EXPLANATORY STATEMENT ORDINANCE NO. 5 OF 1998
Issued by the Authority of the Minister for Regional Services, Territories and
Local Government
Christmas Island Act 1958
Workers' Compensation and Rehabilitation Act 1981 (:,/1/A) (Cl) (Amendment) Ordinance 1998
The Commonwealth has entered into a service delivery arrangement with the WA Workers' Compensation and Rehabilitation Commission (the WA Commission) to administer the Workers' Compensation and Rehabilitation Act 1981 (WA)(CI) (the applied Act) in the Territory. The powers of the "Commission" in the applied Act have been delegated to the Executive Director of the WA Commission in accordance with section 8G of the Cl Act.
The purpose of the Ordinance is to make minor amendments to the applied Ac::t to make it more suitable for the Territory and in line With the service delivery arrangement. The amendments will:
• remove references to the "General Fund" and "Trust Fund" and where appropriate replace them with "the Commonwealth"; the Commonwealth will not be setting up these funds for the Territory and is unable to participate in the WA funds (Schedule 1, clauses [1]-[3], [6]-[12], [15)-[18], [21], [22], [24], [25], [28], [32}, [33], [37], [38]);
• replace references to the "Commission" With "the Commonwealth" in sections which deal with payments; the WA Commission is not willing to process payments on the Commonwealth's behalf (Schedule 1, clauses [2]-[6], [13], [18], [21], [25]-[32],[35], [36]);
• provide that contributions to the Commonwealth required of insurers are the same as those levied in Western Australia (Schedule 1, clause [13]);
• remove provisions which oblige the State Government Insurance Commission to insure an employer where the insurer is not willing to continue to insure that employer, following a successful appeal to reduce the premium - the State Government Insurance Commission does not operate in the Territory (Schedule 1, clause [19]);
• provide that an insurer who is approved in Western Australia is taken to be approved in the Territory (Schedule 1, clause [23]);
• provide transitional arrangements for payments of contribution by insurers for 1998 (Schedule 1, clauses [14], [34]).
Details of the Ordinance are as follows.
Section 1 provides that the name of the Ordinance is the Workers' Compensation and Rehabilitation Act 1981 (WA)(CJ) (Amendment) Ordinance 1998.
Overview
The Workers' Compensation and Rehabilitation Act 1981 (WA)(CI) (Amendment) Ordinance 1998 was enacted to amend the Workers' Compensation and Rehabilitation Act 1981, ensuring its applicability to Christmas Island. The legislation was introduced by the Commonwealth to address the need for a service delivery arrangement with the Western Australian Workers' Compensation and Rehabilitation Commission, which was to administer the Act in the Territory. The policy objective of the Ordinance was to make the Act more suitable for the Territory and to align it with the service delivery arrangement, thereby ensuring that the Act functions effectively within the new context. The amendments include replacing references to certain funds and the Commission with references to the Commonwealth, aligning contribution requirements with those in Western Australia, and providing for the recognition of insurers approved in Western Australia. These changes were intended to ensure a seamless and effective administration of workers' compensation and rehabilitation services on Christmas Island.
Scope and Application
The Workers' Compensation and Rehabilitation Act 1981 (WA)(CI) (Amendment) Ordinance 1998 applies to the Territory of Christmas Island, aligning the workers' compensation and rehabilitation provisions with the service delivery arrangement between the Commonwealth and the Western Australian Workers' Compensation and Rehabilitation Commission. This legislation aims to make the applied Act more suitable for the Territory by removing certain references and obligations that are not applicable in this jurisdiction. For example, references to the "General Fund" and "Trust Fund" have been replaced with references to "the Commonwealth", and references to the "Commission" have been replaced with "the Commonwealth" in sections dealing with payments. Additionally, the Ordinance provides that an insurer approved in Western Australia is taken to be approved in the Territory, and that contributions to the Commonwealth required of insurers are the same as those levied in Western Australia. The Ordinance also includes transitional arrangements for payments of contribution by insurers for 1998. The amendments in this Ordinance extend to the application of the Workers' Compensation and Rehabilitation Act 1981 within the Territory, as per the service delivery arrangement between the Commonwealth and the Western Australian Workers' Compensation and Rehabilitation Commission.
Key Provisions
The Workers' Compensation and Rehabilitation Act 1981 (WA)(CI) (Amendment) Ordinance 1998 (Ordinance) amends the Workers' Compensation and Rehabilitation Act 1981 (WA) to better suit the requirements of the Territory. Section 1 names the Ordinance and Schedule 1 details the specific amendments. Clauses [1]-[3], [6]-[12], [15]-[18], [21], [22], [24], [25], [28], [32], [33], [37], and [38] of Schedule 1 remove references to the "General Fund" and "Trust Fund" and replace them with "the Commonwealth" where appropriate. Clauses [2]-[6], [13], [18], [21], [25]-[32], [35], and [36] replace references to the "Commission" with "the Commonwealth" in sections dealing with payments. Clause [13] ensures that contributions to the Commonwealth by insurers are the same as those levied in Western Australia. Clause [19] removes the obligation on the State Government Insurance Commission to insure an employer where the insurer is not willing to continue to insure that employer, following a successful appeal to reduce the premium, as the State Government Insurance Commission does not operate in the Territory. Clause [23] provides that an insurer who is approved in Western Australia is taken to be approved in the Territory. Clauses [14] and [34] of Schedule 1 provide transitional arrangements for payments of contribution by insurers for 1998.
The Ordinance imposes obligations on the parties governed by it, primarily the Commonwealth and insurers. For the Commonwealth, this includes administering the Act in the Territory and ensuring that contributions from insurers are equivalent to those in Western Australia. For insurers, the key obligation is to make contributions to the Commonwealth as per the Act. Additionally, insurers must ensure that they are approved in the Territory if they are approved in Western Australia, as per clause [23] of Schedule 1.
Breach of the provisions in the Ordinance can lead to various consequences, although specific penalties are not detailed in the provided text. Generally, failure to comply with the requirements of the Act, such as not making the appropriate contributions or not adhering to the transitional payment arrangements, could result in civil or criminal penalties. The exact nature and severity of these penalties would depend on the specific breach and the jurisdiction's laws, which are not explicitly stated in the provided text. It is advisable for parties governed by the Ordinance to seek legal advice to understand the potential consequences of non-compliance fully.