43. Calculation

(1) Subject to subsection 6, the administration fee payable to a contractor for the financial year commencing 1 July 2013, whether or not paid proportionally over that year, is the sum of:

(a) the base fee; and

(b) an additional amount determined to be reasonable by a responsible officer, having regard to the number of the contractor’s members in respect of whom a run-off cover support payment is attributable as at 31 May 2013 as a proportion of the total number of all contracted insurers’ members in respect of whom a run-off cover support payment is attributable as at 31 May 2013.

(2) The administration fee payable to a contractor in respect of each financial year commencing on or after 1 July 2014 is the administration fee payable to that contractor in the immediately previous financial year plus an indexation amount for the current financial year, where indexation amount means an amount determined by a responsible officer, having regard to indices in respect of the current financial year that are provided by the Department of Finance and Deregulation to the Department for the purposes of funding increases.

(3) A responsible officer may consult with the Chief Executive Medicare and any other relevant person or agency when calculating an amount under this Part.

(4) An administration fee payable in accordance with this Part constitutes a payment in respect of all costs, including any expenses, disbursements, levies and taxes (including GST), incurred by the contractor in carrying out its obligations under this Scheme for the financial year to which the payment relates.

(5) In this section, run-off cover support payment has the same meaning as in the Medical Indemnity (Run-off Cover Support Payment) Act 2004.

(6) Where a medical indemnity insurer and an MDO are both parties to the same PSS contract, for the purposes of calculating the administration fee under subsection 43(1) the insurer is taken to be the only contractor.