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 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 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.
The Commonwealth Bank of Australia Limited (ACN 123 123 124 ) (CBA) was declared a ‘Commonwealth authority’ under the Safety, Rehabilitation and Compensation Act 1988 on 17 April 1991. This declaration ceased to have effect on 19 July 1996 as a result of s.11 of the Commonwealth Bank Sale Act 1995.
Accordingly, the CBA, is a former Commonwealth authority for the purposes of the Act.
The CBA 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..
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 the CBA.
The notice declares that the CBA is eligible to be granted a licence under Part VIII of the Act.
Wider consultation was not undertaken as the CBA itself is the only body affected by the declaration and the declaration was made at the request of the CBA.
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 by virtue of being a disallowable instrument under section 121 of the Safety, Rehabilitation and Compensation Act 1988.
This declaration takes effect on the day after registration on the Federal Register of Legislative Instruments.
Overview
The Safety, Rehabilitation and Compensation Act 1988 is a legislative framework designed to establish the workers' compensation and rehabilitation scheme for Commonwealth employees, Commonwealth authorities, and eligible corporations. This Act was enacted to address the need for a unified scheme that provides compensation and rehabilitation services to employees who suffer work-related injuries or illnesses. The Act was passed by the Parliament of Australia, with the policy objective of ensuring fair and consistent treatment of employees across various sectors and entities under Commonwealth jurisdiction. The explanatory statement highlights that the Commonwealth Bank of Australia Limited, which was previously a Commonwealth authority, has been declared an eligible corporation under the Act, enabling it to self-insure its workers' compensation liabilities. The decision to declare the bank eligible was based on an assessment of its application against specified principles, which consider the impact on employees, the applicant, and the broader workers' compensation scheme.
Scope and Application
The Safety, Rehabilitation and Compensation Act 1988 provides the legislative framework for the Commonwealth workers’ compensation and rehabilitation scheme. The Act applies to the Commonwealth, Commonwealth authorities, and eligible corporations, which are those corporations declared by the Minister for Employment and Workplace Relations to meet specific criteria under section 100 of the Act. Eligible corporations may apply to the Safety, Rehabilitation and Compensation Commission to be licensed to self-insure under the scheme. This scheme is designed to ensure that employees of participating entities receive appropriate compensation and rehabilitation services in the event of work-related injuries or illnesses. The application of the Act is assessed based on the impact on employees, the applicant, and the broader operation of the workers’ compensation scheme both within the Commonwealth and across state and territory jurisdictions. The legislation does not mandate wider consultation unless necessitated by the specific circumstances of the application, as demonstrated by the declaration concerning the Commonwealth Bank of Australia Limited. This declaration is effective from the date of registration on the Federal Register of Legislative Instruments and operates as a disallowable instrument under the Legislative Instruments Act 2003.
Key Provisions
The Safety, Rehabilitation and Compensation Act 1988 (the Act) establishes the Commonwealth workers’ compensation and rehabilitation scheme, primarily targeting the Commonwealth, Commonwealth authorities, and eligible corporations. Section 100 of the Act provides a mechanism for the Minister for Employment and Workplace Relations to declare certain corporations eligible to self-insure under the Act. The declaration process hinges on several conditions, including whether the corporation is ceasing to be a Commonwealth authority, was previously a Commonwealth authority, or is competing with such an authority or another former Commonwealth authority. Once declared eligible, the corporation can apply to the Safety, Rehabilitation and Compensation Commission (the Commission) to become licensed to self-insure under the Act.
Under the Act, entities such as the Commonwealth Bank of Australia Limited (CBA) can be declared eligible corporations if certain criteria are met. In this case, the CBA, previously a Commonwealth authority, has been declared eligible following a request and assessment. The assessment considered factors such as the impact on employees, the applicant, and the broader operations of both the Commonwealth and State/Territory workers' compensation schemes. Given these considerations, the Minister found it desirable for the Act to apply to the CBA’s employees.
The obligations imposed on the parties by the Act include the requirement for eligible corporations to apply for and obtain a license from the Commission to self-insure their workers’ compensation liabilities. This process involves adhering to the principles outlined in the Act, ensuring that the declaration and subsequent self-insurance arrangements are in the best interest of employees, the corporation, and the overall operation of the compensation schemes. The CBA, as an eligible corporation, must therefore navigate this regulatory framework to ensure compliance and effective self-insurance.
Failure to comply with the provisions of the Act, including improper self-insurance arrangements or non-compliance with licensing requirements, may result in legal repercussions. Although specific penalties are not detailed in the explanatory statement, breaches of workers’ compensation legislation generally carry significant civil or criminal penalties. These may include fines, imprisonment, or other enforcement actions, depending on the severity and nature of the breach. The Act aims to ensure that all eligible corporations maintain adequate workers' compensation coverage and comply with the regulatory framework established to protect employees and manage compensation claims effectively.