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

In summing up, this bill will amend the Safety, Rehabilitation and Compensation Act 1988 to provide for financial and other arrangements when a Commonwealth authority exits the Comcare workers compensation scheme. The Safety, Rehabilitation and Compensation Legislation Amendment (Exit Arrangements) Bill 2015 will not adversely affect any employee entitlements to compensation. An employee who is injured before the employer exits the Comcare scheme will continue to be compensated under the SRC Act, as is currently the case.

There are currently no provisions in the SRC Act requiring exiting premium payers to meet rehabilitation responsibilities to their injured employees. Importantly, the bill will ensure that the employees injured before the employers exit continue to be supported by an appropriate rehabilitation authority. This will protect the rehabilitation rights of employees.

The Comcare workers compensation scheme's outstanding claims liabilities exceed the future funds available to meet these liabilities. The bill will ensure exiting employers do not leave the Comcare scheme without contributing an appropriate amount to cover their current and prospective liabilities that are not funded by premiums.

It will support current measures that Comcare has in place to restore scheme funds to adequate levels and will protect the rehabilitation rights of employees. These amendments will ensure that employers remaining in the scheme are not penalised with higher costs to meet the liabilities of employers who have left the scheme.

The government amendments to the bill are technical and include a number of measures to make it easier for Comcare and an exiting employer to manage payment of unfunded liabilities through instalments over a longer period of time. This will assist exiting employers with their cash flow as well as providing a good amount of time for estimated liabilities to settle and for Comcare's liability to be accurately determined.

The bill has been the subject of a Senate committee inquiry, and the committee recommended the bill be passed. The committee noted that maintaining the financial sustainability of the Comcare scheme through appropriate exit contributions is essential to ensuring the long-term sustainability of the scheme, to pay claims and to support injured employees. The committee was satisfied that the bill will not change any existing benefits or entitlements for injured workers.

The committee noted that the bill will ensure that employees injured before a Commonwealth authority exits the Comcare scheme will continue to receive compensation and rehabilitation under the SRC Act. The committee was persuaded the bill will ensure stability for workers, employers and the Comcare scheme when a Commonwealth authority exits the scheme.

Labor senators on the committee broadly supported the legislation, which is welcome. That said, unfortunately, submissions to the committee and contributions from opposition speakers indicate that some people and organisations completely misunderstand the effect of the exit arrangements bill.

The Safety, Rehabilitation and Compensation Legislation Amendment (Exit Arrangements) Bill 2015 is about the framework for premium paying Commonwealth authorities leaving the Comcare scheme; it is not about premium payers leaving the state and territory workers compensation schemes to join the Comcare scheme. The bill will not lead to a reduction in the premium pool in state and territory schemes.

Further, the exit arrangements bill will not provide an incentive for employers to leave the Comcare scheme. In fact, if the bill is not passed, the losers will be the premium payers who stay in the Comcare scheme and the employees who are injured before their employer exits the Comcare scheme who will have no rehabilitation authority to cover the costs of rehabilitation.

Finally, some members may be aware that the ACT government is considering leaving the Comcare scheme and establishing its own workers compensation scheme. This bill will ensure that if the ACT government does decide to do that, existing workers and premium payers will be protected by that decision. It will also ensure in future, if other Commonwealth authorities decide to leave the Comcare scheme, existing workers and premium payers will be protected as well. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

Message from the Governor-General recommending appropriation for the bill and proposed amendments announced.

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