Safety, Rehabilitation and Compensation Act 1988 - Section 97E - Premium Determination Guidelines 2016

Administered by Department of Employment and Workplace Relations

Legislation au F2016L01264 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Safety, Rehabilitation and Compensation Act 1988

 

Issued by the Safety, Rehabilitation and Compensation Commission

 

Premium Determination Guidelines 2016

 

Section 97 of the Safety, Rehabilitation and Compensation Act 1988 (the SRC Act) provides that Comcare must make a determination of the premium to be paid by each Entity and Commonwealth authority (premium paying agency) for each financial year.

 

Section 97E of the SRC Act provides that the Safety, Rehabilitation and Compensation Commission (the Commission) may prepare and issue guidelines to the Chief Executive Officer of Comcare in relation to the determination by Comcare of premiums to be paid by premium paying agencies in respect of a financial year. 

 

The purpose of the instrument is to issue guidelines for the determination by Comcare of the annual workers’ compensation premiums payable to Comcare by premium paying agencies. The Premium Determination Guidelines 2016 (Guidelines) guide Comcare’s consideration of the matters set out in section 97A of the SRC Act. The Guidelines will replace any previous guidelines issued by the Commission pursuant to section 97E of the SRC Act on the day after the instrument is registered.

 

The Guidelines are intended to ensure that: the workers’ compensation scheme under the SRC Act is returned to a fully funded position; the impact of claim performance and other variable costs on premiums is transparent and explained to premium paying agencies; indicative premiums are advised to premium paying agencies in time for consideration in the context of agencies’ budgets for the following financial year; significant changes to the premium calculations methodology are explained to premium paying agencies; and Comcare advises the Commission annually on its compliance with the Guidelines.  

 

The instrument is a legislative instrument within the meaning of the Legislation Act 2003.

 

The instrument was developed by the Commission in consultation with Comcare and the Department of Employment. The Commission’s members include three members nominated by the Australian Council of Trade Unions, a member who represents the licensees, a member who represents the Commonwealth and Commonwealth authorities and a member who represents the interests of the Australian Capital Territory’s public sector employers. Given the purpose and limited scope of this instrument, and the employee and employer representation on the Commission, the instrument was not released for public consultation.  

 

The instrument only affects premium paying agencies and has no impact on business and the non-profit sector. The Office of Best Practice Regulation has advised no regulation impact statement is required (OBPR ID: 20926).

 

 

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the

Human Rights (Parliamentary Scrutiny) Act 2011

 

Premium Determination Guidelines 2016

 

This instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the legislative instrument

 

Section 97 of the Safety, Rehabilitation and Compensation Act 1988 (the SRC Act) provides that Comcare must make a determination of the premium to be paid by each Entity and Commonwealth authority (premium paying agency) for each financial year.

 

Section 97E of the SRC Act provides that the Safety, Rehabilitation and Compensation Commission (the Commission) may prepare and issue guidelines to the Chief Executive Officer of Comcare in relation to the determination by Comcare of premiums to be paid by premium paying agencies in respect of a financial year. 

 

The purpose of the instrument is to issue guidelines for the determination by Comcare of the annual workers’ compensation premiums payable to Comcare by premium paying agencies. The Premium Determination Guidelines 2016 (Guidelines) guide Comcare’s consideration of the matters set out in section 97A of the SRC Act. The Guidelines will replace any previous guidelines issued by the Commission pursuant to section 97E of the SRC Act on the day after the instrument is registered.

 

The Guidelines are intended to ensure that: the workers’ compensation scheme under the SRC Act is returned to a fully funded position; the impact of claim performance and other variable costs on premiums is transparent and explained to premium paying agencies; indicative premiums are advised to premium paying agencies in time for consideration in the context of agencies’ budgets for the following financial year; significant changes to the premium calculations methodology are explained to premium paying agencies; and Comcare advises the Commission annually on its compliance with the Guidelines.  

 

Human rights implications

 

This instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

 

This instrument is compatible with human rights as it does not raise any human rights issues.

 

Overview

The Premium Determination Guidelines 2016, issued by the Safety, Rehabilitation and Compensation Commission, provide the framework for Comcare to determine the annual workers' compensation premiums payable by premium paying agencies under the Safety, Rehabilitation and Compensation Act 1988. These guidelines replace any previous guidelines issued by the Commission. The primary objective of these guidelines is to ensure that the workers' compensation scheme under the SRC Act returns to a fully funded position, with a transparent explanation of how claim performance and other variable costs impact premiums. The guidelines also aim to ensure that indicative premiums are communicated to agencies in time for budget considerations for the following financial year, significant changes in premium calculation methodologies are explained, and Comcare reports annually on its compliance with the guidelines. The instrument was developed in consultation with Comcare and the Department of Employment, reflecting the interests of employees, employers, and public sector employers on the Commission, and was not subject to public consultation due to its limited scope and specific target audience of premium paying agencies.

Scope and Application

The Premium Determination Guidelines 2016, issued under the Safety, Rehabilitation and Compensation Act 1988, provide specific instructions for Comcare, a Commonwealth entity, in determining the annual workers’ compensation premiums payable by premium paying agencies. These agencies include Entities and Commonwealth authorities. The Guidelines ensure that the workers’ compensation scheme under the SRC Act is returned to a fully funded position, and that premium paying agencies are transparently informed of how claim performance and other variable costs impact their premiums. They also mandate that Comcare provides agencies with indicative premiums in advance of their budget considerations for the upcoming financial year and explains any significant changes to the premium calculation methodology. Comcare is required to report annually on its adherence to these Guidelines to the Safety, Rehabilitation and Compensation Commission. The Guidelines are issued under the authority of section 97E of the SRC Act and replace any previously issued guidelines upon their registration. This legislative instrument applies exclusively to premium paying agencies and does not affect businesses or the non-profit sector.

Key Provisions

The Premium Determination Guidelines 2016 (Guidelines) issued under section 97E of the Safety, Rehabilitation and Compensation Act 1988 (SRC Act) provide a framework for Comcare to determine annual workers’ compensation premiums for entities and Commonwealth authorities (referred to as premium paying agencies). The Guidelines are designed to ensure a fully funded workers’ compensation scheme, transparency in premium calculations, timely advice on indicative premiums, clear communication on significant changes in methodology, and annual reporting on compliance with the Guidelines (sections 97 and 97E of the SRC Act). These provisions collectively aim to streamline the process of premium determination and enhance transparency and accountability within the workers’ compensation scheme. Under these Guidelines, premium paying agencies must adhere to the processes and criteria outlined by Comcare for determining their annual premiums. This includes engaging with Comcare to understand how their claims performance and other variable costs impact their premiums. Additionally, agencies must consider the indicative premiums provided by Comcare in the context of their budgetary planning for the following financial year. Agencies are also required to review any significant changes to the premium calculation methodology communicated by Comcare and understand how these changes may affect their premiums (section 97A of the SRC Act). Failure to comply with the Guidelines may result in non-compliance being reported to the Safety, Rehabilitation and Compensation Commission. While the Guidelines themselves do not specify penalties for non-compliance, the broader SRC Act may impose administrative or other consequences for non-compliance with premium determination requirements. It is important for premium paying agencies to ensure they adhere to the Guidelines to avoid any potential repercussions that may arise from non-compliance with the SRC Act’s provisions (section 97E of the SRC Act). The human rights compatibility statement confirms that the Guidelines do not infringe upon any rights or freedoms recognised under the Human Rights (Parliamentary Scrutiny) Act 2011, ensuring that the Guidelines operate within a human rights-compliant framework.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.