Australian Government - Comcare

SRCOLA Frequently Asked Questions

 What are the key changes?

  • The definition of 'disease' has been amended.
  • The definition of 'injury' has been amended.
  • Coverage for injuries sustained on journeys between home and work has been removed.
  • Coverage for injuries sustained during ordinary recess breaks (including lunch break) away from the workplace has been removed.
  • Potential earnings from suitable employment can be taken into account in determining weekly benefits for employees not currently employed by the Commonwealth or a licensee.
  • Increase to the amount paid in funeral benefits.
  • Changes to incapacity benefits for retired employees include:
      
    • more beneficial treatment of the earning capacity from superannuation lump sums for retirees;
    • new formulas set a standard compensation subtraction of 5% from normal weekly earnings (new retirees only);and
    • amendment to the definition of superannuation scheme to include retirement savings account to which the employer has also made contributions (new retirees only). 

When do the changes come into effect?

The majority of the changes commenced on 13 April 2007. The changes relating to incapacity payments formulae for retirees commenced on 27 April 2007.

Changes to definitions of disease and injury

What has changed to the definition of 'disease'? (injuries or new aggravations sustained from 13 April 2007 only)

The definition of disease has been amended to strengthen the connection between the disease and the claimant's employment. This means that the employment needs to contribute to a significant degree, with this being defined as 'a degree that is substantially more than material'. A range of matters which may be taken into account to determine the significance of the employment contribution has also been included in the legislation.

What has changed to the definition of 'injury'? (injuries or new aggravations sustained from 13 April 2007 only)

A disease, injury or aggravation suffered as 'a result of reasonable administrative action taken in a reasonable manner in respect of employment' is excluded from the definition. Reasonable administrative action includes things such as performance appraisal, counselling, promotion, suspension, disciplinary action and anything reasonably done in connection with these things.
 

Changes to journey and recess claims

Why have the provisions for claims for non work-related journey and recess breaks been removed? (sustained from 13 April 2007 only).

Workers' compensation will continue to be payable for injuries arising from circumstances where an employer is able to take reasonably practicable steps to protect an employee, eg. when the employee remains at the workplace during a recess or leaves the workplace or leaves from home for the purposes of his or her employment or at the employer's direction, such as to attend a meeting outside of the usual workplace, perform duties away from the work place, travel interstate for work, etc.

The amendments remove provisions for claims where the employer lacks control over the activities of the employee such as travelling to and from the usual workplace and home, and during recess breaks outside of the workplace.

Normal travel between an employee's residence and usual place of work is not taken at the direction or request of the employer, despite the circumstances of the journey, and is therefore not covered.

What does 'associated with the employee's employment' mean? What tests will be used to assess whether an activity is 'associated with the employee's employment'?

Where an employee is temporarily absent from the workplace undertaking an activity, coverage for the activity may exist where:

  • the activity is associated with the employee's employment; or
  • the activity is undertaken at the request or direction of the employer.

When considering whether an activity is 'associated with the employee's employment' (subsection 6(1)(c)(i)), Comcare would be guided by the submission of the employer which accompanied the claim. However some core requirements would have to be met to ensure 'equity' and 'merits' (see SRC Act s72 Manner in which claims are to be determined) in decision making.

'Associated with the employee's employment' includes social activities approved or arranged by the employer, for example, those promoted through the employer's health and well being program.

There are factors that Comcare, has considered in the past as to the level of employer support for sporting and leisure activities, and these may be a guide to considering 'associated with the employee's employment'. These factors are:

(i) attendance of a senior officer at the activity;

(ii) whether the employer has agreed to it's name being displayed on the sporting uniforms or other equipment;

(iii) whether the activity was organised during work time, or using work facilities (such as meeting rooms, telephones/e-mail/fax machines) with the support of the employer;

(iv) whether transport was provided to attend the activity;

(v) whether the employer provided equipment e.g. uniforms, drink bottles, balls, bats, etc;

(vi) whether the employees where considered to be 'on duty' or granted special leave provisions while participating.
 

What does 'at the direction or request of the Commonwealth or a licensee' mean?

In accordance with subsection 6(1)(c)(ii), an employee is covered for workers' compensation when temporarily absent from the employee's place of work undertaking an activity at the direction or request of the Commonwealth or a licensee. When determining whether an activity is 'at the direction or request of', Comcare would be guided by the employer's statement as to whether the activity forms a part of the employee's duties, whether it is a job requirement, evidence of work schedules, etc.

Am I covered for workers' compensation during a lunch-time activity, away from the workplace, which is promoted by the social club, such as a touch footy competition, boot-camp, walking club, etc?

Unlikely. As such 'social club' activities might not meet the 'associated with the employee's employment' test in the new s6(1)(c)(i) of the SRC Act. However, those activities which are organised or promoted by the employer, eg. through the employer's official 'health and well being' program are more likely to meet the 'associated with the employee's employment' test and be covered.

My conditions of employment require me to maintain a high level of fitness. Am I covered if injured exercising in the workplace gym: (i) before or after work; (ii) during lunch-time; (iii) during work-hours. (iv) What if instead of gym work at the workplace, I go for a run or cycle at lunch-time?

(i) only if your employer considered your before and after work work-outs in the workplace gym as being 'for the purposes of your employment'; (ii) yes; you are covered for injuries that occur at your place of work, including during an ordinary recess - ss6(1)(b), (iii) yes; you are covered for injuries that occur at your place of work - ss6(1)(b); (iv) no, unless such activity was at the direction or request of your employer - ss6(1)(c)(ii).

Am I covered for workers' compensation whilst using on-site recreational facilities, e.g. a gym at my place of work? (Comcare example: Pilates in the ameneties room)

Yes - during the working day. Subsection 6(1)(b) provides cover for injuries sustained "while the employee was at the employee's place of work, including during an ordinary recess, for the purposes of that employment".

Where an employee's place of work includes on-site recreational facilities cover will exist in those places, including during ordinary recesses.  This is because the employer has control over an employee's place of work.

This provision does not, however, extend to recreational activities undertaken before an employee has commenced work or after an employee has ceased work.

Are breaks such as cigarette or coffee breaks covered?

No - not when this break is taken away from the workplace.

If an employee leaves the workplace they are no longer covered under ss6(1)(b) (while at a place of work, including during an ordinary recess, for the purposes of that employment).

Ss6(1)(c) provides coverage during a temporarily absence from the place of work undertaking an activity (i) associated with your employment or (ii) at the direction or request of your employer.  Cigarette or coffee breaks are unlikely to be covered under this subsection because such activities are unlikely be linked to employment:

However, where an employee is having a work related meeting over coffee at a place that is not the workplace, this meeting may be considered as 'associated with the employee's employment', therefore coverage will most likely exist under ss6(1)(c)(i).

Am I covered for workers' compensation whilst I am on a journey/away from the workplace because, as a member of the social club committee, I am undertaking official social club activities?

Yes - this would be covered by the provisions of the new s6(1)(c)(i) - while the employee was temporarily absent from the workplace undertaking an activity 'associated with the employee's employment', provided the evidence supported that the social club activity was an activity 'associated with the employee's employment'.

I am required to travel and stay overnight to attend an interstate conference. What parts of the journey are covered? What if I leave the conference venue during the day, eg to go shopping during the lunch break?

Travel from home to the airport to the hotel to the conference (which is considered to be employment), attending official conference functions such as the conference dinner etc and return to either your usual workplace or direct from the airport to home would be covered. Temporary absences from the conference would only be covered if they were associated with employment or at the direction or request of your employer.

Are Commonwealth employees who are travelling for business purposes covered under the SRC Act?

Yes - in most situations. Subsection 6(1)(d) provides for injury sustained 'while the employee was, at the direction or request of the Commonwealth or licensee, travelling for the purpose of that employment'. But, ss6(1C) quantifies the meaning of direction or request and says 'for purposes of paragraph (1)(d), travel between the employee's residence and the employee.s usual place of work is taken not to be at the direction or request of the Commonwealth or a licensee'.

Employees' travelling for business purposes are most likely not travelling to their usual place of work and therefore compensation cover is likely to exist.

Is training a place of education? What if AGS hold a training session? Am I covered whilst travelling to this session from the workplace? What about if I travelled direct from home?

Attendance at off-site training would be considered 'employment' (attendance would be at the 'direction or request of the employer'). Therefore attendance while temporarily absent from employment and traveling between work and the training venue or from home and back, if it was an all-day course conducted away from the usual workplace, would be covered.

Is travel between home and an approved course of study (e.g. an approved university course) covered?

Travel between work and an approved course of study (e.g. an approved university course) is covered, but not travel between home and study.

Are employees who are required to work at a workplace other than their usual place of work covered for a journey between home and that workplace?

Yes. Sub-section 6(1)(d) provides coverage for travelling, at the direction or request of the Commonwealth or a licensee, for the purposes of that employment.

Sub-section 6(1C) specifies that travel between the employee's residence and the employee's usual place of work is not taken to be at the direction of the Commonwealth or a licensee, and therefore not covered.

Where an employee is requested/directed to work at another place of work and they travel directly between their place of residence and that place of work cover would exist for injury because sub-section 6(1C) only precludes travel to usual place of work.

What happens to workers compensation when a worker leaves the office, however they are on call or restriction duty? Are they covered when they are at home?

In the event that the employee was injured at home coverage would not exist under ss6(1)(b). Nor would their journey from their usual place of work to home be covered (see ss6(1C)).

Place of work is defined in s4 as “any place at which the employee is required to attend for the purposes of carrying out the duties of his or her employment”.

The employee’s place of residence (home) does not meet this meaning. An employee is not at home to carry out their duties – an on call requirement requires an employee to be available for work only.

If an 'on call' employee is called into work, does that count as travel at the request of the employer?

If an on call employee is called into work, and the place of work they are travelling to is their usual place of work, then cover is specifically excluded under subsection 6(1C). Therefore this travel is not considered to be at the request or direction of the employer.

If an employee is called into a workplace that is not his/her usual place of work, then cover may exist, if the 'at the direction or request of the employer' test is met.

An employee, on their way between home and their usual place of work, calls into other work location for a work-related purpose: Is this travel covered?

If calling into another work location was at the 'direction or request of your employer', then the trip between the usual place of work and the other work location is covered under subsection 6(1)(d). In this circumstance, the trip between the other work location and home is also covered, as this other work location is not the 'usual place of work'.

What are the boundaries of an employee's place of work for the purposes of the SRC Act?

Subsection 6(1)(b) provides cover while an employee is at their place of work, including during an ordinary recess.

Because work places are so varied, the matter of boundaries of 'place of work' will depend on the level of employer control and will be assessed on a case by case basis when claims are submitted.

My employer pays my fuel costs. Does this mean I am covered for a journey to or from work?

No . Not between home and the usual workplace . See the new ss6(1C).

Is travel between work and home covered if I am travelling in a Government vehicle rather than my own car?

Travel between an employee's usual place of work and home is not covered, regardless of the vehicle used. See the new ss6(1C).

What about if you play sport at a place of education and you are injured? Are you covered?

The new ss6(1)(c) requires that you are at a place of education with the approval of the Commonwealth. This implies that you would be covered in undertaking the approved part of the course, such as lectures, practicums, etc. But socialising at the refectory, playing sport on the campus (unless the course was human movements and required such an activity), would not be covered.

What are the changes to incapacity benefits for employees no longer employed?

  • Suitable employment (new and existing injuries)

Any potential to work outside Commonwealth employment (or employment by a licensed corporation) can be taken into account.

The definition of suitable employment is amended to allow consideration of an employee's capacity to work outside Commonwealth employment (or employment by a licensed corporation) when calculating their weekly incapacity payments, where that employee is no longer employed by the Commonwealth (or by a licensed corporation).

What are the changes to incapacity benefits for employees in receipt of superannuation?

 

  • Retiree's in receipt of superannuation lump sum benefit

  The formulas in sections 21 and 21A have been changed so that the weekly deemed earning rate on the government financed portion of the superannuation lump sum benefit is no longer 10%, but a more flexible rate which better reflects the current interest earning rate. The new rate is based on the average 10 year Government bond rate for the previous year and set each financial year. This bond rate is currently 5.72% which, when applied to the weekly benefit formulas, will mean an increase in weekly benefits for retirees whose benefit is determined under sections 21 and 21A from 27 April 2007.
 

  • Retirement savings account

The definition of superannuation scheme is amended to include retirement savings account. The relevant retirement savings account has to be one to which the employer also made contributions, as it is only the employer's contributions that are taken into account. This amendment will apply to new retirees from 13 April 2007 only.

  • New formulas

To restore the original policy intention of the Act, the new formulas for retirees' benefits (sections 20, 21 and 21A) will replace the current reduction of a weekly 'SC' amount with a reduction of 5% of normal weekly earnings. But this will only apply to new retirees from 27 April 2007. Existing retirees will be maintained on their current 'SC' reduction formula.

What are the changes to the funeral benefits? (new claims)

The maximum lump sum amount of compensation for a funeral has been increased. The maximum amount of benefit will increase to $9,000 from 13 April and after that, increased on 1 July of each year by regulation should the indexation adjustments not keep pace with real costs.

How will the amendments to the SRC Act impact on workers' compensation premiums?

In general, the changes will ensure there is less call on the premium pool contributed by employers covered by the Commonwealth scheme and will reduce the risk of increasing premiums.

The SRC Act requires Comcare to set a premium for each Commonwealth authority and entity for each financial year. To calculate premiums each year, Comcare considers advice from a consultant actuary on the total amount that Comcare should collect to fund compensable injuries that workers may suffer in the coming financial year. The actuary is currently taking into account and assessing the affect of the amendments on premium calculations (eg savings from removal of coverage for journeys between home and usual place of work).

Comcare advises employers of their formal individual premium rates in July each year when calculations are complete.

Where can I get more information?

Contact Comcare on the General Enquiry Line 1300 366 979 for general advice, or for issues more specific to your circumstances or to the circumstances of your agency, contact your corporate/human resources (HR) area. Your corporate/HR manager may wish to discuss specific issues with their Comcare Customer Service Manager. 

Page last updated:November 14, 2007