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 2007 (No.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, and the licensee will be covered by the Commonwealth’s occupational health and safety legislation. 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.
Border Express Pty Ltd (ACN 000 533 880) is a corporation carrying on business in competition with a Commonwealth authority or a former Commonwealth authority. Border Express Pty 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 Border Express Pty Ltd.
The notice declares that Border Express Pty Limited is eligible to be granted a licence under Part VIII of the Act.
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.
Wider consultation was not undertaken as this declaration was made at the request of Border Express Pty Ltd itself and it is not likely to have a direct, or substantial indirect, effect on business or restrict competition.
This Notice is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
This declaration takes effect on the day after registration on the Federal Register of Legislative Instruments.
Overview
The Safety, Rehabilitation and Compensation (Licence Eligibility) Notice 2007 (No. 3) was enacted to address the need for certain corporations to be covered under the Commonwealth workers' compensation and rehabilitation scheme as established by the Safety, Rehabilitation and Compensation Act 1988. This Act was introduced by the Commonwealth Parliament to provide a uniform scheme for the safety, rehabilitation, and compensation of employees across Australia, aiming to streamline and standardise workers’ compensation processes. The Notice was issued under section 100 of the Act by the Minister for Employment and Workplace Relations, following an application from Border Express Pty Ltd, a corporation that competes with a Commonwealth authority or a former Commonwealth authority. The policy objective of this legislative instrument is to ensure that employees of such corporations are protected under the Commonwealth scheme, thus ensuring uniformity and fairness in the application of workers' compensation laws across different jurisdictions. The notice was deemed not to require a Regulation Impact Statement, as it was assessed to not have a substantial direct or indirect effect on business or competition.
Scope and Application
The Safety, Rehabilitation and Compensation (Licence Eligibility) Notice 2007 (No. 3) declares Border Express Pty Ltd to be an eligible corporation under section 100 of the Safety, Rehabilitation and Compensation Act 1988. This declaration permits the corporation to apply to the Safety, Rehabilitation and Compensation Commission for a licence to manage workers' compensation and rehabilitation claims for its employees in accordance with the Commonwealth scheme, rather than under state or territory legislation. The Act applies to eligible corporations, which are those declared by the Minister for Employment and Workplace Relations when it is deemed desirable for the Commonwealth scheme to cover the corporation’s employees. The jurisdictional reach of the Act is national, as it pertains to the Commonwealth's workers’ compensation and rehabilitation scheme. Notably, the eligibility criteria for a corporation include those that are in competition with a Commonwealth authority or were previously such an authority. This specific declaration is based on an assessment of the impact on employees, the corporation, and the existing workers' compensation schemes, ensuring alignment with the principles set out in the Act. The geographic scope of this legislation is federal, and the notice extends the application of the Commonwealth scheme to the eligible corporation, superseding any existing state or territory workers' compensation laws upon the licence's effective date.
Key Provisions
The Safety, Rehabilitation and Compensation (Licence Eligibility) Notice 2007 (No.3) under section 100 of the Safety, Rehabilitation and Compensation Act 1988 declares that Border Express Pty Ltd (ACN 000 533 880) is eligible to be granted a licence under Part VIII of the Act. This eligibility allows Border Express Pty Ltd to apply to the Safety, Rehabilitation and Compensation Commission for a licence to accept liability for workers' compensation in respect of its employees and to manage employee claims under the Commonwealth scheme. This declaration is significant as it triggers a shift from State and Territory workers’ compensation legislation to the Commonwealth's occupational health and safety legislation for Border Express Pty Ltd, effective from the date the licence comes into force. Notably, any pre-existing liabilities or obligations incurred under State or Territory laws before the licence takes effect remain unaffected.
The obligations imposed on Border Express Pty Ltd, once it obtains a licence, include adherence to the Commonwealth's occupational health and safety legislation and the management of workers' compensation claims in accordance with the Act. This transition requires the corporation to comply with the new regulatory framework and ensure that it meets the standards set by the Commonwealth scheme. The eligibility declaration also means that Border Express Pty Ltd must now operate under the provisions of the Safety, Rehabilitation and Compensation Act 1988 instead of the laws of the State or Territory in which it is located.
In terms of enforcement and compliance, any breach of the obligations under the Act by Border Express Pty Ltd could result in various consequences. While the specific penalties are not detailed in the Notice, under the Safety, Rehabilitation and Compensation Act 1988, breaches may lead to civil or criminal penalties. These can include fines and, in severe cases, imprisonment, depending on the nature and severity of the breach. The exact penalties would be determined based on the specific provisions of the Act and the circumstances of the breach.