Document 1
MB23-000027
Meeting Brief
To
Minister for Employment and Workplace Relations
Subject
Meeting Brief | 14 February | ACTU and MUA | Seacare Scheme
Meeting Details
Date:
14 February 2023
Time:
TBC
Venue:
TBC
Attendees:
Australian Council of Trade Unions (ACTU) , Maritime Union of Australia
(MUA)
DEWR
Departmental s 22(1)(a)(ii)
, First Assistant Secretary, Safety and Industry Policy Division
Officers:
s 22(1)(a)(ii)
, Assistant Secretary, Workplace Relations Legal Division
by
Meeting purpose
1. The ACTU and MUA are expected to advocate for Government intervention and financial support to
secure the future of the Seacare workers’ compensation scheme.
2. The ACTU, MUA, the Australian Institute of Marine and Power Engineers and the Australian
Maritime Officers’ Union have previously written to you with a proposal for s 47G(1)(a), s 47
under the
Seafarers Rehabilitation and Compensation
declassified
Act 1992 (MC22-047301) and are likely to seek an update on consideration of that proposal.
is
3. s 47C
Stakeholder position
4. The ACTU and MUA advocate retaining the Seacare workers’ compensation scheme on the basis
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that the distinctive benefit structure of the scheme is necessary for the class of seafarers covered by
the scheme because of the particular challenges of their work at sea and for injured workers returning
to work at sea. They have argued that action is needed by 31 March 2023 on the basis that by then it
would be extremely diffic
This ult, if not impossible, for most Seacare employers to buy a commercial
policy.
5. They argue that the Seacare scheme should end its reliance on private insurers to become sustainable,
and have developed a proposal s 47(1)(b), s 47G(1)(a) for an industry scheme s 47G(1)(a), s 47, s 47C
6. s 47G(1)(a), s 47C, s 47
7. Unions have also suggested that abolishing the Seacare scheme or allowing it to collapse will have
implications for the Government’s commitment to establish a Maritime Strategic Fleet of up to
12 Australian flagged and crewed vessels, whose workers would then need to seek coverage from
state or territory workers’ compensation schemes. s 47C
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MB23-000027
Government policy position
8. The Government made no specific election commitments in relation to Seacare. The ALP National
Platform 2021 stated that ‘Labor will retain Seacare as an independent Commonwealth statutory
authority’ and that ‘Labor supports a thorough review of workers compensation schemes’.
9. s 47C
.
10. s 47C
11. s 47C, s 47G(1)(a), s 47
12. s 47C
13. The Department of Infrastructure, Transport, Regional Development, Communications and the Arts,
as the department responsible for the development of the Maritime Strategic Fleet, have been
consulted on concerns that changes to the Seacare scheme could affect the strategic fleet. At this
DEWR
stage the fleet is likely to be established in phases, s 47C
14. Stakeholder views on the future of the Seacare scheme vary significantly. s 47C
by
Consultation
15. Consultation was conducted during the independent review of the Seacare scheme with maritime
unions, the Seacare Authority, the ship-owners organisation Maritime Industry Australia Ltd and the
Australian Maritime Safety Authority.
16. Any changes to the Seacare scheme will have significant impacts on maritime employers, workers,
and insurers. The department intends to conduct further consultation w
declassified ith all stakeholders.
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Attachments
Attachment A
Talking Points
Attachment B
Background
Clearance
Primary Contact Officer: s 22(1)(a)(ii)
A/g Assistant Secretary,
document
Safety and Compensation Policy Branch
Ph: s 22(1)(a)(ii)
| WR | Workplace Relations
Mobile: s 22(1)(a)(ii)
Clearance Officer: s 22(1)(a)(ii)
First Assistant Secretary
This
Safety and Industry Policy Division
Ph: s 22(1)(a)(ii)
| WR | Workplace Relations
Comments (for MO use only)
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Department of Employment and Workplace Relations - Documents released under FOI - LEX 590
Attachment 1A
OFFICIAL: Sensitive
Attachment A – Talking Points
Insurance issues
• I recognise the need for action to address the issues that have
arisen in connection with Seacare.
• I acknowledge the difficulties that employers are facing in securing
appropriate workers’ compensation insurance for their liabilities
under the scheme and the impact this has on the scheme as a
whole.
• I note that in your letter of 18 November 2022 you were concerned
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that it might be impossible for most Seacare employers to buy a
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commercial policy from 31 March 2023.
• I understand that although no new policies are available, some
insurers are still offering renewals of existing Seacare scheme
policies.
• I am advised that this means that a number of employers are
declassified
expected to remain in the scheme for some time after 31 March
is
2023.
• s 47C
document
• The insurance issues are complex, and are being given serious
This
and urgent consideration by the Government.
• s 47C
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Department of Employment and Workplace Relations - Documents released under FOI - LEX 590
Attachment 1A
OFFICIAL: Sensitive
s 47(1)(b), s 47G(1)(a)
• I am grateful for your ongoing engagement with my Department
and with me on these issues, and in particular for the work to
develop the proposal s 47G(1)(a), s 47
• s 47C, s 47G(1)(a), s 47
• s 47C, s 47G(1)(a), s 47
• s 47C
by DEWR
• s 47G(1)(a), s 47C, s 47
declassified
• When a decision on the way forward for the scheme is made, I will
ensure that you – and other stakeholders – are informed as soon
as possible.
Questions for unions
This document is
• s 47G(1)(a), s 47, s 47C
Are you able to outline in more detail how you
would see this model for the future of the scheme operating?
OFFICIAL: Sensitive
Department of Employment and Workplace Relations - Documents released under FOI - LEX 590
Attachment 1A
OFFICIAL: Sensitive
• s 47(1)(b), s 47G(1)(a), s 47C(1)
do you have any views on what can be done in
the short-term to address the lack of scheme insurance in the
scheme prior to passage of legislation?
• Do you think the government and stakeholders could work with the
existing insurers to keep them in the scheme pending scheme
reform?
• Is there any further information you would like to provide in relation
to the Seacare insurance market?
• Is there any other information you would like to provide in support
DEWR
of s 47(1)(b), s 47G(1)(a)
by
declassified
is
document
This
OFFICIAL: Sensitive
Department of Employment and Workplace Relations - Documents released under FOI - LEX 590
PROTECTED//CABINET
Attachment 1B
Attachment B – Background
The Seacare scheme
The Seacare workers’ compensation scheme covers a limited range of seafarers
(approximately 3,873) whose work takes them outside the boundaries of one state, or within a
Territory. The Seacare scheme is established by the
Seafarers Rehabilitation and
Compensation Act 1992 (Seafarers Act), the
Occupational Health and Safety (Maritime
Industry) Act 1992 (OHS(MI) Act) as well as the
Seafarers Rehabilitation and Compensation
Levy Act 1992 and the
Seafarers Rehabilitation and Compensation Levy Collection Act 1992.
s 47C
DEWR
s 47C
by
declassified
is
Options to address issues in the scheme
s 47C
document
s 47C
This
s 47C, s 47G(1)(a), s 47
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Attachment 1B
s 47C, s 47G(1)(a), s 47
s 47C
DEWR
by
s 47C
Terms of reference for 2022 Review
declassified
The review will report to the Minister for Industrial Relations on:
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• key options to comprehensively address the issues identified through the review, and
ensure that effective and sustainable WHS and compensation arrangements are
available for seafarers captured by the Seacare scheme
• the costs and benefits to industry and government of the identified options
• key operational and implementation issues associated with recommended options.
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The review will consider:
• how to best meet the needs of the modern Australian maritime industry in relation to
WHS and compensation arrangements for employees and employers covered by the
This
Seacare scheme
• the performance of the WHS and workers' compensation arrangements under the
Seacare scheme in comparison to other Australian jurisdictions
• options to support sustainable coverage of workers' compensation liabilities for
seafarers, considering the availability of private insurance coverage
• the regulatory and cost impact for maritime operators covered by the Seacare scheme
when operating across multiple jurisdictions
• the effectiveness of the governance and administrative mechanisms supporting the
scheme, including the role of the Seafarers Safety, Rehabilitation and Compensation
Authority (Seacare Authority).
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Department of Employment and Workplace Relations - Documents released under FOI - LEX 590