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 2006 (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.
National Australia Bank Ltd (ABN 12 004 044 937) is a corporation carrying on business in competition with a Commonwealth authority or a former Commonwealth authority. National Australia Bank Ltd has requested that the Minister declare it to be an eligible corporation under section 100 of the Act.
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 National Australia Bank Ltd.
The notice declares that National Australia Bank Ltd 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 National Australia Bank 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 2006 was enacted to address the need for certain corporations to be eligible for a licence under the Safety, Rehabilitation and Compensation Act 1988. This legislation was introduced to ensure that corporations carrying on business in competition with Commonwealth authorities or former Commonwealth authorities can be subject to the Commonwealth workers' compensation scheme. This notice was issued by the Minister for Employment and Workplace Relations under section 100 of the Act, which allows the Minister to declare a corporation eligible for a licence if it is deemed desirable for the Commonwealth scheme to apply to its employees. The policy objective is to streamline the workers' compensation process by having a unified scheme for corporations that operate in competition with Commonwealth authorities, thereby reducing the complexity and potential conflicts between different State and Territory schemes. The Notice declares that National Australia Bank Ltd is eligible to be granted a licence under the Act, having assessed the application against specified principles, and this eligibility will come into effect upon registration on the Federal Register of Legislative Instruments.
Scope and Application
The Safety, Rehabilitation and Compensation (Licence Eligibility) Notice 2006 pertains to the Safety, Rehabilitation and Compensation Act 1988, which outlines the Commonwealth's workers' compensation and rehabilitation scheme. Specifically, this Notice addresses the eligibility of corporations to apply for a licence under the Act, allowing them to accept liability for workers' compensation and manage employee claims in accordance with the Act. The Notice applies to corporations that are deemed eligible by the Minister for Employment and Workplace Relations, based on criteria such as the corporation being in competition with a Commonwealth authority or having previously been a Commonwealth authority. Upon receiving a favourable decision from the Safety, Rehabilitation and Compensation Commission, the corporation can obtain a licence, resulting in the cessation of State and Territory workers’ compensation legislation for that corporation. However, any liabilities or obligations incurred under State or Territory laws prior to the licence's effective date remain unaffected. The Minister's assessment of an eligible corporation's application is guided by factors including the impact on employees, the applicant, and the Commonwealth and State/Territory workers' compensation schemes. In this instance, National Australia Bank Ltd has been declared eligible, with the decision exempt from the requirement for a Regulatory Impact Statement due to its limited anticipated effects on business and competition.
Key Provisions
The Safety, Rehabilitation and Compensation (Licence Eligibility) Notice 2006 (No. 2) under the Safety, Rehabilitation and Compensation Act 1988, primarily focuses on the eligibility criteria for corporations to apply for a licence to accept liability for workers' compensation and manage claims under the Commonwealth scheme. According to section 100 of the Act, the Minister for Employment and Workplace Relations can declare a corporation as an 'eligible corporation' if it is deemed desirable for the Act to apply to its employees. This declaration is based on specific conditions, including if the corporation is about to cease being a Commonwealth authority, was previously one, or is in competition with a Commonwealth authority or a former Commonwealth authority. Once declared eligible, such a corporation can apply to the Safety, Rehabilitation and Compensation Commission for a licence to manage workers' compensation claims.
Corporations that are declared eligible under this notice and subsequently granted a licence by the Commission will have State and Territory workers’ compensation laws cease to apply to them from the date the licence takes effect. However, any liabilities or obligations incurred under State or Territory laws prior to the licence coming into force remain unaffected. The assessment of eligibility applications is guided by principles that consider the impact on employees, the applicant, and the operation of both the Commonwealth and State or Territory workers' compensation schemes.
The obligations imposed by this notice are primarily on the Minister, who must assess applications for eligibility declarations and decide based on the outlined criteria. Once a corporation is declared eligible, it then has the responsibility to apply to the Commission for a licence. The Commission, in turn, has the obligation to review and grant or refuse the licence based on the application and the provisions of the Act. Both the Minister and the Commission must ensure that their actions align with the principles set out in the legislation, focusing on the potential impacts of their decisions on various stakeholders.
Breach of the provisions of this notice, or failure to comply with the obligations outlined in the Safety, Rehabilitation and Compensation Act 1988, could result in various consequences. While the notice itself does not specify particular offences or penalties, the broader Act includes provisions for enforcement actions. These could involve administrative penalties, fines, or legal action for non-compliance. The severity of the penalties would depend on the nature and extent of the breach, but they could include substantial fines as outlined in the Act, reflecting the seriousness of ensuring proper compliance with workers' compensation laws.