SAFETY, REHABILITATION AND COMPENSATION (RATE OF INTEREST PAYABLE UNDER S26(3)) NOTICE 2026
EXPLANATORY STATEMENT
Issued by authority of the Minister for Employment and Workplace Relations
under subsection 26(3) of the Safety, Rehabilitation and Compensation Act 1988
Purpose and operation of the 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.
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. Under section 26 of the Act, such payments ordinarily are required to be made within 30 days of the assessment of the amount of compensation payable. If a payment under ss 24 or 25 is not made to the claimant within 30 days after the date of assessment of the amount, interest may be 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. The rate is specified 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 (RBA) 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 – s26(3)) Notice 2016 (‘2016 notice’).
Repeal of the Safety, Rehabilitation and Compensation (Rate of Interest Payable s26(3)) Notice 2016
To provide certainty that there will be no concurrent operation of this instrument and the 2026 notice, this instrument repeals the 2016 notice. The 2016 notice was due to sunset on 1 April 2016 as a result of the operation of section 50 of the Legislation Act 2003.
CONSULTATION
Consultation was undertaken with Comcare, premium paying agencies, private sector self-insurers, the Safety Rehabilitation and Compensation Commission (SRCC), unions, the Safety, Rehabilitation and Compensation Licensees Association, the ACT Government, RBA, Treasury and the Department of Finance. A consultation paper was circulated to stakeholders on the proposed remaking of the instrument, outlining the proposal to make this instrument in the same terms as the 2016 notice.
All entities consulted agreed to the proposal.
IMPACT AnALYSIS
The Office of Impact Analysis was consulted regarding this instrument and confirmed that a detailed impact analysis was not required (OIA25-09870).
This instrument is a legislative instrument for the purposes of the Legislation Act 2003.
This instrument will commence on 1 April 2026.
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 2026
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.
The Hon Amanda Rishworth MP
Minister for Employment and Workplace Relations
[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].
Attachment A
NOTES ON SECTIONS
Section 1 – Name
Section 1 provides that the title of the instrument is the Safety, Rehabilitation and Compensation (Rate of Interest Payable – s26(3)) Notice 2026.
Section 2 – Commencement
Section 2 provides that the instrument commences on 1 April 2026.
Section 3 – Authority
Section 3 provides that the instrument is made under subsection 26(3) of the Safety, Rehabilitation and Compensation Act 1988.
Section 4 – Rate of Interest payable under subsection 26(3)
Section 4 provides that the rate of interest payable under subsection 26(3) of the Act is the weighted average yield of 90 day bank-accepted bills, as published by the Reserve Bank of Australia, settled immediately prior to the last day of the thirty day settlement period.
Section 5 – Schedules
Section 5 provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1 – Repeals
Schedule 1 to the instrument repeals the Safety, Rehabilitation and Compensation (Rate of Interest Payable – s26(3)) Notice 2016 as specified in the schedule.