Qld WorkCover Changes – 
why should you be concerned?

This week the Queensland Government will pass legislation through the Parliament that will change the outcome of many future workers compensation claims.  So why should you be concerned about this? 

The proposal:

The proposed changes to QLD's Workers Compensation have the effect of limiting individuals rights to seek a common law remedy. If a threshold is introduced (as proposed), it will prevent employees pursuing common law claims if a WorkCover doctor determines that the permanent injury suffered by the employee is between 0-5%. WorkCover would then treat these injuries under a system like a "schedule of rates" offering proscribed payments for the severity and type of injury. The proposed change is effectively trying to remove smaller claims and keep workers compensation payouts under control. Employers also want their premiums to fall.

The issues:

1. According to the annual WorkCover Report 2012-13. WorkCover QLD made a profit of $517m, this alone indicates that workers compensation payouts are under control and that workcover qld has the ability to decrease WC premiums in industries that have seen increases above CPI over the past 2 to 3 years.

2. Again the annual report tells us that 43% of the Workcover claims came from 3 industries: 1. Manufacturing (18%), 2. Healthcare and Social Assistance (14%) and 3. Construction (11%)

3. Common law payouts have decreased from $513m in 2011-12 to $461m in 2012-13.  The average cost of a statutory claim was $6960 whilst the average cost of a common law claim was $138,059

4. Preventing access to common law compensation will prevent the worker from suing the employer for the loss of lifetime income that can occur as a result of even a small change in their physical ability.  For example if a 4% decrease in brain function may render it impossible for a worker to operate a vehicle or complex machinery.  For many this would spell the end of their employability.

5. With 50% of all Worker Compensation claims coming from the 5% threshold or below, this legislation will simply remove that cost and result in those claimants not being able to access adequate compensation.

Today's announcement has surprised and disappointed many in the legal industry at how fast the Government has moved to make changes without proper industry consultation. Historically, key stakeholders have been given plenty of notice and consultation. The changes is will be tabled in parliament before the end of this week, most likely Thursday.

Due to the LNP Governments overwhelming majority, this legislation will pass without debate and discussion.  So how then do you protect yourself and your most valuable asset, your ability to earn income?

Your solution:

Well your options haven't changed, they have just become clearer.  The process of protecting your income can be done simply by contacting your preferred Wealth Protection Specialist.  He or she will be able to assist you in finding a solution that can be tailored to your individual needs and those of your family.

If you’d like me to assist you, please get in touch by phone, email or twitter.

Anthony