Structured settlements legislation puts another brick in the medical indemnity wall
AMA President, Dr Kerryn Phelps, said today the AMA welcomes yesterday's introduction of legislation that allows structured settlements for accident victim compensation to be tax free in the same way as one-off lump sum payments.
Dr Phelps said the change would provide for better lifetime care for patients.
"The AMA congratulates Assistant Treasurer, Senator Helen Coonan, for introducing this legislation to the Parliament," Dr Phelps said.
"It is one of several important measures needed to take the heat out of the medical indemnity crisis.
"We now need tort law reform in all States and Territories and a national care and rehabilitation scheme for severely injured patients.
"Only when all these reforms are in place will certainty and security return to the Australian health system."
Dr Phelps said the AMA raised the structured settlements issue in a meeting the Prime Minister last year, and soon after that meeting the then Assistant Treasurer, Senator Rod Kemp, began developing the legislation.
"The Government, in consultation with the Structured Settlements Group, has done well to get this legislation to the Parliament at an important time," Dr Phelps said.
"We now look forward to seeing action on a national care and rehabilitation scheme and for the States and Territories to fast track their tort law reform."
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761
Sarah Crichton (02) 6270 5472 / (0419) 440 076