Safety, Rehabilitation and Compensation Act 1988
Part VIII
Reserve Bank of Australia
NOTICE OF EXTENSION OF LICENCE
Notice No 7 of 2015
Reserve Bank of Australia, ABN 50 008 559 486, (“the Licensee”) is a Commonwealth authority for the purposes of Part VIII of the Safety, Rehabilitation and Compensation Act 1988 (Cth) (“the SRC Act”).
The Safety, Rehabilitation and Compensation Commission (“the Commission”), acting under sections 103 of the SRC Act, granted a licence (“the Licence”) to the Licensee on 11 June 2004 for the period commencing on 1 July 2004 and ending on 30 June 2007.
This grant was notified by Notice No. 4 of 2004 in Commonwealth Gazette No. P 4 on 30 June 2004.
The Licence was subsequently extended and/or varied by the Commission on:
- 25 June 2007, by Notice No. 18 of 2007, Commonwealth Gazette No. S121 on 27 June 2007;
- 18 June 2008, by Notice No. 30 of 2008, Commonwealth Gazette No. GN 25 on 25 June 2008;
- 15 June 2011, by Notice No. 8 of 2011, Commonwealth Gazette No. GN 24 on 22 June 2011.
Prior to this extension, the Licence had a cessation time and date of midnight (Australian Eastern Standard Time (“AEST”) on 30 June 2015.
The Commission acting under subsection 105(1) of the SRC Act, extends the term of the Licence, for the period of eight (8) years commencing 1 July 2015 at 12:01 am (AEST) and a cessation time and date of midnight (AEST) on 30 June 2023.
The scope and conditions of the Licence are as set out below in this notice.
LICENCE
Part 1 – Grant and Scope of Licence
Note: Under section 46(1) of the Acts Interpretation Act 1901 (Cth), unless the contrary intention appears, expressions used in this instrument have the same meaning as in the Safety, Rehabilitation and Compensation Act 1988 (Cth) (“the SRC Act”).
Eligible applicant
- Reserve Bank of Australia, ABN 50 008 559 486, (“the Licensee”), is a Commonwealth Authority for the purpose of Part VIII of the SRC Act.
Grant of licence
2. The Safety, Rehabilitation and Compensation Commission (“the Commission”), acting under sections 103 of the SRC Act, granted this licence to the Licensee on 11 June 2004 and which commenced on 1 July 2004.
Period of licence
3. Subject to the SRC Act, this licence is for the period commencing at 12.01am (Australian Eastern Standard Time (“AEST”)) on 1 July 2004 and, in accordance with the most recent extension, ending on midnight (AEST) on 30 June 2023 (“the period of this licence”)
Scope of licence – acceptance of liability
4. The Licensee is authorised to accept liability to pay compensation and other amounts under the SRC Act in respect of all injuries, loss or damage suffered by, or in respect of the death of, any of the employees of the Licensee where such injuries, loss, damage or death:
(a) occur within the period of this licence; and
(b) occurred in the period commencing on 1 May 1996 and ending when this licence came into force.
Note: “Employee” is defined in section 5 of the SRC Act.
Scope of licence - management of claims
5. The Licensee is authorised to manage:
(a) claims under the SRC Act are made by the employees of the Licensee who are covered by the scope of this licence so far as it relates to the Licensee’s acceptance of liability in accordance with clause 4 of this licence; and
(b) if before this licence came into force the Licensee held a licence under the repealed Part VIIIA or Part VIIIB of the SRC Act, any claims made to the Licensee in its capacity as a licence holder under that Part that had not been finally and completely dealt with when this licence came into force.
Note 1: “Claim” is defined in section 99 of the SRC Act.
Note 2: “Manage”, in relation to a claim for payment of compensation and other amounts under the SRC Act, is defined in section 99 of the SRC Act includes determinations, reconsiderations and subsequent administrative action.
Note 3: Management of reconsiderations under Part VI of the SRC Act are dealt with in Part 2 of this licence.
Conditions
6. This licence is granted subject to the conditions specified in Part 2 of this licence.
Part 2 – Conditions
Definitions
7. In this Part Licensee includes, where the context permits, the Claims Manager.
General conditions
Directions of Commission
8. The Licensee must comply with any written directions, whether general or in respect of a particular matter or class of matters, given by the Commission to the Licensee with respect to the performance by the Licensee of its functions or the exercise of its powers under the SRC Act.
9. If the Licensee’s claims are managed by a Claims Manager – the Licensee must give a copy of the Commission’s directions to the Claims Manager.
Requirements
10. The Licensee must comply with the requirements of:
(a) the SRC Act, its Regulations and any applicable guidelines issued by the Commission under section 73A of the SRC Act;
(b) any applicable laws of the Commonwealth, States or Territories with respect to the safety, health and rehabilitation of employees; and
(c) the relevant Privacy legislation.
11. The Licensee must have regard to guidelines issued by the Privacy Commissioner under the Privacy Act 1988 (Cth), but must comply with any such guidelines dealing with covert surveillance of employees.
Fees
12. The Licensee must pay the licence fee notified in writing to the Licensee under section 104A of the SRC Act within one month of receiving the notification.
Manner of managing claims
13. In managing claims, the Licensee:
(a) must be guided by equity, good conscience and the substantial merits of the case without regard to technicalities;
(b) is not required to conduct a hearing; and
(c) is not bound by the rules of evidence.
Audits
14. The Licensee must co-operate with, and give reasonable assistance to, the Commission or its representatives in respect of any audits and evaluations of the Licensee to be conducted by the Commission or its representatives.
Reviews and proceedings
15. The Licensee must not cause, or permit to be made on its behalf, any submission to a court or tribunal in relation to the interpretation of a provision of the SRC Act or associated transitional or consequential provisions that Comcare or the Commission requests the Licensee not to make.
16. If the Licensee brings court proceedings in relation to a matter arising in respect of a claim under the SRC Act, the Licensee must inform Comcare as soon as practicable that the proceedings have been brought and give Comcare a copy of the initiating process.
Note: If proceedings are brought against the Licensee, section 108C(8) of the SRC Act requires the Licensee to inform Comcare as soon as practicable.
Failure to comply with conditions or change in circumstances
17. The Licensee must notify Comcare in writing immediately that it becomes aware:
(a) that the Licensee has not complied with, or is likely not to comply with, a condition of this licence; or
(b) of any event that may materially impact upon its suitability to hold a licence, including its capacity to meet its liabilities under the SRC Act or of any material change in its financial position; or
(c) of any material change to its legal structure, ownership or control; or
(d) of any significant change in its employee numbers or significant change in the risk profile of the work undertaken by its employees.
Information and reporting requirements
18. On written request of the Commission, the Licensee must give to the Commission, within the timeframe specified in the request, such information relating to the Licensee’s operations under the SRC Act in the form and at the place specified in the request.
Note: Information likely to be requested by the Commission includes information required for the Commission’s annual report, Commission Indicators, CPM and Return to Work Monitor.
Specific Conditions
Previous licence holders
19. Where any claim that was made to the Licensee in its capacity as a licence holder had not been finally and completely dealt with at the time that this licence is granted, the terms and conditions of this licence apply to the management of such a claim in the same manner as they apply to any other claims within the scope of this licence.
Reconsiderations
20. For the purpose of any reconsiderations under Part VI of the SRC Act, except for reconsiderations that are no less favourable to the employee, in respect of determinations made by the Licensee, the Licensee must arrange for the person specified below (“the Reviewer”) to carry out any reconsiderations of determinations on behalf of the Licensee:
The Reviewer: Australian Postal Corporation, ABN 28 864 970 579
21. The Licensee is to enter into and maintain a contract with the Reviewer for the performance of the Reviewer’s reconsideration function and if requested to do so, give a copy of the contract to the Commission.
Note: Condition 17 requires the Licensee to notify Comcare immediately that it becomes aware that it will not or has not complied with a condition of this licence. This will include where the contract with the Reviewer comes to an end.
22. The contract between the Licensee and the Reviewer is to include key performance indicators and the Licensee is to monitor the Reviewer’s compliance with those indicators.
Prudential Conditions
23. The Licensee must comply with the Prudential Conditions at Attachment A.
Performance Conditions
24. The Licensee must comply with the Performance Standards at Attachment B.
Dated the 2nd day of July 2015.
Barry Sherriff
Chairperson
Safety, Rehabilitation and Compensation Commission
Attachment A
PRUDENTIAL CONDITIONS OF LICENCE
These conditions are “the Prudential Conditions”.
- LICENSEE CERTIFICATION
1.1 The principal officer of the Licensee must certify in writing to the Commission, by 30 September of each financial year, that the Licensee has:
(a) arranged, in accordance with Prudential Condition 2, for the estimation of the liability of the Licensee to pay compensation and other amounts under the SRC Act in accordance with the scope of this licence; and
(b) made, in accordance with Prudential Condition 3, provision in its accounts, in accordance with the estimates in the Liability Report required by Prudential Condition 2, for meeting its liabilities.
2. LIABILITY REPORT
2.1 The Licensee must commission a written report (“the Liability Report”) in respect of each financial year and calculated as at the end of that year.
2.2 The Liability Report:
(a) must be prepared by a Fellow of the Institute of Actuaries of Australia (IAA), or any body substituted therefore, with at least five years’ post-qualification experience as an actuary in general insurance; and
(b) must be prepared by an actuary who is not an employee or a partner of the organisation which provides financial audit services to the licensee or who in any way has a material financial dependence on the auditor; and
(c) be prepared drawing on any available expert advice and substantially using IAA professional standard PS 300, or any standard substituted therefore, as the basis of estimation, with any departure from this standard to be highlighted in the report; and
(d) must be addressed by the actuary to the Commission; and
(e) must be provided by the Licensee to the Commission by 31 August of the financial year to which it relates.
2.3 The Liability Report must:
(a) estimate the liability of the Licensee to pay compensation and other amounts under the SRC Act in accordance with the scope of this licence as follows:
(i) contain a recommendation for the level of provisions in the licensee’s accounts which must be made to at least the 50th percentile (net central estimate); and
(ii) contain a valuation of current outstanding liability and the projected liability in one year’s time;
2.4 The Commission may at its discretion submit a Liability Report to a peer review process.
Note: The Commission will organise and pay for any such peer review process.
2.5 After receiving a peer review assessment of a Liability Report, the Commission may by written notice to the Licensee require a Second Liability Report by an actuary approved by the Commission.
2.6 The Commission may direct the date for provision of a Second Liability Report.
2.7 Unless the Commission directs otherwise, the licensee must pay for a Second Liability Report.
2.8 If the Commission receives a Second Liability Report, it replaces the original Liability Report and:
(a) references in Prudential Conditions 3-4 to the ‘Liability Report’ are to be construed as references to the Second Liability Report; and
(b) references in Prudential Conditions 3-4 to the actuary who prepares the Liability Report are to be construed as references to the actuary who prepares the Second Liability Report.
3. YEARLY ACCOUNTS
3.1 The Licensee must:
(a) lodge with the Commission a copy of its annual report for the accounting period within 7 days after its first tabling in Parliament; and
(b) include, and identify, in any report referred to in Prudential Condition 3.1(a), provision for meeting the Licensee’s accrued and contingent liability as at the end of the accounting period for claims made under the Act in the accounting period.
3.2 The provision mentioned in 3.1(b) must be consistent with a written evaluation, by an actuary, of the Licensee’s current and non current liability for the accounting period and the actuary’s evaluation must be lodged with the Commission.
3.3 The Licensee’s accounts must also make provision for the Licensee to meet its accrued and contingent liability as estimated by the actuary in accordance with Prudential Conditions 2.2 and 2.3.
3.4 It will be sufficient compliance with Prudential Condition 3.2 if the Licensee provides the Commission with a statement at the time of lodging its annual report that the actuary’s written evaluation required by this Prudential Condition is contained in the Liability Report provided to the Commission, and identifying the location of the information in that Report.
3.5 For the purposes of Prudential Condition 3.4, “actuary” means the actuary who prepares the Liability Report referred to in Prudential Condition 2.1.
Attachment B
Performance Standards and Measures FOR LICENSEES
The Licensee’s prevention, rehabilitation and claims management systems will be consistent with these Performance Standards. The degree to which the Licensee meets the Standards will be judged against the Performance Measures.
- COMMITMENT AND CORPORATE GOVERNANCE
Sound corporate governance is the process by which organisations are directed, controlled and held to account. The Licensee’s executive will provide stewardship for its prevention, rehabilitation and claims management systems and commit adequate resources to ensure continuous improvement.
The Licensee will document its commitment to prevention, rehabilitation and claims management. This documentation will benchmark the organisation’s objectives, be used to formulate strategic direction and be reviewed to ensure it remains relevant to the Licensee and strives for continuous improvement. It will be endorsed and supported at the executive level and be relevant to the organisation’s overall values, vision and business objectives.
1.1 Performance Standards
1.1.1 The Licensee will
(i) set the direction for its management systems through a documented commitment by senior executive
(ii) establish systems that
- recognise legislative obligations
- promote the principle of continuous improvement and provide for effective prevention, rehabilitation and workers’ compensation arrangements
- promote communication of relevant information to employees
- provide for internal and external accountability
- put in place appropriate control structures to manage risk.
1.2 Performance Measures
1.2.1 There is evidence of
(i) communication of senior executive commitment to sound prevention, rehabilitation and claims management systems
(ii) the Licensee monitoring and satisfying legal requirements related to prevention, rehabilitation and workers’ compensation
(iii) continuous improvement of the management systems
(iv) ongoing consultation with employees regarding prevention, rehabilitation and workers’ compensation
(v) an audit program for the prevention, rehabilitation and claims management systems.
2. PLANNING
In consultation with relevant stakeholders the Licensee develops plans to support its management systems.
2.1 Performance Standards
2.1.1 The Licensee’s plans will
(i) provide for legislative compliance
(ii) include objectives, targets and performance measures,
(iii) provide for prevention programs including hazard management
(iv) provide for effective rehabilitation and equitable, efficient and effective claims management
(v) provide for appropriate training requirements.
2.2 Performance Measures
2.2.1 There is evidence that
(i) plans address legislative and regulatory compliance
(ii) plans identify the Licensee’s core prevention, rehabilitation and claims management activities and provide direction regarding performance outcomes
(iii) training plans are consistent with identified requirements.
3. IMPLEMENTATION
The Licensee ensures that sufficient resources and supporting mechanisms are provided to achieve its strategic plans
3.1 Performance Standards
3.1.1 The Licensee will
(i) allocate adequate resources to support its programs
(ii) implement relevant training programs
(iii) define and communicate responsibilities to relevant stakeholders
(iv) ensure that employees are aware of their legislative rights and obligations
(v) maintain the relevant level of reporting, records and/or documentation to support the Licensee’s programs and legislative compliance
(vi) maintain the confidentiality of information and apply legislative requirements
(vii) implement a hazard management process that includes identification evaluation and control
(viii) inform employees of the status of their claims
(ix) provide employees with a reasonable opportunity to provide information or comment when claims for ongoing liability are being assessed or reviewed
(x) ensure timely claim determinations and reviews, which are made accurately and guided by equity, good conscience and the substantial merits of each case without regard to technicalities
(xi) ensure consultation between all parties in regards to the prevention, claims management and rehabilitation process.
3.2 Performance Measures
3.2.1 There is evidence that
(i) health and safety, rehabilitation and claims management plans are implemented
(ii) incidents are investigated and appropriately documented, corrective actions implemented as required, including early assessment for rehabilitation
(iii) employees are informed of their rights in respect of health and safety, rehabilitation and claims
(iv) employees are kept informed of the status of their claim.
4. MEASUREMENT AND EVALUATION
The Licensee measures, monitors and evaluates its performance and takes prompt corrective action when necessary.
4.1 Performance Standards
4.1.1 The Licensee will
(i) monitor planned objectives and performance measures for core prevention, rehabilitation and claims activities
(ii) establish an audit program to measure performance of its prevention, rehabilitation and claims management systems
(iii) ensure that these audits are performed by competent personnel
(iv) ensure audit outcomes are appropriately documented, actioned and reviewed at appropriate senior executive level
(v) ensure all audits are conducted in accordance with the requirements of the Commission
(vi) communicate to its employees on the outcomes and results of audits
(vii) provide the Commission with reports as requested.
4.2 Performance Measures
4.2.1 There is evidence of
(i) audits conducted by the Licensee and implementation of corrective actions
(ii) reporting against the Licensee’s own internal and the Commission’s performance indicators.
5. MANAGEMENT SYSTEMS REVIEW AND IMPROVEMENT
5.1 Performance Standards
The Licensee regularly reviews and continually improves its systems.
5.1.1 The Licensee will
(i) analyse performance outcomes against documented objectives to determine areas requiring improvement
(ii) promote continuous improvement strategies.
5.2 Performance Measures
5.2.1 There is evidence
(i) that the results of reviews of the Licensee’s performance are used to continually improve its prevention, rehabilitation and claims management systems.