GOVERNMENT TO PROTECT COMMON LAW RIGHTS FOR WORKERS

Joint Statement

Premier and Minister for the Arts

The Honourable Anna Bligh

Attorney-General and Minister for Industrial Relations

The Honourable Cameron Dick

27/04/2010

GOVERNMENT TO PROTECT COMMON LAW RIGHTS FOR WORKERS

Premier Anna Bligh and the Industrial Relations Minister Cameron Dick have today announced that the Government will reform Queensland's workers compensation scheme to ensure stability and certainty into the future.

The package of changes to WorkCover Queensland announced today will ensure that the Queensland average premium rate, while increasing, will remain the lowest of any state or territory.

In November 2009, the WorkCover Queensland Board reported to government growing financial pressures due to the GFC and growth in common law claims.

The Board recommended a number of changes including restricting injured workers access to compensation through the courts.

"Our aim is to make sure every Queenslander returns home safely from work, each and every day," the Premier said.

"In the event of a workplace incident causing injury or death, we want to ensure there is a strong compensation scheme in place to support workers and their families."

"This package of changes will mean that all Queenslanders, employers and employees, continue to have access to one of the most stable and secure workers compensation scheme in the country."

"The Government has also announced that restrictions on access to common law compensation claims by injured Queensland workers will not be imposed as part of the changes."

Mr Dick said the suite of changes represented a responsible, well-considered response to WorkCover's financial situation, which had been negatively affected by the global financial crisis.

"We need to ensure the scheme continues to be the most stable and solvent in Australia," he said.

"Feedback from stakeholders has persuaded the government to reject the call for restrictions to be imposed on common law claims made through WorkCover."

Mr Dick said the proposed reforms would address the growth in common law claims and claims costs, and help secure WorkCover's financial stability.

WorkCover had advised that the reform package will include an increase in the average premium rate from $1.15 per $100 of wages paid to $1.30 in 2010-11.

"Despite the increase in the average premium rate, Queensland employers will still be paying the lowest average premium of any state or territory in the nation."

"We will be monitoring the implementation and effectiveness of the reform package very closely over the next two years," said the Minister.

"At the end of 2012, we will assess their overall effectiveness and determine whether further, more significant reforms are needed."

Mr Dick said measures targeting poor performing companies were also part of the reforms.

"WorkCover and Workplace Health and Safety Queensland will start auditing employers with a poor safety record and if their performance does not improve, we will give WorkCover the power to raise their premiums above the cap."

The Government will also investigate the possibility of introducing workers' compensation levy system for the construction industry.

Legislation required to implement the reform package is expected to be introduced into Parliament by mid 2010.

Comparison of average premium rate per $100 of wages:

State or territory

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

Queensland

1.55

1.43

1.20

1.15

1.15

1.15

New South Wales

2.57

2.17

1.86

1.72

1.77

1.69

Victoria

1.99

1.80

1.62

1.46

1.39

1.39

South Australia

3.00

3.00

3.00

3.00

3.00

3.00

Western Australia

2.25

2.32

2.13

1.85

1.58

1.74

Northern Territory

2.95

2.70

2.40

2.31

N/A

N/A

Tasmania

2.46

2.19

1.95

1.94

1.83

1.97

Australian Capital Territory

3.07

3.32

3.15

N/A

N/A

N/A