Safety, Rehabilitation and Compensation Act 1988
Part VIII
COMMONWEALTH BANK of AUSTRALIA
NOTICE OF EXTENSION AND VARIATION OF LICENCE
Notice No 9 of 2014
Commonwealth Bank of Australia, ABN 48 123 123 124 (the Licensee), was declared to be eligible to be granted a licence under Part VIII of the Safety, Rehabilitation and Compensation Act 1988 (the SRC Act) by legislative instrument dated 16 October 2007, registered as F2007L04165 on the Federal Register of Legislative Instruments on 23 October 2007.
The Safety, Rehabilitation and Compensation Commission (the Commission), acting under sections 103 and 104 of the SRC Act, granted a licence to Commonwealth Bank of Australia on 19 March 2008 with a commencement date of 31 March 2008 at 12.01am (Australian Eastern Daylight Time) and a cessation date of midnight (Australian Eastern Standard Time) on 30 June 2010.
This grant was notified by Notice No. 1 of 2008 in Commonwealth Gazette No. S61 on 27 March 2008.
The Licence was subsequently extended and/or varied by the Commission on:
- 18 June 2008 by Notice No. 17 of 2008, Commonwealth Gazette No. GN25 on 25 June 2008; and
- 23 March 2010 by Notice No. 1 of 2010, Commonwealth Gazette No. GN12 on 31 March 2010.
Prior to this extension, the Licence had a cessation time and date of midnight (Australian Eastern Standard Time) on 30 June 2014.
The Commission, acting under subsection 105(1) of the SRC Act, extends the term of the abovementioned Licence for the period commencing 1 July 2014 at 12:01am (Australian Eastern Standard Time) and a cessation time of midnight (Australian Eastern Standard Time) on 30 June 2018.
The Commission, acting under subsection 108D(2) of the SRC Act, varies the conditions of the abovementioned Licence as set out below.
Substitute “Occupational Health and Safety Act 1991 (OHS Act)” with “Work Health and Safety Act 2011 (WHS Act)” in clause 8 and substitute all subsequent references to the “OHS Act” and “OHS” with the “WHS Act” and “WHS” respectively.
Prudential Condition 4.2(c) is replaced by the following.
(c) obtained from a corporation that is authorised by the Australian Prudential Regulatory Authority (APRA) to carry on:
(i) banking business in Australia under the Banking Act 1959 (Cth) and has an issuer credit rating of or equivalent to a Standard and Poor’s AA- or better; or
(ii) insurance business in Australia under the Insurance Act 1973 (Cth) and has an issuer credit rating of or equivalent to a Standard and Poor's AA- or better and a financial strength rating of or equivalent to a Standard and Poor’s AA- or better.
The variations take effect at 12.01am on 1 July 2014 (Australian Eastern Standard Time).
Dated the 25th day of June 2014.
Barry Sherriff
Chairperson
Safety, Rehabilitation and Compensation Commission
Overview
The Safety, Rehabilitation and Compensation Act 1988 was enacted to establish a scheme for the rehabilitation and compensation of workers who suffer injury or disease in the course of their employment. This legislation was introduced to address the need for a comprehensive framework to manage workers' compensation and rehabilitation in Australia, ensuring that injured workers receive appropriate support and compensation. The Act is administered by the Safety, Rehabilitation and Compensation Commission, which was established under the Act to oversee the scheme. The policy objective of the Act is to provide a fair and efficient system that promotes the rehabilitation of injured workers and provides timely and adequate compensation, thereby protecting the interests of both employers and employees. The Commission's role in granting and varying licences, as demonstrated in the extension and variation of the Commonwealth Bank of Australia's licence, reflects the Act's focus on maintaining the integrity and effectiveness of the workers' compensation system.
Scope and Application
The Safety, Rehabilitation and Compensation Act 1988, specifically in its Part VIII, pertains to the granting of licences to entities that provide workers' compensation insurance services. In this instance, the Commonwealth Bank of Australia, identified by its Australian Business Number 48 123 123 124, is the licensee under this Act. The Act applies to the Commonwealth Bank of Australia and governs its activities within the scope of providing workers' compensation insurance services. The geographical reach of the Act is federal, as it falls under the jurisdiction of the Commonwealth Government. The Act's provisions are subject to extensions and variations through subordinate instruments, as evidenced by the Commission's authority to modify the licence terms and conditions. Notably, the Act has been amended to reflect changes in relevant legislation, such as the substitution of references to the "Occupational Health and Safety Act 1991" with the "Work Health and Safety Act 2011". Additionally, the Prudential Condition 4.2(c) has been revised to incorporate specific criteria concerning the credit ratings of corporations authorised by the Australian Prudential Regulatory Authority. These variations and extensions are effective from 1 July 2014, as stipulated in the notice.
Key Provisions
The Safety, Rehabilitation and Compensation Act 1988 (SRC Act) provides for the regulation of self-insurance for workers’ compensation by eligible licensees, such as the Commonwealth Bank of Australia. Under sections 103 and 104 of the SRC Act, the Safety, Rehabilitation and Compensation Commission (Commission) has the authority to grant and vary the terms and conditions of a self-insurance licence. The Commission has extended the licence for the Commonwealth Bank of Australia, originally granted on 19 March 2008, with a new cessation date of 30 June 2018. Additionally, the Commission has varied the terms and conditions of the licence, notably by updating references from the Occupational Health and Safety Act 1991 (OHS Act) to the Work Health and Safety Act 2011 (WHS Act) and altering Prudential Condition 4.2(c) to specify that borrowings must come from an authorised financial institution with a credit rating of Standard and Poor’s AA- or better, and in the case of insurance businesses, a financial strength rating of Standard and Poor’s AA- or better.
The obligations imposed on the licensee, Commonwealth Bank of Australia, include adherence to the extended and varied terms and conditions of the licence. These conditions encompass compliance with the WHS Act, maintaining a specific credit rating, and ensuring that borrowings are obtained from authorised institutions meeting the specified credit and financial strength ratings. The licensee must also ensure that all practices and procedures align with the updated legislative requirements and that all workers' compensation matters are handled in accordance with the provisions of the SRC Act and its licence conditions. Regular reporting and compliance checks by the Commission are part of the ongoing obligations to ensure that the licensee maintains the necessary standards and qualifications to hold the licence.
In the event of non-compliance or breach of the licence conditions, the licensee may face various penalties and consequences as outlined in the SRC Act. Breaches of licence conditions can result in the Commission taking enforcement action, which may include fines, suspension, or revocation of the licence. The maximum penalties for breaches can be significant, reflecting the importance of compliance with the safety, rehabilitation, and compensation requirements. Additionally, civil or criminal liability may arise for the licensee if their actions result in harm to workers or non-compliance with the statutory obligations, potentially leading to further legal actions and penalties. It is imperative for the licensee to maintain strict adherence to all legislative and licence conditions to avoid such adverse outcomes.