EXPLANATORY STATEMENT
Issued by the authority of the Minister for Employment and Workplace Relations
Safety, Rehabilitation and Compensation Act 1988
Section 100
Safety, Rehabilitation and Compensation (Licence Eligibility) Notice 2005 (No. 1)
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:
(a) accept liability to pay workers’ compensation in respect of its employees in accordance with the Act; and
(b) 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 body 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.
Applications for declarations under section 100 of the Act are assessed against the following principles:
(a) the likely impact on employees of the applicant;
(b) the likely impact on the applicant;
(c) the likely impact on the operation of the Commonwealth workers’ compensation scheme; and
(d) the likely impact on the operation of the State and Territory schemes.
K&S Freighters Pty Limited (ABN 67 007 544 390) (‘K&S Freighters’) is a corporation carrying on business in competition with a Commonwealth authority or a former Commonwealth authority. K&S Freighters has requested that the Minister declare it to be an eligible corporation under section 100 of the Act.
Having assessed the applications against the principles, the Minister is satisfied that it would be desirable for the Act to apply to the employees of K&S Freighters.
The notice declares that K&S Freighters is eligible to be granted a licence under Part VIII of the Act.
An exemption from the preparation of a Regulatory Impact Statement was granted by the Office of Regulatory Review. Wider consultation was not undertaken as this declaration was made at the request of K&S Freighters itself and it is not likely to have a direct, or substantial indirect, effect on business or restrict competition.
This declaration takes effect upon registration on the Federal Register of Legislative Instruments.
This Notice is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Safety, Rehabilitation and Compensation Act 1988 was enacted to establish a comprehensive scheme for workers' compensation and rehabilitation at the Commonwealth level, addressing the need for a unified approach to managing workplace injuries and illnesses across Australia. This legislation was introduced by the Australian Parliament to ensure that employees, particularly those of corporations interacting with or competing against Commonwealth authorities, receive consistent and equitable treatment under a single scheme. The Act aims to streamline the workers' compensation process, thereby reducing administrative burdens and fostering a more efficient system. The Safety, Rehabilitation and Compensation (Licence Eligibility) Notice 2005 (No. 1) was issued under section 100 of the Act to facilitate the inclusion of eligible corporations, such as K&S Freighters, into the Commonwealth workers’ compensation scheme, ensuring that these corporations can manage their employees' claims in alignment with federal standards.
Scope and Application
The Safety, Rehabilitation and Compensation (Licence Eligibility) Notice 2005 (No. 1) applies to corporations such as K&S Freighters Pty Limited that are in competition with Commonwealth authorities or have previously been Commonwealth authorities. Under section 100 of the Safety, Rehabilitation and Compensation Act 1988, the Minister for Employment and Workplace Relations has the authority to declare such corporations as ‘eligible corporations’ for the purposes of obtaining a licence to manage workers’ compensation and rehabilitation claims in accordance with the Act. This licence allows these corporations to accept liability for workers' compensation under the Commonwealth scheme, effectively displacing State and Territory workers’ compensation laws once the licence is granted. The eligibility criteria are based on the potential impacts on employees, the corporation itself, and the existing workers’ compensation schemes. An exemption from the requirement to prepare a Regulatory Impact Statement was granted for this notice, as it was made at the request of K&S Freighters and is not expected to have a significant effect on business or competition. This declaration becomes effective upon its registration on the Federal Register of Legislative Instruments.
Key Provisions
The key provisions of the Safety, Rehabilitation and Compensation (Licence Eligibility) Notice 2005 (No. 1) declare K&S Freighters Pty Limited an eligible corporation under section 100 of the Safety, Rehabilitation and Compensation Act 1988 (the Act). Section 100 of the Act permits the Minister for Employment and Workplace Relations to declare a corporation eligible for a licence to accept liability for workers' compensation and manage claims under the Commonwealth scheme, provided the corporation is carrying on business in competition with a Commonwealth authority or a former Commonwealth authority (section 100(1)(c)). This declaration is made if the Minister considers it desirable for the Act to apply to the corporation’s employees, taking into account specific impact factors (section 100(2)).
The declaration imposes obligations on K&S Freighters, as an eligible corporation, to apply to the Safety, Rehabilitation and Compensation Commission for a licence under Part VIII of the Act. Once granted, the corporation will be subject to the Commonwealth workers’ compensation and rehabilitation scheme, replacing any State or Territory workers’ compensation legislation previously applicable. K&S Freighters must ensure that all employees are covered by the Commonwealth scheme from the date the licence comes into force, and any pre-existing liabilities or obligations under State or Territory laws remain unaffected (section 100(3)-(4)). The Act also stipulates that the Minister’s declaration is subject to certain principles, including the impact on employees, the corporation, and the Commonwealth and State/Territory workers’ compensation schemes (section 100(5)).
There are no specific offences or penalties outlined in the Notice itself. However, breaches of the Act or the terms of a licence granted under Part VIII could result in civil or criminal consequences, including fines and imprisonment. The maximum penalties for contravening the Act depend on the specific breach and are detailed in other sections of the Act. For instance, under section 158, a person who contravenes a provision of the Act is liable to a fine not exceeding 120 penalty units, or in the case of a corporation, 600 penalty units. In more serious cases, under section 161, a person who commits a criminal offence under the Act is liable to imprisonment for up to two years or a fine not exceeding 120 penalty units, or both, for an individual, and 600 penalty units for a corporation. These penalties reflect the seriousness of non-compliance with the workers’ compensation and rehabilitation provisions set out in the Act.