EXPLANATORY STATEMENT
Safety, Rehabilitation and Compensation Act 1988
Issued by Comcare
Notice of Disallowable Instruments
Approved Guide: Guide to the Assessment of the Degree
of Permanent Impairment
The purpose of the instruments to which this Explanatory Statement relates is to bring into operation the second edition of the Guide setting out the criteria by which the degree of permanent impairment and non-economic loss suffered by an injured employee shall be assessed for the purposes of the Safety, Rehabilitation and Compensation Act 1988 (the SRC Act).
Section 24 of the SRC Act provides that where an injury to an employee results in a permanent impairment, Comcare is liable to pay compensation to the employee in respect of that injury and the degree of permanent impairment shall be a percentage determined under the provisions of the approved Guide.
Section 28 provides that Comcare may prepare a written document, to be called the “Guide to the Assessment of the Degree of Permanent Impairment” and may, from time to time, vary or revoke the approved Guide. In accordance with subsections 28(2) and (3) of the SRC Act, the instruments revoke the first edition of the Guide and approve the second edition, commencing on 1 March 2006.
The instruments are disallowable instruments, subject in part, to the Acts Interpretation Act 1901.
In preparing the Guide, Comcare has, as required under subsection 28(6) of the SRC Act, had regard to medical opinion concerning the nature and effect (including possible effect) of the injury and the extent (if any) to which impairment resulting from the injury, or non-economic loss resulting from the injury or impairment, may reasonably be capable of being reduced or removed.
The first edition of the Guide was issued in 1989. It was based on the 2nd edition of the American Medical Association’s Guides to the Evaluation of Permanent Impairment. The content of the first edition of the Comcare Guide has fallen behind developments in medical assessment of permanent impairment and has been subject to judicial criticism.
The second edition has been devised in consultation with a range of Australian medical specialists and is based on the current edition of the American Medical Association’s Guides to the Evaluation of Permanent Impairment, namely the 5th edition.
The second edition of the Guide is substantially more comprehensive than the first edition and will provide an accurate, clear and objective method for measuring all impairments likely to result from work related conditions. It provides calibrated impairment ratings across the various organ systems, more extensive and comprehensive tables with specific measurements of impairment, and detailed instructions on how ratings may be applied or combined. New impairment tables have also been added for specific conditions and in many tables the maximum levels of impairment have been increased.
While, non-economic loss ratings remain the same, there is more information on symptoms to assist in providing a more consistent and equitable way of rating non-economic loss.
Permanent impairment ratings determined under the first edition will be preserved unless that assessment would not have been made but for a false statement or misrepresentation.
The first edition chapter on psychiatric disorders has been preserved in the second edition. Comcare will continue to closely monitor developments in psychiatric impairment rating scales and the operation of the new edition generally.
Comcare has undertaken extensive consultation with all relevant stakeholders including medical and legal practitioners, employee representatives, SRC Act licensees and Ex-Service Organisations (ESOs).
Overview
The Safety, Rehabilitation and Compensation Act 1988 was enacted to provide for the payment of compensation and rehabilitation to persons injured at work or suffering from an occupational disease. The Act was introduced to address the need for a comprehensive framework to manage workers' compensation in Australia. The enacting body was the Commonwealth Parliament, with the policy objective of ensuring fair and equitable treatment for injured workers and their families, while also promoting their rehabilitation and return to work. The legislation was designed to provide a safety net for employees injured in the course of their employment, ensuring they receive appropriate compensation and support for any permanent impairment resulting from their work-related injuries.
The second edition of the Guide to the Assessment of the Degree of Permanent Impairment, introduced under the Safety, Rehabilitation and Compensation Act 1988, aims to update and refine the methodology for assessing permanent impairment. This revision addresses the shortcomings of the first edition, which had become outdated and had been subject to judicial criticism. The new edition is based on the most recent medical guidelines and incorporates feedback from medical and legal experts, ensuring that the assessment process is more accurate, clear, and objective. Comcare has consulted widely with stakeholders, including medical professionals, legal practitioners, and employee representatives, to ensure the Guide meets current medical standards and provides a consistent framework for assessing permanent impairment.
Scope and Application
The Safety, Rehabilitation and Compensation Act 1988 governs the liability of Comcare in relation to the compensation of employees who suffer permanent impairments due to work-related injuries. The Act applies to employees who incur permanent impairment from injuries sustained in the course of their employment. Comcare, as the entity responsible for administering the Act, prepares and updates the "Guide to the Assessment of the Degree of Permanent Impairment," which is instrumental in determining the compensation for such impairments. The Guide, which is subject to approval and potential revocation by Comcare, ensures that the assessment of permanent impairment is based on current medical understanding and practices. The geographic reach of the Act is primarily within the Commonwealth jurisdiction, affecting federal employees or those covered under federal work-related injury schemes. The instruments associated with the Act are disallowable under the Acts Interpretation Act 1901, meaning they can be disallowed by either house of Parliament. The transition from the first to the second edition of the Guide was made to align with contemporary medical assessments and to address previous criticisms regarding the adequacy and fairness of the impairment rating system.
Key Provisions
The Safety, Rehabilitation and Compensation Act 1988 (SRC Act) contains several key sections that are pertinent to the assessment and compensation of permanent impairment and non-economic loss for injured employees. Section 24 stipulates that Comcare is responsible for compensating employees who suffer permanent impairments resulting from work-related injuries. The degree of this impairment is determined as a percentage using the criteria outlined in the approved Guide to the Assessment of the Degree of Permanent Impairment (Section 24). Section 28 of the SRC Act empowers Comcare to prepare this Guide and to revise or revoke it as necessary. The instruments under consideration revoke the first edition of the Guide and approve the second edition, effective from 1 March 2006.
The obligations imposed by the SRC Act on parties, including Comcare, require adherence to the criteria set out in the approved Guide when assessing the degree of permanent impairment. Comcare must ensure that these assessments are based on current medical opinion and take into account the full extent to which impairment or non-economic loss might be reduced or removed. This obligation extends to having regard to the latest medical research and standards, as well as consulting with a wide range of stakeholders including medical and legal professionals, employee representatives, and relevant organisations. Comcare is also tasked with the responsibility of monitoring the effectiveness of the Guide and making necessary adjustments to keep up with advancements in medical assessment practices.
Failure to comply with the provisions of the SRC Act and the approved Guide can result in various consequences. Although the Explanatory Statement does not explicitly detail offences or penalties, breaches of the Act could potentially lead to civil or administrative penalties. Such penalties might include fines or other sanctions imposed by relevant authorities. It is also possible that non-compliance could result in legal disputes where affected parties might seek redress through the courts. Given the importance of accurate and consistent assessment of permanent impairment and non-economic loss, any failure to adhere to the approved methods and criteria could have significant repercussions for all parties involved.