Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill

The object of this Bill is to amend the Workplace Injury Management and Workers
Compensation Act 1998 (the 1998 Act) and the Workers Compensation Act 1987 (the
1987 Act) to provide new funding arrangements for the WorkCover Authority
(WorkCover) as follows:

(a) WorkCover’s operations will be funded from the Workers Compensation
Insurance Fund (the Insurance Fund) by payments made from that Fund to
the WorkCover Authority Fund with the approval of the Minister,

(b) existing provisions that enable WorkCover to require a contribution from the
premium income of insurers will be retained but limited to contributions from
specialised insurers and self-insurers (with the result that WorkCover will no
longer be able to levy a contribution on the premium income of the Nominal
Insurer),

(c) WorkCover will be authorised to transfer money or other forms of surplus
from the WorkCover Authority Fund to the Insurance Fund.

Outline of provisions

Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on 1 July 2008 with
the exception of the amendment that allows the transfer of any surplus in the
WorkCover Authority Fund to the Insurance Fund (which is to commence on the date
of assent).

Clause 3 is a formal provision that gives effect to the amendments to the Workplace
Injury Management and Workers Compensation Act 1998 set out in Schedule 1.

Clause 4 is a formal provision that gives effect to the amendments to the Workers
Compensation Act 1987 set out in Schedule 2.

Clause 5 provides for the repeal of the proposed Act after the amendments made by
the proposed Act have commenced. Once the amendments have commenced the
proposed Act will be spent and section 30 of the Interpretation Act 1987 provides
that the repeal of an amending Act does not affect the amendments made by that Act.

Schedule 1 Amendment of Workplace Injury
Management and Workers
Compensation Act 1998
Schedule 1 [1], [2] and [5] establish the new arrangements for the funding of
WorkCover’s operations by providing for the payment into the WorkCover
Authority Fund of amounts approved by the Minister to be paid into the Fund from
the Insurance Fund.

Schedule 1 [4] and [6]–[12] limit the existing arrangements for the levying of
contributions on insurance premiums to premiums payable to specialised insurers
and the deemed premium income of self-insurers, so that contributions will no longer
be levied on the premium income of the Nominal Insurer.

Schedule 1 [3] authorises WorkCover to transfer any surplus in the WorkCover
Authority Fund to the Insurance Fund.

Schedule 2 Amendment of Workers Compensation
Act 1987
Schedule 2 [1] makes a consequential amendment to the provision that authorises
payments from the Insurance Fund to provide for the payments that will be
authorised to be made under the proposed new funding arrangements.

Schedule 2 [2] enacts a transitional provision that requires the payment from the
Insurance Fund into the WorkCover Authority Fund of contributions on outstanding
premium debts due to the Nominal Insurer. The provision is consequential on the

---

Explanatory note page 3

Workers Compensation Legislation Amendment (Financial Provisions) Bill 2008
Explanatory note
termination of existing arrangements for levying contributions on the premium
income of the Nominal Insurer and provides for the levying of a contribution on
premiums that are due and unpaid when the existing arrangements end.

Schedule 2 [3] enacts a savings and transitional regulation-making power.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

---

[Index] [Search] [Download] [Bill] [Help]