Benefits to be capped, journey claims out in WorkCover overhaul

Weekly benefits will be capped and journey claims will be abolished under an overhaul of WorkCover, a government internal briefing note has confirmed.

The note, seen by AAP, was sent to MPs by Finance Minister Greg Pearce, who stated the amount paid to injured workers would also be reduced at a faster rate.

The government appears set to adopt many of the recommendations of a parliamentary committee that called for an overhaul of WorkCover to rein in a deficit of more than $4 billion.

Unions have protested against the proposed changes, including mass rallies in Wollongong.‘‘The NSW workers compensation scheme is unsustainable at it is currently priced,’’ the briefing note says.

‘‘The bill will improve return-to-work outcomes, increase compensation for seriously injured workers and reduce the annual cost of the scheme by around 25 per cent.’’

Under the government’s proposal, weekly benefits will be reduced after 13 weeks, replacing the current system of a 100 per cent payout for 26 weeks.

A one-year cap for the payment of medical benefits will also be introduced, with an exemption for the seriously injured.

Journey to work claims are out and the note says ‘‘cover for strokes and heart attacks can only apply where work significantly increased the risk of occurrence’’.

The bill, which is expected to be introduced into parliament today, will apply retrospectively to existing claims.

‘‘Changes to weekly benefits, medical costs and duration are to apply as soon as possible to existing claims, after the commencement of the legislation, and changes to lump sum compensation will apply to existing claims from the date of the legislation’s introduction,’’ the note says.

Mr Pearce wrote that increasing premiums to meet the deficit would ‘‘only exacerbate the current discrepancy – to the detriment of jobs growth’’.

The government has previously warned premiums will rise by 28 per cent unless WorkCover is reformed.

Premier Barry O’Farrell wants the reforms passed by parliament this week and has told MPs they can’t break for the winter recess until the new laws are in place.

Police officers are exempt from any changes to WorkCover because they experienced drastic changes to their own death and disability scheme last year.

Views: 0

You can skip to the end and leave a response. Pinging is currently not allowed.

Leave a Reply

Powered by WordPress | Designed by: Premium WordPress Themes | Thanks to Themes Gallery, Bromoney and Wordpress Themes