Objectives of Seafarers Safety, Rehabilitation and Compensation Authority
The Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority) is an Australian Government controlled not-for-profit entity. The objective of the Seacare Authority is to take a leading role in minimising the human and financial costs of workplace injury in the Australian maritime industry. The Seacare Authority Safety Net Fund (Fund) acts in the place of an employer if a default event occurs, enabling employees to lodge a claim event when there is no employer to lodge against.
The purposes of the Seacare Authority are to:
- promote healthy and safe workplaces and appropriate and timely compensation for, and rehabilitation of, injured workers covered by the Seacare scheme
- maintain a scheme safety net that is able to meet its liabilities.
The Seacare Authority has not reported a departmental statement of financial position as it does not control assets or incur liabilities in its own right, and has no departmental contingent liabilities. The Seacare Authority has not reported a departmental cash flow statement as it does not fund departmental activities. The administration of the Seacare Authority is performed by Comcare. The associated financial transactions are reported in the Comcare financial statements under Program Component 1.3 - Provide the Seacare Authority such secretarial and other assistance, and make available to it the services of such members of Comcare’s staff, and such other resources as the Seacare Authority reasonably requires from time to time for the proper performance of its functions or exercise of its powers.
Other Seacare Authority activities contributing toward Outcome 1 Component 1.3 are classified as administered activities. Administered activities involve the management or oversight by the Seacare Authority, on behalf of the Government, of items controlled or incurred by the Government. Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the schedule of administered items and related notes.
The Fund was established in October 1992 for the purpose of providing through its contracted agent, Australian Maritime Industry Compensation Agency Ltd (AMICA) a safety net under Section 96 of the Seafarers Rehabilitation and Compensation Act 1992 (Seafarers Act) for the compensation and rehabilitation of injured seafarers not otherwise covered by an employer. The Fund provides coverage to persons who underwent industry training, attended the seafarers’ engagement system, and any seafarer or company trainee in situations where the original employer is insolvent or no longer traceable.
As AMICA was no longer able to obtain insurance, the Government declared on 10 April 2002 that the Seacare Authority is to have the Fund’s powers and obligations under Section 100 of the Seafarers Act. Section 102 of the Seafarers Act requires the Seacare Authority to obtain insurance cover with an authorised insurer for any amount of a claim made by an eligible person that would exceed $1 million.
A Special Account called the ‘Seafarers Rehabilitation and Compensation Account’ was established on 9 August 2002 to operate for the Fund to receive levies under the Seafarers Act and to make payments arising from liabilities under the Seafarers Act.
Levies are imposed under the Seafarers Rehabilitation and Compensation Levy Act 1992 (Levy Act) on seafarer berths (a berth on a prescribed ship that is normally used by a seafarer). The levies are payable by an employer who employs or engages seafarers on a prescribed ship.
Levies collected by the Seacare Authority are maintained in the Consolidated Revenue Fund and drawn down to make payments for the Fund.
Basis of Preparation of the Financial Statements
The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.
The financial statements have been prepared in accordance with:
a) Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR)
b) Australian Accounting Standards and Interpretations - Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.
The financial statements have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars.
As at 30 June 2019, The Seacare Authority had an administered net asset deficiency of $736,853 following the acceptance of a significant claim. The accepted claim is a long tail claim and as at the date of this statement, the Seacare Authority is confident that it has sufficient resources to meet claim obligations for the coming 12 month period after the date of the financial statements. This statement is based on a financial forecast prepared by management, and the provision for unknown claims and incident incurred but not yet reported as at 30 June 2019, and the ability to discuss the existing cross agency agreement with Comcare.
The entity is exempt from all forms of taxation except Fringe Benefits Tax and the Goods and Services Tax.
Reporting of Administered Activities
Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.
The Seacare Authority had no administered contingent assets or liabilities as at 30 June 2019.
Events After the Reporting Period
There were no significant events after balance sheet date that had the potential to significantly affect the ongoing structure or financial activities of the Seacare Authority