Parliamentary Committees

Social Development Committee: Review of Operation of Motor Vehicle Accidents (Lifetime Support Scheme) Act 2013

Adjourned debate on motion of Hon. D.G.E. Hood:

That the final report of the committee, for the review of the operation of the Motor Vehicle Accidents (Lifetime Support Scheme) Act 2013, be noted.

(Continued from 13 February 2019.)

The Hon. E.S. BOURKE (18:11): I rise to speak on the Social Development Committee's report on the review of the operations of the Motor Vehicle Accidents (Lifetime Support Scheme) Act 2013. As my committee colleague the Hon. Dennis Hood mentioned, the review was significantly underway when I and other members were appointed to the committee under the Fifty-Fourth Parliament. The committee of the previous session of parliament heard the oral evidence, and the current committee had to rely on written submissions as well as Hansard from the oral evidence.

In 2011, the Productivity Commission determined that no-fault schemes are better than fault-based schemes for dealing with the care and support of those who suffer catastrophic injuries. The Productivity Commission also found that, across Australia, compulsory third-party insurance premiums were rising, the ratio of compensation dollars going to legal fees was increasing and the amount directly benefiting an injured person was declining.

Between 2000 and 2013, South Australia's premiums had grown at a rate of 5 per cent per annum, more than anywhere else in Australia. If action had not been taken by the previous Labor government, these premiums would have continued to increase. In December 2012, the Council of Australian Governments signed an intergovernmental agreement for the first stage of the NDIS, and all states made a commitment to endeavour to agree on a minimum benchmark for a scheme for no-fault lifetime care and support for people who are catastrophically injured in motor vehicles.

It was the former Labor government that established the Motor Vehicle Accidents (Lifetime Support Scheme) Act to provide a fairer scheme for people injured in a vehicle accident on South Australian roads as well as a cost effective and affordable scheme for all South Australian motorists. Prior to the Motor Vehicle Accidents (Lifetime Support Scheme) Act, which came into effect on 1 July 2014, South Australians catastrophically injured in motor vehicle accidents were covered by CTP, a compulsory third-party, fault-based insurance scheme for people who suffer serious injuries in vehicle accidents.

As CTP is a fault-based scheme, it meant there were people with catastrophic injuries from vehicle accidents who were not covered by CTP. These were people whose injuries were the result of accidents that were entirely the injured person's fault or because no-one was at fault at all. For example, if a person suffered a catastrophic injury as a result of speeding, or if an accident was caused by dust from a regional road, they were not covered by CTP.

Figure-wise, prior to the Lifetime Support Scheme being introduced, it was estimated that 40 per cent of catastrophically injured vehicle accident victims missed out on compensation from the CTP scheme each year. In contrast, the Lifetime Support Scheme, funded through motor vehicle registrations via the motor vehicle registration lifetime support levy, is a no-fault insurance scheme which provides a safety net to those who are catastrophically injured in vehicle accidents.

At times, it was challenging to wade through the evidence which was presented to the previous committee but in doing so it gave me an understanding of some of the day-to-day lives and how the scheme assists those who are injured—like Robert, who spoke about the reassurance of the support he received following his accident, which gave him peace of mind. Robert also mentioned the professionalism of the Lifetime Support Authority and that he had the same case manager, which was quite significant support for him.

The committee of the previous session heard from the Lifetime Support Authority that since the scheme was introduced it has supported over 188 South Australians who have experienced serious injury in a motor vehicle accident on South Australian roads. Of that group, around 60 per cent would not have received the same treatment, care and support if their accidents had occurred prior to the scheme's existence, or if the scheme did not exist at all.

The committee learnt how the Lifetime Support Authority works to ensure that people who have suffered catastrophic injuries receive the treatment, care and support they need, rather than the lump sum which they would have received under the CTP. Overall, the committee heard positive feedback on the Lifetime Support Scheme. Before I conclude, I would like to return to Robert for a moment. When I read the transcript from the Lifetime Support participants' evidence, a particular passage stuck with me. As Robert stated in his submission:

Whoever thought of the legislation should be congratulated. It's a brilliant concept: funded house modifications, funded specialist services, like physio, social work, computer and OT.

I hope those opposite are discussing who will be looking after this scheme going forward, whether it is the Treasurer, the Minister for Human Services or the Minister for Health. It is a vital service.

The Hon. S.G. Wade: Just quietly, we're going to make that decision; you're on the wrong side.

The Hon. E.S. BOURKE: That is good; just bringing it to your attention.

The PRESIDENT: This is not a debate, minister. It is not a debate.

Members interjecting:

The Hon. E.S. BOURKE: Clearly, I have hit a sore point over there.

Members interjecting:

The PRESIDENT: Order! Ignore them, the Hon. Ms Bourke.

The Hon. E.S. BOURKE: Very, very touchy over there.

Members interjecting:

The PRESIDENT: The Hon. Mr Hunter, you are not assisting me in bringing the government benches to heel.

Members interjecting:

The PRESIDENT: Order! Minister, please. The Hon. Ms Bourke.

The Hon. E.S. BOURKE: Yes, it would be great if that could be resolved because it is a fantastic scheme and it has supported so many South Australians. I would also like to thank the committee's secretary and the research officer for all the amazing work they did, the previous committee members and the current committee members.

Debate adjourned on motion of Hon. I.K. Hunter.