Accident compensation changes in Victoria

A number of reforms to the Accident Compensation Act 1985, passed by the Victorian Parliament in March this year, came into effect on 1 July 2010. These changes follow the first round of reforms which came into effect on 5 April 2010.

The changes affect both employers and workers and relate specifically to:

• Return to work;
• Claims lodgment;
• Employer premiums; and
• Self-insurance.

Return to work - employers

The 1 July changes require employers to meet five core return-to-work obligations:

• Provide pre-injury or suitable employment;
• Plan a worker’s return to work;
• Consult about a worker’s return to work;
• Appoint a Return to Work Coordinator; and
• Make specific return-to-work information available.

A new obligation has also been introduced for host employers to cooperate with labour-hire employers to help injured workers get back to work.

Employers with existing claims as at 1 July 2010 will have a nine-month transitional period where they can continue to comply with the previous return-to-work obligations. For all new claims from 1 July, employers must comply with the new requirements.

Return to work - workers

Injured workers also have responsibilities to support their return to work. These responsibilities aren’t new, but the reforms are designed to bring them more sharply into focus. These obligations and further information about returning to work after injury are available in ‘Returning to work - A guide for injured workers’.

A number of changes to injured workers’ entitlements came into effect on 5 April 2010.

To help everyone comply with the new return-to-work requirements, WorkSafe has developed a range of practical guidance notes available from www.worksafe.vic.gov.au.

Claims lodgement

An electronic lodgment facility is available to employers where they will be able to lodge their workers’ claims for compensation directly to their agents via the internet.

Premium

The key premium changes relate to the definitions of payroll used in calculating an employer’s premium. These have been more closely aligned with the Victorian payroll tax system and the WorkCover Authority of New South Wales.

Employers are encouraged to visit the Online Employer Services System to check whether the changes will impact on their payroll which needs to be declared to WorkSafe.

Changes to the law now give employers the right to request a review of an estimated claim cost where they consider it has been calculated based on incorrect data. To provide greater transparency in the setting of premiums, an independent expert body will conduct a review of premium setting every five years.

Self-insurance

The key self-insurance-related changes mean that WorkSafe now has the discretion to renew the approval of self-insurers for subsequent terms of six years, where they have driven improvements in safety, injury management and return to work.

Self-insurers are no longer required to provide a yearly report to WorkSafe of common law proceedings; however, they are required to notify WorkSafe of any strategically significant matters.

A self-insurer must now document its claims management policies and provide them to their workers and WorkSafe.

WorkSafe is able to extend the term of approval for a self-insurer that is undergoing a corporate restructure, such as when it acquires or sells a subsidiary company or is taken over by a holding company.

In addition, a self-insurer is able to manage the claims of a company that it acquires.