SAFETY, REHABILITATION AND COMPENSATION DIRECTIONS AMENDMENT INSTRUMENT 2026
EXPLANATORY STATEMENT
Issued by authority of the Minister for Employment and Workplace Relations
under sections 89D and 101 of the Safety, Rehabilitation and Compensation Act 1988
Purpose and operation of the 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 SRC 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 SRC Act.
From 28 March 2019, the Commission has been subject to the Ministerial directions contained in the Safety, Rehabilitation and Compensation Directions 2019 (the 2019 Directions).
This instrument amends the 2019 Directions to update the Ministerial directions with respect to the Commission’s grant of licence decisions. This instrument repeals section 7A of the 2019 Directions and replaces it with the following updated directions:
(i) Section 7A
Subsection 7A(1) provides that section 7A applies only where:
a. a corporation has been declared to be eligible to apply to be granted a licence under section 100 of the SRC Act after the commencement of section 7A; and
b. that corporation has made an application in accordance with section 102 of the SRC Act to be granted a licence.
In such circumstances, subsection 7A(2) provides that, in determining an application for a new licence under section 104 of the SRC Act, a primary criterion to be considered by the Commission is whether it is satisfied, on reasonable grounds, that the applicant is a member of a corporate group in which a majority of employees in the corporate group are, at the time of the application, covered by the SRC Act.
The effect of this amendment is that the corporate group requirement in new subsection 7A(2) does not apply to corporations that were declared eligible to apply for a licence under section 100 of the SRC Act before commencement of new section 7A.
(ii) Section 7B
Section 7B provides that, in determining an application for a licence under section 104 of the SRC Act, a primary criterion to be considered by the Commission is whether it is satisfied, on reasonable grounds, that the licence:
- would not result in an overall reduction in workers’ compensation entitlements; and
- would not result in an overall reduction in supporting arrangements for claims management, including timeliness of decision making, rehabilitation and return to work
for the employees of the applicant to be covered by the SRC Act.
In this regard, supporting arrangements for claims management, timeliness of decision making, rehabilitation and return to work are references to factors other than the payment of compensation entitlements. This would include consideration of what arrangements are in place across relevant jurisdictions to support effective claims management, rehabilitation and return to work. It is expected that the consideration of the timeliness of decision making will involve a comparison of statutory timeframes, rather than a detailed comparison of jurisdictional data on actual decision-making timeframes.
(iii) Section 7C
Section 7C provides that, in determining an application for a new licence under section 104 of the SRC Act, the Commission must take into account, consider and respond to the views and concerns of employees of the applicant to be covered by the SRC Act and the relevant registered unions with respect to the criteria for a grant of licence, as it applies to the applicant. This requires the Commission to acknowledge, take into account and engage with the views of the employees.
The amended Directions apply to any of the Commission’s decisions made under section 104 of the SRC Act from the date this instrument commences, regardless of when the application for a licence was made. To avoid doubt, sections 7A, 7B and 7C do not apply to applications by current licensees to extend or vary existing licences under section 105 of the SRC Act.
The instrument commences the day after it is registered on the Federal Register of Legislation.
This instrument is a legislative instrument for the purposes of the Legislation Act 2003, but is not subject to disallowance (see item 2 of section 9 of the Legislation (Exemptions and Other Matters) Regulation 2015) or sunsetting (see item 3 of section 11 of the Legislation (Exemptions and Other Matters) Regulation 2015).
CONSULTATION
Consultation was undertaken with the Commission members, the Safety, Rehabilitation and Compensation Licensees Association, the Australian Council of Trade Unions, Comcare, Healthscope Operations Pty Ltd, Toll Transport Pty Ltd, Ventia Australia Pty Ltd, and John Holland Group Pty Ltd. Those that were consulted were provided with an outline of the instrument and were invited to provide feedback. Where appropriate, feedback received during the consultation process has been incorporated into the instrument and this statement.
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 2026
This Legislative 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
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 SRC 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 SRC Act.
On and from 28 March 2019, the Commission has been subject to the Ministerial directions contained in the Safety, Rehabilitation and Compensation Directions 2019 (the 2019 Directions).
This instrument amends the 2019 Directions to update the Ministerial directions with respect to the Commission’s grant of licence decisions. This instrument repeals section 7A of the 2019 Directions and replaces it with the following updated directions:
(i) Section 7A
Subsection 7A(1) provides that section 7A applies only where:
a. a corporation has been declared to be eligible to apply to be granted a licence under section 100 of the SRC Act after the commencement of section 7A; and
b. that corporation has made an application in accordance with section 102 of the SRC Act to be granted a licence.
In such circumstances, subsection 7A(2) provides that, in determining an application for a new licence under section 104 of the SRC Act, a primary criterion to be considered by the Commission is whether it is satisfied, on reasonable grounds, that the applicant is a member of a corporate group in which a majority of employees in the corporate group are, at the time of the application, covered by the SRC Act.
The effect of this amendment is that the corporate group requirement in new subsection 7A(2) does not apply to corporations that were declared eligible to apply for a licence under section 100 of the SRC Act before commencement of new section 7A.
(ii) Section 7B
Section 7B provides that, in determining an application for a new licence under section 104 of the SRC Act, a primary criterion to be considered by the Commission is whether it is satisfied, on reasonable grounds, that the licence:
- would not result in an overall reduction in workers’ compensation entitlements; and
- would not result in an overall reduction in supporting arrangements for claims management, including timeliness of decision making, rehabilitation and return to work
for the employees of the applicant to be covered by the SRC Act.
In this regard, supporting arrangements for claims management, timeliness of decision making, rehabilitation and return to work are references to factors other than the payment of compensation entitlements. This would include consideration of what arrangements are in place across relevant jurisdictions to support effective claims management, rehabilitation and return to work.
(iii) Section 7C
Section 7C provides that, in determining an application for a new licence under section 104 of the SRC Act, the Commission must take into account, consider and respond to the views and concerns of employees of the applicant to be covered by the SRC Act and the relevant registered unions with respect to the criteria for a grant of licence, as it applies to the applicant.
Human rights implications
Article 7 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) provides for the right of everyone to the enjoyment of just and favourable conditions of work. Article 11 of the ICESCR provides for the right of everyone to an adequate standard of living. Article 9 of the ICESCR provides for the right of everyone to social security, including social insurance. General Comment 19 by the Committee on Economic, Social and Cultural Rights sets out the essential elements of the right to social security, including that ‘States parties should … ensure the protection of workers who are injured in the course of employment or other productive work’.[1]
Workers’ compensation legislation ensures the protection of injured workers by way of compensation payments, payment of medical expenses, permanent impairment benefits and other benefits, such as access to rehabilitation support. By doing so, it also supports the rights to just and favourable working conditions and to an adequate standard of living.
The instrument engages, but does not limit, human rights. By requiring the Commission to be satisfied that the grant of a licence would not result in an overall reduction in workers’ compensation entitlements or in supporting arrangements for claims management, rehabilitation and return to work, this instrument promotes human rights. In addition, the requirement for consultation with affected employees and relevant registered unions promotes transparency and procedural fairness in licensing decisions that may affect the applicable workers’ compensation scheme.
While the grant of a licence under the SRC Act may affect which workers’ compensation scheme applies to certain employees, it does not affect the right of the employee to workers’ compensation generally. Employees of corporations who do not obtain a licence under the SRC Act will remain covered by workers’ compensation under state and territory arrangements.
Accordingly, the instrument engages but does not interfere with the rights to just and favourable working conditions, an adequate standard of living, and to social security.
Conclusion
The Legislative Instrument is compatible with human rights as it does not limit any human rights.
The Hon Amanda Rishworth MP
Minister for Employment and Workplace Relations
Attachment A
NOTES ON SECTIONS
Section 1 – Name
Section 1 provides that the title of the instrument is the Safety, Rehabilitation and Compensation Directions Amendment Instrument 2026.
Section 2 – Commencement
Section 2 provides that the instrument commences on the day after it is registered on the Federal Register of Legislation.
Section 3 – Authority
Section 3 provides that the instrument is made under sections 89D and 101 of the Safety, Rehabilitation and Compensation Act 1988.
Section 4 – Definitions
Section 4 provides the definitions of terms used in the instrument.
Section 5 – Schedules
Section 5 provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1 – Amendments
Schedule 1 to the instrument amends the Safety, Rehabilitation and Compensation Directions 2019 as specified in the schedule.
[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].