Licence Application Process for Self-Insurance by Private Corporations

What is self-insurance?

Self-insurance relieves employers from obtaining a workers’ compensation policy of insurance and allows them to carry their own underwriting risk. Self-insurers are responsible for all claims liabilities and for the management of those claims.

Eligibility for Self-insurance

For private corporations there are two steps in obtaining a license to self-insure workers’ compensation obligations under Commonwealth legislation:

Step 1: Lodge an application for a declaration of eligibility with the Minister

The first step in the application process is for corporations to lodge a written application with the Minister for Employment seeking a declaration for eligibility under Section 100 (1) (c) of the Safety, Rehabilitation and Compensation Act 1988(SRC Act).

Section 100. Minister may declare a corporation eligible to be granted a licence under this Part

(1 )If the Minister is satisfied that it would be desirable for this Act to apply to employees of a corporation that: …

(c) is carrying on business in competition with a Commonwealth authority or with another corporation that was previously a Commonwealth authority;

the Minister may, by legislative instrument, declare the corporation to be eligible to be granted a licence under this Part.

Applications for a declaration must:

Establish that the private corporation is in competition with a current or former Commonwealth Authority by detailing the market in which the applicant corporation and the relevant Commonwealth Authority operate and demonstrate substitutability between their goods and/or services.
Demonstrate that the competition with the Commonwealth authority involves a substantial part of the corporation’s operations.
Identify the applicant corporation as the employing entity.
Address certain public policy principles.
Show the number of employees for each employing entity and the number of states and territories over which the applicant operates and employs (must be at least two).
Provide an independent analysis of the corporation’s previous three years audited financial statements

More detail on the matters the Minister considers when assessing each application can be found in the Minister’s Guidelines document.

Note: Declarations are only made for an individual company and cannot be granted for a group of companies. Each company within a group must seek a separate declaration, and if granted a declaration a separate licence.

Step 2: Applying to the Safety, Rehabilitation and Compensation Commission for a licence to self-insure under the Commonwealth workers’ compensation legislation

Once a private corporation has been declared eligible to hold a licence, it must then submit a full application to the Safety, Rehabilitation and Compensation Commission for consideration for approval as a self-insurer under the Safety Rehabilitation and Compensation Act 1988.

In assessing the application the Commission will have regard to the information contained in the application, any further information that is provided to the Commission for consideration and any other matter that the Commission considers relevant.

For more details of the application process for a declaration please contact:

Department of Employment
Director, Workers’ Compensation Policy Team
Ph: 1300 131 798

Written applications for a declaration should be lodged with:

Senator the Hon. Eric Abetz
Minister for Employment

P O Box 6100
Senate
Parliament House
Canberra ACT 2600

For more detailed information on the requirements for a licence application and how the application is assessed see the SRCC website.

Comcare

Rehabilitation Coordination Team
Ph: 1300 366 979
E:

Written applications for a licence should be lodged with:

The Safety, Rehabilitation and Compensation Commission
GPO Box 9905
Canberra ACT 2601