Workers' compensation changes reduce red tape and increase penalties

ACT Minister for Industrial Relations, Katy Gallagher MLA, today announced a series of improvements to the ACT Workers’ Compensation Scheme that aim to improve compliance by reducing red tape and introducing new penalties for employers who fail to protect their workers.

“The Workers Compensation Amendment Bill 2009, which I’ll table in the ACT Legislative Assembly today, aims to deliver an affordable system for employers, fair treatment of injured workers and improved effectiveness of the scheme,” Ms Gallagher said.

“It is estimated that these changes will save ACT employers over $4 million annually and improve compliance by reducing administrative barriers,” she said.

“For instance, the Bill will remove the need for employers to provide both a statutory declaration and a certificate from a recognised auditor when providing wage information to insurers. 

“New penalties will be introduced for employers who fail to protect their workers or under declare their wages for insurance premium calculation purposes. Directors will be personally liable for debt associated with these penalties and injured working directors of uninsured entities will no longer be able to claim compensation from the Default Insurance Fund,” Ms Gallagher said.

“Every claim made against the Fund by a working director of an uninsured entity represents an increased cost to those compliant employers and undermines the compliance objectives inherent in the Workers Compensation Act. 

“Importantly, the Bill also provides for a hierarchy of penalties that culminate in possible criminal prosecution and/or a cease business provision that would operate until such time as the non-compliant employer has a workers’ compensation policy. 

“This new compliance regime will disprove the perception that non-compliance is a cheaper alternative to the cost of protecting workers in the event of a workplace injury,” Ms Gallagher said.

The Bill also introduces amendments to ensure that rehabilitation providers are engaged to assist workers return to work in a timely manner. In the event that an injured worker’s return to work is not progressing as expected and the worker has not returned to work within four weeks of the injury being notified, insurers will appoint a rehabilitation provider.

Through this Bill the ACT Government will also implement the new National Framework for the approval of workplace rehabilitation providers.

“This Framework has been developed by the National Heads of the Workers’ Compensation Authorities and establishes a system of mutual recognition for rehabilitation providers which essentially means that where a provider is approved in one jurisdiction, all other workers’ compensation authorities will recognise the provider’s status,” Ms Gallagher said.

“The Framework provides a national approval system and reduces administrative costs and complexity for providers, employers and insurers who operate across multiple jurisdictions.”

“The ACT Government is committed to improving the performance and operations of the ACT Workers’ Compensation Scheme by reducing the administrative burden for employers while ensuring fair treatment of injured workers,” the Minister said.

19 November 2009