Changes to WorkCover system

In March 2007, the South Australian government announced an independent review of the SA Workers Rehabilitation and Compensation Scheme. The aim of the review is to consider legislative change and other reforms to the system that would make the scheme fully funded, fair to workers and affordable to businesses. An important issue to be considered is the number of injured workers remaining on income maintenance long-term. Without a rapid and significant improvement in return to work rates of injured workers, the WorkCover Corporation could see its unfunded liability rise to over $1 billion. The review process includes:

• Investigation into the operation of the current workers compensation scheme under the Workers Rehabilitation and Compensation Act; 
• Comparison of the South Australian scheme to other Australian jurisdictions; 
• Assessment of the incentives for employers to reduce the incidence of injury, illness and claims and to get workers back to work; 
• Assessment of the likely financial effects and the impact on levy rates of recommendations arising from the review.

The WorkCover Board’s proposal to the Review includes recommendations on a number of issues, including:

• The amount of income maintenance to be paid to injured workers;
• The level of compensation for non-economic loss paid to seriously injured workers;
• Work capacity reviews;
• The capping of entitlements to medical expenses;
• Changes to the dispute resolution system, including the establishment of expert medical panels;
• Levies on employers;
• Changes to the costs payable to workers;
• Changes to self-insurance arrangements.