Under the SRC Act, certain Commonwealth authorities and eligible corporations may apply for a licence to self-insure their workers’ compensation liabilities and manage compensation claims.
Comcare provides support to the Commission in its performance of its functions regarding licensing. Comcare evaluates licence applications, monitors a licensee’s performance against licence conditions and recommends actions and licence fees.
Two licence applications were received in the reporting period from the Australian National University and Ron Finemore Transport Services Pty Ltd. StarTrack Express Pty Ltd, Ron Finemore Transport Services Pty Ltd7 and Virgin Australia Airlines Pty Ltd joined the scheme in 2016–17 as self-insured licensees.
In 2016–17, licence extensions commenced for K & S Freighters Pty Ltd, National Australia Bank Ltd, National Wealth Management Services Ltd, John Holland Group Pty Ltd, John Holland Pty Ltd and John Holland Rail Pty Ltd. The Commission also considered and granted licence extension to a further five licensees which take effect in 2017–18.
The Commission also considered and approved licence variations for 34 licensees.
Table 26 summarises licence types, licensees and expiry dates at 30 June 2017.
The Commission settled licence fees for 2017–18 at its 13–14 June 2017 meeting.
Consultation with licensees
A meeting between the Commission and licensees was held on 8 March 2017. The meeting comprised an open discussion on elements of the Commission’s new regulatory model. The Commission also consulted during the reporting year with licensees on the development of the various elements of the Commission’s regulatory model and other matters affecting licensees. The Commission will continue to meet and work with the licensees collectively on current topics of interest.
|Licence type||Features||Licensee (expiry date)||Claims management arrangements|
Self-insurance self-claims management
|Asciano Services Pty Ltd (formerly known as Pacific National (ACT) Limited) (30/06/2025)||In house with claims review performed by Australian Postal Corporation|
|Australian air Express Pty Ltd (30/06/2025)||QBE Insurance (Australia) Limited|
|BWA Group Services Pty Ltd (30/06/2022)||Commonwealth Bank of Australia|
|Bis Industries Ltd (30/06/2023)||In house with claims review performed by QBE Insurance (Australia) Limited|
|Border Express Pty Ltd (30/06/2022)||In house with claims review performed by CGU|
|Cleanaway Operations Pty Ltd (formerly Transpacific Industries Pty Ltd) (30/06/2022)||CGU Self Insurance Services|
|Colonial Services Pty Ltd (30/06/2022)||Commonwealth Bank of Australia|
|Commonwealth Bank of Australia (30/06/2022)||In house|
|Commonwealth Insurance Limited (30/06/2022)||Commonwealth Bank of Australia|
|Commonwealth Securities Limited (30/06/2022)||Commonwealth Bank of Australia|
|CSL Limited (30/06/2023)||QBE Insurance (Australia) Limited|
|DHL Supply Chain (Australia) Pty Ltd (30/06/2022)||In house|
|Fleetmaster Services Pty Ltd (30/06/2023)||In house with claims review performed by CGU Self Insurance Services|
|John Holland Group Pty Ltd (30/06/2024)||In house|
|John Holland Pty Ltd (30/06/2024)||John Holland Group Pty Ltd|
|John Holland Rail Pty Ltd (30/06/2024)||John Holland Group Pty Ltd|
|K & S Freighters Pty Limited (30/06/2024)||In house|
|Linfox Australia Pty Ltd (30/06/2023)||In house|
|Linfox Armaguard Pty Ltd (30/06/2023)||CGU Self Insurance Services|
|Medibank Private Limited (30/06/2023)||CGU Self Insurance Services|
|National Australia Bank Ltd (30/06/2024)||In house|
|National Wealth Management Services Limited (30/06/2024)||National Australia Bank Ltd|
|Optus Administration Pty Limited (30/06/2023)||QBE Insurance (Australia) Limited|
|Prosegur Australia (formerly trading as Chubb Security Services Limited (30/06/2025)||In house with claims review performed by Moray & Agnew|
|StarTrack Express Pty Ltd (30/06/2022)||Australian Postal Corporation|
|StarTrack Retail Pty Ltd (30/06/2022)||Australian Postal Corporation|
|Telstra Corporation Limited (30/06/2022)||In house|
|Thales (formerly known as ADI Limited) (30/06/2025)||In house with claims review performed by QBE Insurance (Australia) Limited|
|TNT Australia Pty Ltd (30/06/2022)||In house with claims review performed by QBE Insurance (Australia) Limited|
|Virgin Australia Airlines Pty Ltd (29/09/2024)||QBE Insurance (Australia) Limited|
|Visionstream Pty Ltd (30/06/2023)||CGU Self Insurance Services|
|Wilson Security (30/06/2023)||QBE Insurance (Australia) Limited|
|Australian Postal Corporation (30/06/2022)||In house|
|Reserve Bank of Australia (30/06/2023)||In house with claims review performed by Australian Postal Corporation|
Licence conditions and performance standards of licence
The Commission expects licensees to continuously improve their prevention, rehabilitation and claims management performance outcomes, to comply with licence conditions and to meet performance standards of licence.
Conditions of licence require compliance with the SRC Act and any applicable laws and regulations regarding the health, safety and rehabilitation of employees. A licensee is required to meet financial, prudential and performance reporting requirements as part of the conditions of licence.
Performance standards of licences require licensees to develop and implement effective management systems for prevention, rehabilitation and claims management, and to work towards the attainment of outcome-based performance goals.
The licence compliance and performance model
The 2016–17 year saw the transition across to the Commission’s new Licence Compliance and Performance Model (LCPM). The LCPM provides the regulatory framework under which the Commission monitors and assesses licensee performance, and replaced the previous Licensee Improvement Program and Tier Model.
The LCPM examines licensees’ prudential performance, results of internal and external reviews in prevention, rehabilitation and claims management performance, and provides for regulatory action by the Commission where non-compliance or performance concerns are identified.
Under the LCPM, licensees are no longer classified by ‘tier’, and instead as a developing/transitioning licensee or an established licensee. Developing/transitioning licensees are new scheme participants in their first two years of licence. Following the initial two-year period, licensees are considered to be established in the scheme.
Developing/transitioning licensees work closely with Comcare to develop systems by participating in, and being subject to, reviews throughout the first two years of licence to ensure that a licensee can meet the conditions of licence and performance standards set by the Commission.
The Commission uses this initial period to closely monitor the performance of a new licensee as they transition into the scheme. The Commission may choose to lessen the extensive reviews in the developing/transitioning phase where a licensee can evidence strong, consistent results against compliance and performance requirements.
Established licensees are required to be compliant with the conditions of licence and continue to meet the performance standards set by the Commission. A targeted review may be conducted in years two and six of an eight-year licence should the Commission consider the performance of a licensee would warrant a more thorough review.
Notwithstanding the above, the Commission can, at any time, determine that due to issues with compliance, reporting or performance results, a regulatory response is required. The status of a licensee (that is, developing/transitioning or established) does not inhibit the Commission from taking action to address a compliance or performance issue.
A key feature of the LCPM is the quarterly monitoring of the Commission-defined performance standards and measures, including the Licensee Key Performance Indicators (LKPIs). The Commission sets performance targets against these LKPIs, which include the incidence of serious and accepted claims based on industry benchmarks, return to work performance, and timeliness of claims management and reconsideration decisions. Licensees are provided with the opportunity to provide input and information regarding their quarterly results for consideration. The Commission uses the LKPI results and any further information provided by licensees to determine whether any regulatory action is required.
The self-insurance licence and the LCPM also provide a framework for the prudential obligations required of licensees under the licence. This includes the provision of a liability report describing current and predicted outstanding workers’ compensation liabilities (this information is used to calculate the guarantee amount) and the provision of a guarantee plus a reinsurance retention policy, yearly accounts and financial statements. Some licensees are also subject, based on risk, to ongoing financial monitoring which comprises a regime of continuous monitoring through media and rating agencies and annual desktop reviews of licensees’ financial statements.
Each year licensees provide an annual Licensee Compliance and Performance Improvement (LCPI) report certified by licensee senior management. The LCPI report provides the Commission with an overview of key activities undertaken and outcomes achieved by a licensee during the previous year. The LPCI report also details a licensee’s objectives for the coming year, and is the primary tool for licensees to: report to the Commission on performance against the Commission’s performance standards and measures; provide annual certification as per the prudential conditions of licence; and to demonstrate continuous improvement.
Table 27 provides summary details of each licensee’s claims activity during 2016–17. Table 28 provides summary details of licensee performance against the LKPIs during 2016–17.
Care should be exercised in comparing the claims activity of licensees given the different risk profiles of individual employers.
| Number of FTE|
| Number of|
| Number of claims|
| Number of|
| Number of AAT |
|Cleanaway (formerly TPI)||4219||4320||163||158||136||119||39||69||33||36|
|John Holland Group||2128||2101||39||22||27||18||21||18||8||7|
|John Holland Rail||306||249||23||18||21||17||14||8||np||np|
|K & S Freighters||2686||3115||98||113||73||88||67||77||np||np|
|National Wealth Management||2561||1916||13||8||8||np||8||7||np||np|
|Prosegur (formerly Chubb)||739||775||44||49||36||32||17||8||14||7|
|StarTrack Retail Pty Ltd||467||221||np||np||np||np||0||np||0||0|
|Virgin Airlines Australia ***||n/a||6291||n/a||160||n/a||123||n/a||Np||n/a||np|
np—not publishable as the number is between one and five.
* Licence was revoked 30 June 2016.
** Licensee joined the scheme 1 July 2016.
*** Licensee joined the scheme 20 September 2016.
**** Licensee joined the scheme 1 January 2016.
|Notifiable worker injury fatalities||Incidence of claims with 1 week lost time per 1000 FTE employees||Incidence of accepted claims1 per 1000 FTE employees||Median incapacity weeks||Percentage of claims determined within 20 calendar days (injury) and 60 calendar days (disease)||Percentage of reconsiderations decided within 30 calendar days|
Record-keeping and reporting requirements under the Safety, Rehabilitation and Compensation Directions 2002
Table 29 provides details of the record-keeping requirements outlined in the above Directions and is reported in accordance with section 23 of the Safety, Rehabilitation and Compensation Directions 2002 (SRC Directions).
|Applications for licence received||2||
Australian National University|
Ron Finemore Transport Services Pty Ltd
|Refusals to grant licence||Nil||Nil|
|Expiry of licence||Nil||Nil|
|Suspension of licence||Nil||Nil|
|Revocations of licence||Nil||Nil|
|Licence commencements, including the scope of the licences and the conditions to which the licences are subject||Licences commenced||
StarTrack Express Pty Ltd|
Virgin Australia Airlines Pty Ltd
Ron Finemore Transport Services Pty Ltd
|Variations granted due to change in scope or conditions of licence||
Asciano Services Pty Ltd|
Australian Air Express Pty Limited
Australian Postal Corporation
BIS Industries Limited
Border Express Pty Ltd
BWA Group Services Pty Ltd
Cleanaway Operations Pty Ltd
Colonial Services Pty Limited
Commonwealth Bank of Australia
Commonwealth Insurance Limited
Commonwealth Securities Limited
DHL Supply Chain (Australia) Pty Ltd
Fleetmaster Services Pty Ltd
John Holland Group Pty Ltd
John Holland Pty Ltd
John Holland Rail Pty Ltd
Linfox Australia Pty Ltd
Medibank Private Limited
National Australia Bank
National Wealth Management Services
Optus Administration Pty Limited
Prosegur Australia Pty Limited
Reserve Bank of Australia
StarTrack Express Pty Limited
StarTrack Retail Pty Limited
Telstra Corporation Ltd
Thales Australia Limited
TNT Australia Pty Ltd
Virgin Australia Airlines Pty Ltd
Visionstream Pty Ltd
Wilson Security Pty Ltd
John Holland Group Pty Ltd|
John Holland Pty Ltd
John Holland Rail Pty Ltd
K&S Freighters Pty Ltd
National Australia Bank Ltd
National Wealth Management Services Ltd
Further information is available in the ‘Licensing’ section of this report.
7This measure captures those claims that are initially accepted in the reporting period.