Safety, Rehabilitation and Compensation (Rate of Interest Payable – s26(3)) Notice 2026

Administered by Department of Employment and Workplace Relations

Legislation au F2026L00307 In force Legislative Instrument

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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.

Overview

The Safety, Rehabilitation and Compensation (Rate of Interest Payable under s26(3)) Notice 2026 was enacted to specify the rate of interest payable on lump sum payments for permanent impairment under the Safety, Rehabilitation and Compensation Act 1988. This legislative instrument was introduced to ensure that interest is paid on any permanent impairment payments not disbursed within 30 days of the assessment of the amount of compensation. The Notice was made under subsection 26(3) of the Act by the Minister for Employment and Workplace Relations. It aims to provide clarity and certainty in the calculation of interest on delayed payments, ensuring that claimants receive appropriate compensation for any undue delay. The Notice, which repeals the previous Safety, Rehabilitation and Compensation (Rate of Interest Payable – s26(3)) Notice 2016, specifies that the rate of interest is the weighted average yield of 90-day bank-accepted bills, as published by the Reserve Bank of Australia. This approach ensures that the interest rate is based on a reliable and transparent financial benchmark. The instrument was developed following consultation with various stakeholders, including Comcare, the Safety Rehabilitation and Compensation Commission, unions, and the Reserve Bank of Australia, all of whom agreed to the proposed remaking of the instrument. The Notice will commence on 1 April 2026 and has been deemed compatible with human rights, particularly the right to social security as outlined in Article 9 of the International Covenant on Economic, Social and Cultural Rights.

Scope and Application

The Safety, Rehabilitation and Compensation Act 1988 establishes the workers’ compensation and rehabilitation scheme for employees of the Commonwealth, Commonwealth authorities, and licensed corporations, governing their rights to compensation for injuries sustained during employment. Under section 26 of the Act, if payments for permanent impairment, including interim payments, are not made within 30 days after the assessment of the amount, interest may be payable from the 31st day until the payment is made. This instrument specifies the interest rate payable, which is 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 notice replaces the previous Safety, Rehabilitation and Compensation (Rate of Interest Payable – s26(3)) Notice 2016 and repeals it to ensure there is no concurrent operation, starting from 1 April 2026. The instrument is compatible with human rights, particularly the right to social security, by ensuring timely compensation or interest for late payments of compensation.

Key Provisions

The Safety, Rehabilitation and Compensation (Rate of Interest Payable under s26(3)) Notice 2026 (the Notice) specifies the rate of interest applicable to permanent impairment payments made under the Safety, Rehabilitation and Compensation Act 1988 (the Act) that are not paid within 30 days of the assessment of the amount of compensation payable. Section 26(3) of the Act mandates that if a payment under sections 24 or 25 is not made within 30 days after the assessment of the amount, interest may be payable from the 31st day until the payment is made. Section 4 of the Notice sets the interest rate at the weighted average yield of 90-day bank-accepted bills, as published by the Reserve Bank of Australia (RBA), settled immediately prior to the last day of the 30-day settlement period. This Notice replaces the Safety, Rehabilitation and Compensation (Rate of Interest Payable – s26(3)) Notice 2016, ensuring continuity in the interest rate calculation. The Notice imposes obligations on parties subject to the Act, particularly those responsible for making compensation payments under sections 24 or 25. These parties must ensure that any lump sum payments for permanent impairment are made within 30 days of the assessment of the amount of compensation payable. If this timeframe is not met, they must calculate and pay interest from the 31st day onwards at the rate specified in the Notice. The interest rate is determined by the RBA and is based on the weighted average yield of 90-day bank-accepted bills, settled immediately before the last day of the 30-day settlement period. This ensures that the interest rate is updated regularly, reflecting current market conditions. Failure to comply with the requirements of the Notice, such as not making timely payments or incorrectly calculating the interest, may result in financial penalties. Although the Notice does not specify maximum penalties for non-compliance, the underlying Act may impose civil or administrative penalties for breaches related to compensation payments. These penalties could include fines or other sanctions, which would be determined in accordance with the provisions of the Act and any relevant administrative or civil law. It is essential for parties to adhere to the timelines and interest rate calculations specified in the Notice to avoid potential penalties and to ensure the fair treatment of claimants. The Notice is compatible with human rights, particularly the right to social security as outlined in Article 9 of the International Covenant on Economic, Social and Cultural Rights. The Notice supports this right by ensuring that compensation payments for permanent impairment are made promptly or, if delayed, that claimants receive interest on the overdue amount. This mechanism helps to protect the economic security of individuals who have suffered permanent impairment due to work-related injuries, aligning with international standards for social protection. By specifying the interest rate and ensuring timely payments, the Notice helps to uphold the principles of fairness and prompt compensation under the Act.

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Workers' Compensation Law
Instrument
Notice
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Commencement Provisions
Regulatory Standards
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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.