Safety, Rehabilitation and Compensation (Rate of Interest Payable – s26(3)) Notice 2016

Administered by Department of Employment and Workplace Relations

Legislation au F2016L00464 Not in force Legislative Instrument

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EXPLANATORY STATEMENT 

Issued by the authority of the Minister for Employment

Safety, Rehabilitation and Compensation Act 1988

Subsection 26(3)

 
Safety, Rehabilitation and Compensation (Rate of Interest Payable – s26(3)) Notice 2016


The Safety, Rehabilitation and Compensation Act 1988 (‘the Act’) establishes the Commonwealth workers’ compensation and rehabilitation scheme for employees of the Commonwealth, Commonwealth authorities and licensed corporations.

Rate of interest payable under subsection 26(3)

The Act provides for lump sum payments to claimants for injuries which result in permanent impairment. The amount of compensation for permanent impairment is assessed under section 24 while the assessments of an interim payment of compensation for permanent impairment are made under section 25 of the Act.  Provision exists under section 26 for payment of interest to a claimant in limited circumstances.  If payment is not made pursuant to sections 24 or 25 to the claimant within 30 days after the date of assessment of the amount, interest is payable for the period from the 31st day to the day on which the amount is paid. 

This instrument specifies the rate of interest payable to be the weighted average yield of 90 day bank accepted-bills settled immediately prior to the last day of the 30 day settlement period.  The Reserve Bank of Australia publishes the rate of 90 day bank-accepted bills, and also outlines the 30 day settlement period for the rate.  

This instrument remakes, in the same terms, the Safety, Rehabilitation and Compensation (Rate of Interest Payable) Notice 2005 (1) (‘2005 notice’).

Repeal of the Safety, Rehabilitation and Compensation (Rate of Interest Payable) Notice 2005 (1)

To provide certainty that there will be no concurrent operation of this instrument and the 2005 notice, this instrument repeals the 2005 notice. The 2005 notice was due to sunset on 1 April 2016 as a result of the operation of section 50 of the Legislation Act 2003.

Legislative instrument

This instrument is a legislative instrument for the purposes of the Legislation Act 2003.

Consultation was undertaken with Comcare and private sector self-insurers by way of correspondence outlining the proposal to make this instrument in the same terms as the 2005 notice. Comcare and private sector self-insurers agreed to the proposal.

The Office of Best Practice Regulation has confirmed that a regulation impact statement is not required. (OBPR ID No. 20680)

This instrument will commence on 1 April 2016.

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Safety, Rehabilitation and Compensation (Rate of Interest Payable – s26(3)) Notice 2016

This legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the legislative instrument

The Safety, Rehabilitation and Compensation Act 1988 (‘the Act’) establishes the Commonwealth workers’ compensation and rehabilitation scheme for employees of the Commonwealth, Commonwealth authorities and licensed corporations.

This instrument sets the rate of interest payable in respect of permanent impairment payments (including interim payments of compensation for permanent impairment) to a claimant under section 24 or 25 of the Act which are not made within 30 days after the date of assessment of the amount of permanent impairment.

Human rights implications
Article 9 of the International Covenant on Economic, Social and Cultural Rights provides for the right of everyone to social security, including social insurance. General Comment 19 by the Committee on Economic, Social and Cultural Rights elaborates on Article 9, stating that ‘States parties should … ensure the protection of workers who are injured in the course of employment or other productive work’.[1]

The Act provides support for employees who have been injured at work by way of rehabilitation, weekly compensation payments, payment of medical expenses, permanent impairment benefits as well as other benefits.

The interest rate in respect of a lump sum for permanent impairment engages the right to social security by ensuring that, if a lump sum amount for permanent impairment is due to a claimant under section 24 or 25 of the Act, that it be paid promptly or the claimant will be entitled to interest, as specified in this notice, on that lump sum.

Conclusion

This legislative instrument is compatible with human rights because, where it engages the right to social security, it encourages the prompt payment of an amount of compensation to a claimant or compensates for the late payment of that amount by awarding interest to the claimant in respect of the overdue amount.

 

Senator the Hon Michaelia Cash

Minister for Employment

[1] Committee on Economic, Social and Cultural Rights, General Comment 19: The Right to Social Security (art. 9), U.N. Doc E/C.12/GC/19 (2008), [17].

Overview

The Safety, Rehabilitation and Compensation (Rate of Interest Payable – s26(3)) Notice 2016 was enacted to specify the rate of interest payable under section 26(3) of the Safety, Rehabilitation and Compensation Act 1988. This Act was established to provide a workers' compensation and rehabilitation scheme for employees of the Commonwealth, Commonwealth authorities, and licensed corporations. The Notice was introduced to ensure clarity and consistency in the interest rate calculation for lump sum payments to claimants for injuries that result in permanent impairment, particularly when payments are not made within 30 days of the assessment of the amount. The instrument sets the interest rate based on the weighted average yield of 90-day bank-accepted bills, published by the Reserve Bank of Australia, thereby replacing the previous Safety, Rehabilitation and Compensation (Rate of Interest Payable) Notice 2005. The enacting body is the Minister for Employment, who issued this notice in accordance with the Act and the Legislation Act 2003, aiming to uphold the right to social security by ensuring timely payments or compensation through interest for late payments.

Scope and Application

The Safety, Rehabilitation and Compensation Act 1988 applies to employees of the Commonwealth, Commonwealth authorities and licensed corporations, establishing a scheme for workers’ compensation and rehabilitation for these individuals. The Act encompasses various forms of compensation, including lump sum payments for permanent impairment, which are assessed under sections 24 and 25, and it provides for the payment of interest under section 26 when payments are not made within 30 days after the assessment of the amount. The Safety, Rehabilitation and Compensation (Rate of Interest Payable – s26(3)) Notice 2016 specifies the rate of interest to be the weighted average yield of 90 day bank accepted-bills settled immediately prior to the last day of the 30 day settlement period, as published by the Reserve Bank of Australia. This instrument not only sets the interest rate but also repeals the previous Safety, Rehabilitation and Compensation (Rate of Interest Payable) Notice 2005 to avoid concurrent operation. The instrument is designed to ensure that compensation is paid promptly or that claimants are compensated for delays through the specified interest rate, thereby supporting the right to social security as outlined in Article 9 of the International Covenant on Economic, Social and Cultural Rights.

Key Provisions

The main sections of the Safety, Rehabilitation and Compensation (Rate of Interest Payable – s26(3)) Notice 2016 pertain to the setting of the rate of interest payable on lump sum payments for permanent impairment under the Safety, Rehabilitation and Compensation Act 1988. This interest applies when payments under sections 24 and 25 are not made within 30 days of the assessment date (subsection 26(3)). The rate is determined by the weighted average yield of 90-day bank accepted bills, as published by the Reserve Bank of Australia. This Notice specifically aims to replace the previous Safety, Rehabilitation and Compensation (Rate of Interest Payable) Notice 2005, ensuring there is no overlap in their operations. The Notice imposes specific obligations on entities responsible for making payments to claimants under the Act. These entities must ensure that any lump sum payments for permanent impairment, as assessed under sections 24 and 25, are made within 30 days of the assessment date. Failure to meet this deadline triggers the obligation to pay interest to the claimant at the specified rate. The entities must also adhere to the methodology for determining the interest rate, which is based on the weighted average yield of 90-day bank accepted bills as published by the Reserve Bank of Australia. Breach of the requirements set out in this Notice may have legal consequences. While the Notice itself does not specify particular offences or penalties, failure to comply with the provisions of the underlying Safety, Rehabilitation and Compensation Act 1988 could result in civil or criminal penalties as stipulated elsewhere in the Act. For instance, non-compliance with the Act’s provisions regarding compensation payments may be subject to fines or other penalties as prescribed by law. The specific penalties would depend on the nature and severity of the breach and would be governed by the broader legislative framework of the Act.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.