COMPARISON OF WORKERS' COMPENSATION ARRANGEMENTS

Review of statutory authorities

As a result of the Government's review of statutory authorities, a review of the Workers' Compensation and

Rehabilitation Commission and other bodies established under the Workers' Compensation and Rehabilitation Act

1981 and the Employers' Indemnity Supplementation Fund Act 1980 was undertaken. The terms of reference for the

review are to consider the appropriateness of recommendations from previous reviews, and to advise Government on

the most appropriate structure to achieve effective administration of the Western Australian workers' compensation

system.

TASMANIA

Worker's Rehabilitation and Compensation Act 2002 

The Worker's Rehabilitation and Compensation Act 2002 (the Amendment Act 2002) was developed in response to the

withdrawal of insurance and reinsurance cover for acts of terrorism following the terrorist attacks in the USA 

on 11 September 2001.

The Government undertook to amend the Act at the earliest opportunity with retrospective effect from 1 January

2002.  The Amendment Act 2002 was subsequently passed by Parliament and received Royal Assent on 16 May 2002.

It has the following features:

The Minister may make two types of orders:

an order declaring that employers are not required to maintain insurance cover indemnifying them

against acts of terrorism; and

an order declaring that an act of terrorism has occurred and the date on which that act is taken to have

occurred.  Prior to making this type of order, the Minister is to consult with interested parties,

eg representatives of employers and workers, licensed insurers, self insurers and the Nominal Insurer

Where an act of terrorism has been declared, the legislation provides that employers are not liable to pay 

compensation for injuries or diseases arising out of the act of terrorism.  Such claims may instead be made 

against the Nominal Insurer

Claims arising out of the declared act of terrorism must be made within 90 days of the date of the Minister's 

order

The Nominal Insurer's liability in respect of an act of terrorism is limited to $25 million

Where the estimated total liability exceeds $25 million, then a reduction factor is to be determined and applied 

to all claims to reduce the liability to $25 million

Once the total liability has been estimated, the Minister is to determine whether the Nominal Insurer is to 

recover its costs directly from licensed insurers and self insurers, or by way of a special contribution payable by 

employers or by a combination of both.  This flexibility ensures that the most equitable and affordable method is 

chosen, having regard to the circumstances and the amount of liability involved.  The Minister is required to 

consult with interested parties prior to determining the funding mechanism

The chosen funding mechanism is to apply to State Service Agencies.

NEW ZEALAND

The Injury Prevention, Rehabilitation and Accident Act 2001 came into effect on 1 April 2002.  Changes relevant to a

comparison of workers' compensation schemes include the following:

A primary focus on injury prevention, and when injuries do occur, a focus on rehabilitation with the goal of 

achieving an appropriate quality of life

Lump sum compensation for permanent impairment was introduced   for injury occurring after 1 April 2002.  

Gradual onset occupational diseases are not eligible if the exposure occurred prior to 1 April 2002.  The 

minimum award for 10% impairment is $2500, with a maximum award of $100,000

The Act provides for a Code of ACC Claimant's Rights, to set out the ACC's obligations to provide the highest 

practicable standard of service, and the consequences of a breach of the Code

Calculations of pre injury earnings were amended to increase average payments by excluding prior periods of 

unpaid sick leave

Heads of Workers' Compensation Authorities  48