EXPLANATORY STATEMENT
Issued by the authority of the
Minister for Employment and Workplace Relations
Safety, Rehabilitation and Compensation Act 1988
Licence Eligibility - Section 100
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.
Snowy Hydro Limited is currently a Commonwealth authority for the purposes of the SRC Act, having been declared under section 4 of that Act on 27 June 2001 on the basis that the Commonwealth has a ‘substantial interest’ in the company.
The governments of the Commonwealth of Australia, New South Wales and Victoria, the three shareholders of Snowy Hydro Limited, have announced that, following the listing of Snowy Hydro Limited on the Australian Stock Exchange, they will sell their shareholding in the company. Parliamentary approval to sell the Commonwealth's shares in Snowy Hydro Ltd, was granted on 29 and 30 March 2006, pursuant to the Snowy Hydro Corporatisation Act 1997.
Accordingly, Snowy Hydro Limited (ABN 17 090 574 431), is a body that is, but is about to cease to be, a Commonwealth authority for the purposes of the Act.
Snowy Hydro Ltd is a premium payer under the Act. Snowy Hydro Ltd has requested that the Minister declare it to be an eligible corporation under section 100 of the Act to enable it to self insure its workers’ compensation liabilities under the Act and to ensure continuity of coverage under the Act for the company and its employees, following its privatisation.
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.
Having assessed the application against the principles, the Minister is satisfied that it would be desirable for the Act to apply to the employees of Snowy Hydro Limited, following its sale.
The notice declares that Snowy Hydro Limited is eligible to be granted a licence under Part VIII of the Act.
Wider consultation was not undertaken as the Snowy Hydro Limited itself is the only body affected by the declaration and the declaration was made at the request of Snowy Hydro Limited.
An exemption from the preparation of a Regulatory Impact Statement was granted by the Office of Regulatory Review.
This Notice is a legislative instrument for the purposes of the Legislative Instruments Act 2003 by virtue of being a disallowable instrument under section 121 of the Safety, Rehabilitation and Compensation Act 1988.
This declaration takes effect on the date it is registered on the Federal Register of Legislative Instruments.