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FACT SHEET
Workers Rehabilitation and Compensation
Amendment Bill 2009
The Workers Rehabilitation and Compensation Amendment Bill
2009 has two key objectives to:
1. implement the Government's response to the Report on
the Review of the Tasmanian Workers Compensation
System by Alan Clayton (the Clayton Report); and
2. establish the legal framework for the WorkCover Return
to Work and Injury Management Model.
The Bill will deliver substantial benefits for injured workers by
increasing statutory benefits, improving access to common law
damages and by ensuring that arrangements for managing
workplace injury maximise opportunities for workers to return
to work.
The Return to Work and Injury Management Model was
developed by a working group of representatives of key
stakeholders including unions, employers, insurers, general
practitioners, the Tasmanian Risk Management Fund,
Workplace Standards and the Workers Rehabilitation and
Compensation Tribunal. The Model was strongly endorsed by
Mr Clayton in his Report. The general response from
stakeholders has been favourable.
Mr Clayton's Report was released for public comment in
January 2008. Mr Clayton consulted extensively during the
course of his review. Further periods of consultation occurred
following the release of the Report in January 2008 and later,
following the release of detailed actuarial analysis.
The Government publicly released its detailed response to the
Clayton Report in July this year. In response to feedback from
stakeholders, some changes were made to the some of the
proposed amendments as well as some additional change to
further improve the scheme.
A Regulatory Impact Statement (RIS), analysing the costs and
benefits of the proposed amendments, was released on 20
August 2009 for public comment. A draft Bill was publicly
released on 3 September and was forwarded to more than 40
key stakeholders seeking their views.
Four written submissions were received following the release
of the RIS and the draft Bill. In addition to this, a number of
comments were received during meetings and telephone
discussions with stakeholders which led to further changes to
the draft Bill.
The reform package to be implemented by the Bill is expected
to increase claim costs by around 15%. However, it should be
recognized that over the past decade workers compensation
insurance costs in Tasmania have declined by 45%.
In summary, the proposed reforms will:
� foster and reinforce a return to work culture among
employers, workers and other stakeholders;
� provide greater income security for workers by increasing
the level of weekly compensation and extending the period
of entitlement;
� provide additional financial incentives for workers and
employers to participate in rehabilitation and return to
work;
� increase the level of lump sum compensation for
permanent impairment and death to levels more
comparable to those provided in other sates and
territories;
� ensure that before a claim for compensation or damages is
settled the worker has received appropriate legal and
financial advice and all reasonable return to work,
rehabilitation and retraining options have been exhausted;
� provide a power to extend a workers entitlement to
medical and related services where a worker requires
further surgery or treatment to remain in employment;
and
� improve access to common law by reducing the whole
person impairment threshold from 30% to 20%.
More particularly, the main amendments in the Bill, including
those arising from the Clayton Report, will:
� insert a statement of scheme goals;
� encourage early reporting by holding the employer liable
for claims expenses until the claim is reported;
� require the Workers Rehabilitation and Compensation
Tribunal to approval any settlement of a worker's
entitlement under the Act within two years of the date of
the worker's claim (variation to Clayton Recommendation
No 8);
� provide for the payment of counselling services for families
of deceased workers;
� provide for the payment of medical and other expenses for
up to 12 months after a worker ceases to be entitled to
weekly compensation with the possibility of extension on
application to the Tribunal;
� increase the maximum lump sum payment to a dependent
on the death of a worker to $250,000;
� increase weekly payments payable to a dependent child of
a deceased worker to 15% of the basic salary (Clayton
Recommendation No 14);
� increase the maximum lump sum payment payable for
permanent impairment to $250,000;
� provide for the extension of weekly payments from nine
years to 12 years for workers with a whole person
impairment (WPI) between 15% and 19%, to 20 years for
workers with a WPI of between 20% and 29% and until the
age of retirement for workers with a WPI of 30% or more;
� amend the first step-down to 90% of normal weekly
earnings rather than 85% of normal weekly earnings;
� delay the operation of the first step-down, so that it comes
into effect at 26 weeks of incapacity rather than 13 weeks;
� provide that the step-downs are not to apply where a
worker has returned to work for at least 50% of his or her
pre-injury hours or duties;
� provide that the step-downs are to be discounted in
circumstances where an employer refuses or is unable to
provide suitable alternative duties;
� reduce the threshold for access to common law damages
from 30% whole person impairment to 20% whole person
impairment. No narrative test; and
� repeal section 138AB requiring a worker to make an
election to pursue common law damages.
The Bill also includes a range of measures that support the
WorkCover Return to Work and Injury Management Model
including:
� requirements for return to work and injury management
plans;
� obligations on employers to encourage early reporting of
injuries and claims;
� providing an entitlement to the payment of limited medical
costs before the claim is accepted; and
� introduction of an injury management coordinator to
oversee the injury management process.
The Bill will strike a better balance between the needs of
employers and the rights of workers whilst continuing to
provider a cost effective workers compensation system for
Tasmania.