Safety, Rehabilitation and Compensation Act 1988
Part VIII
RESERVE BANK OF AUSTRALIA
NOTICE OF VARIATION OF LICENCE
Notice No 35 of 2016
Background
- 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).
B. The Safety, Rehabilitation and Compensation Commission (the Commission), acting under sections 103 and 104 of the SRC Act, granted a licence to the Licensee on 11 June 2004 with a commencement date of 1 July 2004.
C. The Commission, acting under subsection 108D(2) of the SRC Act, varies the conditions of the licence as follows:
(i) the format, parts, headings and condition numbers of the licence have been revised to reflect the new licence instrument template adopted by the Commission;
(ii) ‘Part 1 – Interpretation’ has been inserted, which includes both an ‘Interpretation’ and ‘Definitions’ condition of licence;
(iii) the ‘Grant of Licence’ condition has been replaced with a ‘Licence decisions’ condition which includes details of all extensions and variations of the licence since the licence was granted;
(iv) all ‘notes’ have been removed from the non-prudential conditions of licence;
(v) the ‘Communication’ condition has been varied and a further condition has been inserted to clarify the communication conditions of licence;
(vi) the ‘Directions of Commission’ condition has been expanded to clarify that the condition relates to both general and direct directions;
(vii) a further ‘Fees’ condition has been inserted to impose a licence condition with respect to other fees of licence;
(viii) the ‘Audits’ condition has been replaced with a ‘Management systems’ condition which inserts a new condition regarding management systems;
(ix) the ‘Reviews and proceedings’ condition has been revised to clarify the Licensee’s obligations in this regard;
(x) the ‘Information and reporting requirements’ condition has been expanded to include conditions regarding the provision and use of information and data;
(xi) the general ‘Specific Conditions’ condition regarding written undertakings has been removed;
(xii) the ‘Performance Conditions’ have been removed from Attachment B to the licence and a new ‘Performance conditions’ condition has been inserted into Part 4 of the licence instrument in its place;
(xiii) the ‘Prudential Conditions’ of licence has been removed from Attachment A to the licence and inserted into Part 4 of the licence instrument; and
(xiv) the ‘Licence certification’ condition has been amended to remove the prescribed date for certification.
D. The variations take effect at midnight on 1 July 2016.
E. The scope and conditions of the licence are as set out below.
Licence
Part 1 – Interpretation
Interpretation
- Unless the contrary intention appears, expressions used in this instrument have the same meaning as in the SRC Act.[1]
Definitions
2. In this licence:
(a) APRA means the Australian Prudential Regulation Authority;
(b) Document means document as that word is defined by section 2B of the Acts Interpretation Act 1901;
(c) Licensee includes, where the context permits, the Claims Manager and the Reviewer.
Part 2 – Grant of Licence
Eligible applicant
3. The Licensee is a Commonwealth authority for the purposes of Part VIII of the SRC Act.
Licence decisions
4. The Commission, acting under sections 103 and 104 of the SRC Act, granted a licence to the Licensee on 11 June 2004 for the period commencing on 1 July 2004 and ending on 30 June 2007 as notified by Notice No. 4 of 2004 in Commonwealth Gazette No. P4 on 30 June 2004.
5. Following its commencement, the licence has been varied or extended by the Commission on:
(i) 25 June 2007 as notified by Notice No. 18 of 2007, Commonwealth Gazette No. S121 on 27 June 2007;
(ii) 18 June 2008 as notified by Notice No. 30 of 2008, Commonwealth Gazette No. GN 25 on 25 June 2008;
(iii) 15 June 2011 as notified by Notice No. 8 of 2011, Commonwealth Gazette No. GN 24 on 22 June 2011; and
(iv) 2 July 2015 as notified by Notice No. 7 of 2015, Gazette reference number C2015G01080, published on 3 July 2015.
Period of licence
6. Subject to the SRC Act, this licence is for the period commencing immediately after midnight (Australian Eastern Daylight Time) on 1 July 2004 and, in accordance with the most recent extension, ending at midnight (Australian Eastern Standard Time) on 30 June 2023 (the period of this licence).
Part 3 – Scope of Licence
Scope of licence – acceptance of liability
7. 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; or
(b) occurred in the period commencing on 1 May 1996 and ending when this licence came into force.
Scope of licence – management of claims
8. The Licensee is authorised to manage:
(a) claims under the SRC Act 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 7 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.
Scope of licence – reconsiderations
9. For the purpose of any reconsiderations under Part VI of the SRC Act, except for reconsiderations of own motion of matters in respect of which the outcomes would be no less favourable to the employee than the original decisions, 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.
10. The Licensee is to enter into and maintain a written 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.
11. 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.
Part 4 – Conditions of licence
Conditions of licence
12. The licence is granted subject to the following conditions.
General conditions
Communication
13. The Licensee, when bringing employees under its self-insurance licence pursuant to any consolidation or amalgamation process, must provide information to those employees regarding the Work Health and Safety Act 2011 (Cth) (the WHS Act) and the SRC Act prior to those employees becoming employees of the Licensee.
14. The Licensee must provide information regarding the operation of the WHS Act and the SRC Act to all new employees as part of the licensee’s employee induction process.
Directions of Commission
15. 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 generally, or to the Licensee directly, with respect to the performance by the Licensee of its functions or the exercise of its powers under the SRC Act.
Requirements
16. 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, with a particular focus on the statutory requirements for genuine consultation with employees and their representatives; and
(c) the relevant Privacy legislation.
17. The Licensee must have regard to guidelines issued by the Privacy Commissioner under the Privacy Act 1988 (Cth) and must comply with any such guidelines dealing with covert surveillance of employees.
Fees
18. 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.
19. On written request from the Commission, the licensee must pay other fees relating to the Licensee’s operations under the SRC Act, in the amount and within the timeframe, specified by the Commission.
Manner of managing claims
20. 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.
Management systems
21. The Licensee must co-operate with, and give reasonable assistance to, the Commission or its representatives in respect of any targeted reviews and evaluations of the Licensee to be conducted by the Commission or its representatives.
22. The Licensee must report to the Commission as required in accordance with the Performance Standards and Measures to demonstrate that it has maintained its Claims Management, Rehabilitation and WHS management systems, as advised to Comcare.
Reviews and proceedings
23. The Licensee must inform Comcare as soon as practicable of any court or tribunal proceedings in relation to a matter arising in respect of a claim managed by the Licensee under the SRC Act.
24. The Licensee must give to Comcare, within the timeframe specified in the request, any information or documents that Comcare requests in respect of any court or tribunal proceedings in relation to a matter arising is respect of a claim managed by the Licensee under the SRC Act.
25. The Licensee must not cause, or permit to be made on its behalf to a court or tribunal any submission that Comcare or the Commission requests the Licensee not to make.
Failure to comply with conditions or change in circumstances
26. The Licensee must notify Comcare in writing as soon as practicable of any event or likely event that is relevant to the application of the SRC Act to the Licensee, this may include but is not limited to:
(a) the Licensee has not complied with, or is likely to fail to comply with, a condition of this licence; or
(b) any change that may impact on the Licensee’s capacity to meet its liabilities under the SRC Act, including change to the Licensee’s underlying financial position; or
(c) changes to its legal structure, ownership or control; or
(d) 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
27. 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.
28. The Licensee must give to Comcare, within the timeframe and in the manner specified in the request, such data as requested by the Commission in relation to the Licensee’s operations under the SRC Act.
29. The Licensee agrees that all information and data that the Licensee provides to the Commission and Comcare pursuant to this licence may be used by Comcare for the due performance of its functions and powers, including for scheme reporting purposes.
Specific conditions
Previous licence holders
30. 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.
Performance conditions
31. The Licensee must comply with the Performance Standards and Measures approved by the Commission from time to time.
Prudential conditions
Licensee certification
32. The principal officer of the Licensee must certify in writing to the Commission each financial year that the Licensee has:
(a) arranged, in accordance with the Liability Report conditions (conditions 33 to 40 inclusive), 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 the Yearly Account conditions (conditions 41 to 45 inclusive), provision in its accounts, in accordance with the estimates in the Liability Report required by the Liability Report conditions, for meeting its liabilities; and
Liability report
33. 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.
34. 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 PS300, 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.
35. 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;
36. 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.
37. 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.
38. The Commission may direct the date for provision of a Second Liability Report.
39. Unless the Commission directs otherwise, the Licensee must pay for a Second Liability Report.
40. If the Commission receives a Second Liability Report, it replaces the original Liability Report and:
(a) references in conditions 41 to 45 to the Liability Report are to be construed as references to the Second Liability Report; and
(b) references in conditions 41 to 45 to the actuary who prepares the Liability Report are to be construed as references to the actuary who prepares the Second Liability Report.
Yearly Accounts
41. 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 condition 41(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.
42. The provision mentioned in condition 41(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.
43. 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 conditions 34 and 35.
44. It will be sufficient compliance with 42 if the Licensee provides the Commission with a statement at the time of lodging its accounts that the actuary’s written evaluation required by this condition is contained in the Liability Report provided to the Commission, and identifying the location of the information in that Report.
45. For the purposes of condition 44, “actuary” means the actuary who prepares the Liability Report referred to in condition 33.
Dated the 28th day of June 2016.
Barry Sherriff
Chairperson
Safety, Rehabilitation and Compensation Commission
[1] For the purposes of this licence, the definition of claim prescribed by section 99 of the SRC Act applies.