In last night’s 2014 Australian federal budget, Treasurer Joe Hockey announced the retirement age is set to increase to 70 by 2035. Additionally a $10,000 incentive will be paid to businesses that employee workers over the age of 50. These announcements confirm the Australian workforce will continue to age. Business therefore will increasingly experience issues associated with an ageing workforce and unless they proactively take steps ensure workplace safety, minimise injuries and actively manage workers compensation claims, costs will increase.
2014 Budget: Workers Compensation Impacts:
Previously we have discussed the impacts of an Ageing workforce on Workers Compensation and we expect the 2014 Australian federal Budget changes (to retirement age combined with the business incentives to employ over 50’s) will result in businesses having to actively invest in workplace safety to minimise risk of injury and resulting workers compensation claims. Workplace health Programs will also become a proactive strategy for businesses to ensure their ageing workforce remain engaged and less susceptible to workplace injuries.
With the retirement age to increase to 70, we expect state based workers compensation legislation to be amended to allow workers compensation claim payments for this employees over the age of 65 (notably in NSW).
If you would like to discuss strategies tailored to suit your (or your clients) business, please contact us to discuss.