Part 1 Workers Compensation Advisory Council of New South Wales
10 Constitution of Advisory Council
(1) There is constituted by this Act a body corporate with the corporate name of the Workers Compensation Advisory Council of New South Wales.(2) The Advisory Council is subject to the control and direction of the Minister, except in relation to the contents of any advice, report or recommendation given to the Minister.
11 Membership and procedure of Advisory Council
(1) The Advisory Council is to consist of the following members:(a) 5 persons appointed by the Minister as employer representatives from a panel of at least 6 persons nominated by such bodies or organisations representing employers as are approved by the Minister,(b) 5 persons appointed by the Minister as employee representatives on the nomination of the Labor Council of New South Wales,(c) 2 persons appointed by the Minister as insurer representatives, being persons nominated by the Rating Bureau,(d) the General Manager, who is to be Chairperson.(2) The members who are employer representatives and employee representatives are voting members.(3) Schedule 2 has effect with respect to the Advisory Council.
12 Functions of Advisory Council
(1) The principal functions of the Advisory Council are as follows:(a) to be responsible for the formulation of recommendations to the Minister with respect to the objectives and policy directions of the workers compensation legislation and the occupational health and safety legislation,(b) to be responsible for the formulation of recommendations to the Minister with respect to the amendment or replacement of any such legislation,(c) to monitor and report to the Minister on the operation and effectiveness of any such legislation, and on the performance of the schemes to which any such legislation relates,(d) to undertake consultation in connection with current or proposed legislation relating to any such scheme as it thinks fit,(e) to report its views about any proposed legislation that might impact on any such scheme to the Minister or the proponent of the proposed legislation,(f) to monitor and review key indicators of financial viability and other aspects of any such schemes,(g) to advise the Minister on any matter relating to any such legislation or any such scheme that the Minister refers to the Advisory Council for advice,(h) to monitor and review the operations of the Authority in connection with the exercise of the Authority’s functions under this or any other Act.(2) The Advisory Council has such other functions as are conferred or imposed on it by or under this or any other Act.(3) The Advisory Council is to exercise its functions consistently with the system objectives set out in section 3.(4) The Advisory Council may seek advice from any appropriate source, and accordingly is not limited to seeking advice from bodies constituted under this Act.(5) The Advisory Council is not prevented from exercising any function that is the same as or similar to a function being exercised or capable of being exercised by the Authority.
(1) The Advisory Council may establish working parties and assign to them terms of reference that include, but are not limited to, the investigation and reporting to the Advisory Council of specific matters of legislative concern arising under or in connection with any workers compensation legislation or any occupational health and safety legislation.(2) It does not matter that any or all of the members of a working party are not members of the Advisory Council.(3) The procedure for the calling of meetings of a working party and for the conduct of business at those meetings is to be as determined by the Advisory Council or (subject to any determination of the Advisory Council) by the working party.
Part 2 WorkCover Authority of New South Wales
Division 1 Constitution of Authority
(1) There is constituted by this Act a corporation with the corporate name of the WorkCover Authority of New South Wales.(2) The Authority is, for the purposes of any Act, a statutory body representing the Crown.
(cf 1989 s 5)
(1) There is to be a Board of Directors of the Authority.(2) The Board is to consist of 7 directors, being:(a) the General Manager of the Authority, and(b) 6 part-time directors appointed by the Governor on the recommendation of the Minister.(3) The persons recommended for appointment by the Minister must have such managerial, commercial or other qualifications or experience as the Minister considers necessary to enable the Board of Directors to exercise its functions.(4) The Advisory Council and such other persons or bodies as the Minister considers appropriate may make recommendations to the Minister regarding the persons to be appointed as directors and the Minister is to have regard to any such recommendations when recommending a person for appointment as a director.(5) A person (other than the General Manager of the Authority) cannot be a member of both the Advisory Council and the Board at the same time.(6) Schedule 3 has effect with respect to the Board of Directors.
(cf 1989 s 7)
The General Manager of the Authority is the General Manager holding office as such under Part 2 of the Public Sector Management Act 1988.
(cf 1989 s 10)
(1) Such staff as may be necessary to enable the Authority to exercise its functions may be employed under Part 2 of the Public Sector Management Act 1988.(2) The Authority may arrange for the use of the services of a government department or a public or local authority.(3) The Authority may, with the approval of the Minister, employ casual staff to assist it to exercise its functions.(4) Part 2 of the Public Sector Management Act 1988 does not apply to or in respect of the appointment of casual staff under this section.(5) The Authority may engage such consultants as the Authority requires to assist it to exercise its functions.(6) For the purposes of the workers compensation legislation and the occupational health and safety legislation, a person who is employed under subsection (1) or (3) or whose services are made use of under subsection (2) is an officer of the Authority.
Division 2 Management of Authority
(cf 1989 s 9)
The Board of Directors and the General Manager are, in the exercise of their respective functions, subject to the control and direction of the Minister, except in relation to the contents of any advice, report or recommendation given to the Minister.
(cf 1989 s 6)
(1) The Board of Directors has the function of determining the administrative policies of the Authority.(2) In exercising that function, the Board of Directors must, as far as practicable, ensure that the activities of the Authority are carried out properly and efficiently and must have regard to the policies of the Advisory Council.
(cf 1989 s 8)
(1) Subject to sections 18 and 19, the affairs of the Authority are to be managed and controlled by the General Manager.(2) Any act, matter or thing done in the name of, or on behalf of, the Authority by the General Manager is taken to have been done by the Authority.
(cf 1989 s 11)
(1) The Authority may delegate to an authorised person any of the functions of the Authority (other than this power of delegation).(2) A delegate may sub-delegate to an authorised person any function delegated by the Authority if the delegate is authorised in writing to do so by the Authority.(3) In this section:authorised person means:
(a) an officer of the Authority, or(b) a person of a class prescribed by the regulations or of a class approved by the Board of Directors.
Division 3 Functions of Authority
(cf 1989 s 12)
(1) The general functions of the Authority are:(a) to be responsible for ensuring compliance with the workers compensation legislation and the occupational health and safety legislation,(b) to be responsible for the day to day operational matters relating to the schemes to which any such legislation relates,(c) to provide administrative and other support to the Advisory Council, sufficient to assist the Advisory Council to meet its priorities,(d) to provide advice and make recommendations to the Advisory Council on such matters as the Advisory Council requests or the Authority considers appropriate,(e) to report and make recommendations to the Minister on such matters as the Minister requests or the Authority considers appropriate.(2) The Authority has such other functions as are conferred or imposed on it by or under the workers compensation legislation, the occupational health and safety legislation or any other legislation.(3) In exercising its functions, the Authority must:(a) promote the prevention of injuries and diseases at the workplace and the development of healthy and safe workplaces, and(b) promote the prompt, efficient and effective management of injuries to persons at work, and(c) ensure the efficient operation of workers compensation insurance arrangements having regard to policies of the Advisory Council, and(d) ensure the appropriate co-ordination of arrangements for the administration of the schemes to which the workers compensation legislation or the occupational health and safety legislation relates.
(cf 1989 s 13)
(1) The Authority has, in particular, the following functions:(a) to initiate and encourage research to identify efficient and effective strategies for the prevention and management of occupational injury and for the rehabilitation of injured workers,(b) to ensure the availability of high quality education and training in such prevention, management and rehabilitation,(c) to assist in developing equitable and effective programs to identify areas of unnecessarily high costs in or for schemes to which the workers compensation legislation or the occupational health and safety legislation relates,(d) to foster a co-operative relationship between management and labour in relation to the health, safety and welfare of persons at work,(e) to encourage liaison between employers, insurers, accredited rehabilitation providers, medical practitioners and other health professionals in the interests of early and effective injury management and rehabilitation of injured workers,(f) to assist in identifying (and as far as practicable minimising or removing) disincentives for injured workers to return to work or for employers to employ injured workers, or both,(g) to assist in the provision of measures to deter and detect fraudulent workers compensation claims,(h) to assist in developing programs to meet the special needs of target groups, including:• workers who suffer severe injuries• injured workers who are unable to return to their pre-injury occupation• injured workers who are unemployed• persons who live in remote areas• women• persons of non-English speaking background• persons who have a disability,(i) to assist in the establishment and operation of:• occupational health and safety committees at places of work• workplace rehabilitation programs,(j) to investigate workplace accidents,(k) to assist in the development of policies for injury management, worker rehabilitation, and assistance to injured workers,(l) to monitor the operation of requirements and arrangements imposed or made by or under the workers compensation legislation or the occupational health and safety legislation, including requirements and arrangements for all or any of the following:• injury management• worker rehabilitation• workers compensation insurance• workers compensation insurer licensing,and to commence and conduct prosecutions for offences in connection with any such requirements and arrangements,(m) to collect, analyse and publish data and statistics, as appropriate, including such data and statistics as the Advisory Council and the Rating Bureau may require to enable them to exercise their functions,(n) to provide advisory services to workers, employers, insurers and the general community (including information in languages other than English),(o) to provide funds for or in relation to:• measures for the prevention or minimisation of occupational injuries or diseases• occupational health and safety education,(p) to arrange, or facilitate the provision of, interpreter services to assist injured workers,(q) to provide and administer (subject to the regulations) a legal aid service for persons who are parties to proceedings relating to workers compensation,(r) to provide data and other information to the Advisory Council, Rating Bureau and Industry Reference Groups.(2) The Authority is not prevented from exercising any function that is the same as or similar to a function being exercised or capable of being exercised by the Advisory Council.
Part 3 Workers Compensation Premiums Rating Bureau of New South Wales
24 Constitution of Rating Bureau
(1) There is constituted by this Act a body corporate with the corporate name of the Workers Compensation Premiums Rating Bureau of New South Wales.(2) The Rating Bureau is, for the purposes of any Act, a statutory body representing the Crown.(3) The Rating Bureau is subject to the control and direction of the Minister, except in relation to:(a) the determination and submission to the Authority of a proposed methodology to be used for the calculation of risk premiums, as provided by Part 3 (Insurance premiums) of Chapter 5, and(b) the contents of any advice, report, recommendation or estimates given to the Minister, the Authority or the Advisory Council.(4) The Minister is to cause a notice to be published in the Gazette giving details of any action taken by the Minister under this section to control or direct the Rating Bureau.(5) The Minister may enter into arrangements with licensed insurers for the payment by licensed insurers of the costs of operation of the Rating Bureau.
25 Membership and procedure of the Rating Bureau
(1) The membership of the Rating Bureau is as follows:(a) members appointed by the Minister on the nomination of licensed insurers (the nominating insurers), as provided by subsection (2),(b) one person appointed by the Minister as an employer representative on the nomination of the Advisory Council,(c) one person appointed by the Minister as an employee representative on the nomination of the Advisory Council.(2) Each nominating insurer is entitled to nominate one person from time to time for appointment to membership of the Rating Bureau, so that each nominating insurer has one nominee as a member at any time. Specialised insurers that issue policies only in respect of domestic or similar workers are not entitled to make such a nomination.(3) Schedule 4 has effect with respect to the Rating Bureau.
26 Functions of the Rating Bureau
(1) The functions of the Rating Bureau are as follows:(a) to be responsible for the determination and submission to the Authority of a proposed methodology to be used for the calculation of risk premiums, as provided by Part 3 (Insurance premiums) of Chapter 5,(b) to provide advice and statistical and actuarial information on workers compensation scheme performance and costings (including emerging performance and costings) to the Minister, the Authority, the Advisory Council and licensed insurers,(c) to provide costing estimates in relation to any proposal for changes to the workers compensation scheme or other changes that may have an impact on the scheme,(d) to provide advice and assistance in the development of workers compensation insurance industry standards,(e) such other functions with respect to workplace injury management and workers compensation as may be prescribed by the regulations.(2) The Rating Bureau has such other functions as are conferred or imposed on it by or under this or any other Act.(3) The Rating Bureau may engage actuaries, consultants and other persons for the purpose of getting expert advice and assistance.(4) The Rating Bureau may arrange for the use of the services of any licensed insurer or insurance industry organisation.
(1) The Rating Bureau is exempt from the operation of the Freedom of Information Act 1989.(2) The Ombudsman Act 1974 does not apply to conduct of the Rating Bureau.(3) The name of the Rating Bureau cannot be added to Schedule 2 (Statutory bodies) to the Public Finance and Audit Act 1983.
Part 4 Occupational Health and Safety Council of New South Wales
28 Constitution of OHS Council
(cf 1989 s 14)
There is constituted by this Act an Occupational Health and Safety Council of New South Wales.
29 Membership and procedure of OHS Council
(cf 1989 s 15)
(1) The OHS Council is to consist of 9 members, being:(a) 2 persons appointed by the Minister, one of whom is to be appointed as Chairperson of the Council, and(b) 1 person appointed by the Minister on the nomination of the Minister for Health, and(c) 3 persons appointed by the Minister from a panel of at least 6 persons nominated by the Labor Council of New South Wales, and(d) 3 persons appointed by the Minister from a panel of at least 6 persons nominated by such bodies or organisations representing employers as are approved by the Minister.(2) Schedule 5 has effect with respect to the OHS Council.
(cf 1989 s 16)
(1) The functions of the OHS Council are:(a) to advise the Advisory Council on any matter relating to occupational health and safety that the Advisory Council refers to the OHS Council for advice, and(b) to advise the Authority on any matter relating to occupational health and safety that the Authority refers to the OHS Council for advice.(2) The Authority must refer to the OHS Council for advice any matter requested by the Minister and report to the Minister on the advice furnished by the OHS Council on the matter.(3) The OHS Council is to keep the Advisory Council informed of the matters that it has under consideration from time to time.(4) The OHS Council has such other functions as are conferred or imposed on it by or under this or any other Act.(5) For the purposes of the exercise by the OHS Council of its functions, a member of the OHS Council may at any reasonable time enter and inspect any premises that are a place of work (except premises occupied as a private dwelling).
(cf 1989 s 17)
(1) The OHS Council may, with the approval of the Authority, establish committees to assist it in connection with the exercise of any of its functions.(2) It does not matter that any or all of the members of a committee are not members of the OHS Council.(3) The procedure for the calling of meetings of a committee and for the conduct of business at those meetings is to be as determined by the OHS Council or (subject to any determination of the OHS Council) by the committee.
Part 5 Industry Reference Groups
(1) The Advisory Council is to establish a system of Industry Reference Groups. The Advisory Council may abolish any such Group at any time.(2) The Advisory Council may establish an Industry Reference Group consisting of such number of members as the Advisory Council thinks fit and may assign to it terms of reference.(3) An Industry Reference Group is:(a) to consist of equal numbers of representatives of workers and employers, and(b) to comprise persons who in the opinion of the Advisory Council have appropriate expertise or experience in matters relating to workers compensation, occupational health and safety or injury management.(4) Members of the Advisory Council may, but need not, be members of Industry Reference Groups.(5) The procedure for the calling of meetings of an Industry Reference Group and for the conduct of business at those meetings is to be as determined by the Advisory Council or (subject to any determination of the Advisory Council) by the Group.
(1) The functions of an Industry Reference Group are as set out in the terms of reference assigned to it.(2) The functions of an Industry Reference Group may include the following:(a) to develop industry specific strategies for:• injury prevention• injury management• the education of and giving of practical advice to workers and employers,(b) to liaise with the OHS Council,(c) to investigate and report to the Advisory Council on specific matters of concern arising under or in connection with any workers compensation legislation.
Division 1 WorkCover Authority Fund
(cf 1989 s 18)
The Authority is required to establish and maintain a WorkCover Authority Fund.
35 Payments into and from Fund
(cf 1989 s 19)
(1) The following is to be paid into the WorkCover Authority Fund:(a) money contributed by insurers and self-insurers under Division 2,(b) money required to be paid into the Fund by or under this or any other Act,(c) all other money received by the Authority and not otherwise appropriated.(2) The following is to be paid from the WorkCover Authority Fund:(a) the remuneration (including allowances) of the Board of Directors and staff of the Authority,(b) the remuneration (including allowances) of members of the Advisory Council and the OHS Council and any other costs of operation of those bodies,(c) the costs of operation of the Rating Bureau (except to the extent that those costs are paid by licensed insurers under arrangements made with the Minister),(d) expenditure incurred by the Department of Industrial Relations in relation to the exercise of the functions of conciliators under this Act by conciliators who are officers of that Department, including the remuneration payable to those officers,(e) the remuneration (including allowances) of conciliators appointed under this Act who are not officers of the Department of Industrial Relations,(f) the costs of operation of the Compensation Court, including:(i) the remuneration (including allowances) of Judges, commissioners, officers and staff of the Compensation Court, and(ii) court accommodation,(g) all payments required to meet expenditure incurred in relation to the functions of the Authority,(h) all other money required by or under this or any other Act to be paid from the Fund.(3) The maximum amount payable from the WorkCover Authority Fund for the costs of operation of the Compensation Court is to be the amount determined by the Minister administering the Compensation Court Act 1984 after consultation with the Minister administering this Act.
(cf 1989 s 20)
The Authority may invest money held by it:(a) in such manner as may be authorised by the Public Authorities (Financial Arrangements) Act 1987, or(b) if that Act does not confer power to invest money held by the Authority, in any other manner approved by the Minister with the concurrence of the Treasurer.
Division 2 Contributions to WorkCover Authority Fund
(cf 1987 s 258)
In this Division:deemed risk premium income, in relation to the contribution payable by a self-insurer under this Division for any period during a financial year, means the amount that the self-insurer would have been liable to pay (in such circumstances as may be prescribed by the regulations) to a licensed insurer as risk premiums on policies of insurance that would otherwise be required under this Act during that period if the person were not a self-insurer, and:
(a) includes any amount prescribed by the regulations for the purposes of this paragraph in relation to that financial year, and(b) does not include any amount prescribed by the regulations for the purposes of this paragraph in relation to that financial year.financial year, in relation to an insurer:
(a) includes the period after 4 pm on the day preceding the first day of the financial year, and(b) does not include the period after 4 pm on the last day of the financial year.insurer means a licensed insurer or a former licensed insurer who was previously a licensed insurer under this Act.
risk premium means the amount determined as risk premium in accordance with an insurer’s total premium methodology approved by the Authority under Part 3 of Chapter 5 or, in a case where a risk premium cannot be so determined, the amount determined as the risk premium in accordance with the regulations.
38 Assessment by Authority of amount to be contributed to Fund
(cf 1987 s 260)
The Authority is required, as soon as practicable in respect of each financial year:(a) to make an estimate of the total of the amounts already paid and the amounts to be paid from the WorkCover Authority Fund during that financial year, and(b) to determine what amounts, if any, are to be set aside as provision to meet expenditure from the Fund in future years, and specify for what purpose each such provision is being made, and(c) to make an estimate of the total amounts (including the amounts already received) to be received into the Fund during that financial year otherwise than by way of contributions in respect of that financial year from insurers and self-insurers under this Division, and(d) to determine the total amount to be contributed to the Fund in respect of that financial year by insurers and self-insurers under this Division after having regard to the amounts standing to the credit of the Fund at the beginning of the year, including any amounts set aside in earlier years as provisions to meet expenditure in later years, and the amounts estimated under paragraph (c) to be received into the Fund during the year, and(e) to specify in writing the estimates, provisions and amounts to be contributed to the Fund by insurers and self-insurers.
39 Contributions to Fund by insurers and self-insurers
(cf 1987 s 261)
(1) Each insurer and self-insurer must pay the contributions prescribed by this section to the Authority for payment into the WorkCover Authority Fund.(2) The contribution to be paid by an insurer in respect of each financial year is an amount equal to the percentage (determined by the Authority in accordance with this section) of the risk premium that is paid to the insurer (whether or not paid during the financial year) in respect of each policy of insurance that is issued or renewed by the insurer to commence during that financial year.(3) The contribution to be paid by a self-insurer, in respect of each financial year (being a financial year during the whole or part of which the person was a self-insurer) is an amount equal to the percentage (determined by the Authority in accordance with this section) of the deemed premium income of the self-insurer during the relevant period when the person was a self-insurer.(4) The percentage determined by the Authority pursuant to subsections (2) and (3):(a) is to be such as, in the opinion of the Authority, will be sufficient to yield the total amount to be contributed to the Fund by insurers and self-insurers in respect of the relevant financial year as determined pursuant to section 38, and(b) is to be the same percentage for all insurers and for all self-insurers, and(c) in the case of a percentage determined pursuant to subsection (2), does not apply in respect of any policy of insurance issued or renewed for a period that commences before the determination is made.(5) A contribution by an insurer is payable at such times and in respect of premium income received during such periods in such manner as may be determined by the Authority and notified to the insurer.(6) A contribution by a self-insurer is payable in such instalments and at such times as may be determined by the Authority and notified to the self-insurer.(7) If a contribution payable by an insurer or a self-insurer has not been paid within the time prescribed by or under this section:(a) the insurer or self-insurer is guilty of an offence and liable to a penalty not exceeding 100 penalty units, and(b) the amount of that contribution together with interest calculated at the rate of 15 per cent per annum compounded quarterly (or, where another rate is prescribed, that other rate) may be recovered by the Authority as a debt in any court of competent jurisdiction.(8) Subject to subsection (4), more than one percentage may be determined by the Authority for different portions of a financial year for the purposes of subsection (2) or (3).(9) A certificate executed by the Authority as to the amount of a contribution payable under this section by an insurer or self-insurer specified in the certificate and the due date for payment is (without proof of its execution by the Authority) admissible in proceedings under this section and is evidence of the matters specified in the certificate.(10) The obligation of a person (being a self-insurer) to make a contribution under this section in respect of any period during which the person was a self-insurer does not cease merely because the person subsequently ceases to be a self-insurer.
Division 3 Financial year of Authority
40 Financial year of Authority
(cf 1989 s 21)
(1) The financial year of the Authority is the year commencing on 1 July.(2) A different financial year may be determined by the Treasurer under section 4 (1A) of the Public Finance and Audit Act 1983.
