COMPARISON OF WORKERS' COMPENSATION ARRANGEMENTS

DIFFERENCES BETWEEN THE CURRENT AND PROPOSED PREMIUM SYSTEMS

Current system

Proposed system

Premium based on individual employer's 

Premium based on industry rate

prior rate

Claims estimates based on agent's estimate 

Claims estimates based on statistical model

and F factors

Up to 90% of large employer's premium 

Up to 100% of large employer's premium 

based on actual recent experience

based on actual recent experience

Buy out option available to all employers at 

Cheaper buy out option available to 

additional 25% of premium

small employers

Premium calculated in two stages: initial 

Single premium rate calculated for the 

and confirmed

year

Industry rates consolidated into 18 bands

Each industry will have its own rate

 One size fits all  scheme

More choice for employers, eg a Group 

Rebate program; voluntary excess 

option, so that large employers can take 

on more of their risk

To ensure that any changes to the premium system are understood and successfully implemented, it is essential

that the VWA actively consults with key stakeholders, such as employer groups and unions. This communications

process is well under way, with more tailored information packages due for release and comment over the coming

months. An information pack is available now on the VWA web site. 

ACT

As commented on in the `Recent Developments' section of this document, the ACT Workers Compensation Act

1951 was significantly amended during 2001 with the amended Act commencing operation on 1 July 2002.  This is

the first comparison that reflects the changed nature and operation of the scheme.

Key to the changes has been a refocusing of the scheme on early reporting, early intervention and return to work.

The aim of the changes is to reduce the duration of claims whilst properly supporting injured workers via an

improved benefits structure.

Important changes have been made to the process of making a claim.  Specifically, the reporting of an injury is

now the trigger for action by employers and insurers, not the lodgement of a claim.  There has been a deliberate

separation between making a claim and reporting an injury.  This change is to assist insurers and employers to

take action on injuries when they occur.  

The payment of compensation or expenses before the determination of liability is not an admission of liability by

the insurer or employer.

While unrestricted access to common law claims has been maintained, the ability of an injured worker to access

lump sum payments is dependant on their return to work or two years having passed between the date of injury

and the lodgement of a claim for lump sum payment.

The amendments also created a new advisory committee.  The committee is made up of representatives from

scheme participants.  The committee is chaired by the Master of the ACT Supreme Court, and has representatives

from unions, insurers, employers, rehabilitation providers, medical practitioners, legal practitioners and ACT

WorkCover.  The role of the committee is to advise the Minister on the ongoing operation of the scheme and the

development of regulations.

Heads of Workers' Compensation Authorities  57