SRC Act section 16, plain-English definition from TheAICommand
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What is section 16 of the SRC Act?

Section 16 of the SRC Act 1988 (Cth) makes the determining authority liable to compensate the cost of medical treatment for a compensable injury, where the treatment was reasonable for the employee to obtain in the circumstances.

Quick answer

Section 16 of the Safety, Rehabilitation and Compensation Act 1988 (Cth) makes Comcare, or a licensee authorised to accept liability, liable to pay compensation for the cost of medical treatment obtained for a compensable injury, where the treatment was reasonable for the employee to obtain in the circumstances, plus qualifying journey and accommodation costs.

Verified against the current authoritative text on by the TheAICommand editorial team.

This page is an educational summary for professionals working with AI. It is not the law and not legal advice. Always work from the current authoritative text linked below.

What does section 16 of the SRC Act do?

Section 16 of the Safety, Rehabilitation and Compensation Act 1988 (Cth), current compilation on the Federal Register of Legislation, makes Comcare liable to compensate the cost of medical treatment obtained in relation to a compensable injury, where the treatment was "reasonable for the employee to obtain in the circumstances". It also compensates qualifying journey and accommodation costs.

Who does it bind?

The liability sits with Comcare, or with a licensee where its Part VIII licence authorises it to accept liability (section 108A). It applies whether or not the injury results in death, incapacity for work, or impairment (section 16(2)).

What do practitioners get wrong?

Two recurring misreadings. First, treating the test as clinical reasonableness of the treatment alone: the statutory words attach reasonableness to obtaining the treatment in the circumstances, a broader inquiry. Second, assuming every journey is compensable: section 16(7) requires the journey to exceed 50 kilometres, or that the injury reasonably required public transport or ambulance services regardless of distance.

Where does AI use touch it?

Section 16 decisions turn on treatment evidence, and that is where AI-assisted work concentrates. See applying the section 16 reasonableness test with AI support and working with treating practitioner reports and AI. AI can organise invoices and treatment histories; the reasonableness judgement stays with the decision maker.

Bottom line

Section 16 compensates reasonable-to-obtain medical treatment for compensable injuries, plus journey costs above defined thresholds. The statutory reasonableness formulation, not clinical merit alone, frames the decision.

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Frequently asked questions

What is the test for medical treatment compensation under section 16?
Section 16(1) compensates the cost of medical treatment obtained in relation to the injury, being treatment that it was reasonable for the employee to obtain in the circumstances. The amount is what the determining authority determines is appropriate to that treatment.
Does section 16 cover travel to medical appointments?
Yes, with limits. Section 16(6) compensates necessary journeys and associated stays, but section 16(7) requires the journey (including the return leg) to exceed 50 kilometres, unless the injury reasonably required public transport or ambulance services regardless of distance.
Who pays section 16 compensation?
Section 16(1) makes Comcare liable. Where a Part VIII licensee is authorised to accept liability for an injury, section 108A transfers that liability to the licensee and Comcare is not liable for it.

Primary sources

Where s16 appears

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General information and education only. Not legal, compliance, financial, or professional advice. Always confirm obligations against the primary source and current regulator guidance.