WORKCOVER CORPORATION

The Hon. I.K. HUNTER (14:40): I direct my question to the Minister for Industrial Relations. Will the minister provide details on work being undertaken by WorkCover to adopt a new approach to employer payments with the aim of promoting better outcomes for injured workers?

The Hon. B.V. FINNIGAN (Minister for Industrial Relations, Minister for State/Local Government Relations, Minister for Gambling) (14:41): WorkCover provides for the rehabilitation and compensation of injured workers following a workplace injury, to help them to remain at work, or to return to work in the community as soon as possible. We all know that returning injured workers to work is very much the most important thing we can do in terms of rehabilitation.

It is important that the funds collected from employers to provide this service ensure a financially sustainable scheme, but it is also important that employers are confident that levies are allocated in a way that equitably reflects the risk of a claim for compensation for an injury sustained at work. Providing employers with a levy allocation approach that is closely linked to their level of risk can be an effective way of encouraging employers to focus on workplace safety and injury and claims management in their business, which ultimately lead to better outcomes for their workers.

I understand that, with the end of WorkCover's bonus/penalty scheme on 30 June 2010, many employers were concerned that the WorkCover levy system did not ideally reflect their actual level of risk. WorkCover is currently consulting on a new approach to employer payments intended to enhance the allocation approach and promote better outcomes for injured workers.

Late in 2010, a series of targeted workshops were held with employers, employer associations, unions, insurance companies and brokers to discuss two related approaches within a new employer payment system. These include an experience rating system for medium and large employers and a retro-paid loss system for large employers. Eleven workshops were held in total, with close to 150 people attending. The vast majority of those who attended showed a positive interest in further exploring how these new systems may work in South Australia. The feedback received during these workshops has helped WorkCover to prepare two discussion papers.

It should be noted that a number of issues that are not directly linked to the levy collection process have been raised within the preliminary consultation. These include: definition of a compensable secondary injury; unregistered employers and the relationship between principals and subcontractors; and contributory negligence and proportionate recovery from a third party.

Addressing these issues should contribute to improved outcomes for the scheme, employers and injured workers, and they are therefore incorporated in the discussion papers. WorkCover is seeking input from interested parties to refine what these new systems may include and the structure required to support them. I understand copies of the discussion papers are now available online from WorkCover's website. I encourage those members interested in the WorkCover scheme to give the papers their consideration.