Luke Hartsuyker (Cowper, National Party, Assistant Minister for Employment) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Comcare scheme provides all scheme employers with an integrated safety, rehabilitation and compensation system, no matter what Australian state or territory an employer operates in or where its employees are located.

Comcare works in partnership with employers and their employees to prevent workplace injuries and appropriately uses regulatory sanctions if there has been any demonstrable failure of the employer's duty of care. Over the five years to 30 June 2013, the Comcare scheme experienced a 23 per cent reduction in the incidence of accepted claims.

The scheme empowers premium payers to work with their employees to maintain an injured employee at work to achieve an early, safe and long lasting return to work. Injured employees covered by the Comcare scheme benefit from a high standard of income support as well as medical and other assistance where necessary.

The Comcare workers' compensation scheme's outstanding claims liabilities exceed the funds available to meet these liabilities. Since 2013-14, Comcare has been progressively restoring the funding position of the scheme. The bill will support current measures that Comcare has put in place to restore funds to adequate levels.

The purpose of this bill is to provide a framework to manage the exit of Commonwealth authorities and to ensure that Comcare's liabilities under the scheme are fully funded by premiums. The proposed framework also enables Comcare to determine and collect ongoing regulatory contributions from exited employers or successor bodies.

This bill ensures that employers exiting the scheme cover the costs of the claims liability for their employees and former employees who have work-related injuries or illnesses. Where this liability exceeds the amount of scheme available funds that are attributable to the premium payer, Comcare will be able to recover the shortfall from the employer up to a period of seven years after the employer has exited the scheme.

Comcare applies regulatory contribution charges on all entities in the scheme to cover the costs of regulating the entities' obligations under the SRC Act. When an employer exits the Comcare scheme, some regulatory costs may remain and are ongoing. The bill will enable Comcare to determine and collect these ongoing regulatory contributions from premium payers exiting the scheme.

Through these amendments the bill will ensure that employers remaining in the scheme are not penalised with higher costs to meet the liabilities attributed to exited employers and that the scheme can offer employers sustainable premium rates.

The SRC Act provides for the rehabilitation of injured employees by providing for rehabilitation programs, alteration of residences or workplaces, and a duty to provide suitable employment.

There are currently no provisions in the SRC Actrequiring exiting premium payers to meet rehabilitation responsibilities to their injured employees.

While the majority of former Commonwealth employers which have ceased to exist have been absorbed into other agencies, there have been cases of injured former employees where there is lack of clarity about the rehabilitation authority, thereby resulting in minimal rehabilitation activities.

The bill provides that premium payers that exit the Comcare scheme would continue to perform the role of rehabilitation authority for employees whose work-related injury or illness occurred while the premium payer was in the Comcare scheme. Having the current employer as the rehabilitation authority leads to better return to work outcomes for injured workers because employers are well placed to rehabilitate them to work readiness and providing suitable work.

This bill includes minor amendments to the appointment process and composition of the Safety, Rehabilitation and Compensation Commission.

Conclusion

In summary, this bill will ensure that unfunded liabilities and ongoing regulatory contribution charges of a premium payer exiting the Comcare scheme are met by that premium payer; it will ensure that Comcare is able to set sustainable premiums, and that injured employees of exiting premium-payer entities will continue to receive appropriate rehabilitation treatment facilitating their early return to work.

I commend the bill to the House.

Debate adjourned.