New South Wales – Amendments to legislation
The Workers’ Compensation Legislation Amendment Act 2012 NO 53, was passed in June 2012. This Act makes amendments to:
- Workers’ Compensation Act 1987
- Workplace Injury Management and Workers’ Compensation Act 1998
The amendments cover a range of topics. Of most interest to employers are the amendments relating to: weekly benefits; rehabilitation and return to work obligations; journey claims; heart attack and stroke injuries; and disease injuries.
Many of the amendments are effective from 27 June 2012. However, weekly benefit changes will be implemented as follows:
- For seriously injured workers from 17 September 2012
- From the commencement of the claim for all workers injured after 1 October 2012
- Phased in from 1 January 2013 for all other injured workers
An additional Act, the Safety, Return to Work and Support Bill 2012, creates a new Board to oversee the operation of three authorities: WorkCover Authority, Motor Accidents Authority and Lifetime Care and Support Authority.
Ai Group has developed a series of Fact Sheets to help employers to understand the changes, with a particular focus on the practical implication for workplaces managing workers’ compensation claims. Further information can be obtained by contacting the Ai Group BIZassistInfoline on 1300 78 38 44.
Introduction and majority of provisions
Weekly benefits
Journey claims
Contribution by work: heart attack and stroke injuries / disease injuries
Queensland – Review of Workers Compensation
On 7 June 2012 the Legislative Assembly agreed to a motion that the Finance and Administration Committee inquire into and report on the operation of Queensland's workers' compensation scheme.
In particular the committee is required to consider:
- the performance of the scheme in meeting its objectives under section 5 of the Act;
- how the Queensland workers' compensation scheme compares to the scheme arrangements in other Australian jurisdictions;
- WorkCover's current and future financial position and its impact on the Queensland economy, the State's competitiveness and employment growth;
- whether the reforms implemented in 2010 have addressed the growth in common law claims and claims cost that was evidenced in the scheme from 2007-08;
- whether the current self-insurance arrangements legislated in Queensland continue to be appropriate for the contemporary working environment;
- in conducting the inquiry, the committee should also consider and report on implementation of the recommendations of the Structural Review of Institutional and Working Arrangements in Queensland's Workers' Compensation Scheme.
Information about the inquiry can be found at http://www.parliament.qld.gov.au/work-of-committees/committees/FAC/inquiries/current-inquiries/OpQldWorkersComp
The closing date for submissions (which was originally 3 August) has been extended to 3 September 2012. The Committee is required to report to the Parliament by 28 February 2013.
South Australia – New premium system introduced from 1 July 2012
A new premium system was introduced into South Australia with effect from 1 July 2012.
The following table illustrates the criteria to determine whether an employer is determined to be small or medium/large.
Small employers will continue to pay a premium based on the industry rate.
Medium and large employers will be “experience rated”. Experience rating means that the premium is calculated by taking into account the actual and estimated future costs of included claims lodged by an employer’s workers during the specified period. These claim costs are compared to the declared remuneration declared by the employer to calculate an employer claims cost rate (ECCR). The ECCR is then compared to the industry’s claims cost rate (ICCR) to determine the premium rate payable. The larger the business, the more impact the claims experience will have on the calculation.
| Criteria for sizing |
Remuneration paid to workers of $300,000 or more | No | No | Yes | Yes |
Base premium of $20,000 or more | No | Yes | No | Yes |
Description of employer based on sizing criteria | Small employer Premium is based on the industry rate | Medium or large employer
Premium will be
"experience rated" |
Large employers, those who have a base premium of $500,000 or more can apply to opt into a “retro-paid loss” arrangement. These arrangements allow for an employer’s premium to be more closely aligned with actual claim costs as they develop over a number of years. Depending on the organisation’s ability to manage claims, this could ultimately lead to increases or decreases in premium. Subsequently, there is a significant amount of financial risk associated with this option.
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