Workers compensation claims are awarded to employees in case they suffer from a work related injury. Since as a result of that injury, they can’t work full time, they can claim compensation from their insurance provider for the time that they won’t be able to work. The amount that a worker will receive as compensation will depend on the following factors:

  • How long they will be unable to work
  • When they were injured
  • Length of the claim
  • The presence of any workplace agreement etc.

However, certain changes have been observed. The changing landscape of workers’ compensation in Australia changed the situation for the workers compensation claims for weekly benefits. The employers who had been consistently performing well were allowed to either proceed at their expiring premium rates. Alternatively, they were subjected to a low rate increase i.e. 5%. If an employer showed improvement in their performance against claims and risk profile, they were also offered reduced premium rates.

The changes in rate were not uniform in the different states of Australia. For instance, while the numbers for average rate remained unchanged, there was a 5% or more increase in individual industry rates. Thus, the workers compensation will depend on where the worker is located.

What Employers Need to Know

Here is what the employers located in different parts of Australia need to know:

New South Wales

Major changes have left most employers in New South Wales in a state of confusion. As a result of that confounding, many of them will hire the first claims agent that they can get their hands on. What this will lead to is misalignment of the claims structure with the existing management systems.


The claims have also changed in Victoria. If the claims strategies are not aligned with the reporting period, it can lead to financial losses. In order to prevent that from happening, employers must make the financial management consistent for every claim.


There haven’t been major changes as employers are paying their premium in full whilst being rewarded with a discount on their premiums. That is something that all employers should take note of and try to emulate.

The discount offered by WorkCover has been increased to an even larger amount. If as an employer located in Queensland, you want to benefit from this opportunity, then you must have declared the wages by the end of August. Another condition that must be satisfied is the payment of premium by mid September.  

South Australia

Large-sized businesses have a decision to make regarding the RPL model. Before they decide if they want to proceed with it or not, they should have a feasibility study done. The purpose of the study should be quantifying the risk/savings essential for balance sheet accrual. Once they have done that, they will be able to make an informed decision that entails sticking with the RPL model or letting it go.