2002
THE LEGISLATIVE ASSEMBLY
FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)
(Minister for Industrial Relations)
Workers Compensation (Acts of Terrorism) Amendment Bill 2002

Contents
	Page
Part 1	Preliminary
	1	Name of Act	2
	2	Commencement	2
Part 2	Workers Compensation Act 1951
	3	Act amended—pt 2	3
	4	New chapter 14A	3
Part 3	Workers’ Compensation Supplementation Fund Act 1980
	5	Act amended—pt 3	9
	6	Payments out of fund
Section 7	9
	7	New section 7 (2) and (3)	9
Part 4	Additional amendments
	8	Acts amended—sch 1	10
Schedule 1	Additional amendments	11
Part 1.1	Children and Young People Act 1999	11
Part 1.2	Magistrates Court (Civil Jurisdiction) Act 1982	11
Part 1.3	Periodic Detention Act 1995	11
Part 1.4	Remand Centres Act 1976	12
Part 1.5	Supervision of Offenders (Community Service Orders) Act 1985	12
Part 1.6	Workers Compensation Act 1951	12
Part 1.7	Workers’ Compensation Supplementation Fund Act 1980	18

2002
THE LEGISLATIVE ASSEMBLY
FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)
(Minister for Industrial Relations)
Workers Compensation (Acts of Terrorism) Amendment Bill 2002

A Bill for
An Act to amend the Workers Compensation Act 1951, and for other purposes

    

The Legislative Assembly for the Australian Capital Territory enacts as follows:

Part 1	Preliminary
1	Name of Act
This Act is the Workers Compensation (Acts of Terrorism) Amendment Act 2002.
2	Commencement
This Act commences on 1 July 2002.
Note 	The naming and commencement provisions automatically commence on the notification day (see Legislation Act 2001, s 75).

Part 2	Workers Compensation Act 1951
3	Act amended—pt 2
This part amends the Workers Compensation Act 1951.
4	New chapter 14A
insert
Chapter 14A	Temporary provisions for acts of terrorism
30A	Application of ch 14A to insurers
	(1)	This chapter applies to an insurer if— 
	(a)	the insurer has acted honestly and taken all proper and business-like steps to obtain reinsurance for the insurer’s liability to pay compensation for injuries or deaths (or both) caused by acts of terrorism; and
	(b)	an act of terrorism happens before 1 April 2004; and
	(c)	the insurer accepts liability for claims for compensation for injuries or deaths (or both) caused by the act of terrorism; and
	(d)	the insurer has acted honestly and taken all proper and business-like steps to demand the maximum amounts the insurer may demand under the reinsurance contracts held by the insurer that apply in relation to the claims; and
	(e)	the total amount paid by the insurer for the claims, after the deduction of the maximum amounts the insurer may receive under the reinsurance contracts, is more than the temporary fund threshold amount that applies to the insurer.
	(2)	For this chapter, the temporary fund threshold amount that applies to an insurer is the amount worked out using the following formula:

	(3)	In this section:
insurer’s market share means the proportion (expressed as a percentage) of the administrative costs of the Act apportioned by the Minister to the insurer under section 27D (2) (Funds for administration of Act) in relation to the financial year before the act of terror happens.
premium pool means the total amount of—
	(a)	the premium income received by each approved insurer in relation to compulsory insurance policies in the financial year before the act of terror happens; and
	(b)	the premium that would have been payable by each self-insurer if the self-insurer had obtained a compulsory insurance policy for the financial year (or the part of the financial year for which the self-insurer was a self-insurer).
relevant premium pool amount means 5% of the premium pool.
30B	Definitions for ch 14A
In this chapter:
act of terrorism—see section 30C.
insurer means an approved insurer or a self-insurer.
temporary fund—see section 30D (1).
temporary fund threshold amount—see section 30A (2).
30C	Meaning of act of terrorism for ch 14A
	(1)	In this chapter:
act of terrorism means the use or threat of action if—
	(a)	the action falls within subsection (2); and
	(b)	the use or threat is designed to influence a government or to intimidate the public or a section of the public; and
	(c)	the use or threat is made for the purpose of advancing a political, religious or ideological cause.
	(2)	Action falls within this subsection if it—
	(a)	involves serious violence against a person; or
	(b)	involves serious damage to property; or
	(c)	endangers a person’s life, other than that of the person committing the action; or
	(d)	creates a serious risk to the health or safety of the public or a section of the public; or
	(e)	is designed seriously to interfere with or seriously to disrupt an electronic system.
	(3)	The use or threat of action falling within subsection (2) that involves the use of firearms or explosives is terrorism whether or not subsection (1) (b) is satisfied.
	(4)	In this section:
action includes action outside the ACT or Australia.
government includes the government of another Australian jurisdiction or a foreign country.
person means a person anywhere, whether in or outside the ACT or Australia.
property means property located anywhere, whether in or outside the ACT or Australia.
public includes the public of a place outside the ACT or Australia.
30D	Terrorism cover temporary reinsurance fund
	(1)	If this chapter applies to an insurer, the terrorism cover temporary reinsurance fund (the temporary fund) is established.
	(2)	The temporary fund consists of—
	(a)	the amounts of levies paid by insurers under this chapter; and
	(b)	amounts borrowed by the Territory for the fund; and
	(c)	any contributions made by the Territory to the fund; and 
	(d)	any amounts paid to the fund under the Workers Compensation Supplementation Fund Act 1980; and
	(d)	income from the investment of amounts in the fund; and
	(e)	any other amounts that may lawfully be paid into the fund.
	(3)	The temporary fund is to be managed by the Territory and money paid into it is taken to be trust money under the Financial Management Act 1996. 
30E	Entitlement of insurers to reimbursement from temporary fund
	(1)	If this chapter applies to an insurer because of an act of terrorism, the insurer is entitled to be reimbursed from the temporary fund the insurer’s uninsured liability for the act of terrorism less the temporary fund threshold amount that applies to the insurer in relation to the act of terrorism.
	(2)	However, the insurer is entitled to be fully reimbursed from the temporary fund the insurer’s uninsured liability for another act of terrorism that happens—
	(a)	before 1 April 2004; and
	(b)	not later than 1 year after the day the act of terrorism mentioned in subsection (1) happens.
	(3)	Subsection (2) applies only if the insurer has acted honestly and taken all proper and business-like steps to— 
	(a)	obtain reinsurance for the insurer’s liability to pay compensation for injuries or deaths (or both) caused by the later act of terrorism; and
	(b)	demand the maximum amounts the insurer may demand under the reinsurance contracts held by the insurer that apply in relation to the later act of terrorism.
	(4)	In this section:
insurer’s uninsured liability, for an act of terrorism, means the total of the amounts paid by the insurer for claims for compensation for injuries or deaths (or both) caused by the act of terrorism less all amounts that are recoverable (or to the extent that they are recoverable) by the insurer under the reinsurance contracts held by the insurer that apply in relation to the claims.
30F	Payments out of temporary fund
The temporary fund may be used to—
	(a)	pay any amount required under this chapter to be paid from the fund; and
	(b)	repay any amount borrowed for, or contributed by the Territory to, the fund; and
	(c)	pay interest on an amount mentioned in paragraph (b).
30G	Regulations about temporary fund
	(1)	The regulations may make provision in relation to the temporary fund, including—
	(a)	the imposition of levies on insurers for the fund; and
	(b)	payments from the fund.
	(2)	In particular, the regulations may make provision in relation to— 
	(a)	levies for the fund, including their rate; and
	(b)	payments to the fund, including contributions by the Territory to the fund; and
	(c)	payments from the fund, including the information insurers claiming an entitlement to reimbursement from the fund must give to the fund’s manager.
30H	Exclusion of Corporations legislation
	(1)	The temporary fund is declared to be an excluded matter for the purposes of the Corporations Act, section 5F in relation to the whole of the Corporations legislation to which the Corporations Act, part 1.1A (Interaction between Corporations Legislation and State and Territory laws) applies.
Note	The Corporations Act, s 5F provides that if a State or Territory law declares a matter to be an excluded matter for the purposes of that section in relation to all or part of the Corporations legislation to which the Corporations Act, pt 1.1A applies (see s 5D), the provisions that are the subject of the declaration will not apply in relation to that matter in the State or Territory that made the declaration. 
	(2)	Without limiting subsection (1) and to remove any doubt, an act or omission by an entity in relation to the fund is declared to be an excluded matter for the purposes of the Corporations Act, section 5F in relation to the whole of the Corporations legislation to which the Corporations Act, part 1.1A applies.
30I	Expiry of ch 14A
This chapter expires on 1 October 2004.

Part 3	Workers’ Compensation Supplementation Fund Act 1980
5	Act amended—pt 3
This part amends the Workers’ Compensation Supplementation Fund Act 1980.
6	Payments out of fund
Section 7
omit
The manager may
substitute
	(1)	The manager may
7	New section 7 (2) and (3)
insert
	(2)	The manager must pay out of the fund any amount the Minister directs be transferred to the terrorism cover temporary reinsurance fund under the Workers Compensation Act 1951.
	(3)	Subsection (2) and this subsection expire on 1 October 2004.

Part 4	Additional amendments
8	Acts amended—sch 1
Schedule 1 amends the Acts mentioned in the schedule.

Schedule 1	Additional amendments
(see s 8)
Part 1.1	Children and Young People Act 1999
[1.1]	Section 113
omit
Part 1.2	Magistrates Court (Civil Jurisdiction) Act 1982
[1.2]	Section 471 (1)
omit
(other than rules made under section 497 (Rule-making power)
[1.3]	Section 471 (4)
omit
or rules made under section 497
[1.4]	Section 471 (6)
omit
(other than a proceeding to which rules made under section 497 apply)
Part 1.3	Periodic Detention Act 1995
[1.5]	Section 28
omit
Part 1.4	Remand Centres Act 1976
[1.6]	Section 21A
omit
Part 1.5	Supervision of Offenders (Community Service Orders) Act 1985
[1.7]	Section 10
omit
Part 1.6	Workers Compensation Act 1951
[1.8]	Section 4C (2), example 3
substitute
3	A gardener regularly employed by the owner of a business to work on the grounds of the premises where the employer’s business is carried on.  The gardener is taken to be a worker employed to perform work incidental to the principal’s business (see s (1)).
[1.9]	Section 6C (3) (d)
substitute
	(d)	cerebral aneurism;
	(e)	any other condition prescribed by the regulations for this section.
[1.10]	Section 9C (2), definition of medical certificate
omit
of a doctor
substitute
, from a doctor, that complies with the requirements for medical assessments prescribed under the regulations and
[1.11]	Section 9H heading
substitute
9H	Second assessments
[1.12]	Section 9H (2)
omit
examined
substitute
assessed
[1.13]	Section 10Q (3)
omit
may
substitute
must
[1.14]	Section 11B (2)
omit everything before paragraph (a), substitute
	(2)	A medical certificate required to accompany a claim for weekly compensation must comply with the requirements for medical assessments prescribed under the regulations and include a statement of the doctor’s assessment of—
[1.15]	Section 11C heading
substitute
11C	No compliant certificate with claim
[1.16]	Section 12
substitute
12	Meaning of insurer and given to insurer for pt 6.2
	(1)	In this part:
insurer, in relation to a claim against an employer, means—
	(a)	the approved insurer with whom the employer has a compulsory insurance policy that applies to the claim; or
	(b)	if the employer is a self-insurer—the employer; or
	(c)	if the employer is not a self-insurer and has no compulsory insurance policy that applies to the claim—the nominal insurer.
	(2)	For this part, a claim is given to the insurer if the claim is given to the insurer or the insurer is given notice of the claim by the employer or worker.
[1.17]	Section 12B (1) and (2)
substitute
	(1)	An insurer rejects a claim for compensation under this Act by written notice given to the worker and, unless the insurer is a self-insurer, the employer.
	(2)	The claim is taken to be rejected when the notice is received by the worker and, unless the insurer is a self-insurer, the employer.
[1.18]	Section 12B (5)
omit
affidavit evidence about
substitute
a statutory declaration explaining
[1.19]	Section 12B (5), new note
insert
Note	The Statutory Declarations Act 1959 (Cwlth) applies to the making of statutory declarations under ACT laws (see that Act, s 5).
[1.20]	New section 12G (4)
insert
	(4)	Subsection (3) does not affect a self-insurer’s liability in relation to the claim.
[1.21]	New section 15A (3)
insert
	(3)	The regulations may also make provision about the role of approved rehabilitation providers under this Act.
[1.22]	Section 18H (4) (a) 
omit
incomes
substitute
income
[1.23]	Section 24 heading
substitute
24	Conciliation and arbitration
[1.24]	Section 24
omit
arbitration
substitute
conciliation or arbitration
[1.25]	Chapter 13 heading
substitute
Chapter 13	Review of decisions by administrative appeals tribunal
[1.26]	Section 27D (3) (a)
omit
incomes
substitute
income
[1.27]	Section 30 (2) (a)
substitute
	(a)	medical assessments of injured workers;
	(ab)	the use of medical specialists in relation to compensable injuries;
[1.28]	Section 30 (2) (h)
substitute
	(h)	the action that may be taken in relation to an approved insurer in circumstances prescribed under the regulations, including an order that an approved insurer pay to the Territory an amount of not more than $1 000;
[1.29]	Dictionary, definition of given
substitute
given to the insurer, for pt 6.2 (Time for accepting or rejecting claims)—see section 12 (2).
[1.30]	Dictionary, definition of injured worker
substitute
injured worker—see section 10I (Definitions for ch 5). 
[1.31]	Dictionary, definition of insurer
substitute
insurer—
	(a)	 for chapter 5 (Injury management process), means—
	(i)	an approved insurer or a self-insurer; or
	(ii)	if there is more than 1 employer of the worker—see section 10J; and
	(b)	for part 6.2 (Time for accepting or rejecting claims)—see section 12 (1).
[1.32]	Dictionary, definition of workplace injury
substitute
workplace injury—see section 10I (Definitions for ch 5). 
Part 1.7	Workers’ Compensation Supplementation Fund Act 1980
[1.33]	Section 1
substitute
1	Name of Act
This Act is the Workers Compensation Supplementation Fund Act 1980.
[1.34]	Section 2, new definition of approved insurer
insert
approved insurer—see the Compensation Act, dictionary.
[1.35]	Section 2, definition of Compensation Act
substitute
Compensation Act means the Workers Compensation Act 1951.
[1.36]	Section 2, new definition of compulsory insurance policy
insert
compulsory insurance policy—see the Compensation Act, dictionary.

[1.37]	Section 2, definition of employer
substitute
employer—see the Compensation Act, section 5.
[1.38]	Section 2, definitions of employer’s policy and insurer
omit
[1.39]	Section 2, definition of fund
substitute
fund means the Workers Compensation Supplementation Fund of the Australian Capital Territory established by section 3.
[1.40]	Section 2, definition of worker
substitute
worker—see the Compensation Act, dictionary.
[1.41]	Part 2 heading
substitute
Part 2	Workers Compensation Supplementation Fund
[1.42]	Section 3 (1)
substitute
	(1)	The Workers Compensation Supplementation Fund of the Australian Capital Territory is established.
[1.43]	Section 3 (3)
substitute
	(3)		Each account kept by the manager under subsection (3) must contain in its title the words ‘Workers Compensation Supplementation Fund Account’.
[1.44]	Division 4.1 heading
substitute
Division 4.1	Surcharge on compulsory insurance policies
[1.45]	Section 22 (1)
substitute
	(1)	An employer who obtains a compulsory insurance policy from an approved insurer must pay to the insurer the prescribed surcharge for the policy.
[1.46]	Section 22 (2)
omit
[1.47]	Section 22 (3)
substitute
	(3)	For this section, the prescribed surcharge for a compulsory insurance policy is an amount equal to 10% (or, if a lesser percentage is determined, in writing, by the Minister, the lesser percentage) of the premium payable in relation to the policy at the premium rate in force on the day stated in the policy to be the day when insurance cover begins under the policy.
[1.48]	Section 22 (5) and (7)
omit
[1.49]	Section 22
renumber subsections when Act next republished under Legislation Act 2001
[1.50]	Section 23
omit
section 17C
substitute
section 152
[1.51]	Section 24 (1) (b) and (3) (a)
omit
employer’s policies
substitute
compulsory insurance policies
[1.52]	Section 26 (1) and (2)
omit
Where, before or after the commencement of this Act—
substitute
If—
[1.53]	Sections 27 (b), 30 (2) (c) and 39
omit
employer’s policy
substitute
compulsory insurance policy
[1.54]	Section 40 (1) (a)
omit
employer’s policies
substitute
compulsory insurance policies
[1.55]	Section 40 (2)
omit
employer’s policy
substitute
compulsory insurance policy
[1.56]	Section 40 (3)
omit
whether made before or after the commencement of this Act
[1.57]	Further amendments, mentions of an employer’s policy
omit
an employer’s policy
substitute
a compulsory insurance policy
in
·	section 22 (6) (a)
·	section 23 (2)
·	section 25 (1)
·	section 26
·	section 41 (a).
[1.58]	Further amendments, mentions of insurer
omit
insurer
substitute
approved insurer
in
·	section 2, definition of liquidator
·	section 2, definition of supervising insurer (2nd mention)
·	section 7 (b) (1st mention)
·	section 22 (6) (a) and (b)
·	section 24 heading
·	section 24 (1) (1st mention)
·	section 24 (2)
·	section 24 (3) (1st mention)
·	section 25 (1) (1st mention)
·	section 25 (2) (1st mention)
·	section 26 (1) (c)
·	section 26 (2) (c)
·	section 26 (3) (1st mention)
·	section 27 (1st mention)
·	section 28 (1) (1st mention)
·	section 28 (3) (1st mention)
·	section 30 (1) (1st and 3rd mention)
·	section 30 (2) (c)
·	section 30 (3) (2nd mention)
·	section 35 heading
·	section 35 (1) (1st mention)
·	section 35 (3) (1st mention)
·	section 39 heading
·	section 39 (1st mention)
·	section 40 (1) (a) (1st mention)
·	section 40 (2) (1st mention)
·	section 41 heading
·	section 41 (a) (1st mention)
·	section 42 (1st mention).
[1.59]	Further amendments, mentions of insurers
omist
insurers
substitute
approved insurers
in
·	section 12 (1) (a) (1st mention)
·	section 17 (2) (d) (2nd mention)
·	section 26 heading
·	section 28 heading.

Endnote
Republications of amended laws
	For the latest republication of amended laws, see www.legislation.act.gov.au.

© Australian Capital Territory 2002