Safety, Rehabilitation and Compensation (Rates of Interest Payable) Notice 2026

SAFETY, REHABILITATION AND COMPENSATION (RATES OF INTEREST PAYABLE) NOTICE 2026

EXPLANATORY STATEMENT

Issued by authority of the Minister for Employment and Workplace Relations

under subsections 97L(3), 97M(7), 97P(1), (2) and (4) of the Safety, Rehabilitation and Compensation Act 1988

PURPOSE AND OPERATION OF THE INSTRUMENT

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

Safety, Rehabilitation and Compensation (Rates of Interest Payable) Notice 2026

The Safety, Rehabilitation and Compensation (Rates of Interest Payable) Notice 2026 (instrument) provides for the payment of fair and reasonable interest:

Rate of interest payable under subsections 97L(3) and 97M(7)

Section 97L of the Act provides that if an Entity or Commonwealth authority pays an amount of premium or regulatory contribution in accordance with a direction of the Safety, Rehabilitation and Compensation Commission, and the amount that is payable is later reduced as a result of a review under section 97J or 97K, Comcare must repay the amount of the overpayment. Interest is also payable on that amount, at a rate specified by the Minister (see subsection 97L(3)).

Similarly, section 97M of the Act provides that if the amount of premium or regulatory contribution payable by an Entity or Commonwealth authority is varied in accordance with that section so that the amount paid by the Entity or Commonwealth authority is greater than the amount that is payable, Comcare must repay the amount of that overpayment. Interest is also payable on that amount, at a rate specified by the Minister (see subsection 97M(7)).

This notice specifies that the rate of interest payable for the purposes of subsection 97L(3) and 97M(7) is the cash rate target published by the Reserve Bank of Australia (RBA).

The method for calculating the rate of interest payable for purposes of subsections 97L(3) and 97M(7) has been updated to the cash rate target as the 6-month overnight indexed swaps (OIS) rate is no longer publicly available. The RBA publishes the cash rate target each business day on its website.

Rate of interest payable under subsection 97P(1), (2) and (4)

Subsections 97P(1), (2) and (4) of the Act impose a financial penalty for the late payment of premiums, regulatory contributions or exit contributions by an Entity, Commonwealth authority or the Australian Capital Territory (as relevant) by way of imposing interest on the late payment.

This notice specifies the rate of interest for the purposes of subsection 97P(1), (2) and (4) is the monthly average yield for 90 day Bank Accepted Bills for the May preceding the date when the amount due is payable, plus 7% per annum. It is noted that the method for calculating the rate of interest payable for the purposes of subsections 97P(2) and (4) is prescribed in the instrument for the first time.

The rates are intended to discourage late payment. Comcare sets premiums, regulatory contributions and exit contributions on the basis that agencies will pay by the due date. Late payment affects the return on funds received and increases administrative costs for Comcare.

CONSULTATION

Consultation was undertaken with Comcare, premium paying agencies, private sector self-insurers, Safety Rehabilitation and Compensation Licensees Association, the ACT Government, the Safety Rehabilitation and Compensation Commission (SRCC), unions, RBA, Treasury and the Department of Finance. A consultation paper was circulated to stakeholders and stakeholders were encouraged to provide feedback on the departments’ preferred option for remaking the instrument and any alternative options.  The stakeholders consulted were generally supportive of the approach to remaking the instrument with only minor comments and suggested changes made.

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 (Rates of Interest Payable) 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 (SRC Act) establishes the Commonwealth workers’ compensation and rehabilitation scheme for employees of the Commonwealth, Commonwealth authorities and licensed corporations.

This instrument sets various rates of interest payable in respect of:

• overpayment of premium or regulatory contributions by an Entity or Commonwealth authority;
• late payment of premium or regulatory contributions by an Entity or Commonwealth authority; and
• late payment for exit or regulatory contributions by an Entity or Commonwealth authority.

An Entity is defined in section 4 of the Act as an Agency, within the meaning of the Public Service Act 1999, that is not a Commonwealth authority; a Parliamentary Department within the meaning of the Parliamentary Service Act 1999; or a person, body, organisation or group of persons prescribed to be an Entity for the purposes of the Act. Those prescribed are Commonwealth statutory authorities.

A Commonwealth authority is defined in section 4 of the Act as, broadly, a body corporate incorporated for a public purpose by a law of a Commonwealth or a Territory or, a corporation in which the Commonwealth or a Territory has a controlling interest. The Australian Capital Territory is a Commonwealth authority by force of a legislative instrument made under the Act.

Comcare is established under section 69 of the Act and includes as one of its functions the determining of premiums and regulatory payable by Entities and Commonwealth authorities.

Human rights implications

The interest rates set in respect of overpayments to Comcare, or of late payments, of premiums, regulatory contributions or exit contributions by an Entity, a Commonwealth authority or the Australian Capital Territory do not engage human rights. They are regulatory and compliance mechanisms for the administration of the Comcare scheme, and are paid by either Comcare, an Entity, a Commonwealth authority or the Australian Capital Territory.

Conclusion

This Legislative Instrument is compatible with human rights because it does not negatively impact on human rights.

The Hon Amanda Rishworth MP

Minister for Employment and Workplace Relations

Attachment A

NOTES ON SECTIONS

Section 1 – Name

Section 1 provides that the title of the instrument is the Safety, Rehabilitation and Compensation (Rates of Interest Payable) 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 subsections 97L(3), 97M(7), 97P(1), (2) and (4) of the Safety, Rehabilitation and Compensation Act 1988.

Section 4 – Schedules

Section 4 provides that each instrument that is specified in the Schedule to the instrument is amended or repealed as set out in the applicable items in that Schedule, and any other item in that Schedule has effect according to its terms.

Section 5 – Definitions

Section 5 provides the definitions of terms used in the instrument.

Section 6 – Rate of interest payable under subsection 97L(3)

Section 6 provides the rate of interest payable under subsection 97L(3) is the cash rate target published by the Reserve Bank of Australia.

Section 7 – Rate of interest payable under subsection 97M(7)

Section 7 provides the rate of interest payable under subsection 97M(7) is the cash rate target published by the Reserve Bank of Australia.

Section 8 – Rate of interest payable under subsection 97P(1)

Section 8 provides the rate of interest payable under subsection 97P(1) is the monthly average yield for 90-day Bank Accepted Bills for the May preceding the date when the premium or regulatory contribution is payable, plus 7% per annum.

Section 9 – Rate of interest payable under subsection 97P(2)

Section 8 provides the rate of interest payable under subsection 97P(2) is the monthly average yield for 90-day Bank Accepted Bills for the May preceding the date when the exit contribution or regulatory contribution is payable, plus 7% per annum.

Section 10 – Rate of interest payable under subsection 97P(4)

Section 8 provides the rate of interest payable under subsection 97P(4) is the monthly average yield for 90-day Bank Accepted Bills for the May preceding the date when the exit contribution is payable, plus 7% per annum.

Schedule 1 – Repeals

Schedule 1 to the instrument repeals the Safety, Rehabilitation and Compensation (Rates of Interest Payable) Notice 2016 in its entirety.