EXPLANATORY STATEMENT
Safety, Rehabilitation and Compensation Act 1988
Issued by the Minister for Small and Family Business, the Workplace and Deregulation
Safety, Rehabilitation and Compensation Directions Amendment Instrument 2018
The Safety, Rehabilitation and Compensation Act 1988 (SRC Act) establishes the Commonwealth workers’ compensation and rehabilitation scheme for employees of the Commonwealth, Commonwealth authorities and licensed corporations.
The Safety, Rehabilitation and Compensation Commission (the Commission) is established by the SRC Act. The Commission has a number of functions and powers under the SRC Act, including the granting of licences to eligible applicants under Part VIII of the Act.
Pursuant to section 89D of the SRC Act, the Minister may give a direction to the Commission with respect to the performance of its functions and the exercise of its powers under the SRC Act. Section 101 of the SRC Act provides that the Minister's power to give directions to the Commission under section 89D of the SRC Act extends to directions concerning any matter relating to the grant of licences under Part VIII of the Act.
On and from 1 April 2002, the Commission has been subject to the Ministerial directions contained in the Safety, Rehabilitation and Compensation Direction 2002 (the Directions).
This instrument amends the Directions to exclude the Australian Capital Territory (ACT), a declared Commonwealth authority under the SRC Act, from sections 4 and 9 of the Directions. Accordingly, from the commencement of this instrument, the Commission is no longer directed to:
(a) be satisfied that claims for compensation made by employees of the ACT will be managed by one of the parties prescribed by section 4 of the Directions in order to be satisfied that it is appropriate to grant the ACT a licence; and
(b) authorise only the parties prescribed by section 9 of the Directions to manage claims on behalf of the ACT.
Consultation
Consultation was undertaken with the ACT and Comcare.
Regulation Impact Statement
The Office of Best Practice Regulation was consulted regarding this declaration and indicated that a Regulatory Impact Statement was not required (OBPR ID: 23838).
This instrument is a legislative instrument for the purposes of the Legislation Act 2003.
This instrument takes effect from the day after it is registered on the Federal Register of Legislation.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Safety, Rehabilitation and Compensation Directions Amendment Instrument 2018
This legislative instrument is compatible with the human rights and freedoms recognised or declared by the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the legislative instrument
The Safety, Rehabilitation and Compensation Act 1988 (SRC Act) establishes the Commonwealth workers’ compensation and rehabilitation scheme for employees of the Commonwealth, Commonwealth authorities and licensed corporations.
The Safety, Rehabilitation and Compensation Commission (the Commission) is established by the SRC Act. The Commission has a number of functions and powers under the SRC Act, including the granting of licences to eligible applicants under Part VIII of the Act.
Pursuant to section 89D of the SRC Act, the Minister may give a direction to the Commission with respect to the performance of its functions and the exercise of its powers under the SRC Act. Section 101 of the SRC Act provides that the Minister's power to give directions to the Commission under section 89D of the SRC Act extends to directions concerning any matter relating to the grant of licences under Part VIII of the Act.
On and from 1 April 2002, the Commission has been subject to the Ministerial directions contained in the Safety, Rehabilitation and Compensation Direction 2002 (the Directions).
This instrument amends the Directions to exclude the Australian Capital Territory (ACT), a declared Commonwealth authority under the SRC Act, from sections 4 and 9 of the Directions. Accordingly, from the commencement of this instrument, the Commission is no longer directed to:
(a) be satisfied that claims for compensation made by employees of the ACT will be managed by one of the parties prescribed by section 4 of the Directions in order to be satisfied that it is appropriate to grant the ACT a licence; and
(b) authorise only the parties prescribed by section 9 of the Directions to manage claims on behalf of the ACT.
Human rights implications
Article 9 of the International Covenant on Economic, Social and Cultural Rights provides for the right of everyone to social security, including social insurance. General Comment 19 by the Committee on Economic, Social and Cultural Rights elaborates on Article 9, stating that the ‘States parties should … ensure the protection of workers who are injured in the course of employment or other productive work’.[1] Workers’ compensation is analogous to social insurance in that it provides payment of wages and medical costs to employees for injuries occurring as a result of their employment.
The SRC Act provides rehabilitation, compensation and other benefits to, or in respect of, injured employees.
This instrument, which is made under the SRC Act, engages but does not limit human rights. It effectively permits the ACT to enter into a contract with another person for the management, on the ACT’s behalf, of any SRC Act claims that the ACT may be authorised to manage under a licence.
This instrument does not alter the workers’ compensation rights, entitlements or obligations of ACT employees and so does not limit the right to social security.
Conclusion
This legislative instrument is compatible with human rights because it does not raise any human rights issues.
The Hon Craig Laundy
Minister for Small and Family Business, the Workplace and Deregulation
[1] Committee on Economic, Social and Cultural Rights, General Comment 19: The Right to Social Security (art. 9), U.N. Doc E/C.12/GC/19 (2008), [17].
Overview
The Safety, Rehabilitation and Compensation Act 1988 was enacted to establish a comprehensive workers' compensation and rehabilitation scheme for employees of the Commonwealth, Commonwealth authorities, and licensed corporations. This Act created the Safety, Rehabilitation and Compensation Commission, which is responsible for the administration of the scheme, including the granting of licences to eligible applicants. The objective of the Act is to provide a robust framework for workers' compensation and rehabilitation services across the specified entities. The 1988 Act was designed to fill a significant gap in ensuring that injured workers receive adequate support and rehabilitation services. The Act is an initiative of the Australian Parliament, reflecting the legislative body's commitment to safeguarding the rights and well-being of employees in the federal sphere. The policy objective behind the Act is to provide a consistent and fair system for workers' compensation, ensuring that injured employees receive the necessary support and rehabilitation services.
Scope and Application
The Safety, Rehabilitation and Compensation Act 1988 (SRC Act) is a Commonwealth legislation that establishes a workers' compensation and rehabilitation scheme for employees of the Commonwealth, Commonwealth authorities, and licensed corporations. The Act establishes the Safety, Rehabilitation and Compensation Commission (the Commission) which has functions and powers under the SRC Act, including the granting of licences to eligible applicants. The Act applies to employees of the Commonwealth, Commonwealth authorities, and licensed corporations, providing them with rehabilitation, compensation, and other benefits in the event of work-related injuries. The geographic reach of the Act is national, as it applies to all Commonwealth employees across Australia. The Act is administered by the Commission, and the Minister for Small and Family Business, the Workplace and Deregulation has the power to give directions to the Commission concerning the performance of its functions and the exercise of its powers under the SRC Act. The Safety, Rehabilitation and Compensation Directions Amendment Instrument 2018 amends the Directions to exclude the Australian Capital Territory (ACT) from certain sections of the Directions. From the commencement of this instrument, the Commission is no longer directed to be satisfied that claims for compensation made by employees of the ACT will be managed by one of the parties prescribed by section 4 of the Directions in order to be satisfied that it is appropriate to grant the ACT a licence, nor to authorise only the parties prescribed by section 9 of the Directions to manage claims on behalf of the ACT. This amendment effectively permits the ACT to enter into a contract with another person for the management, on the ACT's behalf, of any SRC Act claims that the ACT may be authorised to manage under a licence.
Key Provisions
The Safety, Rehabilitation and Compensation Directions Amendment Instrument 2018 primarily amends the Ministerial directions given to the Safety, Rehabilitation and Compensation Commission under the Safety, Rehabilitation and Compensation Act 1988 (SRC Act). The key changes are to sections 4 and 9 of the Safety, Rehabilitation and Compensation Direction 2002, which pertain to the management of compensation claims and the authorisation of claim management parties, respectively. These sections no longer apply to the Australian Capital Territory (ACT) from the date of the instrument’s commencement. Specifically, the instrument removes the requirement for the Commission to be satisfied that compensation claims made by ACT employees will be managed by a prescribed party in order for a licence to be granted (section 4 of the Directions) and the authorisation of only prescribed parties to manage claims on behalf of the ACT (section 9 of the Directions).
Under the SRC Act, the Commission is required to manage workers' compensation and rehabilitation claims for eligible employees. The amended Directions now permit the ACT to manage its own claims or enter into contracts with other parties to manage them. This provides the ACT with greater flexibility in managing its workers’ compensation claims, allowing it to choose how best to administer this function. The changes are intended to streamline the process for the ACT while maintaining the integrity and purpose of the workers’ compensation scheme.
The obligations imposed by the SRC Act on the Commission include ensuring that all claims are managed appropriately and that all parties involved comply with the Act. The amended Directions shift some of these obligations to the ACT, which must now ensure that any claims it manages are handled in accordance with the SRC Act. The Commission remains responsible for monitoring and ensuring compliance with the Act, including overseeing the ACT’s compliance with any new arrangements it makes for claim management.
The SRC Act outlines various offences and penalties for breaches, which can include both civil and criminal sanctions. For example, section 141 of the SRC Act provides for fines and imprisonment for fraud or other serious breaches. The maximum penalties can vary depending on the nature and severity of the breach. For instance, fraudulent claims can result in penalties of up to 10 years imprisonment and substantial fines. Additionally, the Commission has the power to impose financial penalties for non-compliance with the Act or its directions. These penalties serve as a deterrent against non-compliance and help ensure that the workers' compensation scheme operates effectively and fairly.
In summary, the Safety, Rehabilitation and Compensation Directions Amendment Instrument 2018 alters the Ministerial directions to provide the ACT with more flexibility in managing its workers’ compensation claims. It removes specific requirements that applied to the ACT under the original Directions, allowing the ACT to choose how it manages its claims, while still ensuring compliance with the overarching provisions of the SRC Act. The changes impose new obligations on the ACT to manage claims appropriately and shift some supervisory responsibilities from the Commission to the ACT. The Act itself continues to provide for significant penalties for non-compliance, maintaining the integrity and purpose of the workers’ compensation scheme.