Insurance Commission of Western Australia Act 1986

The Act organises the Commission’s world around several organising concepts that drive incentives, constraints and decision rights. These concepts are set out in statutory definitions and operative provisions; the key ones are Funds, functions, powers, Ministerial and Treasurer oversight, corporate governance, reporting obligations, and the public‑Crown relationship.

Funds and Commission accounts: section 16 creates distinct Funds with specified purposes and restricted application. Each Fund has a defined composition (ss 16(2)-(6): e.g. Third Party Insurance Fund, Motor Vehicle and Workplace Accidents (Catastrophic Injuries) Fund, Compensation (Industrial Diseases) Fund, Government Insurance Fund, Insurance Commission General Fund). Subsection 16(1a) allows the Commission to establish a fund for eligible community organisations. Accounts for each Fund are to be established as agency special purpose accounts under the Financial Management Act 2006 or at approved banks (s 16(7)). The Act requires separate and distinct accounts to be kept for each Commission account (s 22). The Funds framework is the principal mechanism for ring‑fencing premiums, appropriations and investment income against their designated liabilities, and for limiting the Commission’s application of resources (s 16 and s 18).

Functions and activities: section 6 lists discrete functions. Some are mandatory and statutory (issuing third‑party motor policies, s 6(a); managing the catastrophic injuries scheme, s 6(aa); undertaking specified workers’ compensation liabilities, s 6(b)); others are service or commercial activities (managing insurance for public authorities and eligible community organisations, ss 6(c) and 6(ca); providing claims management services and advice to public authorities, s 6(d); conducting research and public awareness programmes, s 6(e)). The Commission is explicitly authorised to invest and manage moneys and property under its control (s 6(g)).

Powers supporting functions: section 7 is a broad power clause. It enables borrowing with Treasurer approval (s 7(2)(a)), fee setting (s 7(2)(aa)), lending and credit provision (s 7(2)(b)), exercising typical insurer acts in the course of business (s 7(2)(n)), forming business undertakings and underwriting securities (s 7(2)(f), (i)), and extensive property and investment powers (s 7(2)(e), (g), (5)). The Commission can arrange reinsurance and act as trustee of trusts (s 7(4)). Investment management may be outsourced with Treasurer approval under s 19, and investment prudential requirements may be imposed by the Treasurer (s 19A).

Ministerial and Treasurer oversight: the Minister may give binding written directions (s 10(1)), and the Minister is entitled to information and to copy documents (s 10A); however confidential customer information is protected except where other law or authorisation permits disclosure (s 10B). Treasurer approval is required for borrowing arrangements and for appointment of investment managers (s 7(2)(a), s 19(1)), for opening certain accounts (s 7(2)(c)) and for transfers of surplus from Funds to other accounts including the Consolidated Account (s 18(2)). The Treasurer may impose prudential investment requirements (s 19A) and may guarantee Commission obligations on behalf of the State (s 27).

Reporting and corporate instruments: the Commission must prepare strategic development plans and statements of corporate intent and perform functions in accordance with those instruments (ss 14A, 14B). The Financial Management Act 2006 and Auditor General Act 2006 apply to the Commission’s financial administration and reporting (s 20). Directions given by the Minister and certain notices must be included in the Commission’s annual report (ss 10(2), 14C(4), 30(1)).

Governance and protections: the Act creates a board with between three and six appointed commissioners plus the managing director ex officio (s 5(1)); Schedule 1 sets appointment terms, removal grounds, disclosure of pecuniary interests, quorum and meeting rules, delegation and protection for commissioners (Sch 1 cll 2-11). Commissioners may be remunerated from Commission funds (s 5(5)). Clause 11 of Sch 1 provides that commissioners are not personally liable for acts done in good faith, subject to the Statutory Corporations (Liability of Directors) Act 1996 (Sch 1 cl 11).

Public‑Crown relationship and secrecy: the Commission is an agent of the Crown and has Crown status, immunities and privileges except as otherwise prescribed (s 4A). At the same time, section 42 creates a secrecy offence for persons bound by the provision (commissioners, officers, and persons providing services under ss 12, 13, 13A) with a specified penalty of $2,500.

Financial flows and dividends: the Act sets out clearly that moneys available come from appropriations, premiums, investment income, borrowing and other lawful receipts (s 15). It contains a mechanism for interim (s 28) and annual dividends (s 29) to the State, requiring forecasts and recommendations from the Commission and Minister/Treasurer concurrence before payments are declared and paid to the Consolidated Account (ss 28-30). The dividend process interacts with the Commission’s requirement to act efficiently and ensure revenue covers expenditure (s 8).

These main concepts create a statutory insurer with commercially oriented powers (investment, fees, business undertakings), but with explicit State oversight and reporting levers via the Minister and Treasurer. The Funds structure and reporting rules are the principal controls over allocation of revenue and surplus.

The Act allocates rights, duties and decision‑making authority among multiple stakeholders. Primary affected parties and how they are affected are set out below with statutory references.

The Commission and its board of commissioners: the Commission is the central legal actor established under s 4 and governed by a board (s 5). Commissioners are appointed by the Governor on the Minister’s nomination (s 5(1)(a)), receive remuneration from Commission funds (s 5(5)), and carry statutory duties to operate within the functions, powers and financial constraints of the Act. Schedule 1 prescribes terms, removal grounds, meeting rules, disclosure obligations and protections for commissioners (Sch 1 cll 2-11). The managing director is the chief executive and an ex officio commissioner, appointed by the Governor on Ministerial nomination, responsible for day‑to‑day administration subject to the board (s 11).

Treasurer: the Treasurer has multiple decision rights: approval of borrowings and security arrangements (s 7(2)(a); s 24), approval of bank accounts for Funds (s 7(2)(c)), approval of investment manager arrangements (s 19(1)), power to impose prudential investment requirements (s 19A), to concur in Ministerial dividend decisions (ss 28(3)(a), 29(3)(a)), and to authorise State guarantees (s 27). The Treasurer evaluates surplus for transfer (s 18(5)) and has concurrence rights over certain regulations under s 14B(4).

Minister: the Minister can give binding written directions that the Commission must follow (s 10(1)) and is entitled to obtain information and copies of documents from the Commission (s 10A). The Minister receives the Commission’s interim and annual dividend reports and, with the Treasurer’s concurrence, accepts or sets dividend amounts (ss 28(3), 29(3)). The Minister also must have directions included in the annual report (s 10(2)).

Public authorities and eligible community organisations: public authorities are defined broadly and are potential clients of the Commission for insurance and risk management arrangements (s 6(c)). The Act explicitly enables arrangements for eligible community organisations once the Treasurer determines eligibility (s 3A(2)) and allows the Commission to establish a fund specifically for eligible community organisations (s 16(1a)).

Insureds, claimants and customers: persons who are insured by the Commission or who make claims are "customers" for the purposes of confidentiality protections (s 10B(3)). The secrecy provision applies to persons with access to information (commissioners, officers, employees and persons rendering services under ss 12, 13, 13A) and protects customer identity and affairs from disclosure to the Minister except as allowed (s 10B(1)-(2)).

State financial interest (Consolidated Account): the Treasurer and the Minister can direct transfers of surplus to the Consolidated Account (s 18(2)(b)) and require dividends to be paid into the Consolidated Account (s 30(3)). State financial exposure is also engaged by guarantees the Treasurer may give on behalf of the State (s 27(1)-(4)), and any payment under such guarantee is charged to the Consolidated Account (s 27(4)).

Investment managers, insurers and contractors: the Commission may appoint investment managers with Treasurer approval (s 19(1)), must invite expressions of interest for such appointments (s 19(3)), and may make use of insurer staff and facilities under contracted terms (s 13A). Persons engaged as consultants or service providers to the Commission (s 12(4)) will be bound by the Commission’s secrecy rules (s 42) and must be managed under delegation and procurement controls.

Commission employees and public sector staff: the Commission employs officers and employees and may use public sector staff and facilities under arrangement (s 13). Officers and employees are eligible for pensions and retirement benefits provided by the Commission (s 14). The managing director and senior executive officers are subject to the Public Sector Management Act where inconsistencies arise (s 12A).

Auditor, Parliamentary oversight and the public: the Financial Management Act 2006 and Auditor General Act 2006 apply to the Commission (s 20), bringing financial audit and public reporting obligations (ss 22-23). Certain directions and notices are required to be included in public annual reports (ss 10(2), 14C(4), 30(1)), thereby affecting transparency for Parliament and the public.

Private sector counterparties: banks, counterparties to investments, reinsurers and business undertakings interacting with the Commission are affected by the Commission’s power to form business undertakings, borrow, give security, enter partnerships and underwriting (s 7(2)(a), (f), (i) and ss 24-27). The Treasurer’s power to guarantee obligations (s 27) affects counterparties’ credit assessment and the Commission’s risk profile because such guarantees may be charged to the Consolidated Account and create a floating charge on Commission revenue and assets (s 27(5)).

Overall, the Act creates a statutory insurer that interacts with a wide set of actors; most importantly, the Commission itself, the Treasurer and Minister (who exercise oversight and budgetary controls), public authorities and eligible community organisations (clients), customers and claimants (protected by confidentiality and secrecy rules), investors and counterparties (engaging with the Commission’s commercial powers), and auditors and Parliament (through public reporting obligations).

This section summarises the principal statutory duties the Commission and its officers owe, and the rights accorded to others under the Act, with statutory citations.

Duties of the Commission

• Perform its statutory functions and exercise powers in an efficient and economic manner, and use best endeavours to ensure revenue covers expenditure (s 8). This imposes an affirmative operational duty to manage margins and costs.
• Observe policy instruments: perform functions in accordance with its strategic development plan and statement of corporate intent as they exist from time to time (s 14A). The board must prepare and submit these instruments at prescribed times (s 14B(1)).
• Maintain separate accounts for each Commission account (s 22) and cause separate annual reports and financial statements to be prepared for Commission accounts if directed by the Treasurer (s 23). The Commission must include certain Ministerial and dividend notices in its annual report (ss 10(2), 14C(4), 30(1)).
• Ensure prudential investment requirements imposed by the Treasurer are observed by any person performing investment functions (s 19A(1)), a duty that applies both to the Commission and to outsourced investment managers (s 19A(2)).
• Prepare and give the Minister, by the last day of February each financial year, a written forecast of net profits and a recommendation on whether an interim dividend should be paid and its amount (s 28(1)-(2)). Similarly, after the end of each financial year, prepare a report recommending whether an annual dividend should be paid and in what amount (s 29(2)).

Delegations and internal governance

• The board may delegate powers in writing to commissioners, committees, officers or employees, except the power of delegation itself (s 9). The managing director is required to administer day‑to‑day operations subject to board control (s 11(2)). Schedule 1 requires commissioners to disclose pecuniary interests and to abstain from deliberation and decision unless the board determines otherwise (Sch 1 cl 5).

Financial and borrowing controls

• The Commission may borrow and obtain financial accommodation only with Treasurer approval (s 24(1) and s 7(2)(a)). It may borrow from the Treasurer on conditions imposed by the Treasurer (s 26). The Treasurer may guarantee Commission obligations on behalf of the State (s 27), and any payments under such guarantees are charged to the Consolidated Account (s 27(4)), with the guarantee creating a floating charge on the Commission’s revenue and assets to secure the Treasurer’s position (s 27(5)).

Ministerial and Treasurer rights over Commission actions

• The Minister may give written directions to the Commission with respect to its functions, powers and duties and the Commission must give effect to those directions (s 10(1)). The Minister is entitled to information and to copy documents in the Commission’s possession (s 10A(1)-(2)). The Commission must comply with reasonable requests under s 10A, including making staff and facilities available (s 10A(3)).
• The Treasurer has a concurrence role and an approval role in key financial matters: concurrence for accepting dividend recommendations (ss 28(3)(a), 29(3)(a)), approvals for borrowings and bank accounts (s 7(2)(a) and (c)), the power to approve appointment of investment managers (s 19(1)), and the ability to impose prudential investment requirements (s 19A(1)). The Treasurer also decides whether a Fund surplus may be transferred to the Consolidated Account (s 18(2)-(5)).

Rights of customers and confidentiality protections

• Customers’ identity and affairs are protected from disclosure to the Minister by s 10B(1), except where disclosure is required by other written law or authorised by the customer (s 10B(2)). The secrecy offence (s 42) further restricts persons with access to information from divulging affairs of another person, with a fixed penalty of $2,500.

Reporting and transparency obligations

• The Commission must include in its annual report the text of any Ministerial direction it received (s 10(2)) and the text of strategic plan directions when laid before Parliament (s 14C(4)). Notices under the dividend process must be included in the annual report (s 30(1)).

Rights and duties of commissioners and officers

• Commissioners have protections from personal liability for acts done in good faith by the Commission, subject to the Statutory Corporations (Liability of Directors) Act 1996 (Sch 1 cl 11). Commissioners must disclose pecuniary interests and refrain from participation unless the board decides otherwise (Sch 1 cl 5).

Contracting and agency rights

• The Commission may be an agent for other persons or public authorities (s 7(2)(m)), enter into contracts, and empower persons to execute deeds on its behalf (s 43). The Commission may use staff and facilities of public sector departments (s 13) and insurers (s 13A) under mutual arrangement, subject to payment terms.

Dividend and appropriation duties

• If the Minister and Treasurer decide on an interim or annual dividend, the Commission is obliged to pay the notified amount to the State as soon as practicable and within specified timing constraints (s 28(4); s 29(4)). Dividends paid must be credited to the Consolidated Account (s 30(3)).

Taken together, the Act balances commercial autonomy for the Commission with explicit financial and administrative oversight from the Minister and Treasurer, statutory protections for customers’ data, and duties of internal governance for commissioners and officers. The statutory regime forces the Commission to make explicit financial recommendations on dividends and to be accountable through audits and annual public reporting.

The Act creates a limited set of express penalties and enforcement levers, and establishes administrative mechanisms that produce enforcement effects through financial control, reporting and statutory obligations. The principal direct penalties, statutory enforcement tools and indirect enforcement mechanisms are described below with section references.

Direct criminal/penalty offence

• Secrecy offence: section 42(1) prohibits persons to whom the section applies from recording or divulging information concerning the affairs of another person acquired under this Act, or producing documents relating to such affairs, except in the performance of a legal duty. The penalty expressly stated is $2,500 (s 42(1)). Section 42(2) defines who is subject to the prohibition: commissioners, alternate commissioners, officers and employees, and persons rendering services to the Commission under sections 12, 13 or 13A.

Administrative enforcement through oversight powers

• Ministerial directions: the Minister may give directions in writing concerning the Commission’s functions, powers and duties and the Commission must give effect to those directions (s 10(1)). The requirement to include the text of directions in the Commission’s annual report (s 10(2)) is an accountability and transparency mechanism that supports Parliamentary scrutiny and public oversight; the inclusion itself is not a penalty but non‑compliance would engage auditor and Parliamentary remedies under the Financial Management Act and Auditor General Act through s 20.
• Treasurer approvals and conditions: Treasurer concurrence and approvals are required for borrowing, bank accounts and investment manager appointments (s 7(2)(a), (c); s 19(1)). The Treasurer may impose terms and conditions, and any non‑compliance could terminate approvals and affect the Commission’s ability to obtain finance or guarantee support. The Treasurer’s power to guarantee obligations (s 27) also creates an enforcement and risk transfer mechanism: the guarantee is chargeable to the Consolidated Account (s 27(4)), and the Treasurer may recover sums from the Commission (s 27(4) and (5)).

Financial enforcement through dividend regime

• The interim and annual dividend provisions (ss 28-30) create a process by which the Commission’s profits may be declared payable to the State. The Minister, with Treasurer concurrence, accepts or fixes dividend amounts, and the Commission must pay those amounts to the State within prescribed timeframes (ss 28(3)-(4); 29(3)-(4)). The process converts financial decisions into enforceable payment obligations, and where the Minister fixes a dividend different from the Commission’s recommendation the notification is taken to be a direction under the Statutory Corporations (Liability of Directors) Act 1996 (s 30(2)), activating liability rules that apply to directors under that Act.

Audit, reporting and public accountability

• The Commission is subject to the Financial Management Act 2006 and the Auditor General Act 2006 (s 20). This subjects the Commission’s financial administration, audit and reporting to standard public sector audit, compliance and Parliamentary oversight processes, enabling the Auditor General to report and for Parliamentary committees to exercise oversight. The requirement to produce separate accounts for each Fund (s 22) and to prepare specific annual reports or financial statements at the Treasurer’s direction (s 23) provides auditable records that support enforcement through public reporting and parliamentary scrutiny.

Statutory protections with conditional limits

• Commissioners are protected from personal liability for acts done in good faith (Sch 1 cl 11(1)), but that protection is subject to the Statutory Corporations (Liability of Directors) Act 1996 (Sch 1 cl 11(2)), which can create director liabilities if certain statutory duties are not met and directions are not observed. The Minister’s direction process interacts with that Act (s 10(3); s 30(2)), so directions and notices may trigger legal tests and possible liabilities under the Statutory Corporations (Liability of Directors) Act.

Contractual and commercial enforcement

• The Commission’s power to execute deeds, enter contracts and grant authority to staff and agents (s 43) produces ordinary contractual enforcement mechanisms: the Commission is bound by contracts executed under its seal or by persons authorised under s 43(4). The Commission’s status as an agent of the Crown (s 4A) may afford the Commission certain Crown immunities, “except as otherwise prescribed”, which affects counterparty enforcement strategies.

Remedies and implicit enforcement

• Where the Minister or Treasurer directs the Commission, fails to include required material in public reports, or the Commission breaches statutory prudential obligations, enforcement primarily operates through audit reports, public disclosure, Ministerial and Treasurer actions (including withholding approvals or withdrawing guarantees), and contractual remedies. The Act does not create an extensive set of criminal sanctions beyond s 42. Instead, it structures oversight, approvals and financial flows so that non‑compliance can result in loss of authority, finance options or public trust.

In practical terms, enforcement for compliance with financial and governance duties will typically be exercised by the Treasurer and the Auditor General through approval mechanisms, audit findings and public reporting. The specific monetary penalty in the Act is confined to secrecy breaches ($2,500), whereas other breaches implicate the broader statutory corporate liability framework referenced in the Act.

The Act is expressly designed to operate in a network of other statutes that allocate obligations, financial controls and regulatory standards. The Act itself cites multiple external statutes and makes the Commission’s duties contingent on or subject to those laws. Key interactions follow with statutory references.

Motor vehicle and workers’ compensation statutes

• Motor Vehicle (Third Party Insurance) Act 1943: the Commission’s function to issue and undertake liability under motor third party policies is mandated by s 6(a), which references the Motor Vehicle (Third Party Insurance) Act 1943. That statutory role makes the Commission the vehicle for administering a State statutory insurance obligation.
• Motor Vehicle and Workplace Accidents (Catastrophic Injuries) Act 2016: s 6(aa) makes the Commission responsible for managing and administering the catastrophic injuries support scheme defined in that Act (s 3(1) of the cited Act). The Commission must manage the Motor Vehicle and Workplace Accidents (Catastrophic Injuries) Fund that continues from prior arrangements (s 16(1b) and s 49 transitional provision).
• Workers Compensation and Injury Management Act 2023: section 6(b) concerns liabilities under pre‑reform provisions of the previous workers’ compensation regime, and s 16(3) and the compilation table reference the Workers Compensation and Injury Management Act 2023. The Act was updated (No. 21 of 2023) to align the Commission’s role with the new workers’ compensation legislative framework and to credit contributions to the catastrophic injuries Fund (s 15(2)(ba), (bb)).

Financial administration and audit

• Financial Management Act 2006 and Auditor General Act 2006: the Commission is subject to the financial administration, audit and reporting provisions of those Acts (s 20). That means the Commission’s accounts, agency special purpose accounts and annual reporting obligations fall within the State’s public finance framework; the Auditor General may audit and report; and the Commission is bound by financial accountability rules in those Acts.
• State Enterprises (Commonwealth Tax Equivalents) Act 1996: dividends under s 29 must be calculated after taking into account any payments under that Act for the financial year (s 29(1)(a)), so tax equivalence payments affect profit calculations and dividend capacity.

Company, public sector and statutory corporation law

• Statutory Corporations (Liability of Directors) Act 1996: the Act carves in the application of that Act by making Ministerial directions subject to it (s 10(3)) and taking some Ministerial dividend notifications to be directions under that Act (s 30(2)), thereby engaging statutory director liabilities and relief rules applicable to statutory corporations.
• Public Sector Management Act 1994 and Salaries and Allowances Act 1975: the managing director and senior executive service interactions are governed through s 12A and references to remuneration determined under the Salaries and Allowances Act (s 11(5)). Where inconsistencies exist, the Public Sector Management Act prevails for SES members (s 12A).

Insurance and corporations law

• Commonwealth Insurance Act 1973 and Life Insurance Act 1945: the Act uses the term “insurer” for corporations carrying on business under these Commonwealth Acts in the definition of “insurer” (s 3). Section 7(3) takes the Commission to be a licensed insurer for the purposes of the Workers Compensation and Injury Management Act 2023.
• Corporations Act 2001: while not heavily referenced, the definition of community organisation uses Corporations Act provisions (s 3). The Commission’s ability to form business undertakings, underwrite, subscribe for shares or debentures (s 7(2)(f), (i)) will interact with corporations law and capital raising/regulatory obligations when it engages in such activities.

Other statutory regimes

• Guarantees and Consolidated Account: section 27 provides for specific State guarantees, executed by the Treasurer and charged to the Consolidated Account (s 27(4)). Any sums paid by the Treasurer under guarantee create a floating charge upon the Commission’s revenue and assets (s 27(5)), interfacing the Act with State budgeting and appropriation frameworks.
• Associations Incorporation Act 2015: the definition of community organisation (s 3) references associations incorporated under this Act, and s 3A permits the Treasurer to determine eligible community organisations for arrangements managed by the Commission.
• Industrial relations and employment law: the Commission’s appointment of employees and conditions are subject to relevant orders, awards or agreements under the Industrial Relations Act 1979 (s 12(2)), and the Commission may use public sector staff under the Public Sector Management Act institutional framework (s 13).

Regulations and subsidiary instruments

• The Governor may make regulations for matters required or convenient to be prescribed, including the use of the Commission’s common seal (s 45). Section 14B allows regulations to prescribe matters about the strategic development plan and statement of corporate intent, subject to Treasurer concurrence (s 14B(4)).

Repeals and transitional interactions

• The Act repealed the State Government Insurance Office Act 1938 (s 46). Transitional provisions and compilation tables record multiple modification points where other Acts amended the Commission’s role (for example, the SGIO privatisation changes in 1992, the 2013 Amendment Act establishing the dividend regime, and the 2023 Workers Compensation changes).

In short, the Act is embedded in a web of State statutes that allocate insurance obligations, impose public finance constraints, set director liability rules and determine employment and investment prudential standards. The Commission’s powers and duties are not standalone; they are moderated by these external statutory regimes through concurrence, approval, audit and reporting obligations.

The compilation table and marginal notes in the text identify the Act’s amendment history, showing successive phases of change that recast the Commission’s governance, financial arrangements and statutory functions. The following chronological summary extracts the significant amendments recorded in the Act text and compilation table.

Initial enactment and early amendments

• State Government Insurance Commission Act 1986 (No. 51 of 1986): original enactment, with parts commencing 1 January 1987 for most operative provisions (compilation table).
• Acts Amendment (Public Service) Act 1987, Statutory Corporations (Liability of Directors) Act 1996 and other early amendments adjusted governance and liability provisions (compilation table entries for 1987, 1996).

Privatisation and structural reform era

• SGIO Privatisation Act 1992 (No. 49 of 1992): introduced significant changes, reflected by amendments recorded at s. 31(2)(k) deletion and elsewhere. The privatisation context led to structural changes in 1992-1993.
• Acts Amendment (ICWA) Act 1996 (No. 45 of 1996): a major amendment package that updated the Commission’s corporate identity, clarified powers, and added investment management and Funds provisions (sections 4, 5, 6(b), 7, 8 and many others were inserted or amended with differing commencement dates between 1996 and 1997). The long title was also updated (note under s 1).

2000s and governance alignment

• Insurance Commission of Western Australia Amendment Act 2002 (No. 34 of 2002): inserted the eligible community organisation framework (s 3A) and extended the Commission’s role to manage arrangements for such organisations (s 6(ca) added later by 2002 Act; see note 16 that the functions conferred are taken to have always existed).
• Financial and administrative alignment: numerous amendments aligned the Commission with the Financial Management Act 2006 and Auditor General Act 2006 (s 20). The Machinery of Government (Miscellaneous Amendments) Act 2006 and Financial Legislation Amendment and Repeal Act 2006 also updated administrative provisions.

Sectoral and scheme‑specific updates

• Motor vehicle catastrophic injuries: Motor Vehicle (Catastrophic Injuries) Act 2016 (No. 8 of 2016) and later amendments (Motor Vehicle and Workplace Accidents (Catastrophic Injuries) Act 2016) added s 6(aa) and updated the motor vehicle catastrophic injuries Fund responsibilities (s 16(3), s 49 transitional). Section 15(2)(ba) and (bb) were added to credit contributions to the Motor Vehicle and Workplace Accidents (Catastrophic Injuries) Fund under the 2023 Workers Compensation Act.
• Workers compensation reform: Workers Compensation and Injury Management Act 2023 (No. 21 of 2023) introduced provisions in 2023 that affect the Commission’s worker compensation role and Fund interactions (various amendments listed in the comp table and s 16 referencing the new Fund and liabilities).

Dividend regime and financial returns to State

• Insurance Commission of Western Australia Amendment Act 2013 (No. 7 of 2013): introduced a formal interim and annual dividend regime (ss 28-32) requiring forecasts and Minister/Treasurer concurrence and establishing the process and transitional provisions for that regime. The 2013 amendments are central to the Commission’s obligation to return profits to the State where required.

Recent amendments and repeals

• Statutes (Repeals and Minor Amendments) Act 2011 and later acts made technical and housekeeping changes (compilation table entries for 2010-2011).
• Statutes (Repeals and Minor Amendments) Act 2025 (No. 14 of 2025): repealed the State Government Insurance Office Act 1938 in s 46 and made other modernising changes recorded in the Act’s notes and compilation table indicating commencement 26 September 2025 for that 2025 Act provision.

Incremental technical changes

• The Act has been subject to numerous technical and commencement adjustments: standardisation of formatting (2010), corrections (2015 Gazette note), and reprints (1999, 2006, 2010, 2014, 2016) that collect amendments across time.

Taken together, the amendment history shows three broad phases: initial establishment and governance design in the late 1980s and 1990s (including the 1996 ICWA amendments), expansion of roles and alignment with public finance and sectoral scheme changes in the 2000s and 2010s (including 2002 and 2016 additions), and the formalisation of State financial return mechanisms via the 2013 dividend regime. Recent reforms around workers compensation (2023) and the 2025 repeal of predecessor Acts reflect continued legislative housekeeping and alignment with broader State insurance and compensation policy frameworks.

The Act text and the compilation provided do not name any court decisions or litigation history. No cases are cited in the statute as embedded references or notes. The Act does, however, reference other statutes that carry their own litigation and dispute resolution provisions (for example the Workers Compensation and Injury Management Act 2023 and Motor Vehicle and Workplace Accidents (Catastrophic Injuries) Act 2016), which will generate case law in their own contexts, but the current Act’s text includes no judicial decisions.

There are some statutory provisions that interact with liability rules and director obligations which may, in practice, produce litigation or judicial interpretation, even though none are recorded here:

• The Statutory Corporations (Liability of Directors) Act 1996 is referenced in the context of Ministerial directions (s 10(3)) and in Schedule 1 cl 11 which conditions commissioner protections. Those cross-references create a potential pathway for litigation under that Act where directors may be alleged to have breached duties.
• The Treasurer’s guarantee powers (s 27), the charge on Commission revenue and assets (s 27(5)) and the dividend process (ss 28-30) could generate contractual or administrative law disputes if disagreements arise about the Treasurer’s exercise of discretion, accounting treatments, or failures to observe procedural requirements set out in ss 28-29 (forecasting, timing, Treasurer concurrence).
• Confidentiality and secrecy provisions (s 10B and s 42) may give rise to civil or criminal proceedings if information is unlawfully disclosed, but the text records only a $2,500 penalty for the secrecy provision (s 42).

Because the compilation and marginal notes do not identify specific cases, practitioners should treat the Act as a statutory framework whose litigation dimensions will emerge from disputes over application of Ministerial directions, Treasurer approval decisions, dividend calculations and payments, and confidentiality breaches. For an authoritative litigation map, a targeted case law search would be required outside the boundaries of the provided statutory text.

This section collates statutory features that commonly produce practical or compliance issues. Each item is grounded in the Act’s text and highlights the operational mechanism that can create governance, financial or legal exposure.

1. Ministerial direction is binding and reportable (s 10(1)-(2))

• Mechanism: the Minister may give written directions on functions, powers and duties that the Commission must give effect to (s 10(1)). The Commission must include the text of any such direction in its annual report (s 10(2)).
• Practical effect: directions can change operational priorities or require resource allocation; they are public via annual reporting and can trigger director liability questions under the Statutory Corporations (Liability of Directors) Act 1996 (s 10(3)). Commissioners must therefore document compliance and board deliberations around directions.

2. Ministerial access to documents but confidentiality carve‑outs (ss 10A, 10B)

• Mechanism: the Minister is entitled to information and copies of documents (s 10A(1)-(2)); the Commission must comply and may provide staff and facilities for that purpose (s 10A(3)). However s 10B(1) protects customer identity and affairs from disclosure to the Minister, except where required by other written law or authorised by the customer (s 10B(2)).
• Practical effect: tension can arise between Ministerial information rights and customer confidentiality. The Commission must securely segregate customer‑identifying data and have procedures to lawfully authorise disclosures or document legal bases for disclosure.

3. Treasurer approvals and constrained borrowing (s 7(2)(a), s 24)

• Mechanism: borrowings and giving security require Treasurer approval (s 7(2)(a); s 24). Borrowing from Treasury is permitted on terms the Treasurer imposes (s 26). The Treasurer may guarantee obligations on behalf of the State (s 27).
• Practical effect: access to external finance is mediated by Treasurer discretion; the Commission cannot freely gear itself. Financial planning must build in approval timelines, and the Treasurer’s terms may create contingent fiscal follow‑on obligations (s 27(5) floating charge).

4. Funds are ring‑fenced; transfers are limited and require Treasurer approval (ss 16, 18)

• Mechanism: each Fund is created with specified permitted applications (s 16), and transfers of surplus to other Funds or to the Consolidated Account require Treasurer approval (s 18(2)). Section 18(4) prohibits transfers except as permitted.
• Practical effect: premium receipts and investment income are not fungible across Funds without approval. Accounting and actuarial allocation rules must be robust because misallocation risks breach s 16 and s 17 apportionment discretions.

5. Dividend process imposes timing and payment obligations (ss 28-30)

• Mechanism: the Commission must deliver forecasts and recommendations for interim and annual dividends by specified times (s 28(1) deadlines and s 29(2)). The Minister, with the Treasurer’s concurrence, fixes dividend amounts and the Commission must pay them within the prescribed windows (s 28(4); s 29(4)). Notices of differing dividend decisions are taken as directions under the Statutory Corporations (Liability of Directors) Act 1996 (s 30(2)).
• Practical effect: the dividend process can require the Commission to pay cash to the State even where the board recommended otherwise. Forecasting inaccuracies expose the Commission to cash flow risk. The Director liability linkage can create governance tension if board positions differ from Minister/Treasurer decisions.

6. Secrecy penalty is fixed, modest, and limited in scope (s 42)

• Mechanism: s 42 imposes a penalty of $2,500 for unauthorised disclosure, and applies to commissioners, officers and service providers (s 42(2)).
• Practical effect: the monetary penalty may be modest relative to harms from disclosure. The Commission should rely on administrative safeguards and contracts to secure compliance beyond the statutory penalty.

7. Investment outsourcing needs Treasurer approval and expression‑of‑interest process (s 19)

• Mechanism: appointment of external investment managers requires written Treasury approval (s 19(1)), the board must be satisfied on qualifications (s 19(2)) and invite expressions of interest from suitably qualified parties before appointment (s 19(3)). The Treasurer may impose prudent investment requirements (s 19A).
• Practical effect: provider selection is constrained by procurement and Treasurer approval; delays may arise. The Commission must document selection criteria and procurement steps to meet s 19(3) and s 19A prudential expectations.

8. Commissioners’ protection is conditional (Sch 1 cl 11)

• Mechanism: commissioners are not personally liable for acts done in good faith (Sch 1 cl 11(1)) but this protection is subject to the Statutory Corporations (Liability of Directors) Act 1996 (Sch 1 cl 11(2)).
• Practical effect: directors must be attentive to statutory liabilities and to Ministerial directions that might trigger director liability under the referenced Act. Boards should record reasons for decisions and any reliance on professional advice.

9. Use of public sector and insurer staff involves payment and terms (ss 13, 13A)

• Mechanism: the Commission can use public servants and insurer staff/facilities on agreed terms and conditions including payment (ss 13(1)-(2), 13A).
• Practical effect: these arrangements create contingent obligations and interagency contracts. Properly drafted agreements are necessary to allocate costs, liabilities and IP, and to ensure confidentiality protections extend to staff seconded or contracted in.

10. Guarantees impose contingent State exposure and a floating charge (s 27(4)-(5))

• Mechanism: Treasurer guarantees are charged to the Consolidated Account and any sum paid creates a floating charge on Commission revenue and assets (s 27(4)-(5)).
• Practical effect: while guarantees increase creditworthiness, they create potential reputational and fiscal exposure for the State and a real charge over Commission revenue that must be managed in financial plans.

These "gotchas" are operationally and legally significant because the Act combines commercial insurance powers with public finance controls and Ministerial oversight. Practitioners should map these mechanics into corporate governance, procurement, accounting, actuarial and records management practices.

Below is a practical compliance checklist for the Commission and key actors drawn from the Act. Each step cites the governing provision and explains observable actions the Commission should take to manage legal, financial and reputational risk.

1. Governance and board compliance

• Maintain board composition and appointment records consistent with s 5 and Sch 1: ensure number of commissioners, appointment instruments, chairman/deputy chairman designations and remunerations are properly documented (s 5(1)-(2); s 5(5)).
• Implement formal board procedures to comply with Sch 1 meeting, quorum and minutes requirements (Sch 1 cll 6-8A). Keep accurate minutes and retain records of resolutions passed without a meeting as required by Sch 1 cl 8 and 8A.

2. Managing director and staff arrangements

• Appoint a managing director under s 11 with an instrument specifying term not exceeding five years and set remuneration and conditions consistent with Salaries and Allowances Act determinations and Public Sector Management Act where applicable (s 11(3)-(5); s 12A).
• Ensure staff appointments, employment conditions and contractor engagements comply with s 12 and any relevant industrial instruments (s 12(2)).

3. Funds and accounting compliance

• Establish and maintain the specified Funds under s 16 and open Commission accounts in accordance with s 16(7). Keep separate and distinct accounts for each Commission account as required by s 22.
• Apply apportionment rules for income and asset allocations when receipts relate to multiple Funds (s 17). Record the rationale and supporting actuarial and accounting calculations for any apportionments.
• Only transfer moneys between Funds under s 18, observing the temporary transfer rule at s 18(1) and obtaining Treasurer approval for surplus transfers under s 18(2).

4. Financial management and audit

• Comply with the Financial Management Act 2006 and Auditor General Act 2006 obligations as applied by s 20. Ensure timely preparation of annual reports, financial statements and any distinct Commission account reports if directed by the Treasurer (s 23).
• Establish provisions and reserves in accounting records within Treasurer‑approved limits under s 21 and maintain audit trails for reserve calculations and actuarial assumptions.

5. Borrowing, guarantees and investment management

• Obtain Treasurer approval for borrowings and security arrangements as required by s 24 and s 7(2)(a). If borrowing from Treasury, document terms and repayment conditions (s 26).
• Where the Treasurer guarantees any obligation, understand and record the guarantee instrument, execution and the implications for the Consolidated Account and the floating charge on Commission revenue (s 27(1)-(5)).
• For investing or outsourcing investment management, follow s 19: invite expressions of interest from suitably qualified persons (s 19(3)), obtain written Treasurer approval for appointment (s 19(1)), and ensure all investment activities comply with Prudential requirements the Treasurer may impose under s 19A.

6. Dividend process and reporting timelines

• Prepare and submit the interim dividend forecast and recommendation to the Minister by the last day of February (s 28(1)). Document factors considered in the forecast and recommendations (s 28(1)(b)).
• After year‑end, prepare and submit the annual dividend recommendation as soon as practicable (s 29(2)). Maintain reconciliations that account for tax equivalent payments under the State Enterprises (Commonwealth Tax Equivalents) Act 1996 as required by s 29(1)(a).
• When the Minister notifies a dividend or interim dividend amount (ss 28(3)(b), 29(3)(b)), arrange prompt payment to the State by the timeframes set (s 28(4); s 29(4)). Include the text of notices in the annual report (s 30(1)).

7. Strategic development plan and corporate intent

• Prepare and submit a strategic development plan and a statement of corporate intent at prescribed times and in the prescribed form (s 14B(1)-(2)). Perform functions in accordance with these instruments (s 14A). If the Minister issues directions under regulations about these instruments, ensure directions are laid before Parliament or transmitted to Clerks as required (s 14B(3); s 14C).

8. Ministerial information requests and confidentiality

• Comply with lawful information requests by the Minister under s 10A, including providing copies of documents where appropriate (s 10A(1)-(3)). Preserve a clear record of requests and what was provided.
• Protect customer identity and affairs from disclosure (s 10B(1)) unless disclosure is authorised by other written law or by the customer (s 10B(2)). Implement data governance and legal review processes to authorise any disclosure that might engage s 10B exceptions.

9. Secrecy obligations and staff contracts

• Ensure all commissioners, officers, contractors and persons rendering services understand and commit to secrecy obligations under s 42. Use employment contracts and consultant agreements to reinforce confidentiality obligations beyond the statutory penalty threshold.
• Track access to customer data and keep logs demonstrating legitimate use to defend against alleged s 42 breaches.

10. Delegation, conflicts of interest and director protections

• Use written instruments for delegation consistent with s 9, noting the power to delegate cannot be delegated. Document delegations and approvals and maintain an up‑to‑date delegation schedule.
• Require commissioners and nominees to disclose pecuniary interests at meetings and record disclosures in minutes as required by Sch 1 cl 5; enforce abstentions where necessary.
• Keep records of reliance on professional advice and minutes documenting decisions to preserve protections under Sch 1 cl 11 and to demonstrate good faith if director conduct is ever questioned under the Statutory Corporations (Liability of Directors) Act 1996.

11. Procurement and use of external staff/facilities

• Where using public sector staff or insurer staff/facilities under ss 13 and 13