Govt considers compo law rejig

Marc Moncrief July 18, 2008 - 9:15AM

Victoria is considering whether to scrap its workplace compensation laws
and implement a scheme that could cost nearly $150 million more.
A leaked draft of a Government review of the laws governing WorkCover
makes 133 recommendations that would comprehensively reshape
Victoria's scheme.

The author of the report, Peter Hanks, QC, says the current system is
"overly complex" and that the Accident Compensation Act and the Accident
Compensation (WorkCover Insurance) Act should be "recast" into one
comprehensive act. Mr Hanks recommends the new scheme be named
"WorkSafe Victoria".

The report is the result of a review commissioned in December by WorkCover
Minister Tim Holding.

It is believed to be now before a Stakeholder Reference Group made up of
representatives of unions, employer groups, legal associations and the Australian
Medical Association. A final version of the report is expected to be made public
later this year.

Mr Hanks says in the report that some of the provisions in the current laws
are "spent or obsolete" and cites "anomalies and inconsistencies" that he
says frustrate the laws' application.
"It is fair to say that the legislation itself is a complex piece of legislation
that has been amended numerous times over the years," said Craig Sidebottom,
a senior associate at plaintiff law firm Slater & Gordon. "We would hope that
the review would lead to some simplification and streamlining of the act."

Workcover's profits reached nearly $1.2 billion last year.

Much of that money came from returns on WorkCover investments that
may be used to subsidise the reforms.

But Opposition Leader Ted Baillieu said most of the cost increases would
probably fall to employers, who would be hit with higher premiums.

Among other things, the recommendations include:

Higher maximum payments for those who have suffered injuries at work and
amendments to ensure workers with long-term disabilities are paid superannuation.
An increase to the maximum payment for a work-related death from $257,210
to $468,720.

An increase to the minimum benefit for psychological impairment due to injury,
but no change to the threshold that triggers the payment, which will remain at a
30% loss of function.

An expanded bureaucracy including a WorkSafe Review Panel to be a final
arbiter of disputes.

Some recommendations, such as the operation of the review panel, are uncosted,
but a preliminary cost estimate of selected recommendations is between $85
million and $146 million. About $3 million of savings are identified.

The Victorian Government under Premier John Brumby and his predecessor,
Steve Bracks, has cut WorkCover premiums for five consecutive years.

In the most recent state budget, handed down in May, the Government offered
a 5% reduction in premiums, which it estimated would save businesses $88
million this year.

A Government spokesman, Matt Nurse, said Victorian employers would have
saved more than $2 billion by the end of this year thanks to the cuts to
WorkCover premiums.


WCV's: Why is the government offering a 5% reductions to employers when
they are telling injured workers of the Kennett Era that the government cannot
afford to include us in the new common law changes?

If the government can afford to give the employers a 5% discount then they can
afford to include all injured workers in the changes

If the government can afford to waste $150 million on making these new
changes then they can afford to pay all injured workers denied their
claims during the blackhole period!