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2013-2014-2015
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SAFETY, REHABILITATION AND COMPENSATION LEGISLATION AMENDMENT
(EXIT ARRANGEMENTS) BILL 2015
SUPPLEMENTARY EXPLANATORY MEMORANDUM
Amendments to be Moved on Behalf of the Government
(Circulated by authority of the Minister for Employment, Senator the Honourable Eric Abetz)
Outline
AMENDMENTS TO THE SAFETY, REHABILITATION AND COMPENSATION
LEGISLATION AMENDMENT (EXIT ARRANGEMENTS) BILL 2015
OUTLINE
As introduced, the Bill proposes to amend the Safety, Rehabilitation and Compensation Act 1988
(the Act) to provide for financial and other arrangements for a Commonwealth authority to exit
the Comcare scheme. The framework will:
enable Comcare to determine and collect `exit contributions' from former
Commonwealth authorities and successors of former Commonwealth authorities. This
will ensure that an exiting employer does not leave the Comcare scheme without
contributing an appropriate amount to cover any current or prospective liabilities that are
not funded by premiums the employer has paid before exit
ensure that employees injured before the employer's exit continue to be supported by an
appropriate rehabilitation authority
enable Comcare to determine and collect ongoing regulatory contributions from exited
employers or successor bodies
clarify that premiums for current Commonwealth authorities and entities should be
calculated having regard to the principle that current and prospective liabilities should be
fully funded by Comcare-retained funds and so much of the Consolidated Revenue Fund
as is available under section 90C of the Act.
The amendments will also make minor contingent amendments related to the Safety,
Rehabilitation and Compensation Legislation Amendment Bill 2014 (Part 2 of Schedule 1).
Schedule 2 of the Bill amends provisions in the Act related to the Safety, Rehabilitation and
Compensation Commission to streamline appointment processes and ensure appropriate
membership of the Commission.
The amendments to the Bill that the Government will move are minor and technical. The
amendments are related to the measures in the Bill that allow Comcare to permit exited
employers to pay exit contributions in instalments. In particular, the amendments will:
allow Comcare to agree to instalments of an exit contribution being paid over a period of
up to seven years after the day on which the determination is made (currently, the Bill
provides for instalments so long as the last instalment is payable within three years after
the day on which the determination of the exit contribution is made)
amend the exit contribution provisions so that Comcare will assume that outstanding
instalments of exit contributions have been paid (if instalments have been agreed) when
determining subsequent exit contributions
provide for Comcare to refund all or part of an exit contribution if an assessment reveals
that the amount of available scheme funds that is attributable to the exited employer
Outline
exceeds Comcare's liabilities; determinations of a refund may only be made within the
seven year period immediately after an employer exits the scheme
provide for Comcare to remit the whole or part of an unpaid instalment of an exit
contribution if a later assessment reveals that the amount of available scheme funds that
is attributable to the exited employer exceeds Comcare's liabilities
The Government amendments will also make a number of minor technical corrections.
Some of these amendments arose out of consultation with stakeholders on the Bill.
Financial Impact Statement
FINANCIAL IMPACT STATEMENT
Nil.
Statement of Compatibility with Human Rights
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Amendments to the Safety, Rehabilitation and Compensation Legislation Amendment
(Exit Arrangements) Bill 2015
The amendments to the Safety, Rehabilitation and Compensation Legislation Amendment (Exit
Arrangements) Bill 2015 (the Bill) are 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 Bill
As introduced, the Bill proposes to amend the Safety, Rehabilitation and Compensation Act 1988
(the Act) to provide for financial and other arrangements for a Commonwealth authority to exit
the Comcare scheme. The framework will:
enable Comcare to determine and collect `exit contributions' from former
Commonwealth authorities and successors of former Commonwealth authorities. This
will ensure that an exiting employer does not leave the Comcare scheme without
contributing an appropriate amount to cover any current or prospective liabilities that are
not funded by premiums the employer has paid before exit
ensure that employees injured before the employer's exit continue to be supported by an
appropriate rehabilitation authority
enable Comcare to determine and collect ongoing regulatory contributions from exited
employers or successor bodies
clarify that premiums for current Commonwealth authorities and entities should be
calculated having regard to the principle that current and prospective liabilities should be
fully funded by Comcare-retained funds and so much of the Consolidated Revenue Fund
as is available under section 90C of the Act.
The amendments will also make minor contingent amendments related to the Safety,
Rehabilitation and Compensation Legislation Amendment Bill 2014 (Part 2 of Schedule 1).
Schedule 2 amends provisions related to the Safety, Rehabilitation and Compensation
Commission to streamline appointment processes and ensure appropriate membership of the
Commission.
Human rights implications
The amendments do not engage any of the applicable rights or freedoms. Amendments are
technical and concern the payment of exit contributions by Commonwealth authorities that exit
the Comcare scheme. The amendments are related to the measures in the Bill that allow Comcare
to permit exited employers to pay exit contributions in instalments. In particular, the
amendments will:
Amendments to the Safety, Rehabilitation and 1 House of Representatives
Compensation Legislation Amendment (Exit
Arrangements) Bill 2015
Statement of Compatibility with Human Rights
allow Comcare to agree to instalments of an exit contribution being paid over a period of
up to seven years after the day on which the determination is made (currently, the Bill
provides for instalments so long as the last instalment is payable within three years after
the day on which the determination of the exit contribution is made)
provide that a determination of a refund of premiums may only be made within the seven
year period immediately after an employer exits the scheme
amend the exit contribution provisions so that Comcare will assume that outstanding
instalments of exit contributions have been paid (if instalments have been agreed) when
determining subsequent exit contributions
provide for Comcare to refund all or part of an exit contribution if an assessment reveals
that the amount of available scheme funds that is attributable to the exited employer
exceeds Comcare's liabilities. Determinations may only be made within the seven year
period immediately after an employer exits the scheme
provide for Comcare to remit the whole or part of an unpaid instalment of an exit
contribution if a later assessment reveals that the amount of available scheme funds that
is attributable to the exited employer exceeds Comcare's liabilities.
The Government amendments will also make a number of minor technical corrections.
Conclusion
The Government amendments are compatible with human rights as they do not raise any human
rights issues.
Minister for Employment, Senator the Hon. Eric Abetz
Amendments to the Safety, Rehabilitation and 2 House of Representatives
Compensation Legislation Amendment (Exit
Arrangements) Bill 2015
Notes on Amendments
NOTES ON AMENDMENTS
In these notes on amendments, the following abbreviations are used:
the Act Safety, Rehabilitation and Compensation Act 1988
the Bill
Safety, Rehabilitation and Compensation Legislation
the Comcare Amendment (Exit Arrangements) Bill 2015
scheme
The scheme established by the Safety, Rehabilitation and
Compensation Act 1988
Amendments to the Safety, Rehabilitation and 1 House of Representatives
Compensation Legislation Amendment (Exit
Arrangements) Bill 2015
Amendments ~ Schedule 1
SCHEDULE 1 - AMENDMENTS
Item 1 - Schedule 1, Item 12, page 11 (after line 9)
Item 2 - Schedule 1, Item 12, page 12 (after line 21)
Item 3 - Schedule 1, Item 12, page 13 (after line 21)
1. These items provide that Comcare may assume that outstanding exit contribution
instalments have been paid (if payment by instalments has been agreed) where Comcare
revisits liabilities after an initial determination has been made.
Item 4 - Schedule 1, Item 21, page 19 (line 4)
2. This item provides that Comcare may agree to payment of exit contributions by
instalments so long as the last instalment is payable within seven years after the day on which
the last determination of the exit contribution is made (increased from three years).
Item 5 - Schedule 1, Item 40, page 25 (after line 18)
Item 6 - Schedule 1, Item 40, page 26 (after line 23)
Item 7 - Schedule 1, Item 40, page 27 (after line 21)
3. These items would amend new sections 97Q, 97QA and 97QB to provide that
Comcare may only make a determination that a refund of premiums is payable to an exited
employer during the seven year period beginning at the cessation time.
Item 8 - Schedule 1, Item 40, page 27 (after line 26)
4. This item introduces new sections 97QBA, 97QBB, and 97QBC to provide that
Comcare may refund all or part of an exit contribution paid by an exited employer if the
amount of available scheme funds that are attributable to the employer exceeds Comcare's
liabilities in respect of injuries suffered by the employer's employees before exit.
5. These provisions will allow Comcare to revisit liabilities and available scheme funds
at any point in time during the seven year period beginning at the cessation time. Available
scheme funds may exceed liabilities if, for example, employees of an exited employer return
to work much quicker than was estimated when the first determination of an exit contribution
was made. The insertion of a refund mechanism will provide an additional incentive for
exited employers to focus on rehabilitation outcomes.
Item 9 - Schedule 1, Item 40, page 27 (line 28)
6. This item makes consequential amendments as a result of inserting sections 97QBA
and 97QBB.
Item 10 - Schedule 1, Item 40, page 27 (line 34)
7. This item inserts new sections 97QD and 97QF to provide that Comcare may remit
the whole or a part of an unpaid exit contribution instalment if the amount of available
Amendments to the Safety, Rehabilitation and 2 House of Representatives
Compensation Legislation Amendment (Exit
Arrangements) Bill 2015
Amendments ~ Schedule 1
scheme funds that are attributable to the employer exceeds Comcare's liabilities in respect of
injuries suffered by the employer's employees before exit. Item 21 of Schedule 1 of the Bill
provides that Comcare may permit an amount of exit contribution to be paid in instalments.
8. The new sections will complement the sections inserted by Item 8 and provide more
flexibility for Comcare in managing determinations and the payment of exit contributions by
instalments.
Item 11 - Schedule 1, Item 47, page 29 (line 2)
Item 12 - Schedule 1, Item 51, page 29 (line 15)
Item 13 - Schedule 1, Item 55, page 29 (line 28)
Item 14 - Schedule 1, Item 59, page 30 (line 13)
9. These items make minor technical corrections to the Bill.
Item 15 - Schedule 1, page 30 (after line 13), at the end of the Schedule
Item 16 - Schedule 1, page 30, at the end of the Schedule
Item 17 - Schedule 1, page 30, at the end of the Schedule (after proposed item 67)
Item 18 - Schedule 1, page 30, at the end of the Schedule, add (after proposed item 71)
10. These items provide for a number of consequential amendments that would be
required when the Safety Rehabilitation and Compensation Legislation Amendment Act 2015
commences. The Safety, Rehabilitation and Compensation Legislation Amendment Bill 2014
is currently before Parliament and, when passed, would introduce group employer licenses
and make a number of other changes to the licensing provisions in the Act.
Amendments to the Safety, Rehabilitation and 3 House of Representatives
Compensation Legislation Amendment (Exit
Arrangements) Bill 2015
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