EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 297
Issued by the authority of the Minister for Employment and Workplace Relations
Safety, Rehabilitation and Compensation Act 1988
Safety, Rehabilitation and Compensation Amendment Regulations 2006 (No. 1)
Section 122 of the Safety, Rehabilitation and Compensation Act 1988 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed for carrying out or giving effect to the Act.
Part III of the Act contains provisions dealing with the rehabilitation of injured employees and the approval process for rehabilitation providers who provide services for those employees. Sections 34C and 34K require applications for approval as a rehabilitation provider to be accompanied by the prescribed fee.
The Safety, Rehabilitation and Compensation Regulations 2002 (the Principal Regulations) currently prescribe the fees for an initial approval application and a renewal application. The fee for processing an initial application is $400. The fee for a renewal application is $300. the current fees came into effect on 1 April 2002.
The Regulations amend the Principal Regulations to increase the fee for an initial application to $480 and a renewal application to $360. The increases reflect increases in the Australian Bureau of Statistics Wage Cost Index over the past four years, with the increase for 2006, the fifth year, being an estimate.
Comcare, as the approval body, consulted with all currently approved rehabilitation providers and the Australian Rehabilitation Providers Association, over the fee increases.
The Office of Regulation Review advised that a regulation impact statement (RIS) was not required because the amendments are of a minor or machinery nature and do not substantially alter existing arrangements.
Details of the Regulations are set out in the Attachment.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulations commence on 1 December 2006.
ATTACHMENT
Details of the proposed Safety, Rehabilitation and Compensation Amendment Regulations 2006 (No. 1)
Regulation 1: Name of Regulations
This identifies the Regulations as the Safety, Rehabilitation and Compensation Amendment Regulations 2006 (No. 1).
Regulation 2: Commencement
The proposed Regulations commence on 1 December 2006.
Regulation 3: Amendment of Safety, Rehabilitation and Compensation Regulations 2002
This provides that the Safety, Rehabilitation and Compensation Regulations 2002 (the Principal Regulations) are amended as set out in Schedule l.
Schedule 1: Amendments
Item [1]: Paragraph 8 (b)
This amendment omits the current amount of $400 and inserts the higher amount of $480.
Item [2] Regulation 9
This amendment omits the current amount of $300 and inserts the higher amount of $360.
Overview
The Safety, Rehabilitation and Compensation Amendment Regulations 2006 (No. 1) were introduced to adjust the fees associated with the approval process for rehabilitation providers under the Safety, Rehabilitation and Compensation Act 1988. This legislative instrument was enacted to ensure that the fees for both initial and renewal applications for rehabilitation provider approval reflect the rising costs due to inflation, as measured by the Australian Bureau of Statistics Wage Cost Index over a four-year period. The Regulations were issued by the Minister for Employment and Workplace Relations and aim to maintain the financial sustainability of the rehabilitation provider approval process. These amendments took effect from 1 December 2006 and were made in consultation with relevant stakeholders, including currently approved rehabilitation providers and the Australian Rehabilitation Providers Association. The increase in fees was deemed minor and did not require a regulation impact statement.
Scope and Application
The Safety, Rehabilitation and Compensation Amendment Regulations 2006 (No. 1) apply to the rehabilitation providers who seek approval or renewal of their approval under the Safety, Rehabilitation and Compensation Act 1988. The Act covers employees injured in the course of their employment and the processes for the approval of rehabilitation service providers. The regulations amend the fees for initial and renewal applications for approval as a rehabilitation provider, increasing them from $400 to $480 for initial applications and from $300 to $360 for renewal applications. These amendments reflect the changes in the Australian Bureau of Statistics Wage Cost Index over the past four years. The geographic reach of the Act is national, as it applies to the Commonwealth of Australia. The amendments are a legislative instrument under the Legislative Instruments Act 2003 and do not require a regulation impact statement as they are considered to be of a minor or machinery nature and do not substantially alter existing arrangements. The Regulations commence on 1 December 2006.
Key Provisions
The Safety, Rehabilitation and Compensation Amendment Regulations 2006 (No. 1) amend the existing Safety, Rehabilitation and Compensation Regulations 2002, specifically concerning the fees payable for the approval of rehabilitation providers (Regulation 3). Regulation 1 identifies these as the Safety, Rehabilitation and Compensation Amendment Regulations 2006 (No. 1), and Regulation 2 states that they commence on 1 December 2006. Schedule 1 outlines the amendments to the Principal Regulations, where Item [1] amends Paragraph 8(b) to increase the fee for an initial approval application from $400 to $480, and Item [2] amends Regulation 9 to increase the fee for a renewal application from $300 to $360.
These Regulations impose obligations on parties applying for approval as rehabilitation providers under the Safety, Rehabilitation and Compensation Act 1988 (the Act). Specifically, Section 34C and 34K of the Act require that applications for approval are accompanied by the prescribed fee, which is now updated by the Regulations to $480 for an initial application and $360 for a renewal application. The changes were determined after consultation with all currently approved rehabilitation providers and the Australian Rehabilitation Providers Association, ensuring that the increases are reflective of economic conditions over the past four years, as measured by the Australian Bureau of Statistics Wage Cost Index.
Under the Act, failure to comply with the requirements for fees can lead to administrative consequences. Although the Regulations themselves do not explicitly state penalties for non-compliance, the Act may impose sanctions for not adhering to regulatory requirements, such as the non-approval of applications or potential legal action for misrepresentation. The exact consequences would depend on the specific context and the provisions of the Act.
Given the nature of the amendments—being minor and of a machinery nature—the Office of Regulation Review advised that a regulation impact statement was not required. This indicates that the changes are not expected to substantially alter existing arrangements but are rather adjustments to maintain the regulatory framework's efficacy in light of economic changes.