New South Wales Bills Explanatory Notes New South Wales Bills Explanatory Notes[Index] [Search] [Download] [Bill] [Help]
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.*
This Bill is cognate with the Workplace Injury Management and Workers
Cornpensation Bill 1998.
Under the Bill:
(a) the benefit provisions of the 1987 Act are maintained with
modifications. including:
(i)
the reduction, from 104 weeks to 52 weeks, in the maximum
period of weekly compensation at total incapacity rates of
partially incapacitated workers who are seeking suitable
employment or receiving rehabilitation training,
* Amended in committee--see table at end of volume.
(ii) the reduction in the rate of weekly "make-up" compensation for
partially incapacitated workers who have unreasonably rejected
suitable employment,
(iii) the removal of restrictions on the circumstances in which
weekly payments of compensation may be commuted to a lump
sum payment,
(iv) the facilitation of the discontinuation of weekly payments for
partially incapacitated workers after 104 weeks in certain cases
where the worker is not seeking or has not obtained suitable
employment,
(v)
the fixing of various rates of compensation for medical, hospital
and other treatment by order of the WorkCover Authority rather
than by regulation, and
(b) the existing workers compensation insurance provisions of the 1987
Act are limited to insurance obtained up to 30 September 1999 and the
Insurance Contribution Fund is closed, and
(c) general savings and transitional provisions are enacted under the 1987
Act and other provisions consequentially repealed or amended, and
(d) other Acts are consequentially amended.
Clause 2 provides for the commencement of the proposed Act on a day or
days to be appointed by proclamation.
Clause 3 is a formal provision giving effect to the amendments to the
Workers Compensation Act 1987 set out in Schedule 1.
Clause 4 is a formal provision giving effect to amendments to other Acts set
out in Schedule 2.
Schedules
Schedule 1 contains amendments to the Workers Compensation Act 1987 to
give effect to the objects mentioned above.
The Schedule deals with the provisions of the 1987 Act as follows:
Part 1 Preliminary
The Part is retained with consequential amendments. The 1987 Act is to be
construed with and as if it formed part of the Workplace Injury Management and
Workers Compensation Act 1998 (the 1998 Act)--see Schedule 1 [1].
Explanatory note page 2
Part 2 Compensation--Liability
The Part is retained with consequential amendments (and not replicated in the
1998 Act) and will apply to liability for past and future injuries.
Part 3 Compensation--Benefits
The Part is retained with consequential amendments (and not replicated in the
1998 Act) and will apply to benefits for past and future injuries. Amendments are
also made to give effect to the following proposed modifications of benefits
described above:
the reduction, from 104 weeks to 52 weeks, in maximum period of total
incapacity payments for partially incapacitated workers who are seeking
suitable employment or receiving rehabilitation training--see Schedule 1
[11]
the reduction in the rate of weekly "make-up" compensation for partially
incapacitated workers who have unreasonably rejected suitable
employment (generally by restricting the comparison of the worker's
pre-injury and post-injury earning potential for the purposes of calculating
the "make-up" compensation to award and similar rates for the work
rather than actual gross rates)--see Schedule 1 [17],
the removal of restrictions on the circumstances in which weekly
payments of compensation may be commuted to a lump sum
payment--see Schedule 1 [20][31],
the facilitation of the discontinuation of weekly payments for partially
incapacitated workers after 104 weeks in certain cases where the worker is
not seeking or has not obtained suitable employment--see Schedule 1
[32],
the fixing of various rates of compensation for medical, hospital and other
treatment by order of the WorkCover Authority rather than by
regulation--see Schedule 1 [38][58].
Part 4 Compensation claims and proceedings
This Part is repealed and is transferred (with modifications) to Part 2 of Chapter 4
of the 1998 Act and (in the case of the Uninsured Liability and Indemnity
Scheme) to Part 9 of Chapter 5 of the 1998 Act--See Schedule 1 [63].
Part 5 Common law remedies
The Part is retained (and not replicated in the 1998 Act) and will apply to
common law remedies for past and future injuries. Amendments are made to the
provisions relating to elections between common law remedies and workers
compensation and to mitigation of damages--see Schedule 1 [64][66].
Part 6 Rehabilitation of injured workers
This Part is repealed and its provisions incorporated (with modifications) in the
proposed workplace injury management provisions of Chapter 3 of the 1998
Act--see Schedule 1 [67].
Explanatory note page 3
Part 7 Insurance
This Part is retained with modifications to regulate the existing insurance
arrangements. The new insurance arrangements are contained in Chapter 5 of the
1998 Act. Under the amendments to this Part:
(a)
Existing workers compensation licensed insurers ("the managed fund
insurers") will continue to issue and renew policies of insurance up to 30
September 1999. No further policies will be issued or renewed by them
after that date. They will continue to manage the statutory insurance funds
established under the 1987 Act for liabilities under the policies issued or
renewed by them.
(b)
Existing self-insurers will become self-insurers under the 1998 Act and
will cease to be self-insurers under the 1987 Act from 30 September 1999.
(c)
The Insurers' Contribution Fund will be closed and amounts standing to
the credit of the Fund will be distributed among the insurers entitled to
claim against the Fund in proportion to each insurer's market share.
(d)
Provisions for defaulting insurers and insolvent insurers are
consequentially amended so that any future defaults or insolvencies will
be dealt with under the parallel provisions of the 1998 Act.
See Schedule 1 [68][82].
Part 8
Previously repealed.
Part 9 WorkCover Authority Fund
This Part is repealed and is transferred (with modifications) to Part 6 of Chapter 2
of the 1998 Act--See Schedule 1 [83].
Part 10 Miscellaneous
The Part is retained with consequential amendments. Many of the provisions of
the Part are repealed as a consequence of the enactment of general miscellaneous
provisions in the 1998 Act applying to both that Act and the 1987 Act.
Schedule 1 Deemed employment of workers
This Schedule is repealed and is transferred to Schedule 1 to the 1998 Act.
Schedule 2 Provisions relating to appointed conciliation officers
This Schedule is repealed and is transferred to Schedule 6 to the 1998 Act.
Schedules 3, 4
Previously repealed.
Schedule 5 Repeals
Retained.
Schedule 6 Savings, transitional and other provisions
This Schedule is retained and is amended to include the relevant provisions
consequent on the enactment of this amending Act and the 1998 Act.
Explanatory note page 4
Schedule 2 contains consequential amendments to the following Acts:
Community Land Management Act 1989 No 202
Compensation Court Act 1984 No 89
Defamation Act 1974 No 1 8
Duties Act 1997 No 123
Fines Act 1996 No 99
Home Building Act 1989 No 147
Industrial Relations Act 1996 No I7
Motor Accidents Act 1988 No 102
Occupational Health and Safety Act 1983 No 20
Sporting Injuries Insurance Act 1978 No 141
Strata Schemes Management Act 1996 No 138
Workers Compensation (Bush Fire, Emergency and Rescue Services) Act
1987 No 83
Workers' Compensation (Dust Diseases) Act 1942 No 14
Explanatory note page 5