Queensland Bills Explanatory Notes

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WORKERS' COMPENSATION AMENDMENT BILL 1995

                                  1
                   Workers' Compensation Amendment


         WORKERS' COMPENSATION
          AMENDMENT BILL 1995


                   EXPLANATORY NOTES



GENERAL OUTLINE

Objective of the legislation

 The objective of this legislation is to provide authority under the
Workers' Compensation Act 1990 to: -
    (1) Incorporate government departments into a premium based
        workers' compensation scheme from 1 July 1995;
    (2) Enable the transfer of funds between the Workers' Compensation
        Trust Fund and the separate provision account within the
        Consolidated Fund for the purpose of transferring government
        premium collections and paying government claims.


Reasons for the Bill

   Private sector employers are required to hold policies of accident
insurance with the Workers' Compensation Board and pay annual
premiums for insurance cover in respect of both their statutory and
common law liabilities ensuring that future claims liabilities are fully
funded. This contrasts with government sector employers who, apart from
some statutory authorities, are not required to hold such a policy with the
Board.
   The implementation of the proposed amendments will enable
departments of government to be issued with workers' compensation
policies of accident insurance as of 1 July 1995. Workplace injuries
sustained by government sector employees on or after 1 July 1995 will be
fully funded from the premium paid.

 


 

2 Workers' Compensation Amendment These amendments and the claims management changes which are proposed are designed to allow premium collections and claims costs for government agencies to be quarantined in a separate provision account and not as part of the Workers' Compensation Fund. The established systems within the Workers' Compensation Board will continue to be used for processing government workers' compensation business. A move by government departments to a premium based system will provide additional incentives for them to actively manage their risks and costs. Estimated Cost for Government Implementation There is potential for a marked reduction in the incurred claims costs for the government sector through these initiatives. There will be no additional cost to the government above the current or future incurred claims liabilities. All workplace injuries and diseases sustained by government employees after 1 July 1995 will be fully funded from the premium paid. Treasury will fund the runoff of claims for all consolidated revenue funded departments for injuries prior to 1 July 1995. Consultation The Workers' Compensation Board has undertaken extensive consultation with departments of government in relation to the introduction of a premium based system from 1 July 1995. NOTES ON PROVISIONS Clause 1 sets out the short title of the Bill. Clause 2 states that this Act amends the Workers' Compensation Act 1990. Clause 3 sets out to amend Section 1.5 to clarify the application of the Act to workers in both the public and private sectors: � sub-section 1 remains and applies to a worker who is employed

 


 

3 Workers' Compensation Amendment by a government entity in the same manner as it applies to a worker who is employed in the private sector; � sub-section 2 is removed as it is no longer required in view of changes to the definition of employer; � sub-sections 3 and 4 are now incorporated in a new Section 11.5A which relates to the payment of compensation and recovery of monies from a government entity. Clause 4 sets out to: � extend the definition of "employer" so that it applies to departments of government as well as private sector employers through the use of the term "government entity". This will allow departments of government to be issued with workers' compensation policies of accident insurance and to pay premiums to cover liabilities for both workers' compensation statutory claims and common law damages claims. � define "government entity" to include all aspects of government operations. � define "government worker" as referred to in Clauses 5 and 6. � define "non-policy compensation arrangement" as referring to alternative compensation arrangements between the Board and a government entity where a policy of accident insurance is not appropriate and does not exist, e.g. government claims prior to 1 July 1995. � redefine "policy" so as to include a "non-policy compensation arrangement", as defined. Clause 5 inserts a new sub-section 4.1(5) to enable the transfer of funds between the Workers' Compensation Trust Fund and a separate provision account kept at Treasury for the purpose of transferring government premium collections and paying government claims. Accordingly, the same systems and procedures will be used for private and public sector workers' compensation business but funds associated with each sector may be managed and held separately.

 


 

4 Workers' Compensation Amendment Clause 6 inserts a new section 11.5A which empowers the Board to recover the cost of compensation paid plus an administration fee for an injury sustained by a worker employed by a government entity in instances where a "non-policy compensation arrangement" exists. � The State of Queensland 1995

 


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