Summary of recommendations
Recommendation 1 51
That the NSW Government ensure that, under the Workers Compensation Scheme, a worker
assessed as severely injured be subject to work capacity testing but with the Workers
Compensation Commission able to suspend or to waive the requirement for the severely injured
worker to undergo work capacity testing.
Recommendation 2 51
That the NSW Government ensure that, under the Workers Compensation Scheme, any time cap
on payment of weekly income benefits and medical expenses (apart from the Commonwealth
retirement age) not apply to appropriately defined severely injured workers.
Recommendation 3 58
That the NSW Government abolish journey claims under the Workers Compensation Scheme,
except in relation to police officers.
Recommendation 4 58
That the NSW Government abolish the entitlement of dependents of deceased or injured
workers to make nervous shock claims under the Workers Compensation Scheme.
Recommendation 5 68
That NSW Government ensure that, under the Workers Compensation Scheme, the weekly
income benefits of both award and non-award workers be determined by reference to one
measure of average actual pre-injury earnings.
Recommendation 6 68
That the NSW Government ensure that, under the Workers Compensation Scheme:
in cases of total incapacity, workers receive weekly income benefits on the Victorian
model, namely (broadly speaking) 95 per cent of their pre-injury average weekly
earnings for the first 13 weeks of total incapacity, and then 80 per cent from week 14
onwards.
in cases of partial incapacity, workers receive weekly income benefits on the
Victorian model, namely (broadly speaking) 95 per cent of their pre-injury average
weekly earnings for the first 13 weeks of total incapacity and then 80 per cent from
week 14 onwards (in each case less certain amounts).
Recommendation 7 69
That the NSW Government seek to amend the Workers Compensation Act 1987 to impose a time
cap on weekly income benefits of no less than five years for less seriously injured workers, with a
more generous time cap for an intermediate category of injured worker and ultimately no time
cap (except the Commonwealth retirement age) for the most seriously injured workers.
Recommendation 8 69
That the NSW Government ensure that, under the Workers Compensation Scheme, in addition
to any other caps, the absolute end date for the payment of all weekly benefits be the
Commonwealth retirement age.
LEGISLATIVE COUNCIL
New South Wales Workers Compensation Scheme
xiv Report 1 June 2012
Recommendation 9 70
That the NSW Government seek to amend the Workers Compensation Act 1987 to cap reasonable
and necessary medical and related treatment expenses to those incurred whilst weekly benefits are
paid and for one year after the cessation of those payments.
Recommendation 10 77
That the NSW Government seek to amend the Workers Compensation Act 1987 to require
mandatory, independent, binding work capacity testing at defined intervals.
Recommendation 11 78
That the NSW Government seek to amend the Workers Compensation Act 1987 to incorporate
payments under section 67 for pain and suffering into section 66 for lump sum payments for
injuries.
Recommendation 12 79
That the NSW Government ensure that, under the Workers Compensation Scheme, after the
determination of a claim for whole person impairment, only up to two further claims be
permitted and in each case only if there has been a deterioration of whole person impairment of
at least 5 per cent since the last determination.
Recommendation 13 87
That the NSW Government liberalise the availability of commutations, generally subject to the
proviso that the injured worker has obtained independent legal and financial planning advice
before agreeing to a commutation.
Recommendation 14 89
That the NSW Government seek to amend the definition of injury in section 4 of the Workers
Compensation Act 1987 so that a disease is only included if the employment was the main
contributing factor to the contraction, aggravation, acceleration, exacerbation or deterioration of
the disease.
Recommendation 15 95
That the NSW Government seek to extend the Civil Liability Act 2002 to work injury damages
claims, but modified by inclusion of some additional sections dealing with the workplace, in
particular inherently dangerous activities and obvious risks.
Recommendation 16 106
That the NSW Government seek to establish a joint standing committee of the Parliament of
New South Wales:
to conduct ongoing oversight of the New South Wales Workers Compensation
Scheme by undertaking annual reviews of its operation, management and
performance,
to conduct an extensive review (see Recommendation 17) of the Workers
Compensation Scheme, and
with the capacity to engage actuarial expertise to assist it to perform its functions.
Recommendation 17 107
That the NSW Government commence an extensive, detailed review of the New South Wales
Workers Compensation Scheme to develop a comprehensive strategy aimed at addressing the
JOINT SELECT COMMITTEE ON THE NSW WORKERS COMPENSATION SCHEME
Report 1 June 2012 xv
long term viability of the Scheme and enhancing the management and administration of the
Scheme. In conducting the review, consideration should be given to statutory and non-statutory
reforms that reflect the breadth of the Scheme, including, although not limited to:
improvements in WorkCovers management and administrative systems
feasibility of permitting more specialised insurance for certain industries, particularly
those industries considered high risk
establishing a centralised information and technology system within the Scheme
feasibility of establishing an independent medical assessment service
an examination of workers compensation schemes in other jurisdictions, particularly
the Victorian model.
Recommendation 18 110
That the NSW Government re-open the opportunity for specialised insurance arrangements,
with appropriate prudential supervision and safeguards.
Recommendation 19 112
That the NSW Government seek to amend the Workers Compensation Act 1987 to remove the
entitlement of the estate of a worker to receive a death benefit where the worker had no
dependants.
Recommendation 20 112
That the NSW Government seek to amend the Workers Compensation Act 1987 to increase the
thresholds for permanent impairment lump sums under section 66 of the Act from the current 1
per cent WPI (general) and 6 per cent WPI (binaural hearing loss) to 10 per cent, but on the basis
that savings be redistributed in the form of higher permanent impairment lump sums for those
with at least 10 per cent WPI and particularly those workers defined as severely injured (with a 15
per cent WPI threshold to be retained for psychological injury).
Recommendation 21 114
That the NSW Government ensure that the Workers Compensation Schemes liability for injuries
sustained by workers during recess be limited to circumstances where the employment has been
the significant contributing factor.
Recommendation 22 116
That the NSW Government review the WorkCover premium system to extend the experience
rating system to create incentives for employers both with respect to safety performance and
return to work of injured workers.
Recommendation 23 120
That the NSW Government seek to amend the Workers Compensation Act 1987 to allow greater use
of medical assessors to determine questions of causation.
Recommendation 24 120
That the NSW Government seek to amend the Workers Compensation Act 1987 to adopt a model
of medical assessment for injured workers similar to that used within the Motor Accidents
Scheme.
LEGISLATIVE COUNCIL
New South Wales Workers Compensation Scheme
xvi Report 1 June 2012
Recommendation 25 122
That, given the financial and other impacts on workers of not returning to work, the NSW
Government ensure that each of the ideas contained in paragraph 4.64 be fully explored by the
joint standing committee proposed at Recommendation 16.
Recommendation 26 123
That the NSW Government review the functions, behaviour and powers available to Scheme
agents under the Workers Compensation Scheme, and the guidelines issued to them by
WorkCover, to achieve better claims management outcomes.
Recommendation 27 127
That the NSW Government and the joint standing committee proposed in Recommendation 16
make options to prevent and reduce workplace injury a priority.
Recommendation 28 128
That the NSW Government consider a comprehensive examination of opportunities to
harmonise compensation schemes in New South Wales.
