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Legislative Assembly for the ACT: 1996 Week 5 (Hansard) 16 May) . . Page.. 1450 ..



Question No 220

Woden Valley Hospital - Private Practice Accounts

Mr Berry - asked the Minister for Health and Community Care upon notice on 18 April 1996

In response to question on notice No. 190 in relation to the Private Practice Fund you identified that funds are paid into the Private Practice Official Account (PPOA), payments are made from that account to contributors and to the hospital for facilities fees. The balance of the fund is transferred to the Private Practice Hospital Account (PPHA) at the end of the financial year -

(1) How often are payments made to contnbutors.

(2) Are those payments made in response to accounts submitted or by some other arrangement; if so, what is that arrangement.

(3) What taxation arrangements are in place for the accounts in relation to money held in each account, payments made from the PPOA to contributors, transfers from the PPOA to the PPHA and payments from the PPHA.

(4) What is the structure and membership of the Private Practice Committee and the Private Practice Research Committee.

(5) Which individuals/projects have received funding over the last three years.

(6) Under which category of identified expenditure (Conference/Travel or Equipment/Research) have the payments to the Clinical School (6 research positions at $300,000 per annum for three year and 1 Chair at $150,000 for five years) been categorised.

Mrs Carnell - the answer to the Member's question is:

(1) Bonus payments are made to contributors on a quarterly basis.

(2) Quarterly bonus payments to contributors are made automatically.

(3) Payments made to and from the PPOA are donations to the hospital and as such are tax exempt. Quarterly bonus payments to contributors are taxed as a part of their income. Payments from the PPHA are tax exempt and are restricted to those purposes approved by the Private Practice Executive. The taxation validity of the scheme has been assessed by consultants in the past. There have been no queries on the running of the Private Practice Fund by the Taxation Department.

(4) The Private Practice Committee comprises three elected members of private practice contributors and a representative of the hospital.

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