25. Actual income

(1) In this Scheme, actual income means the total of all billings generated by members from their practice for which they require medical indemnity cover for a premium period (in their name) or for which they are personally liable, including without limitation:

(a) medicare benefits; and

(b) payments by individuals, the Commonwealth Department of Veterans' Affairs, workers compensation schemes and third-party and/or vehicle insurers; and

(c) income earned for medical practice overseas if the member's contract of insurance covers any overseas practice (including, for the avoidance of doubt, income for practice referred to in subsection 12A (4)),

whether retained by the member or otherwise and before any apportionment or deduction of any expenses and/or tax.

Note Actual income may need to be provided for parts of a premium period – see section 19.

(2) If as part of the member's medical practice the member derives income from any other sources (such as professional fees and incentive payments) this income must be included in the declaration of actual income.

(3) Where, for a premium period, the gross income of a member includes income from the provision of both private and public medical services, the actual income for the member is limited for the purpose of the calculation of gross indemnity costs and payment of subsidy to the income that relates to the provision of medical services for which medical indemnity cover is not provided by a public sector organisation.

Note The operation of this section is qualified in respect of offers to provide medical indemnity cover to a member on or after 1 January 2008 - see section 25A.

Note Estimated income is calculated in the same manner as for actual income – see the definition in Part 10.

25A Limitation of gross indemnity costs and actual income

(1) If a contractor makes a written offer to provide medical indemnity cover to a member on or after 1 January 2008:

(a) the premium referred to in paragraph 24 (1) (a) is limited to premium that is for medical indemnity cover in respect of private medical services provided by the member; and

(b) the actual income referred to in subsection 25 (1) is limited to billings generated by a member from the provision by the member of private medical services; and

(c) the actual income referred to in subsection 25 (3) is limited, for the purpose of the calculation of gross indemnity costs and payment of subsidy, to the income that relates to the provision by the member of private medical services.

Note 'Private medical services' is defined in section 52.

(2) Where a written offer to a member referred to in subsection (1) is later varied, the day the offer is taken to have been made for the purpose of subsection (1) is the day that the written offer was made.