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 (3)
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 Wealth Management Services Limited (ABN 97 071 514 264) is a corporation carrying on business in competition with a Commonwealth authority or a former Commonwealth authority. National Wealth Management Services Limited 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 Wealth Management Services Limited.
The notice declares that National Wealth Management Services Limited 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 Wealth Management Services Limited 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 (F2006L03546) was introduced to address the gap in the application of the Commonwealth workers' compensation and rehabilitation scheme to certain corporations. Enacted under section 100 of the Safety, Rehabilitation and Compensation Act 1988, this Notice was issued by the Minister for Employment and Workplace Relations to facilitate the transition of specified corporations into the Commonwealth scheme. The policy objective of this legislative instrument is to ensure a consistent and streamlined approach to workers’ compensation and rehabilitation across the Commonwealth, while considering the impacts on employees, the corporation, and the existing State and Territory workers' compensation schemes. The notice allows eligible corporations, such as National Wealth Management Services Limited, to apply for a licence to manage their workers' compensation liabilities under the Commonwealth Act, thereby exempting them from State and Territory laws.
Scope and Application
The Safety, Rehabilitation and Compensation (Licence Eligibility) Notice 2006 (No. 3) pertains to the eligibility of National Wealth Management Services Limited, an entity carrying on business in competition with a Commonwealth authority or a former Commonwealth authority, to apply for a licence under the Safety, Rehabilitation and Compensation Act 1988. This Act establishes the Commonwealth workers' compensation and rehabilitation scheme, and under Part VIII, an eligible corporation may apply to the Safety, Rehabilitation and Compensation Commission for a licence to accept liability for workers' compensation and manage claims of its employees in accordance with the Act. The Minister for Employment and Workplace Relations, having assessed the application based on principles including the impact on employees, the applicant, and the operation of workers' compensation schemes, has declared the corporation to be eligible for the licence. This declaration allows the corporation to opt out of State and Territory workers' compensation legislation, with any existing liabilities under such legislation remaining unaffected. The notice is exempt from the preparation of a Regulatory Impact Statement and was made at the request of National Wealth Management Services Limited, not expected to have a substantial effect on business or competition.
Key Provisions
The Safety, Rehabilitation and Compensation (Licence Eligibility) Notice 2006 (No. 3) primarily addresses the eligibility of certain corporations to apply for a licence under the Safety, Rehabilitation and Compensation Act 1988 (the Act). Section 100 of the Act empowers the Minister for Employment and Workplace Relations to declare a corporation eligible for a licence if certain conditions are met, such as the corporation being in competition with a Commonwealth authority or a former Commonwealth authority. This eligibility allows the corporation to accept liability for workers’ compensation and manage claims in accordance with the Act, thereby shifting from State or Territory workers’ compensation legislation to the Commonwealth scheme upon the licence’s effective date.
The obligations imposed on eligible corporations, once declared, include the application process for a licence with the Safety, Rehabilitation and Compensation Commission (Commission). This process involves demonstrating compliance with the criteria outlined in section 100 of the Act. Corporations must ensure that any pre-licence liabilities or obligations under State or Territory laws remain unaffected. Additionally, the corporation must adhere to the principles set out in the Notice, which include assessing the impact on employees, the corporation itself, and the Commonwealth and State/Territory workers’ compensation schemes.
Any corporation failing to comply with the conditions of the Act or the Notice may face consequences, though the Notice does not explicitly detail specific offences or penalties. However, under the overarching Act, breaches could result in civil or criminal penalties, including fines and imprisonment, depending on the severity and nature of the breach. For instance, failing to manage claims or compensate employees as required could lead to significant penalties. The specific maximum penalties would be determined by the courts based on the particular circumstances of the breach and applicable law.