ReturnToWorkSA

In reply to Mr MARSHALL (Dunstan—Leader of the Opposition) (22 July 2015). (Estimates Committee A)

The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Justice Reform, Minister for Planning, Minister for Housing and Urban Development, Minister for Industrial Relations, Minister for Child Protection Reform): I have been provided the following advice:

ReturnToWorkSA uses an industry based classification system to assign an appropriate classification for each employer location, based on predominant business activity.

Each South Australian Industry Classification has a corresponding industry premium rate, which is calculated each year using the claims cost performance of all businesses classified in that industry. An industry premium rate is not necessarily linked to the perceived risk involved for workers in that industry – it is linked to actual claims experience.

The Local Government Association Workers of South Australia has 92 locations registered with ReturnToWorkSA across five industry classifications. The table below details the industry classifications and applicable rates.

ReturnToWorkSA is not provided with information on what the Local Government Association Workers Compensation Scheme (LGAWCS) charges its individual locations and therefore cannot comment at the industry classification level how the LGAWCS average rate compares to the return-to-work scheme or comparable industry rates.

However for 2014-15 the LGAWCS Board maintained its gross contribution rate at 4.25%(1).Its effective contribution rate for the accident year ending 2014 is reported to be 2.73%(2).

Without detailed information on how the gross contribution and effective contribution is calculated, ReturnToWorkSA cannot give an accurate comparison against industry rates.

(1) Local Government Association of South Australia Ordinary General Meeting 1 May 2015.

(2) Valuation of Outstanding Claims Liabilities as at 30 June 2014, LGA Workers Compensation Scheme, Cumpston Sarjeant issued 13 August 2014.