The last 12 months has seen continued change across NSW Workers Compensation which remains consistent with the prior 2-3 years. These recent NSW workers compensation structural changes were designed to result in a faster, simpler, and more engaging experience for workers, employers and other stakeholders.
In September 2015, the structural separation of insurance functions was recommended in various reports and inquiries into WorkCover to address the inbuilt conflict between the insurance regulatory and insurance service delivery functions. Importantly, addressing concerns of various stakeholders as well.
Benefit reforms for injured workers were made law in August 2015. The benefit reforms focus on three objectives: helping injured workers with the highest needs, assisting those with injuries to return to work, and applying benefits equitably for all injured workers.
Below is a summary of some of the recent NSW workers compensation key changes.
Structural Changes in the NSW Workers Compensation System
Recent structural changes to the NSW workers compensation system will result in a faster, simpler, and more engaging experience for workers, employers and other stakeholders. Importantly, it addresses the concerns of various stakeholders as well.
As of 1 September 2015, there are now three discrete agencies:
Insurance & Care NSW (icare) - a single customer-focused insurance and care service provider.
State Insurance Regulatory Authority (SIRA) – a new independent insurance regulator.
SafeWork NSW – an independent workplace safety regulator.
Insurance & Care NSW (icare)
Is the organisation that now delivers customer-centered services to those currently served by the Workers Compensation Nominal Insurer, Lifetime Care and Support Authority, Dust Diseases Authority, SICorp and Sporting Injuries Compensation Auth4ority.
It will be a centre of excellence for long-term care needs, care for people with the most severe injuries (road or workplaces), helping people return to work and improving quality of life outcomes.
It will roll out a range of online and other tools, including mobile apps, to make the customer’s journey simpler and more transparent.
State Insurance Regulatory Authority (SIRA)
It assumed the regulatory functions of WorkCover NSW in relation to workers compensation insurance, the Motor Accident Authority in relation to Compulsory Third Party (CTP) insurance and the regulatory functions relating to Home Building Compensation.
SafeWork NSW
The state’s workplace health and safety regulator. It will focus on harm prevention and improving the safety culture in NSW workplaces. SafeWork NSW will also include the establishment of a centre of excellence for work, health and safety.
Benefit Reforms for Injured Workers
The benefit reforms focus on three objectives: helping injured workers with the highest needs, assisting those with injuries to return to work, and applying benefits equitably for all injured workers.
16 October 2015 Benefits
- increased maximum lump sum compensation for permanent impairment up to $577,050
- increased death benefit lump sum amount up to $750,000
- increased maximum for funeral expenses up to $15,000
- weekly payments extended for 12 months beyond retiring age.
04 December 2015 Benefits
- medical benefit cap extended for all claims
- lifetime compensation for artificial aids, home and vehicle modifications for all approved claims
- lifetime medical expenses for injured workers with high needs
- minimum weekly compensation payments for injured workers with highest needs
- minimum work hours removed for injured workers with high needs
- secondary surgery now available for all eligible workers
- Suspension of a work capacity decision pending the result of a review.
The following benefits took effect on 29 April 2016:
- new employment assistance (of up to $1,000) for eligible workers who are unable to return to work with their pre-injury employer and need assistance in starting with a new employer.
1) Transport (e.g. public transport, motor vehicle registration)
2) Childcare
3) Clothing
4) Education or training (e.g. industry licences or certificates)
5) Equipment (e.g. tools of trade)
6) Any similar service or assistance
- education or training assistance (of up to $8,000) for eligible workers (assessed with greater than 20% permanent impairment who have been receiving weekly benefits for 78 weeks or more) who require additional skills to improve readiness for work with their current employer or a new employer.
1) Course fees
2) Other related expenses (e.g. text books, travel)
legal costs for work capacity decision reviews
More information will be available soon.