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The Workers Compensation Advisory Council
The Government held an inquiry into the Workers Compensation Scheme in September 1997 and this was the Grellman inquiry.
- At the time of this inquiry the actuaries projected the Workers Compensation Scheme to be running somewhere between 3.4% to 3.8% of wages.
- The Minister, Jeff Shaw implemented major recommendations of this Inquiry, giving ownership to stakeholders.
- Established a Workers Compensation Advisory Council (WCAC).
- Equal employer/employee representatives with voting powers.
- Unique to NSW employers and unions have worked together effectively to bring about scheme reform/design which has not lead to a reduction in benefits or an increase in premiums, and this is since the Advisory Council was formally established 1998.
- WCAC has been working on a continuous improvement reform agenda, however have been undermined by new Minister John Della Bosca MLC since takeover of the Workers Compensation portfolio.
- WCAC responsible for implementing new Workers Compensation Scheme focus for early intervention and injury management.
- WCAC responsible for policy direction and legislative
reforms - overseeing WorkCover in terms of policy direction.
- Introduced a new Workers Compensation Act August 1998 "Workplace Management and Workers Compensation Act 1998" following measures.
- New medical dispute resolution procedure.
- Proper case management by insurers.
- New obligations on key scheme participants, i.e. employers, workers, doctors, insurers.
- Sanctions on workers who refuse a suitable job offer.
- Penalties on employers for failing to provide suitable duties.
- Payment sanctions on insurers who do not implement effective injury management.
- New reporting requirements (within 48 hours).
- New medical protocols for GP's.
- New role for GP's in return to work plans.
- Education package for GP's.
- Move towards a more sophisticated database.
- New benefit arrangements, which provide incentives for workers to
return-to-work.
- Claim buy out scheme (re-introduction of commutations).
- The WCAC's reforms have made a dramatic improvement on the schemes performance.
- Advisory Council actuary projects scheme at 2.8%.
- There has not been one employer penalised for refusing to offer suitable employment.
- Binding medical panels.
- Introduction of a 6% threshold for claiming industrial deafness.
- New medical dispute model where reports can be used as prima facie evidence.
This has lead to a significant turn around in the schemes performance, down from 3.8% (prediction) to 2.89% last scheme evaluation report. This is without a
(a) A decrease in benefits, or
(b) Increase in premiums.
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