In 1912, the Commonwealth introduced the Commonwealth Workmens’ Compensation Act 1912 to provide compensation for Commonwealth workers. Before then, compensation was paid to widows and orphans of deceased Commonwealth officers under the Officers’ Compensation Acts of 1908, 1909 and 1912 via determinations of Parliament.

The establishment of the Repatriation Commission and the Repatriation Department (now known as the Department of Veterans' Affairs (DVA)) and passage of The Australian Soldiers' Repatriation Act 1920 (later renamed the Repatriation Act 1920) created a national system designed to deliver compensation for the incapacity or death of members of the Australian Defence Force (ADF).

In 1930, the Commonwealth Workers’ Compensation Act 1930 was enacted and provided a more extensive system of compensation for Commonwealth workers. In 1971 the Compensation (Commonwealth Employees) Act 1971 repealed the 1930 Act.

The commencement of the Veterans’ Entitlement Act 1986 (VEA) on 22 May 1986 consolidated, rationalised and simplified the entitlements available to members of the veteran community. It represented the most important and comprehensive overhaul of the repatriation system since its establishment in 1920.

The introduction of the SRC Act in 1988 was the most significant reform in the Commonwealth jurisdiction as it introduced a focus on rehabilitation, which was seen as the best way to reduce spiralling costs of compensation. It included incentives through tiered income support rates for employees, gave employers statutory powers and responsibilities for rehabilitation and was paired with more reviews and investigations of claims. It also replaced lump sum compensation methodology from assessment against a limited table of maims to a Guide prepared with comprehensive criteria assessing impairment based on the WPI concept.

In 1992, the SRC Act was amended to enable Commonwealth Authorities and certain corporations to apply to the Safety, Rehabilitation and Compensation Commission for a licence to accept liability for workers’ compensation and to manage workers’ compensation claims. The first licensees were Telstra Corporation Ltd and Australian Postal Corporation Ltd followed by a number of government business enterprises undergoing privatisation such as Australian Defence Industries (later ADI Limited and now Thales Australia), Commonwealth Serum Laboratories (now CSL Limited) and National Rail Corporation (later Pacific National (ACT) Limited, now Asciano).

In 2005 Optus Administration Pty Ltd was the first licence granted to a corporation that had no previous connection to the Commonwealth other than that it was in competition with Telstra. By December 2012, there were 30 licensees in the Comcare scheme, including banks such as National Australia Bank and the Commonwealth Bank, transport companies such as Linfox Australia, Border Express, Australian air Express and K&S Freighters, and construction or industrial companies such as John Holland and Visionstream Pty Ltd.

On 11 December 2007, the Federal Government placed a moratorium on new applications from private corporations wanting to move to the Comcare workers’ compensation scheme. However, companies that had already been declared eligible to apply for a self-insurance licence by the previous government were not affected by the moratorium. This moratorium was lifted in December 2013.

The Commonwealth first became involved in workers’ compensation arrangements for seafarers with the passage of the Seamens’ Compensation Act 1911. Despite a number of minor amendments, the 1911 arrangements remained in place until 1992. In 1988, the Seamens’ Compensation Review conducted by Professor Henry Luntz recommended a number of changes to the Seamens’ Compensation Act to modernise it and to ensure consistency with arrangements being considered for Commonwealth employees. The Seafarers’ Rehabilitation and Compensation Act 1992 sets out similar provisions to those applying to Commonwealth employees under the Comcare scheme.

In 2004, the MRCA was enacted to provide a system of compensation for current and former members of the ADF and their dependants, with service on or after 1 July 2004. Service prior to that date is covered by the SRC Act and the Veterans’ Entitlements Act 1986 (VEA). In October 2017 the Safety, Rehabilitation and Compensation (Defence-related Claims) Act, 1988 (DRCA) was enacted. This Act provides coverage for defence force personnel who were injured prior to July 2004 and who were previously covered under the SRC Act. From 12 October 2017, all claims that were considered under the provisions of the SRC Act (for conditions attributable to pre-1 July 2004 service) are now considered under the DRCA. All existing claims under the SRC Act are now treated as claims under the DRCA.

Injuries, illness and deaths attributable to service prior to that date are covered by the SRC Act and the VEA . In October 2017 the Safety, Rehabilitation and Compensation (Defence-related Claims) Act, 1988 (DRCA) was enacted to separate compensation coverage for military and other Commonwealth (civilian) employees. This Act provides coverage for defence force personnel who were injured prior to July 2004 and who were previously covered under the SRC Act. From 12 October 2017, all claims that were considered under the provisions of the SRC Act (for conditions attributable to pre-1 July 2004 service) are now considered under the DRCA. All existing claims under the SRC Act are now treated as claims under the DRCA.

The Military Rehabilitation and Compensation Commission (MRCC) regulates claims under the MRCA and the DRCA schemes. The types of compensation provided under the MRCA are based on combination of elements from the SRC Act and the VEA, while the DRCA replaces the SRC Act for ADF members.

Under the MRCA, the Department of Veterans' Affairs (DVA) provides rehabilitation, treatment and compensation for current ADF members (in conjunction with the relevant Service Chief) or, separately, for former ADF members who sustain a mental or physical injury or contract a disease as a result of military service rendered on or after 1 July 2004. DVA also provides compensation to eligible dependants if: the member or former member’s death is related to defence service on or after 1 July 2004 (or a combination of service before and after that date); they were entitled to maximum rate of permanent impairment compensation; or had been eligible for a Special Rate Disability Pension.

DVA has a focus on providing rehabilitation services to help injured or sick personnel make as full a recovery as possible and, if possible, return to their normal employment. DVA also increases the amount of compensation available in the event of severe service-related injury, disease or death.

The military rehabilitation system has continued to evolve to adapt to increasing knowledge regarding the impact of Australian Defence Service on health. In particular, presumptive legislation for eligible ADF Firefighters and F-111 fuel tank maintenance workers acknowledges these occupations have an increased risk of exposure to toxic chemicals linked with certain diseases.

Note: A reference to the Commonwealth in this publication does not include Seacare or DVA unless specifically stated.

Seacare coverage

On 22 December 2014, in Samson Maritime Pty Ltd v Aucote [2014] FCAFC 182 (the Aucote decision), the Full Court of the Federal Court held that the application provisions of the Seafarers Act operated to apply the Seafarers Act to seafarers employed by a trading, financial or foreign corporation on a prescribed ship, including ships engaged in intrastate trade. This is a substantially broader coverage than what has been historically understood by maritime industry regulators and participants.

While the decision did not specifically address the application provisions of the Occupational Health and Safety (Maritime Industry) Act 1993 ("OHS (MI) Act"), these provisions are similar to those of the Seafarers Act.

The Seafarers Rehabilitation and Compensation and Other Legislation Amendment Act 2015 (the Act) was introduced to address the consequences of the Aucote decision. The Act commenced on 26 May 2016 and clarified the application of the Seafarers Act and OHS(MI) Act up until the date of commencement (26 May 2016). As such, the Act, as passed by the Parliament, only addresses the historical application of the Seacare scheme.

To address the coverage of the scheme going forward, the Seacare Authority has issued two multi-ship exemptions under section 20A of the Seafarers Act that (generally) exempt the employment of employees on any ship listed in those exemptions from the Seafarers Act if the ship is engaged in intrastate trade.