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Workers compensation bulletin - issue 45

In this edition: The Workers Compensation (Indexation of Amounts) Amendment Order (No 2) 2018 and Coal Industry Amendment Act 2018.

Workers Compensation (Indexation of Amounts) Amendment Order (No 2) 2018

The Workers Compensation (Indexation of Amounts) Amendment Order (No 2) 2018 (PDF, 143 KB) has been published on the NSW Legislation website.

The Order specifies the adjusted amounts applicable under section 82B (Indexation of certain amounts - according to average weekly earnings) and section 82F (permanent impairment lump sum compensation) of the Workers Compensation Act 1987 for the 2018-2019 financial year.

The Workers compensation benefits guide - July 2018 (PDF, 1.7 MB) is available on the SIRA website.

Coal Industry Amendment Act 2018

The Coal Industry Amendment Act 2018 (Amending Act) is expected to commence by proclamation on 1 July 2018.

The Amending Act inserts a new definition of ‘employer in the coal industry’ into the Coal Industry Act 2001. In addition, it contains consequential amendments to workers compensation legislation to ensure consistency of definitions of ‘employer in the coal industry’ across the NSW workers compensation system.

The explanatory note (PDF, 177 KB) relating to the Bill as introduced into Parliament outlines the background and objective of the Bill:

Employers in the coal industry are required to obtain workers compensation insurance from an approved workers compensation company. Currently, that requirement only applies to employers directly engaged in the coal industry and not to employers who, with reference to their character and business, are engaged in another industry and merely provide services to the coal industry (Kuypers v Ashton Coal Operations Pty Ltd [2014] NSWSC 1276).

The object of this Bill is to amend the Coal Industry Act 2001 to require all employers whose employees work in or about a coal mine to obtain workers compensation insurance from an approved workers compensation company.

Subject to formal commencement of the Amending Act on 1 July 2018, an employer with employees who work in or about a coal mine will be required to obtain workers compensation insurance from Coal Mines Insurance commencing 1 July 2018 for those employees.

S155(1AA) of the Workers Compensation Act 1987 enables an employer to maintain dual policies of workers compensation insurance in circumstances where a policy is required to be held in accordance with the Coal Industry Act 2001. Therefore an ‘employer with employees in or about a coal mine’ may hold one policy of insurance with Coal Mines Insurance for those employees and a second policy for those employees who do not fall within the new definition.