the exercise of a function under this Act; or\n(b) in the reasonable belief that the act or omission was in the\nexercise of a function under this Act.\n(3) Any liability resulting from an act or omission that, but for\nsubclause (2), would attach to the person attaches instead to the\nCouncil.\n\nSchedule 3 Provisions relating to procedure of Council\nProfessional Standards Act 2004 37\nSchedule 3 Provisions relating to procedure of Council\nsection 44\n1. General procedure\nThe procedure for the calling of meetings of the Council and for the\nconduct of business at those meetings is, subject to this Act and the\nRegulations, to be as determined by the Council.\n2. Quorum\nThe quorum for a meeting of the Council is a majority of its\nmembers for the time being.\n3. Presiding member\n(1) The Chairperson of the Council or, in the absence of the\nChairperson, the Deputy Chairperson of the Council or, in the\nabsence of both, another member elected to chair the meeting by\nthe members present is to preside at a meeting of the Council.\n(2) The person presiding at any meeting of the Council has a\ndeliberative vote and, in the event of an equality of votes, has a\nsecond or casting vote.\n4. Voting\nA decision supported by a majority of the votes cast at a meeting of\nthe Council at which a quorum is present is the decision of the\nCouncil.\n5. First meeting\nThe Chairperson of the Council is to call the first meeting of the\nCouncil in such manner as the Chairperson thinks fit.\n\nSchedule 4\nProfessional Standards Act 2004 38\nSchedule 4\nsection 58(4)\nPART 1 – FEES AND CHARGES\n1. Definitions\nIn this Part:\nannual fee means the annual fee referred to in section 58(2)(b).\nannual fee period, in relation to a scheme, means each period of\n12 months beginning on the date on which the scheme commences\nand on each anniversary of that date.\n2. Application fee for approval relating to occupational liability\nschemes\n(1) An application by an occupational association for the approval of\nthe Council of:\n(a) a scheme prepared under section 7; or\n(b) an amendment to, or the revocation of, such a scheme,\nmust be accompanied by a fee of $5 000.\n(2) However, if the application is for the approval of the Council of a\nscheme prepared solely to replace a scheme that is to cease by\neffluxion of time to apply to the members of the relevant\noccupational association (and the application is made before the\nscheme so ceases to apply), the fee that must accompany the\napplication is $2 000.\n(3) Subclause (2) applies whether or not the scheme for which\napproval is sought differs in any way from the scheme that it is\nintended to replace.\n3. Amount of annual fee\nThe annual fee to be paid to the Council by an occupational\nassociation any of whose members are subject to a scheme in\nforce under the Act (being a scheme that applies to all persons\nwithin the association or to a specified class or classes of persons\nwithin the association) is $35 for each person to whom the scheme\napplies who is a member of the association at any time during the\nrelevant annual fee period.\n\nSchedule 4\nProfessional Standards Act 2004 39\n4. Payment of annual fee\n(1) The annual fee must be paid not later than at the end of the first\nquarter of the annual fee period concerned.\n(2) If for any reason a scheme becomes applicable to an additional\nmember of the occupational association during the annual fee\nperiod, the payment under clause 3 must be made in respect of the\nadditional member at the end of the quarter in which the scheme\nbecame applicable to that member.\n5. Interest on overdue annual fee\nIf any amount of the annual fee (including any payment required\nunder clause 4(2)) is not paid within 30 days after it is due, simple\ninterest at the rate of 0.05% per day is payable to the Council on\nthe outstanding balance until that balance is paid.\n6. Remission of amounts payable\nThe Council may, if it considers that there are special reasons for\ndoing so in a particular case, remit the whole or any part of any or\nall of the following:\n(a) the fee payable under clause 2 for an application for the\napproval of the Council of a scheme or of an amendment to,\nor the revocation of, a scheme;\n(b) the annual fee payable under clause 4;\n(b) any interest payable under clause 5.\nPART 2 – FORM OF STATEMENT\n7. Notification of limitation of liability\n(1) For the purposes of section 34(2), the following form of statement is\nprescribed:\nLiability limited by the [insert name of relevant Scheme approved of\nby the Council] Scheme, approved under the Professional\nStandards Act 2004 (Northern Territory).\n(2) The statement must be printed in a size not less than the face\nmeasurement of Times New Roman typeface in 8 point.\n\nENDNOTES\nProfessional Standards Act 2004 40\nENDNOTES\n1 KEY\nKey to abbreviations\namd = amended od = order\napp = appendix om = omitted\nbl = by-law pt = Part\nch = Chapter r = regulation/rule\ncl = clause rem = remainder\ndiv = Division renum = renumbered\nexp = expires/expired rep = repealed\nf = forms s = section\nGaz = Gazette sch = Schedule\nhdg = heading sdiv = Subdivision\nins = inserted SL = Subordinate Legislation\nlt = long title sub = substituted\nnc = not commenced\n2 LIST OF LEGISLATION\nProfessional Standards Act 2004 (Act No. 71, 2004)\nAssent date 21 December 2004\nCommenced 1 January 2006 (Gaz G51, 21 December 2005, p 2)\nJustice Legislation Amendment Act 2006 (Act No. 13, 2006)\nAssent date 18 May 2006\nCommenced 1 July 2006 (Gaz G26, 28 June 2006, p 7)\nProfessional Standards Amendment Act 2007 (Act No. 2, 2007)\nAssent date 8 March 2007\nCommenced 4 April 2007 (Gaz G14, 4 April 2007, p 9)\nProfessional Standards Amendment (Mutual Recognition) Act 2008 (Act No. 5, 2008)\nAssent date 11 March 2008\nCommenced 1 April 2008 (Gaz S16, 28 March 2008)\nJustice Legislation Amendment Act (No. 2) 2008 (Act No. 27, 2008)\nAssent date 17 October 2008\nCommenced pt 2, div 3: 1 January 2006; rem: 17 October 2008 (s 2)\nJustice Legislation Amendment (Penalties) Act 2010 (Act No. 12, 2010)\nAssent date 20 May 2010\nCommenced 1 July 2010 (Gaz G24, 16 June 2010, p 2)\nOaths, Affidavits and Declarations (Consequential Amendments) Act 2010 (Act No. 40,\n2010)\nAssent date 18 November 2010\nCommenced 1 March 2011 (s 2, s 2 Oaths, Affidavits and Declarations\nAct 2010 (Act No. 39, 2010) and Gaz G7, 16 February 2011,\np 4)\n\nENDNOTES\nProfessional Standards Act 2004 41\nLocal Government Amendment Act 2014 (Act No. 19, 2014)\nAssent date 2 June 2014\nCommenced s 16: 1 July 2014; s 18: 1 December 2014; rem: 2 June 2014\n(s 2)\nInterpretation Amendment Act 2021 (Act No. 28, 2021)\nAssent date 15 December 2021\nCommenced 1 January 2022 (s 2)\n3 GENERAL AMENDMENTS\nGeneral amendments of a formal nature (which are not referred to in the table\nof amendments to this reprint) are made by the Interpretation Legislation\nAmendment Act 2018 (Act No. 22, 2018) to: ss 1, 5, 13, 14, 33 and 53A and\nsch 1 and 4.\n4 LIST OF AMENDMENTS\ns 4 amd No. 2, 2007, s 4; No. 5, 2008, s 4\ns 7 amd No. 5, 2008, s 5\ns 8 amd No. 5, 2008, s 6\ns 10 amd No. 5, 2008, s 7\ns 12 amd No. 5, 2008, s 8\ns 13 amd No. 5, 2008, s 9\nsub No. 27, 2008, s 18\namd No. 28, 2021, s 20\ns 14 amd No. 5, 2008, s 10; No. 27, 2008, s 19; No. 28, 2021, s 20\ns 15 amd No. 5, 2008, s 11; No. 27, 2008, s 20\ns 16 amd No. 5, 2008, s 12\ns 17 amd No. 5, 2008, s 13; No. 27, 2008, s 21\ns17A ins No. 5, 2008, s 14\namd No. 27, 2008, s 22\ns 17B ins No. 5, 2008, s 14\namd No. 27, 2008, s 23\ns 22 sub No. 2, 2007, s 5\ns 23 amd No. 2, 2007, s 6\ns 24 amd No. 2, 2007, s 7\ns 27A ins No. 2, 2007, s 8\ns 29 amd No. 2, 2007, s 9\ns 33 amd No. 5, 2008, s 15; No. , 2021, s 20\ns 34 amd No. 12, 2010, s 3\ns 40 amd No. 40, 2010, s 118\ns 45 amd No. 5, 2008, s 16; No. 27, 2008, s 24\ns 45A ins No. 5, 2008, s 17\ns 46 amd No. 12, 2010, s 3\ns 49 amd No. 19, 2014, s 26\ns 52 amd No. 13, 2006, s 64\ns 53A ins No. 13, 2006, s 65\ns 58 amd No. 12, 2010, s 3\npt 8 hdg ins No. 2, 2007, s 10\nss 61 – 62 ins No. 2, 2007, s 10","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":true,"description":"The legislation has grown significantly beyond its original 2004 scope through amendments. The 2007 amendments added complex insurance mechanics (ss 22-24 restructuring, s 27A on policy limits) and transitional validation provisions. The 2008 Mutual Recognition amendments fundamentally expanded scope to interstate operations (ss 17B, 45A, expanded s 4 definitions for 'interstate scheme' and 'corresponding law'). The original Act was purely territorial; it now functions as part of a national mutual recognition scheme for professional standards, with complex cooperation mechanisms between jurisdictions."},"complexity_factors":["Multiple calculation methods for liability caps (insurance-based, asset-based, and fee-multiple methods in ss 22-24) with complex interaction rules in s 26","Extensive cross-referencing between Parts, Divisions, and Schedules (e.g., s 40 references Schedule 1 Model Code; ss 43-44 reference Schedules 2-3)","Nested conditional logic for when liability caps apply (ss 29-30) including exceptions for failure to notify clients (s 29(2)) and complex definitions of \"single claim\" vs \"single event\"","Interstate scheme recognition creates parallel jurisdictional complexity (ss 17B, 45A, 33(1B))","27 defined terms in s 4 interpretation section including recursive definitions (\"another jurisdiction\", \"corresponding law\", \"this jurisdiction\")","Multiple overlapping exclusion clauses (s 5) with temporal limitations (s 5(3) re pre-commencement contracts)","Transitional validation provisions (Part 8) with retrospective effect mechanics","Detailed procedural requirements for scheme approval (ss 7-17) including public notification, submissions, hearings, and disallowance mechanisms"],"plain_english_summary":"**What this law does:**\n\nThis Act allows professional and trade associations in the Northern Territory to create **\"schemes\"** (formal plans) that cap how much money their members can be forced to pay if someone sues them for mistakes made at work. In exchange for this liability protection, members must maintain proper insurance and follow risk management rules.\n\n**Who it affects:**\n\n*   **Members of occupational associations** — professionals and tradespeople (like accountants, engineers, or surveyors) who belong to industry bodies\n*   **Occupational associations** — the industry bodies that represent these workers\n*   **Consumers/clients** — people who hire these professionals\n*   **The Professional Standards Council** — a government body that oversees the whole system\n\n**Key features:**\n\n*   **Liability caps:** Schemes can limit how much a professional pays if they lose a lawsuit, using methods like:\n    *   Insurance coverage amounts\n    *   Value of business assets\n    *   Multiples of the fee charged for the work\n*   **Consumer protection:** Professionals must tell clients upfront that their liability is limited (on letterheads, documents, etc.). If they don't warn clients, the cap doesn't apply.\n*   **Safety valves:** The law never protects professionals from claims involving **death, personal injury, fraud, dishonesty, or breach of trust**. It also sets a minimum floor (currently at least $500,000) below which liability cannot be capped.\n*   **Mutual recognition:** Schemes can operate across multiple Australian states/territories if approved.\n*   **Enforcement:** The Council monitors compliance, can audit risk management strategies, and can prosecute offences.\n\n**Why it matters:**\n\nThis law tries to balance two competing needs: protecting professionals from crippling lawsuit costs (so they can afford insurance and stay in business) while ensuring consumers aren't left uncompensated for serious harm. It essentially says: \"You can limit your liability, but only if you play by strict rules, maintain insurance, and warn your customers.\""},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"This version has materially expanded scope compared with the original narrow mechanics of enabling liability-limiting schemes. Key changes broadened and formalised interstate/mutual‑recognition operation (inserted ss17A, 17B, and s45A by the 2008 amendments), introduced minimum monetary floors and clarifying provisions on insurance shortfalls (s27, s27A inserted 2007), and added more prescriptive requirements for insurance standards, risk management, audits and reporting (ss28, 35–39). The amendments therefore moved the Act beyond a simple local liability-cap scheme to a more prescriptive, nationally‑coordinated regulatory framework with ongoing supervisory duties for the Council (see amendment notes and Part 8 transitional provisions)."},"complexity_factors":["Multiple interlocking Parts and Divisions (8 Parts, multiple Divisions and Schedules)","Extensive defined terms in s4 with cross‑references (eg. 'interstate scheme', 'business assets', 'occupational liability')","Three alternative, detailed methods to limit liability (insurance-based s22; assets-based s23; multiple-of-charges s24) with rules for combining them (s26)","Minimum-cap rule and Council discretion on monetary ceilings and exemptions (s27, s25)","Cross‑jurisdictional machinery for interstate schemes and mutual recognition, with separate procedures for termination and revocation (ss17A, 17B, 45A)","Procedural layers: public notice, submissions, possible public hearings, Council approval, Minister notification and court challenge routes (ss8–15, 13)","Compliance and oversight requirements (risk-management, audits, reporting) creating ongoing obligations (ss35–39, 46, 52)","Interaction with other legislation and external instruments (Interpretation Act provisions, corresponding laws of other jurisdictions, rules of court) creating multiple external cross-references (s13, s59)","Criminal and civil consequences with prescribed penalties and fee schedules (s34 penalties; Schedule 4 fees)","Transitional validation provisions and multiple amendments over time adding legacy complexity (Part 8; Endnotes listing amendments)"],"plain_english_summary":"**What this law does (mechanics first)\n\n- Creates a formal process for occupational associations (for example, professional bodies) to propose \"professional standards schemes\" that limit members' civil liability for matters arising from their professional work (see sections 7–14 and 29).  The association or the Professional Standards Council can prepare a scheme; the Council must approve it before it is notified and takes effect (s7, s13).\n\n- Sets out public consultation and challenge procedures before a scheme starts: public notices, an opportunity to make submissions (s8–10), possible public hearings (s11) and a right for affected persons to seek judicial review in the Supreme Court (s15).\n\n- Specifies the ways a scheme may limit liability, and the safeguards around that limitation.  A scheme may limit liability by reference to:\n  - specified insurance cover (s22);\n  - the insured person's business assets alone or combined with insurance (s23);\n  - a multiple of the professional charge for the service (s24).\n  The scheme must also specify monetary ceilings and may set different caps for different classes or allow associations discretion to raise caps for individual members (s25–26).  The Council must set a floor (not less than $500,000) for the amount of a single cause of action that a scheme can affect (s27).\n\n- Lists what the Act does not cover: claims for death or personal injury, fraud or dishonesty, breach of trust and certain pre-existing contractual claims (s5).\n\n- Requires participants to notify clients that their liability is limited and to supply the scheme to clients on request (s34).  It also permits occupational associations to require members to hold insurance and to monitor claims and risk-management (ss35–36, 37–39).\n\n- Establishes a Professional Standards Council to approve and supervise schemes, advise the Minister and associations, monitor compliance, conduct or commission reviews and audits, and receive fees and reports (ss41–53, including powers in s45).\n\n- Provides for interstate operation and mutual recognition of schemes (interstate schemes), procedures to terminate or revoke interstate schemes in this Territory, and cooperation between Councils across jurisdictions (s4 definition, ss17A, 17B, 45A).\n\n\nWho is affected\n\n- Professionals and businesses that are members of occupational associations that choose to adopt a scheme (see s18).  Where a scheme applies, it can extend to corporate officers, partners and employees of scheme participants unless those persons are eligible but not members (ss19–21).\n\n- Consumers and clients of those professionals: the scheme can cap the damages they may recover for a single claim above a Council-specified threshold (ss27, 30).\n\n- Insurers and the insurance market: schemes interact with required insurance levels and standards, and may affect premium pricing and cover terms (ss22–24, 28).\n\n- The Professional Standards Council and the Northern Territory Government: they administer, review and enforce the framework and receive fees (ss41, 52; Schedule 4).\n\n\nWhy it matters (stated purpose and practical trade-offs)\n\n- Stated purposes: to enable limitation schemes (s3(a)), to encourage improved occupational standards and consumer protection (s3(b)–(c)), and to create the Council to supervise schemes (s3(d)).\n\n- How the law implements that claim, and the trade-offs it creates:\n  - It reduces the financial exposure of participating professionals by capping damages subject to specified conditions (ss22–26, 29–30).  The immediate economic incentive is lower litigation risk and potentially lower insurance premiums for participants.\n  - It requires associations to put in place risk-management, insurance standards and complaint/disciplinary mechanisms (ss35–39, 40).  Those are intended to offset the moral‑hazard risk of liability caps by improving conduct and oversight.\n  - The net effect is a transfer of some downside risk from individual practitioners to: (a) insurers (who price cover accordingly), (b) the capped claimants (who may get less than under unlimited liability), or (c) the professional via required risk‑management and insurance costs.  Which of those bears the cost depends on market responses (insurance pricing, contractual arrangements) and scheme design (ss22–24, 28).\n\n\nImplementation, incentives and compliance costs\n\n- Who decides: occupational associations design schemes (s7), the Professional Standards Council approves and supervises (s7, s45), and the Minister signs off by Gazette notification (s13).  The Supreme Court can void schemes for failing to follow the Act (s15).\n\n- Who pays: participants pay Council application and annual fees (Schedule 4), and usually pay for higher insurance or to meet risk‑management obligations; claimants may recover less where a cap applies (ss22–24, Sch 4).\n\n- Compliance burden and administrative costs: associations must prepare risk‑management plans, provide annual reports, submit to audits and supply information to the Council (ss37–39, 46, 52).  Participants must include prescribed notification on documents (s34).  The Council may require additional information (s46) and can conduct compliance audits (s39).\n\n- Market effects to note (mechanisms, not judgments):\n  - Competition and entry: uncertainty-reducing caps can lower expected liability for small firms and may encourage entry or larger practices.  How much depends on insurer response and any difference in required standards between classes of members (s25, s35).\n  - Prices and insurance: insurers will adjust premiums to reflect the new loss profile; mandatory insurance or insurance‑based caps concentrate interaction with the insurance market (ss22, 28, 35).\n  - Contract freedom: the Act prevents \"contracting out\" of its effect (s56) except for contracts entered before commencement (s5(3)).  That limits private parties' ability to opt out of the statutory scheme once it applies.\n\n\nRisks and implementation frictions spelled out by the Act\n\n- Cross‑jurisdiction coordination: interstate schemes and mutual recognition (s17B, s45A) reduce duplication but require coordination with other jurisdictions' Councils and laws; inconsistency rules and termination procedures are provided (s13, s17A, s17B).\n\n- Insurance wording and defence‑costs policies: the Act contemplates defence‑costs‑inclusive policies and makes clear that a shortfall between insurer payment and the statutory cap does not reduce the cap (s4(2) note and s27A).  That allocates residual risk to the scheme participant where insurance does not pay the full capped amount.\n\n- Concentrated benefits and diffuse costs: benefits (reduced liability exposure) primarily accrue to scheme participants (professionals); costs (potentially lower recoveries) are diffuse across claimants and the insurance pool—an allocation the Act addresses by requiring minimum standards, risk management and the Council's oversight (ss27, 28, 37–39, 45).\n\n\nKey specific sections to read first\n\n- Exclusions and limits: s5 (what cannot be capped), s27–27A (Council minimum, effect on damages), and ss22–24 (how schemes may set caps).\n- Process: ss7–14 (preparation, consultation, notification) and s15 (court challenges).\n- Oversight and compliance: ss34 (client notification), 35–39 (insurance and risk management), 41–53 (Council functions).\n\n\nBottom line in one sentence\n\nThe Act gives professional bodies a regulated pathway to cap members' civil liability subject to public consultation, Council approval, mandatory risk‑management and insurance conditions, notification to clients, and judicial review — shifting how financial risk from professional errors is allocated between professionals, insurers and claimants while imposing supervisory and compliance obligations on associations and the Professional Standards Council (see ss7–39, 41–53)."}},"importantCases":[],"_links":{"self":"/api/acts/professional-standards-act-2004","history":"/api/acts/professional-standards-act-2004/history","analysis":"/api/acts/professional-standards-act-2004/analysis","conflicts":"/api/acts/professional-standards-act-2004/conflicts","importantCases":"/api/acts/professional-standards-act-2004/important-cases","documents":"/api/acts/professional-standards-act-2004/documents"}}