//
© 2026 Zoe. All rights reserved.
Zoe is a legal information platform. Always consult the Federal Register of Legislation for authoritative text.
Commonwealth act
The Act creates a Commonwealth-backed scheme that helps pay professional indemnity costs for eligible privately practising midwives—especially those attending out-of-hospital births and Birthing on Country services—and provides run-off cover for former practitioners. By topping up insurer payouts (including catastrophic claims above policy limits and generous cover for certain homebirths), it makes private midwifery, culturally safe Indigenous services, and access to homebirths financially viable.
Want the full deep dive?
Zoe can write the in-depth analysis on top of the summary above: how it works, who it affects and what each part actually does.
Direct links to the current provisions in Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
An Act to make provision in relation to professional indemnity cover for certain midwives, and for related purposes
Chapter 1—Introduction
This Act may be cited as the Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010.
This Act commences on 1 July 2010.
(1) An object of this Act is to contribute towards the availability of professional midwife services in Australia by providing Commonwealth assistance to support access by eligible midwives to arrangements that indemnify them for claims arising in relation to their practice of the profession of midwifery. (2) The Commonwealth provides that assistance under this Act by: (a) meeting part of the costs of large settlements or awards paid by eligible insurers that indemnify eligible midwives (other than in the circumstances set out in paragraph (aa)); and (aa) meeting the full cost of settlements or awards paid by eligible insurers that indemnify eligible midwives (or in certain circumstances eligible entities) in relation to intrapartum care outside of a hospital; and (b) meeting the amounts by which settlements and awards exceed insurance contract limits, if those contract limits meet the Commonwealth’s threshold requirements; and (c) meeting the amounts payable in relation to certain claims against eligible midwives who are no longer in private practice. (3) Another object of this Act (together with the Midwife Professional Indemnity (Run‑off Cover Support Payment) Act 2010) is to allow the Commonwealth to recover the costs of providing the assistance referred to in paragraph (2)(c) by requiring payments from eligible insurers.
(1) Chapter 1 deals with preliminary matters, including definitions. (2) Chapter 2 deals with: (a) Level 1 and Level 2 Commonwealth contributions; and (b) run‑off cover Commonwealth contributions. (3) Chapter 3 deals with run‑off cover support payments. (4) Chapter 4 deals with miscellaneous matters.
General (1) In this Act:
Aboriginal or Torres Strait Islander child means a child who is:
(a) an Aboriginal person; or
(b) a Torres Strait Islander.
Aboriginal or Torres Strait Islander person means:
(a) an Aboriginal person; or
(b) a Torres Strait Islander.
Aboriginal person has the same meaning as in the Aboriginal and Torres Strait Islander Act 2005.
Actuary means the Australian Government Actuary.
administrative action has the meaning given by subsection 87A(4).
affected eligible midwife has the meaning given by section 42.
apportionment certificate means an apportionment certificate issued by the Chief Executive Medicare under subsection 51(1).
Birthing on Country model means a model designed to provide continuous, culturally safe care to:
(a) an Aboriginal or Torres Strait Islander person who is pregnant; or
(b) a person who is pregnant with an Aboriginal or Torres Strait Islander child.
Birthing on Country out‑of‑hospital incident means an out‑of‑hospital incident that occurs in relation to intrapartum care provided under a Birthing on Country model.
Chief Executive Medicare has the same meaning as in the Human Services (Medicare) Act 1973.
claim:
(a) means a claim or demand of any kind (whether or not involving legal proceedings); and
(b) includes proceedings of any kind including:
(i) proceedings before an administrative tribunal or of an administrative nature; and
(ii) disciplinary proceedings (including disciplinary proceedings conducted by or on behalf of a professional body); and
(iii) an inquiry or investigation;
and claim against a person includes an inquiry into, or an investigation of, the person’s conduct.
Note: Subsection (2) extends the meaning of claim for the purposes of Chapter 3 (run‑off cover).
Commonwealth contribution means:
(a) a Level 1 Commonwealth contribution; or
(b) a Level 2 Commonwealth contribution; or
(c) a run‑off cover Commonwealth contribution.
contribution year has the same meaning as in the Midwife Professional Indemnity (Run‑off Cover Support Payment) Act 2010.
eligible entity, for a midwife, means a person:
(a) specified in the Rules; and
(b) that employs or engages the midwife to provide intrapartum care under a Birthing on Country model; and
(c) to which any circumstances prescribed by the rules do not apply.
eligible insurer means an insurer included in a class of insurers specified in the Rules.
eligible midwife means a person who:
(a) is licensed, registered or authorised to practice midwifery by or under a law of the Commonwealth, a State or a Territory; and
(b) meets such other requirements (if any) as are specified in the Rules for the purposes of this paragraph; and
(c) is not included in a class of persons specified in the Rules for the purposes of this paragraph.
Note: Subsection (6) gives this definition an extended meaning in Part 3 of Chapter 2 (which deals with run‑off cover Commonwealth contributions).
eligible run‑off claim has the meaning given by section 31.
Federal Register of Legislation means the Federal Register of Legislation established under the Legislation Act 2003.
health service means any service, care, treatment, advice or goods provided in respect of the physical or mental health of a person.
hospital has the same meaning as in the Private Health Insurance Act 2007.
incident means any incident (including any act, omission or circumstance) that occurs, or that is claimed to have occurred, in the course of, or in connection with, the provision of a health service.
indemnify has a meaning affected by subsection (3).
insurance business has the same meaning as in the Insurance Act 1973.
insurer means a person who carries on insurance business.
insurer‑to‑insurer payment means a payment that:
(a) is made by an insurer to an insurer; and
(b) is not made by the insurer on behalf of another person.
intrapartum care means care provided:
(a) at any time during the period from the onset of labour to delivery of the placenta; and
(b) in the course of a person’s practice as an eligible midwife; and
(c) in accordance with any other requirements prescribed by the Rules.
invoice includes any document issued by an eligible insurer to a person (whether or not the eligible insurer already provides midwife professional indemnity cover to the person) that contains a quote for the amount of premium that is or would be payable by that person for provision of such cover.
late payment penalty:
(a) in relation to a debt owed under section 25—means a penalty payable under section 28; and
(b) in relation to a debt owed under section 37—means a penalty payable under section 40.
legal practitioner means a person who is enrolled as a barrister, a solicitor, a barrister and solicitor, or a legal practitioner, of:
(a) a federal court; or
(b) a court of a State or Territory.
Level 1 claim threshold has the meaning given by subsection 10(1).
Level 1 Commonwealth contribution means a Level 1 Commonwealth contribution paid or payable under Subdivision A of Division 3 of Part 2 of Chapter 2.
Level 1 qualifying claim certificate means a Level 1 qualifying claim certificate issued by the Chief Executive Medicare under subsection 11(1).
Level 1 termination date means the date specified in Rules made under subsection 7(1).
Level 2 claim threshold has the meaning given by subsection 10(2).
Level 2 Commonwealth contribution means a Level 2 Commonwealth contribution paid or payable under Subdivision B of Division 3 of Part 2 of Chapter 2.
Level 2 qualifying claim certificate means a Level 2 qualifying claim certificate issued by the Chief Executive Medicare under subsection 11(2).
Level 2 termination date means the date specified in Rules made under subsection 7(2).
medical practitioner means a person registered or licensed as a medical practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners.
midwife professional indemnity cover: a contract of insurance provides midwife professional indemnity cover for a person if:
(a) the insurance cover provided by the contract is cover (other than midwife professional indemnity run‑off cover) that an eligible insurer is required, under an arrangement in force between the eligible insurer and the Commonwealth, to provide; and
(b) the person is specified or referred to in the contract, whether by name or otherwise, as a person to whom the insurance cover extends; and
(c) the insurance cover indemnifies the person (subject to the terms and conditions of the contract) in relation to claims that may be made against the person in relation to incidents that occur or occurred in the course of, or in connection with, the practice by the person of the profession of midwifery.
Note: A single contract of insurance may provide midwife professional indemnity cover for more than one person.
midwife professional indemnity run‑off cover means cover in the nature of midwife professional indemnity run‑off cover that an eligible insurer is required, under an arrangement in force between the eligible insurer and the Commonwealth, to provide to persons referred to in subsection 31(2).
out‑of‑hospital incident means an incident that occurs or occurred in the course of an eligible midwife providing intrapartum care outside of a hospital.
Note: For example, an incident that occurs in the course of an eligible midwife attending a homebirth.
payment made in relation to a claim (other than in Subdivisions B and C of Division 3 of Part 2 of Chapter 2 (which deal with Level 2 Commonwealth contributions)) has the meaning given by subsections (4) and (5).
public patient has the same meaning as in the Health Insurance Act 1973.
qualifying claim certificate means a Level 1 or Level 2 qualifying claim certificate.
qualifying liability, in relation to a claim, has the meaning given by section 19.
Rules means the rules made under section 90.
run‑off cover Commonwealth contribution means a run‑off cover Commonwealth contribution paid or payable under Division 2 of Part 3 of Chapter 2.
run‑off cover support payment means a run‑off cover support payment payable under Part 2 of Chapter 3.
run‑off cover termination date means the date specified in Rules made under subsection 7(3).
Secretary means the Secretary of the Department.
subject to appeal: a judgment or order is subject to appeal until:
(a) any applicable time limits for lodging an appeal (however described) against the judgment or order have expired; and
(b) if there is such an appeal against the judgment or order—the appeal (and any subsequent appeals) have been finally disposed of.
Torres Strait Islander has the same meaning as in the Aboriginal and Torres Strait Islander Act 2005.
total run‑off cover credit has the meaning given by section 44.
Notifications by midwives may constitute claims (2) A reference in Part 3 of Chapter 2 (which deals with run‑off cover) to a claim includes a reference to a notification by, or on behalf of, a person of an incident if: (a) at the time of the incident, the person was an eligible midwife; and (b) the notification is to an eligible insurer; and (c) at the time of the notification: (i) a contract of insurance with the eligible insurer provided the person with midwife professional indemnity cover; and (ii) the cover would have indemnified the person in relation to any claim relating to the incident if the claim had been made at the time of the notification. The notification is taken, for the purposes of Part 3, to be a claim against the person. Indemnifying (3) To avoid doubt, a person may, for the purposes of this Act, indemnify someone else by either: (a) making a payment; or (b) agreeing to make a payment.
Note: A person may indemnify someone else by making a payment even if the payment was not preceded by an agreement to pay.
Payments in relation to claims (4) For the purposes of this Act (other than Subdivisions B and C of Division 3 of Part 2 of Chapter 2): (a) a payment is made or is payable in relation to a claim against a person if and only if the payment is made or is payable to: (i) satisfy or settle the claim; or (ii) meet legal and other expenses that are directly attributable to any negotiations, arbitration or proceedings in relation to the claim; and (b) a payment is made or is payable in relation to a claim by a person if and only if the payment is made or is payable to meet legal and other expenses that are directly attributable to any negotiations, arbitration or proceedings in relation to the claim. (5) A reference in this Act (other than Subdivisions B and C of Division 3 of Part 2 of Chapter 2) to a payment being made to satisfy or settle a claim against a person includes a reference to a payment that: (a) is made to reimburse the person for a payment the person has made to satisfy or settle the claim; or (b) is made to the person so that the person can make a payment to satisfy or settle the claim. Eligible midwives (6) A reference in Part 3 of Chapter 2 to an eligible midwife includes a reference to a person who has been an eligible midwife.
This Act extends to every external Territory.
(1) The Rules may set a Level 1 termination date. (2) The Rules may set a Level 2 termination date. (3) The Rules may set a run‑off cover termination date. (4) To avoid doubt, the Rules may set a different Level 1 termination date, Level 2 termination date or run‑off cover termination date for claims in relation to out‑of‑hospital incidents.
Chapter 2—Midwife Professional Indemnity Commonwealth Contributions
(1) This Chapter is about midwife professional indemnity Commonwealth contributions. (2) Part 2 deals with Level 1 and Level 2 Commonwealth contributions. Section 9 contains a detailed Guide to Part 2 and related provisions of Part 4. (3) Part 3 deals with run‑off cover Commonwealth contributions. Section 29 contains a detailed Guide to Part 3 and related provisions of Part 4. (4) Part 4 deals with the administration of Level 1 and Level 2 Commonwealth contributions and run‑off cover Commonwealth contributions. Section 50 contains a detailed Guide to Part 4.
(1) This Part provides that a Level 1 Commonwealth contribution may be paid to an eligible insurer that pays, or is liable to pay, an amount in relation to a claim against a midwife. The claim must: (a) relate to an incident that occurs in the course of, or in connection with, the practice by the person as an eligible midwife; and (b) have been certified as a qualifying claim; and (c) for a claim that relates to an incident that is not an out‑of‑hospital incident—exceed the Level 1 claim threshold.
Note: The Level 1 claim threshold does not apply to a Level 1 Commonwealth contribution in relation to a claim for an out‑of‑hospital incident: see subsection 10(1A).
(2) This Part provides that a Level 2 Commonwealth contribution may be paid in relation to a liability of a midwife or, in certain circumstances, the liability o
This is an opening excerpt, not the complete document.