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.7)
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.
BIS Industries Limited (ACN 125 202 253) is a corporation carrying on business in competition with a Commonwealth authority or a former Commonwealth authority. BIS Industries 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 BIS Industries Limited
The notice declares that BIS Industries 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 BIS Industries Limited 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. 7) was enacted to address the gap in coverage of workers' compensation and rehabilitation for employees of corporations that are in competition with Commonwealth authorities or were previously Commonwealth authorities. This Notice, issued under section 100 of the Safety, Rehabilitation and Compensation Act 1988, allows the Minister for Employment and Workplace Relations to declare certain corporations eligible for a licence, thereby extending the application of the Commonwealth workers' compensation scheme to these corporations. The policy objective behind this Notice is to ensure that corporations in competitive positions with Commonwealth entities are subject to a consistent and standardised workers' compensation framework, while also considering the impacts on employees, the corporation, and the existing workers' compensation schemes at both Commonwealth and State/Territory levels.
Scope and Application
The Safety, Rehabilitation and Compensation (Licence Eligibility) Notice 2007 (No.7) under the Safety, Rehabilitation and Compensation Act 1988 pertains specifically to corporations that may be eligible to apply for a licence to manage workers’ compensation claims under the Commonwealth scheme. This notice is applicable to entities such as BIS Industries Limited, which is carrying on business in competition with a Commonwealth authority or a former Commonwealth authority. Upon receiving a declaration from the Minister for Employment and Workplace Relations, these corporations can apply to the Safety, Rehabilitation and Compensation Commission for a licence, thereby shifting from state or territory workers’ compensation schemes to the Commonwealth’s occupational health and safety legislation. The eligibility of a corporation to apply for such a licence is assessed based on criteria including the potential impacts on employees, the applicant, and the existing workers’ compensation schemes. This legislation ensures that any pre-existing liabilities or obligations under state or territory laws remain unaffected. The notice, which is a legislative instrument under the Legislative Instruments Act 2003, comes into effect the day after its registration on the Federal Register of Legislative Instruments.
Key Provisions
Section 100 of the Safety, Rehabilitation and Compensation Act 1988 (the Act) provides the framework for the Minister for Employment and Workplace Relations to declare a corporation as 'eligible' for a licence to manage workers’ compensation claims under the Commonwealth scheme. This is particularly relevant for corporations that are either ceasing to be Commonwealth authorities, were previously Commonwealth authorities, or are in competition with such authorities or former Commonwealth authorities. Once declared eligible, these corporations can apply to the Safety, Rehabilitation and Compensation Commission (the Commission) for a licence, allowing them to accept liability for workers’ compensation and manage employee claims in accordance with the Act. This transition ensures that the corporation is covered by the Commonwealth’s occupational health and safety legislation, replacing any previous State or Territory workers’ compensation laws.
The obligations imposed by the Act on eligible corporations primarily involve the application process and compliance with the Commonwealth scheme. Once declared eligible, these corporations must formally apply for a licence to the Commission. This application process requires the corporation to demonstrate that it meets the criteria set out in section 100 and that the transition to the Commonwealth scheme is in the best interest of employees, the corporation, and the overall operation of workers’ compensation schemes. Compliance with the Commonwealth scheme involves adhering to the Act’s provisions for managing workers’ compensation claims, which includes ensuring timely and appropriate compensation for injured employees and maintaining records as required by the Act.
The Act outlines specific consequences for breaches of its provisions. While the Act does not explicitly detail offences, penalties, or civil/criminal consequences for breach within the Notice itself, the general framework of the Act suggests that non-compliance could lead to legal actions under the Act. Typically, breaches of workers’ compensation laws could result in penalties such as fines or other sanctions as prescribed by relevant legislation. For instance, failing to provide appropriate compensation or misrepresenting claim details could result in civil liability or criminal charges, depending on the severity and intent behind the breach. The exact penalties would be determined in accordance with other relevant laws governing workers’ compensation and occupational health and safety.