EXPLANATORY STATEMENT

Issued by authority of the

 Minister for Employment and Workplace Relations

Seafarers Rehabilitation and Compensation Act 1992

Section 107

SEAFARERS, SAFETY REHABILITATION AND COMPENSATION AUTHORITY (EXEMPTION GUIDELINES) DIRECTIONS 2006 (1)

The Seafarers Rehabilitation and Compensation Act 1992 (Seafarers Act) establishes a workers' compensation and rehabilitation scheme for seafarers employed on certain ships engaged in

trade or commerce within a Territory, interstate or overseas, and on other vessels declared by

the Australian Maritime Safety Authority.

Section 107 of the Seafarers Act provides that the Minister for Employment and Workplace Relations may, by notice in writing to the Chairperson of the Seafarers Safety, Rehabilitation

and Compensation Authority (Seacare Authority), give a direction to the Authority with respect

to the performance of its function or the exercise of its powers.

Section 20A of the Seafarers Act gives the Seacare Authority the power to grant an exemption

from the application of the Act.  In exercising the power to grant an exemption under section

20A, the Authority has established Exemption Guidelines (the Guidelines).  The Authority has

also established that it must refer to the Guidelines in determining any application made under section 20A.

The Guidelines cover the issues and circumstances to be taken into account by the Seacare Authority in considering any exemption application.

The purpose of the instrument to which this Explanatory Statement relates is to direct the

Seacare Authority to amend the Guidelines it uses in considering applications for exemption

made under section 20A of the Seafarers Act.

The instrument directs that when an employer is able to demonstrate that workers’

compensation cover will be provided to its employees under another Australian workers’ compensation scheme, at a cost lower than is available under the Seacare Scheme, this would constitute a primary factor in determining an application by that employer for an exemption

from the Seafarers Act.

A Ministerial Direction under section 107 of the Seafarers Act may be a legislative instrument

for the purposes of the Legislative Instruments Act 2003 (LI Act).  Section 5 of the LI Act

defines a legislative instrument and having regard to that definition, the instrument to which

this Explanatory Statement relates is a legislative instrument.  The instrument commences on

the day following its registration on the Federal Register of Legislative Instruments.