UMP Support Payment
The UMP Support Payment (UMP SP) was introduced by the Australian Government in 2002, when the Medical Defence Organisation United Medical Protection (UMP) entered provisional financial liquidation. The UMP SP provides ongoing assurance for medical professionals who were members of UMP on 30 June 2000, in the form of indemnity for past incidents.
In order to provide this assurance, the Government agreed to fund the majority of these claims with members of UMP funding around one third of the arrangement over a period of six years through the UMP SP (formerly IBNR Levy). This contribution ratio was subsequently reduced to four years.
UMP SP commenced operation in the 2003/04 financial year, from which time UMP members were required to pay an annual liability in order to support it. The length of liability for the members was based on the number of years they were with UMP as at June 2000. Members could be liable to make contributions for one, two, three or four years.
Subject to meeting the relevant criteria, UMP members could apply for an exemption of their liability in a given contribution year. Across the life of the UMP SP members could apply for deferment of one year only. This deferred payment was due and payable in the year following their last contribution year, or immediately following a permanent exemption.
2007/08 is the final year the UMP SP will operate. Payments that were deferred and have not yet been remitted are due this financial year. A deferred payment cannot be deferred a second time, however certain exemptions may still apply for the year that the payment was deferred. Further information regarding these exemptions is provided within the booklets below to assist you to apply. When applying for an exemption, members must provide information based on their circumstances in the year in which they deferred, and now wish to be exempt.
2007-2008
- UMP SP 2007-08 Information and exemption booklet for Non-United Members [PDF, 1.2Mb]
- UMP SP 2007-08 Information [PDF, 1.2Mb]
Important note regarding the non-payment of UMP SP liabilities
Medicare Australia is responsible for administering the UMP SP on behalf of the Commonwealth Government. Medical professionals who have a UMP SP liability are required to make this payment by the due date each contribution year.
If full payment is not made by this date, Medicare Australia is obliged to take recovery action as it has no discretion to waive this debt. If debt recovery action is undertaken, penalties will accrue at the rate of 0.03% per day from this payment due date until the UMP SP amount and any penalties are paid.
Medical practitioners participating in the Premium Support Scheme (PSS) are reminded that non-payment of their UMP SP amount may result in the loss of any subsidy under the PSS for that year, and any future year until the UMP SP is paid.
Further information
For further information and the latest developments to the Medical Indemnity Framework please visit the Department of Health & Ageing website
.
You may be entitled to a tax deduction for your UMP SP. For more information go to the ATO website.
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Last updated: 28 May, 2008