INSURANCE COMMISSION OF
WESTERN AUSTRALIA — BELL GROUP LIQUIDATIONS
1354. Hon NICK GOIRAN to the minister representing the
Treasurer:
I refer to the answer to question
without notice 1267.
(1) Why is the
$291.1 million funded in legal fees not being recouped from the Bell litigation
settlement sum and retained or repaid to the Insurance Commission of Western Australia?
(2) Of the $665.4 million received
by ICWA, how much is being paid to the government?
(3) Further to
(2), by what statutory mechanism—please name the section of the act—is
ICWA lawfully able to pay this specific sum to the government?
Hon
STEPHEN DAWSON replied:
I thank the honourable member for
some notice of the question. The following answer has been provided to me by
the Treasurer.
(1) The amount
spent on the Bell litigation was expensed in each year the costs were incurred.
In determining dividends to be transferred to government, the Insurance
Commission of WA's board takes into account its net profit after tax,
solvency and capital adequacy requirements. Tax payments are made in line with
the national tax equivalent regime.
(2) It is expected $655.4 million
will be paid to the government.
(3) Sections 28
and 29 of the Insurance Commission of Western Australian Act 1986 and the
national tax equivalent regime provide the mechanisms for the payment of
dividends and tax equivalent payments.