Page 218 - Week 01 - Thursday, 16 February 2006
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invoice has not been received within this time and has exposed insurers to the possibility of prosecution in these circumstances. The bill will clarify that the period within which insurers must pay invoices does not begin until they have received the invoice in writing.
The bill also contains other enforcement mechanisms designed to ensure compliance with the requirements of the Workers Compensation Act by employers, insurers and workers. As part of the compliance framework of the act, the bill establishes a system for issuing certificates of currency. Certificates of currency are intended to ensure that employers maintain adequate workers compensation insurance. Under the act employers are required to maintain compulsory workers compensation insurance and to provide prescribed wage data to their insurers every six months. The required information includes details regarding the numbers of workers employed and the wages paid to those workers. The data from each employer is used to calculate the cost of that employer’s premium. Employers and unions have recently expressed concerns that despite the current enforcement mechanisms in the act there is a persistent problem of uninsured employers and employers who under-report their wage data. There is a real concern that this can lead to higher workers compensation costs for those employers who do the right thing.
Certificates of currency will support the enforcement regime within the act by providing a mechanism to identify under-reporting and under-insurance by employers. Certificates will set out reported wage data as well as the period of insurance cover and the period for which the certificate is valid, so that any discrepancies between the details reported on the policy and the actual workers present in the workplace can easily be identified and, where appropriate, action taken. This will be particularly useful in industries such as the construction industry where there is a high level of contracting out. Principals of workers have a strong interest in ensuring that contractors have adequate workers compensation insurance, as under the act an injured worker is effectively entitled to claim compensation from either the principal or the contractor.
There is a similar system operating in New South Wales. Reports from New South Wales WorkCover indicate that the system is an effective mechanism for identifying under-insurance by employers. The certificate of currency provisions included in this bill make some minor changes to the New South Wales system to improve efficiency and reduce administrative costs to insurers and employers. To further reduce administrative costs, certificates of currency will only be required when they are requested by authorised persons. Inspectors, union representatives or principals of workers will be authorised person for these purposes. The certificates will be valid for six months consistent with the current requirements in the ACT for the employers to update the wage data provided to insurers on a six-monthly basis. The government will not be supporting the foreshadowed amendment to be moved by the opposition.
Mr Mulcahy: Surprise, surprise!
MS GALLAGHER: I have missed you, Mr Mulcahy. It has been eight weeks since we have heard such a right-wing speech—we do miss them. You have just given us the speech that we would have expected from you. We enjoyed hearing what you had to say and your speech is in Hansard for us all to read. Right of entry has been in operation in the territory for some time now and the sky has not fallen in, as was predicted by the opposition. Although you still believe that the system is not operating well, I must say
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