What it does
The Professional Standards Act 1994 (NSW) establishes a statutory framework under which occupational associations may limit the civil liability of their members for acts or omissions occurring in the course of their occupation. Section 3 sets out four core objects: (a) creation of limitation schemes, (b) improvement of occupational standards, (c) consumer protection, and (d) constitution of the Professional Standards Council to supervise schemes and assist with standards and consumer protection.
Part 2 is the operational heart of the statute. Division 1 (ss 7–16C) prescribes the making, amendment, revocation and termination of schemes. An occupational association (defined in s 4 as a body corporate representing members of an occupational group with membership limited principally to that group) may prepare a scheme itself or ask the Council to do so (s 7(1)–(2)). Before approval the Council must publish a newspaper notice explaining the scheme’s nature, where it may be inspected, and inviting submissions for at least 21 days (s 8(1)). The Council is then obliged to consider every submission, the position of affected persons, claim history, risk-management strategies, insurance cost and availability, and the association’s insurance standards (s 10(1)). Public hearings are discretionary (s 11).
Once approved, the scheme is submitted to the Minister for gazettal (s 12). Sections 40 and 41 of the Interpretation Act 1987 apply, so the scheme is treated as a statutory rule subject to disallowance (s 13(2)). A scheme commences on the date specified or, if none, two months after gazettal (s 14(1)), subject to any Supreme Court stay under s 15. A person reasonably likely to be affected may challenge the scheme for non-compliance; the Court may declare it void, stay commencement, give directions or make any other order (s 15(3)). Interstate schemes may only be challenged on the basis that they fail to comply with the law of the preparing jurisdiction, not on Division 2 grounds (s 15(4)).