Return to Work Corporation of South Australia (Constitution of Board of Management) Amendment Bill

Second Reading

The Hon. J.K. SZAKACS (Cheltenham—Minister for Trade and Investment, Minister for Local Government, Minister for Veterans' Affairs) (12:39): I move:

That this bill be now read a second time.

Today I introduce the Return to Work Corporation of South Australia (Constitution of Board of Management) Amendment Bill 2023. The workers compensation scheme in this state is administered by ReturnToWorkSA, a statutory corporation established under the Return to Work Corporation of South Australia Act 1994.

Under that act, ReturnToWorkSA is governed by a board of seven members appointed by the Governor on the recommendation of the Minister for Industrial Relations and Public Sector. The board fixes the average premium levy rate which applies to employers covered by the Return to Work scheme, and board decisions regarding claims management and litigation can have a significant effect on workers' entitlements.

The board is fundamentally skills based and the Return to Work scheme involves complex medical, legal, insurance and regulatory issues which means a wide range of technical skills are desirable on the board, rather than simply splitting the board membership between different stakeholder groups.

While the board is not, strictly speaking, a representative board, under the former Weatherill government it was custom and practice to ensure that the voices of both the business community and workers were represented amongst the board membership. This is because we understand that the decision-making of the board can only be improved by ensuring that the voices of these key stakeholder groups who are most affected by the operations of the Return to Work scheme are included.

That is a practice which ceased under the Marshall Liberal government, which refused to appoint representatives from the union movement following the expiry of board members' terms. What this meant was that at a time of critical decision-making for the board during the Summerfield litigation, which of course led to significant legislative amendments in 2022, the voices of working people were absent from the board's deliberations. Thankfully, we have corrected the Marshall government's mistake and returned worker representatives to the board, while also maintaining important representation from the business community.

The purpose of this bill is to ensure that the same mistake cannot be made again. The bill seeks to amend the constitution of the board of management to ensure there is a minimum level of stakeholder representation amongst the board membership. This bill provides that, of the seven board members, at least one must be a person who the minister is satisfied is suitable to represent the interests of employees and one at least must be a person who is suitable to represent the interests of employers.

The bill requires the minister to consult with the peak stakeholder organisations, Business SA and SA Unions, on persons who are suitable to represent those interests before making those appointments. These requirements do not derogate from the importance of appointing high-quality candidates. Under section 6, all persons appointed to the board must still have the qualifications, skills, knowledge and experience to ensure that the board carries out its functions effectively. I commend the bill to the house and seek leave to have the explanation of clauses inserted in Hansard without my reading it.

Leave granted.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause is formal.

2—Commencement

This clause provides for the commencement of the provision and disapplies section 27(6) of the Legislation Interpretation Act 2021.

Part 2—Amendment of Return to Work Corporation of South Australia Act 1994

3—Amendment of section 5—Constitution of board of management

This clause amends section 5 of the principal Act to provide that—

at least 1 member of the board must be a person who the Minister, after consulting with the United Trades and Labor Council (trading as SA Unions) considers is suitable to represent the interests of employees; and

at least 1 must be a person who the Minister, after consulting with the South Australian Employers' Chamber of Commerce and Industry Inc (trading as Business SA), and with other associations representing the interests of employers determined to be appropriate by the Minister, considers is suitable to represent the interests of employers.

Mrs PEARCE (King) (12:43): I rise today to speak on the importance of genuine worker representation on the board of management of ReturnToWorkSA. This is a body that plays a critical role in shaping the lives and futures of injured workers across our state. ReturnToWorkSA is not just another statutory body; it overseas a scheme that steps in at some of the most difficult moments in a person's life when they have been hurt on the job, when they cannot work and when their livelihoods, health and families are all suddenly on the line. That is why the make-up of the board matters deeply, and that is why I say clearly that the voices of working people must be at the table, not in tokenistic roles, not as observers, but as full and equal participants in the decisions that shape the very system designed to protect them.

It is not just about fairness, although it is a big part of it. It is about better decision-making because when you have people in the room who understand what it is like to be on a job site, in a hospital ward or on the factory floor who know the risks, the pressures and the reality of what happens when a worker is injured, you get policy that is more grounded, more balanced and more effective. We know exactly what happens when those voices are missing.

We saw it during the Summerfield litigation, one of the most significant cases to affect injured workers in recent years. During that process, while decisions were being made that had enormous implications for injured workers right across South Australia, there were no voices of working people on the board. Why? Because the Marshall government failed to appoint representatives from the union movement to the ReturnToWork board. This was just not just an oversight; it was a deliberate decision. The result was that the perspective of those who speak for working people was completely absent from the top table during a critical moment in time.

Let me be clear: workers compensation is not just a financial or legal issue. It is about people's lives. It is about whether someone who has been injured through no fault of their own can recover with dignity, stay connected to their community and provide for their family. When the board that governs the system lacks that perspective—the perspective of workers, of unions, of people who know what it means to rely on the safety net—the system becomes unbalanced. That imbalance was felt by the working people affected by the outcome of the Summerfield case and by countless others watching the system, wondering if it still works for them.

A board without worker voices risks becoming focused solely on cost containment, on return-to-work metrics and the expense of care and support. We must not let that happen again. That is why worker representation matters: not as a box to be ticked but as a pillar of good governance. Workers fund this scheme through their labour. They rely on it when they are hurt. They deserve to have a say on how it is run.

When union voices are at the table, they bring decades of experience supporting injured workers, navigating claims, advocating for fair treatment and helping people get their lives back on track. They bring that real-world insight to complex issues, and they help ensure that the decisions made at board level do not just make sense on paper; they work for the people the system was built to serve.

So today I say this clearly: we need to guarantee that working people have a voice on the ReturnToWork board not just in theory but in practice, not just during quiet times but especially during moments of legal or policy change. The consequences of leaving those voices out are too great. I am so proud to be a part of a government who has corrected the Marshall government's mistake and returned worker representation to the board during the most recent round of appointments, and I am even prouder to know that we are taking active steps to ensure that what happened under the previous government never happens again.

Let's restore balance, fairness, and common sense. Let's also ensure that the minister consults with peak stakeholder organisations such as Business SA and SA Unions to ensure the most suitable persons are appointed to represent those interests before making those appointments, and let's build a system of workers compensation that South Australia can trust because it includes and respects the voices of those it is meant to protect.

We owe this to the workers who have been hurt on the job. Their voices matter, their experiences matter and we should be doing all we can to help workers get back up on their feet again. With that, I commend the bill to the house.

S.E. ANDREWS (Gibson) (12:47): I rise to speak on this bill, which is about fairness, balance and making sure workers always have a voice in the Return To Work scheme. As members here know, the Return To Work scheme is administered by ReturnToWorkSA, established under the Return to Work Corporation of South Australia Act 1994. It is governed by a board of seven members appointed by the Governor on the recommendation of the minister.

This board is not just another committee. Its decisions have real, far-reaching consequences. They affect whether an injured worker is treated with dignity, whether a business can keep its doors open and how fairly the cost of the scheme is shared. The board even sets the average premium levy rate that applies across employers. They are weighty responsibilities.

The board is skills based. Workers compensation is complex, involving legal, medical and insurance expertise, but we also need to ensure the voices of the people most affected—employers and employees—are never shut out, as they are key stakeholders. Under the Weatherill government, that was the custom and practice. The board always included both business and worker perspectives. But when the Marshall Liberal government came to office, they broke that tradition. They refused to appoint any representatives from the union movement, and the result, at a crucial time of decision-making during the Summerfield litigation, was that the voices of working people were missing entirely.

This was not just a bad decision, it was an injustice. It silenced the very people whose livelihoods the scheme is meant to protect. Our government is putting that right. We restored worker representation to the board and we have been able to draw upon people who know what it means to stand shoulder to shoulder with working people.

Before entering this place, I worked for a decade as director of Professionals Australia, representing engineers, scientists and other technical professionals. Every day, I saw what happens when working people have no voice: decisions are made about them, not with them. And I saw the difference when they did have a voice: fairer pay, safer workplaces, stronger protections. That is what real representation delivers.

I stand on the shoulders of those who came before me, including my great-grandfather, William Henry Andrews, who was a delegate to the Trades and Labor Council. He knew over a century ago what we know today: that without representation workers are ignored. His generation built the foundation of the union movement in this state, fighting for fairness at a time when working people had virtually no protections at all. I carry that legacy with pride, and it reminds me every day that progress does not just happen, it has to be fought for and it has to be defended. That is what this bill does. It ensures that no government can ever again silence workers' voices on the ReturnToWorkSA board.

The bill amends the act to require that, of the seven members, at least one must represent the interests of workers and at least one the interests of employers. It requires the minister to consult with SA Unions and Business SA before making those appointments, and it has been drafted carefully so that these changes take effect as current terms expire, with no disruption to the board's operations. This is what fairness looks like and what respect for working people looks like, and this is what this government stands for. I commend the bill to the house.

Mr TEAGUE (Heysen—Deputy Leader of the Opposition) (12:51): I needed to remind myself of the progress of the bill, and I am glad I did, because it has been some time coming.

The DEPUTY SPEAKER: Member for Heysen, are you the lead speaker for the opposition?

Mr TEAGUE: Yes. So it has been some time coming. As I think is apparent on the face of the bill, it is now called the return to work amendment bill 2023. I think that might be the result of a debate that occurred in another place. The bill was introduced, as I understand it, as a 2022 bill, but it was introduced in the other place in March of 2023. I am at a bit of a loss as to how it has taken quite this long to find its way here, but here we are anyway.

The debate that took place in another place will address circumstances of amendments proposed by the opposition at that time, and I will not stay to address those matters. There were concerns about individual unions, in particular the CFMEU. At that time, and I think still, there were real concerns. I take into account the contribution just now of the member for Gibson in particular about the voices of workers being relevantly heard and not overborne, including in those circumstances. There was particular concern from the opposition about the situation that might apply in case these provisions were then to be used as a means by way of the CFMEU having a role in the circumstances that have been well documented.

But here we are in September 2025. The opposition notes the changes more particularly to stipulate those who will constitute the board of management. The opposition, as it has previously indicated in the other place, does not oppose the bill, and it is time that it was finally disposed of in the house as well.

The Hon. J.K. SZAKACS (Cheltenham—Minister for Trade and Investment, Minister for Local Government, Minister for Veterans' Affairs) (12:55): I thank members for their contribution, particularly the member for Gibson, the member for King and the deputy leader. I also acknowledge the fair and reasonable statements from the member for Heysen in his remarks. We are very keen, of course, now having had a particularly busy legislative agenda, to see the progress of this important bill through the House of Assembly.

I also acknowledge the member acknowledging, without reflecting on it improperly, the debate in the other place and particularly the matters of concern that were raised by the opposition. I also trust, having not been part of that debate but having reflected on the Hansard, that the concerns or otherwise have been either addressed or allayed by the government via the minister in the other place.

It is important both in values and principles but also in good governance in this bill that (a) it maintains the very important skills and qualification threshold that brings potential candidates and members to the board, and (b) it also recognises that the individual voices, individual perspectives of working people and businesses should and must be supported and guaranteed by right and by constitution on the ReturnToWorkSA board.

I have some skin in the game on this, having been a member of the ReturnToWorkSA board myself, having been appointed by the former minister and Attorney-General, the Hon. John Rau. In fact, it was only upon my candidacy for this place and my ultimate success in that by-election that I resigned from the ReturnToWorkSA board, of course, with proper course.

Unfortunately, I have the unenviable place as being the last voice of working people to be appointed to the board before the former Treasurer, the Hon. Rob Lucas, decided to rip up the long-held common custom and practice of appointing the unique and distinct representatives and voices of working people and, in the case that this government seeks to remedy, voices of businesses to the board of this very important authority. I commend the leadership of ReturnToWorkSA, I commend the minister in the other place and, in doing so, I commend this bill to the house.

Bill read a second time.

Third Reading

The Hon. J.K. SZAKACS (Cheltenham—Minister for Trade and Investment, Minister for Local Government, Minister for Veterans' Affairs) (12:58): I move:

That this bill be now read a third time.

Bill read a third time and passed.

Sitting suspended from 12:59 to 14:00.