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. 2)
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.
Linfox Australia Pty Ltd (ABN 47 004 718 647) and Linfox Armaguard (ABN 83 099 701 872) are corporations carrying on business in competition with a Commonwealth authority or a former Commonwealth authority. They have requested that the Minister declare them to be eligible corporations 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 Linfox Australia Pty Ltd and Linfox Armaguard Pty Ltd.
The notice declares that Linfox Australia Pty Ltd and Linfox Armaguard Pty Ltd are 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 Linfox Australia Pty Ltd and Linfox Armaguard Pty Ltd 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 (Licence Eligibility) Notice 2005 (No. 2) was introduced to address the gap in the application of the Commonwealth workers' compensation and rehabilitation scheme to certain corporations. Enacted by the Parliament of Australia, this Notice allows the Minister for Employment and Workplace Relations to declare eligible corporations under section 100 of the Safety, Rehabilitation and Compensation Act 1988. The primary policy objective is to ensure that corporations engaged in activities that compete with Commonwealth authorities or were previously Commonwealth authorities are subject to the Commonwealth's workers' compensation scheme. This Notice streamlines the process for such corporations to obtain a licence, thereby integrating them into the national scheme and potentially mitigating disparities in compensation and rehabilitation standards across different jurisdictions.
Scope and Application
The Safety, Rehabilitation and Compensation (Licence Eligibility) Notice 2005 (No. 2) applies to specific corporations, namely Linfox Australia Pty Ltd and Linfox Armaguard Pty Ltd, which have been declared eligible to be granted a licence under Part VIII of the Safety, Rehabilitation and Compensation Act 1988. These corporations are eligible because they are carrying on business in competition with a Commonwealth authority or a former Commonwealth authority. By declaring these corporations as eligible, the Minister for Employment and Workplace Relations has determined that it would be desirable for the Commonwealth workers’ compensation and rehabilitation scheme to apply to their employees. This decision is grounded in the principles of assessing the impact on employees, the applicant, and the operation of both the Commonwealth and State/Territory workers' compensation schemes. The Notice also specifies that State and Territory workers’ compensation legislation will cease to apply to these corporations once they are granted a licence, although any existing liabilities under State or Territory laws will remain unaffected. This legislative instrument extends the Commonwealth scheme's reach to these corporations while ensuring a smooth transition and maintaining existing obligations.
Key Provisions
The Safety, Rehabilitation and Compensation (Licence Eligibility) Notice 2005 (No. 2) (the Notice) operates under the Safety, Rehabilitation and Compensation Act 1988 (the Act). This legislation primarily pertains to the eligibility of certain corporations for a licence to manage workers’ compensation claims under the Commonwealth scheme, rather than the State and Territory schemes. Specifically, Section 100 of the Act allows the Minister for Employment and Workplace Relations to declare a corporation as eligible if it 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. Once declared eligible, the corporation may apply to the Safety, Rehabilitation and Compensation Commission for a licence to accept liability for workers' compensation and to manage employee claims.
Under this Notice, Linfox Australia Pty Ltd and Linfox Armaguard Pty Ltd have been declared eligible corporations. This means they can apply for a licence to operate under the Commonwealth workers’ compensation scheme, effectively making State and Territory workers’ compensation laws inapplicable to them. It is important to note that any pre-existing liabilities or obligations incurred under State or Territory laws remain unaffected by this transition. This change takes effect upon registration on the Federal Register of Legislative Instruments and is considered a legislative instrument under the Legislative Instruments Act 2003.
The obligations imposed by the Act on the eligible corporations primarily revolve around the application and compliance processes for the licence. Eligible corporations must submit applications to the Commission for the licence and ensure that they meet the criteria set out in Section 100 of the Act. The Commission assesses these applications based on several principles, including the impact on employees, the corporation, and the Commonwealth and State/Territory compensation schemes. If granted, the corporations must adhere to the terms and conditions of the licence, ensuring they manage workers’ compensation claims in accordance with the Act.
Failure to comply with the provisions of the Act or the terms of the licence can result in significant consequences. Although the Notice does not specify exact penalties, breaches of the Act can lead to both civil and criminal liabilities. Civil penalties may include fines and other monetary sanctions, while criminal penalties could involve imprisonment. The severity of these penalties would depend on the nature and extent of the breach, as well as the specific provisions of the Act that have been contravened.