Safety, Rehabilitation and Compensation Act 1988
Part VIII
COMMONWEALTH INSURANCE LIMITED
NOTICE OF EXTENSION AND VARIATION OF LICENCE
Notice No 11 of 2014
Commonwealth Insurance Limited, ABN 96 067 524 216 (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 F2007L04180 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 Insurance Limited 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. 3 of 2008 in Commonwealth Gazette No. S63 on 27 March 2008.
The Licence was subsequently extended and/or varied by the Commission on:
- 18 June 2008 by Notice No. 18 of 2008, Commonwealth Gazette No. GN25 on 25 June 2008; and
- 23 March 2010 by Notice No. 6 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, enacted by the Commonwealth Parliament, aims to provide for safety, rehabilitation, and compensation for injuries incurred in the course of employment or from occupational diseases. The Act was introduced to address the gap in ensuring adequate compensation and support for workers who suffer injuries or illnesses due to their work. The 1988 Act has been subject to amendments and variations over the years to align with changes in occupational health and safety regulations. This Notice No. 11 of 2014, issued by the Safety, Rehabilitation and Compensation Commission, extends the licence granted to Commonwealth Insurance Limited under the Act, and incorporates changes in the legislative references and prudential conditions to ensure compliance with the more recent Work Health and Safety Act 2011 and updated credit rating requirements.
Scope and Application
The Safety, Rehabilitation and Compensation Act 1988 (SRC Act) applies to entities that are granted a licence under Part VIII of the Act, allowing them to manage workers' compensation and rehabilitation services. In this context, the Act applies specifically to Commonwealth Insurance Limited, a licensed entity authorised to operate within the Commonwealth jurisdiction. The geographic reach of the Act is confined to the Commonwealth, affecting entities and individuals engaged in the provision of workers' compensation services within this jurisdiction. The Act extends its application through subordinate instruments, which can modify the conditions of the licence and the scope of services provided by the licensee. The SRC Act includes specific exclusions and thresholds, such as the requirement for the licensee to obtain funds from highly-rated financial institutions, as detailed in the variations to Prudential Condition 4.2(c). The Act also mandates the substitution of references to the Occupational Health and Safety Act 1991 with the Work Health and Safety Act 2011, reflecting legislative updates in occupational health and safety regulation. The variations and extension of the licence by the Safety, Rehabilitation and Compensation Commission ensure compliance with current legislative standards and financial prudence requirements.
Key Provisions
The Safety, Rehabilitation and Compensation Act 1988 (SRC Act) sets out the legal framework for the administration of workers’ compensation in Australia. The key provisions of the Act relevant to this notice involve the licensing and regulation of entities that provide workers’ compensation services. Specifically, sections 103 and 104 of the Act allow the Safety, Rehabilitation and Compensation Commission (the Commission) to grant a licence to an eligible entity, while section 105(1) enables the extension of such a licence. Section 108D(2) provides the authority for the Commission to vary the conditions of a licence as needed.
Under this legislation, the Commission is responsible for ensuring that the licensee meets specific criteria and adheres to certain conditions. For instance, the Act requires that the licensee provide adequate financial security, as stipulated in clause 8, and comply with the Prudential Condition 4.2(c), which now mandates that financial guarantees be obtained from a corporation authorised by the Australian Prudential Regulatory Authority (APRA) and holding certain credit ratings. This change ensures that the licensee maintains a high level of financial stability and reliability, which is critical for the effective administration of workers’ compensation claims.
Breaching the conditions of the licence can lead to significant legal consequences. Under the SRC Act, non-compliance may result in the suspension or revocation of the licence, which would prevent the licensee from continuing to provide workers’ compensation services. Additionally, any entity found in breach of the legislative provisions may face financial penalties, the specifics of which are not detailed in this notice but could include fines or other monetary sanctions. In severe cases, criminal charges could be pursued, leading to potential imprisonment for responsible individuals.
In summary, the notice outlines the extension and variation of the licence granted to Commonwealth Insurance Limited under the SRC Act. It mandates compliance with updated financial conditions and regulatory requirements, ensuring the continued provision of reliable workers’ compensation services. Failure to adhere to these provisions may result in severe legal and financial penalties.