The Workers Compensation and Injury Management Bill 2023 is a complete rewrite of the Western Australian workers compensation legislation. Modernising WA’s Workers Compensation Laws via the new Act is the culmination of an extensive review and consultation process. The commencement date for the new Act is 1 July 2024.
From 1 July 2024, key changes for the Western Australia Workers Compensation and Injury Management Act 2023 commence.
With the 1 July commencement date fast approaching, it’s critical that employers, health providers and service providers are across these changes for a seamless transition and implementation.
Overview of the changes
Essentially, the modern Act is a complete rewrite of the current Act to make it very clear who it applies to, when decisions will be made, what entitlements are available, and how and when claims will be closed (by recovery, return to work or settlement). The new Act has been developed to:
- Ensure the Act is responsive to industrial, technological and commercial developments including changes to the way workers are engaged (contractors, gig economy etc) and the way in which we communicate in the digital age.
- Increase entitlements where appropriate, including doubling the medical and health-capped expenses and extending the duration of wages before stepping down. Also, covering workers catastrophically injured under the uniform Catastrophic Injuries Support Scheme administered by ICWA.
- Improve cohesion and readability, recognising the confusing nature of the current (1981) Act following haphazard amendments.
What are the key changes?
Below is a summary highlighting key changes and updates for your attention. You can also download a full copy of the WCIM Regulations 2024, supporting the Principal WCIM Act 2023, via the WorkCover WA website:
Amendment to exclusion for stress-related claims
- Exclusion of injury: psychological or psychiatric disorders that result from ‘reasonable management action’
- This exclusion will apply to reasonable administrative action taken by an employer for formal disciplinary actions (current Act) as well as appraisal of a worker’s performance in the lead-up to formal discipline
- The psychological or psychiatric injury must still wholly or predominantly relate to the administrative action and the action cannot be unreasonable or harsh on the part of the employer
Claiming compensation
- Prohibits an employer from asking about previous claims
- Consent authorities for the collection and disclosure of relevant personal information have been combined in one section
- No witness signature required
- A worker’s employer (or insurer or agent) cannot be present when a worker is being physically or clinically examined or treated by the worker’s treating medical practitioner
Note: Remains the case that a claim must be made within 12 months
Responding to a claim for compensation
- Must issue a liability notice within 14 days
- ‘Deferred decision notice’ to be issued within 14 days
- Within 28 days of receiving claim and a deferred decision notice issue, provisional payments are to be paid (unless a liability notice has been issued in the interim)
- Deemed liability acceptance day = 120 days from receipt of claim
Income compensation entitlement
- Income compensation payments to be calculated over a 12-month period
- A step down to 85% of the worker’s pre-injury weekly rate of income will apply after 26 weeks of payments
Note: Increase in base rate to be taken into account
Injury management and return to work
- No changes to requirements under the new Act re-establishing an injury management system or to develop a RTW programme;
- Case conference:
- employer/insurer able to attend
- ability to require worker’s attendance every four weeks
- Employer’s obligations:
- similar to old provision – role to be available for 12 months
- cannot be terminated in this period ‘solely or mainly’ due to the incapacity for work
Reducing or discontinuing payments
- Where a decision is made to defer a decision (or pend liability), workers will be entitled to provisional payments while those investigations are being conducted
- Provisional medical and health expenses are payable from the date of injury, with provisional compensation from the day of incapacity
- Reduction based on earnings or what the worker is able to earn in suitable employment
- Rate of pay – drop down increased from 13 weeks to 26 weeks
Common Law
- Under the new Act, a writ cannot be filed (or settlement effected) until the impairment assessment and election are registered
- If the worker doesn’t elect, the settlement agreement will be registered if lodged prior to the commencement day, but otherwise will not
- [Key Change] worker must have a WPI of 15% to settle under section 92(f)
- New provisions for conditions that have not stabilized 18 months post-injury
- There will be special provisions for dust disease claims
Settlement
- No time constraint before settlement can be negotiated and registered
- Prescribed form of settlement agreement for all statutory settlements
- No longer able to settle under 92(f) to extinguish common law if WPI less than 15% (assessment must be registered and writ must have been filed)
- Settlement sums must be paid within 14 days
Treatment choices
- Codifying worker’s right to choose their own medical and allied health practitioners
- Prohibiting employer attendance during examinations
Questions / Support?
We are here to help! If you have questions, please contact us to discuss.
For further information:
You can also visit the WorkCover WA website for further details:
- Download a copy of the Workers Compensation and Injury Management Act 2023.
- Download a copy of the key instrument supporting the new Act, the Workers Compensation and Injury Management Regulations 2024.
- Access a suite of information and key administrative instruments assisting the new Act.