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.
Five subsidiary corporations of the Commonwealth Bank of Australia Ltd, namely Commonwealth Securities Limited (ComSec) (ABN 60 067 254 399), Colonial Services Pty Ltd (ABN 70 075 733 023), Commonwealth Insurance Ltd (ABN 96 067 524 216), Colonial First State Property Management Pty Ltd (ABN 96 101 504 045) and Avanteos Pty Ltd (ABN 99 066 862 977) have requested that the Minister declare them eligible corporations under section 100 of the Act to enable them to self insure their 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 applications against the principles, the Minister is satisfied that it would be desirable for the Act to apply to the employees of each of these five corporations.
The notice declares that each of the corporations is eligible to be granted a licence under Part VIII of the Act.
Wider consultation was not undertaken as the applicant corporations are the only bodies affected by the declaration and the declaration was made at the request of these corporations.
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 was enacted to establish the Commonwealth workers’ compensation and rehabilitation scheme, which applies to the Commonwealth, Commonwealth authorities and eligible corporations. The Act was designed to provide a comprehensive workers' compensation and rehabilitation scheme for Commonwealth employees and those of eligible corporations. The objective of the legislation is to ensure that injured workers receive appropriate compensation and rehabilitation services, thereby promoting their recovery and return to work. The Act was enacted by the Parliament of Australia to address the need for a unified and efficient workers' compensation scheme for Commonwealth employees and those working for corporations that meet certain criteria. The policy objective is to facilitate the efficient and effective management of workers' compensation claims within the Commonwealth and related entities, ensuring fairness and consistency across the scheme.
Scope and Application
The Safety, Rehabilitation and Compensation Act 1988 applies to the Commonwealth, Commonwealth authorities, and eligible corporations, providing a framework for workers' compensation and rehabilitation within these entities. Eligible corporations are those that have been declared by the Minister for Employment and Workplace Relations as suitable to apply for a licence to self-insure under the Act. This eligibility is granted based on specific criteria, including whether the corporation is transitioning out of being a Commonwealth authority, was previously a Commonwealth authority, or competes with such authorities. The Act allows these corporations to manage their workers' compensation liabilities independently by becoming licensed under the Act, subject to the Minister’s assessment of various impacts including those on employees, the corporation, and the broader compensation schemes. The Act's application extends only to the entities specifically declared eligible, with no broader jurisdictional reach beyond these corporations, ensuring targeted application of the compensation scheme.
Key Provisions
The Safety, Rehabilitation and Compensation Act 1988 (the Act) is a key piece of legislation that establishes the Commonwealth workers' compensation and rehabilitation scheme, which applies to the Commonwealth, Commonwealth authorities and eligible corporations (s. 100). Eligible corporations are those that have been declared by the Minister for Employment and Workplace Relations to be suitable for the application of the Act, based on specified criteria. The Explanatory Statement outlines that five subsidiary corporations of the Commonwealth Bank of Australia Ltd have been declared eligible under section 100, which allows them to self-insure their workers’ compensation liabilities under the Act. This declaration was made following an assessment of the applications against four key principles, including the likely impact on employees, the applicant, and the operation of both the Commonwealth and State/Territory workers’ compensation schemes.
The Act imposes certain obligations on the parties it governs, particularly on eligible corporations that have been granted a licence to self-insure. These obligations include ensuring compliance with the provisions of the Act, maintaining proper records of workers' compensation claims and payments, and providing necessary information to the Safety, Rehabilitation and Compensation Commission (the Commission). Eligible corporations must also ensure that they have adequate insurance coverage and that they are able to meet their obligations under the Act. The Act also requires that the Commission review and monitor the operations of eligible corporations to ensure compliance with the scheme.
There are both civil and criminal consequences for breaches of the Safety, Rehabilitation and Compensation Act 1988. Under the Act, corporations that fail to comply with their obligations may face penalties, including fines and potential prosecution. The maximum penalties for offences under the Act vary depending on the specific provision breached but can include substantial fines and imprisonment for serious offences. For instance, section 419 of the Act provides that a corporation may be liable for a penalty of up to $210,000 for each day that an offence continues, and individuals responsible for the breach may also face personal penalties. These consequences underscore the importance of adhering to the requirements set out in the Act to avoid legal repercussions.