EXPLANATORY STATEMENT
Issued by the authority of the Minister for Employment and Workplace Relations
Safety, Rehabilitation and Compensation Act 1988
Section 100 – Declaration of eligibility to be granted a licence under Part VIII
The Safety, Rehabilitation and Compensation Act 1988 (the Act) establishes the Commonwealth workers’ compensation and rehabilitation scheme.
Under Part VIII of the Act, an ‘eligible corporation’ may apply to the Safety, Rehabilitation and Compensation Commission (the Commission) for a licence to:
(i) accept liability to pay workers’ compensation in respect of its employees in accordance with the Act; and/or
(ii) manage the claims of its employees in accordance with the Act.
An ‘eligible corporation’ is a corporation that has been declared to be such by the Minister for Employment and Workplace Relations under section 100 of the Act. Section 100 of the Act provides that if the Minister is satisfied that it would be desirable for the Act to apply to employees of a corporation that:
(a) is, but is about to cease to be, a Commonwealth authority; or
(b) was previously a Commonwealth authority; or
(c) is carrying on business in competition with a Commonwealth authority or with another corporation that was previously a Commonwealth authority;
the Minister may, by notice in writing, declare the corporation to be eligible to be granted a licence under Part VIII.
If the Commission subsequently decides to grant an eligible corporation a licence, State and Territory workers’ compensation legislation will cease to apply to that corporation from the date the licence comes into force. Any liability or obligation incurred by the corporation under a State or Territory law in relation to the injury or death of an employee, or any loss or damage suffered by an employee, before the licence comes into force is not affected.
The Minister has developed a set of principles to assist him in deciding whether it is desirable for the Act to apply to employees of a corporation carrying on a business in competition with a Commonwealth authority or with a corporation that was previously a Commonwealth authority. These principles are intended to provide guidance to applicants for a declaration under section 100 of the Act, and to ensure consistent decision making. The principles are:
(a) the likely impact on employees of the applicant;
(b) the likely impact on the applicant;
(c) the likely impact on the integrity of the Commonwealth workers’ compensation scheme; and
(d) the likely impact on the operation of the State and Territory schemes.
Optus Administration Pty Limited (ACN 055 136 804) (‘Optus Administration’) requested that the Minister declare it to be an eligible corporation under section 100 of the Act.
The Minister has determined that Optus Administration satisfies the principles used to assess applications by a corporation carrying on a business in competition with a Commonwealth authority or with a corporation that was previously a Commonwealth authority. On this basis, the Minister is satisfied that it would be desirable for the Act to apply to the employees of Optus Administration.
The notice declares that Optus Administration is eligible to be granted a licence under Part VIII of the Act.
A declaration made under section 100 is a disallowable instrument.
This declaration takes effect from Gazettal.
Overview
The Safety, Rehabilitation and Compensation Act 1988 was enacted by the Parliament of Australia to establish the national workers' compensation and rehabilitation scheme. It provides a unified system for the management of workers' compensation claims, ensuring that employees receive appropriate support and compensation following workplace injuries or illnesses. The Act addresses the fragmentation and inefficiencies that previously existed due to the varying workers' compensation laws across different states and territories. The policy objective of the Act is to provide a consistent and equitable system that protects employees while also ensuring that businesses, particularly those in competition with Commonwealth authorities, are not unduly disadvantaged. The Act allows the Minister for Employment and Workplace Relations to declare certain corporations eligible to apply for a licence under the scheme, thus extending the application of the national system to these entities. This ensures that the Commonwealth scheme can be applied uniformly, regardless of whether the business was previously a Commonwealth authority or is in competition with one.
Scope and Application
The Safety, Rehabilitation and Compensation Act 1988 governs the Commonwealth workers’ compensation and rehabilitation scheme, providing a framework for eligible corporations to apply for a licence to manage workers' compensation and claims under the Act. Specifically, the Act allows for the Minister for Employment and Workplace Relations to declare a corporation eligible to apply for such a licence if it would be desirable for the Act to apply to its employees. This eligibility is determined based on specific criteria, including whether the corporation is about to cease being a Commonwealth authority, was previously one, or is currently in competition with a Commonwealth authority or a former Commonwealth authority. If granted a licence, the corporation can accept liability for workers' compensation and manage claims under the Act, thereby exempting itself from State and Territory workers' compensation laws. The application of the Act to a corporation like Optus Administration, which was declared eligible by the Minister, is contingent on satisfying the prescribed principles that consider impacts on employees, the corporation, and the integrity and operation of the compensation schemes.
Key Provisions
The Safety, Rehabilitation and Compensation Act 1988 (the Act) under section 100, permits the Minister for Employment and Workplace Relations to declare a corporation eligible to be granted a licence under Part VIII. This eligibility allows the corporation to accept liability for paying workers’ compensation for its employees and manage their claims under the Act. An eligible corporation can be one that is about to cease being a Commonwealth authority, was previously a Commonwealth authority, or is competing with a Commonwealth authority or a former Commonwealth authority. The declaration is made if the Minister is satisfied it would be desirable for the Act to apply to the corporation's employees.
The Act imposes obligations on eligible corporations seeking a licence from the Safety, Rehabilitation and Compensation Commission. These corporations must demonstrate they meet the criteria for eligibility as outlined in section 100 of the Act. The declaration process involves the Minister assessing the corporation against a set of guiding principles, including the potential impacts on employees, the corporation itself, the integrity of the Commonwealth workers’ compensation scheme, and the operation of State and Territory schemes. For Optus Administration, this involved showing it competes with a Commonwealth authority and that applying the Act would be desirable.
Failure to comply with the provisions of the Act or attempting to circumvent the licensing requirements can result in various consequences. Under section 100, the declaration is a disallowable instrument, meaning it can be reviewed and potentially disallowed by Parliament. Additionally, if a corporation operates without a valid licence after the licence of another corporation has been revoked, it could face penalties for contravening the Act. The specific penalties for such breaches are not detailed in the explanatory statement, but generally, penalties for contravening workers' compensation laws can include fines and, in severe cases, imprisonment. The exact penalties would depend on the specific breach and the jurisdiction in which it occurs.