EXPLANATORY STATEMENT
Issued by the authority of the
Minister for Employment and Workplace Relations
Safety, Rehabilitation and Compensation Act 1988
Rate per kilometre payable under subsection 16(6)
The Safety, Rehabilitation and Compensation Act 1988 (SRC Act) provides for compensation and rehabilitation for employees who are injured arising out of or in the course of their employment.
Subsection 16(6) of the SRC Act provides that Comcare is liable to compensate employees who use their own motor vehicle when travelling more than 50 kilometres to obtain medical treatment for their compensable injuries.
Paragraph 16(6)(c) of the SRC Act enables the Minister to specify, by notice, the rate per kilometre payable to these employees.
The rate payable from 1 July 2003 is 47 cents per kilometre. This rate will be reviewed to take into account the increased cost of running a motor vehicle, using variations in relevant Consumer Price Index (CPI) components namely ‘automotive fuel’; ‘motor vehicle repair and servicing’; and ‘motor vehicle parts and accessories’, based on a weighted average of 8 capital cities.
The purpose of the notice to is to set the current rate per kilometre payable for the purposes of subsection 16(6), and to provide a list of rates applicable in previous periods. The notice consolidates a number of existing notices made under section 16(6) of the SRC Act. This means that any claims for journeys made prior to 1 July 2003 will be reimbursed at the rate that corresponds with the date of the journey. Additionally, the purpose of the notice is in response to compliance with the Legislative Instruments Act 2003.
Consultation was not undertaken in relation to setting this rate because it does not change the existing or previous rates set. An exemption from the preparation of a Regulation Impact Statement was also granted by the Office of Regulation Review on this basis.
This Notice will take effect upon registration on the Federal Register of Legislative Instruments (FRLI).
This Notice is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Safety, Rehabilitation and Compensation Act 1988 (SRC Act) was enacted to address the need for a structured framework to provide compensation and rehabilitation for employees who are injured during the course of their employment. This Act, administered by the Minister for Employment and Workplace Relations, aims to ensure that employees receive appropriate compensation for injuries sustained while working. In the context of this legislation, the 2005 legislative instrument F2005L04064, issued under the authority of the Minister, focuses on specifying the rate per kilometre payable to employees who use their own motor vehicles to travel more than 50 kilometres for medical treatment related to their compensable injuries. The instrument was introduced to streamline and update the reimbursement rates, taking into account the rising costs associated with running a motor vehicle, as measured by relevant components of the Consumer Price Index. This legislative instrument consolidates previous notices, ensuring that claims for journeys made prior to the specified date are reimbursed at the corresponding rates. It also aligns with compliance requirements under the Legislative Instruments Act 2003.
Scope and Application
The Safety, Rehabilitation and Compensation Act 1988 applies to employees who are injured in the course of their employment and are eligible for compensation and rehabilitation under the Act. Specifically, subsection 16(6) of the Act addresses the liability of Comcare for compensating employees who use their own motor vehicles to travel more than 50 kilometres for medical treatment related to their compensable injuries. The Act applies nationally, covering all jurisdictions within Australia. The Act does not explicitly exclude any particular persons, entities, industries, or conduct from its scope; rather, it broadly encompasses all employees injured in the course of their employment across various sectors. The rate per kilometre payable for such travel is specified by the Minister through a notice, currently set at 47 cents per kilometre as reviewed periodically based on variations in relevant Consumer Price Index components. This Notice, which consolidates previous notices, ensures that reimbursement rates correspond to the date of the journey, and it is a legislative instrument governed by the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of the F2005L04064 notice, under the Safety, Rehabilitation and Compensation Act 1988 (SRC Act), specify the rate per kilometre payable to employees who travel more than 50 kilometres to obtain medical treatment for compensable injuries. According to subsection 16(6) of the SRC Act, Comcare is responsible for compensating these employees. Paragraph 16(6)(c) empowers the Minister to set the rate by notice, and this particular notice sets the rate at 47 cents per kilometre from 1 July 2003. The rate will be reviewed periodically to account for the increased cost of running a motor vehicle, using a weighted average of relevant Consumer Price Index components for eight capital cities.
The Act imposes specific obligations on the parties involved. For the employees, it ensures that they are compensated for travel expenses exceeding 50 kilometres to obtain medical treatment for work-related injuries. For Comcare, it mandates the payment of these expenses at the specified rate. Employers are indirectly affected as they are responsible for ensuring their employees are aware of their rights under the Act, including the right to claim travel expenses for medical treatment. The Minister’s role involves setting and reviewing the rate per kilometre to ensure it remains reflective of actual costs.
Breach of the obligations outlined in the Act may lead to civil or administrative consequences. For instance, if Comcare fails to pay the specified rate, it could result in legal action by the affected employees seeking compensation for the unpaid expenses. The notice also indicates that any claims for journeys made before 1 July 2003 will be reimbursed at the applicable rate for the date of the journey. There are no explicit criminal penalties mentioned for non-compliance in this notice; however, failure to adhere to the specified rates could result in disputes and potential litigation. The notice clarifies that consultation was not necessary as the rates did not change from the previous rates, and an exemption from the preparation of a Regulation Impact Statement was granted. This notice takes effect upon registration on the Federal Register of Legislative Instruments (FRLI), thereby formalising its legal status and applicability.