An independent review of Tasmania’s Workers Rehabilitation and Compensation Scheme is now underway, commissioned by the WorkCover Board Tasmania. The comprehensive assessment aims to address rising costs and increasing complexity within the system, which provides crucial support for injured workers across the state.
The WorkCover Board Tasmania announced the broad, independent review, which will be conducted by an independent Review Panel. The primary objective is to ensure the scheme remains effective, sustainable, and responsive to the evolving needs of workers, employers, and the broader Tasmanian community.
Concerns over the scheme’s financial sustainability have prompted the review. WorkCover Tasmania reports indicate a significant increase in scheme payments, with a 19 per cent rise in the 2023/24 financial year compared to the previous year. This surge was primarily driven by increases in weekly payments and lump sum payouts. Furthermore, the average claim size has seen a real-terms increase of 12.7 per cent since the last scheme review, and the growth in the ultimate cost of claims has outpaced wage growth.
The review also comes at a time of increasing complexity across workers’ compensation systems nationally, with a notable growth in psychological injury claims, longer claim durations, and changes in workforce structures. Mental health-related claims have risen to their highest level, accounting for 14 per cent of claims in the 2023/24 accident year.
Key objectives for the independent panel include identifying opportunities to ensure the scheme continues to effectively support injured workers and facilitate safe, durable returns to work. It will also focus on providing fair, transparent, and affordable compensation, maintaining financial sustainability, and responding to contemporary changes in work environments and injury patterns. Ultimately, the review seeks to uphold public confidence in the scheme.
The independent Review Panel will provide an evidence-based assessment of the scheme’s fairness, performance, governance arrangements, and future direction. WorkCover Tasmania has established an online information hub, serving as a central source for all review-related information, including consultation opportunities, discussion papers, and progress updates.
The findings and recommendations from this review are expected to shape the future of workers’ compensation in Tasmania, aiming to strike a balance between supporting injured individuals and ensuring the scheme’s long-term viability for all stakeholders. Readers seeking more information on the review can find details on the WorkCover Tasmania website.