EXPLANATORY STATEMENT
Issued by the authority of the
Minister for Employment and Workplace Relations
Safety, Rehabilitation and Compensation Act 1988
Section 100
The Safety, Rehabilitation and Compensation Act 1988 (the Act) establishes the Commonwealth workers’ compensation and rehabilitation scheme.
The Commonwealth workers’ compensation scheme applies to the Commonwealth, Commonwealth authorities and eligible corporations. Commonwealth authorities and eligible corporations are eligible to apply to the Safety, Rehabilitation and Compensation Commission (the Commission) to become licensed to self-insure under 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 corporation 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.
Medibank Private is currently a Commonwealth authority for the purposes of the SRC Act, having been declared under section 4 of that Act on 1 May 1998 on the basis that the Commonwealth has ‘substantial interest’ in the company.
The Government of the Commonwealth of Australia, which is the 100% shareholder in Medibank Private, announced that, following the listing of Medibank Private on the Australian Stock Exchange, it will sell its shareholding in the Company. Parliamentary approval to sell the Commonwealth’s equity in Medibank Private was granted on
5 December 2006 pursuant to the Medibank Private Sale Act 2006.
Accordingly, Medibank Private (ABN47 080 259), is a body that is, but is about to cease to be, a Commonwealth authority for the purposes of the Act.
Medibank Private is a premium payer under the Act. Medibank Private 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 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 States 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 Medibank Private, following its sale.
The notice declares that Medibank Private is eligible to be granted a licence under Part VIII of the Act.
Wider consultation was not undertaken as Medibank Private itself is the only body affected by the declaration and the declaration was made at the request of Medibank Private.
An assessment was made under new guidelines issued by the Office of Best Practice Regulation, which indicated that a Regulation Impact Statement was not required for this declaration.
This Notice is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
This declaration takes effect on the date it is registered on the Federal Register of Legislative Instruments.