No. 75

WORKERS COMPENSATION ACT TO BE REVIEWED

The Stanhope Government has provided $400,000 over the next three years to review the private sector Workers’ Compensation scheme.

Minister for Industrial Relations, Andrew Barr, said the review has been prompted by the fact the ACT has the highest reported private sector workers compensation premiums in Australia.

“The last major review of the scheme was undertaken in 1999 and most of the recommendations were encompassed in the legislative reforms that established the present Workers Compensations Act in 2002. However, concerns have continued to be raised about the cost of the scheme,” Mr Barr said.

“High workers’ compensation premiums have a negative impact for businesses in the ACT and can act as a deterrent for establishing a business in the ACT.

“The review is critical to ensuring the continued viability of the scheme and a full review of the scheme, including an actuarial assessment, would enable the operations of the scheme to be considered in an informed, objective and thorough manner.”

Mr Barr said it was important to ensure the scheme is delivering the best possible results for workers and employers.

“Workers compensation is one of the few areas where the Federal Government’s draconian Work Choices legislation has provided state and territory governments with the opportunity to protect workers’ entitlements,” he said.

“A robust system is not only beneficial for assisting injured workers back to work, but also to minimise the disruption to business in such circumstances.”