What Is Changing in Workers Compensation?

Workers compensation insurance serves as a crucial safety net for Australian workers, safeguarding them in the event of workplace injuries and illnesses. However, the system is changing, shaped by trends that affect both employers and employees. Safe Work Australia's latest national figures show more serious workers compensation claims than ten years earlier, and claims for mental health conditions growing faster than any other type of injury over that decade (Safe Work Australia). Meanwhile, the focus on employee wellbeing calls for proactive approaches to mental health support and early return-to-work programs. This blog looks at these and other changes to help you keep up with workers compensation in Australia, and to help keep your workplace safe.

More claims, and longer ones

Across Australia, there are more serious workers compensation claims (claims with a week or more off work) than ten years ago. Mental health condition claims recorded the largest change of any type of injury over the decade, and they are among the costliest workplace injuries: they involve much longer periods off work and higher compensation payments than other serious claims (Safe Work Australia). For a small business, a long claim can affect hiring, training and how the work gets done.

Long-term claims and mental health

Generally, workers with psychological injuries have more time off work, and these injuries can be more complex than physical injuries, because personal circumstances or stressful life events may contribute (Safe Work Australia). Longer absences affect both employee wellbeing and how the business runs. Legal representation in disputed claims adds another layer of complexity, and potential legal costs.

There is good reason to support an early return to work, for both mental and physical health:

• Returning to suitable work early, with the right support, can help reduce the length and cost of a claim.
• Engaging in work can provide structure, purpose and social interaction, all of which contribute to better mental wellbeing.

Other changes to watch

Several other parts of workers compensation are worth keeping an eye on:

• Recovery claims: where someone else caused an injury, such as a negligent equipment manufacturer or an at-fault driver, the insurer or scheme may seek to recover its costs from them.
• Changing work: automation, new work practices and an ageing workforce can change the risks on site, so review your safety measures when the way you work changes.
• Incident notification: Safe Work Australia has updated the model WHS laws so that more kinds of incident must be reported to the regulator, including dangerous incidents involving mobile plant and falls, and long worker absences. The changes only apply once your state or territory adopts them, so check with your local regulator (Safe Work Australia).
• Presumptive laws: presumptive laws make it easier for workers in some professions, such as firefighters, to claim for certain illnesses. These laws differ between states and change over time. Stay informed about changes and their potential effect on your industry.

Good records help with any claim. Read about what records help a workers comp claim.

Changes to who can claim

Some schemes have changed who can claim, so it pays to look at your own state's rules.

In Victoria, for example, workers are not eligible for compensation where a primary mental injury has been mainly caused by stress or burnout from events that are usual or typical and reasonably expected in their duties. The change applies to mental injuries that occurred on or after 31 March 2024, and WorkSafe Victoria says the changes are meant to make the scheme more sustainable, so it keeps supporting workers in the future (WorkSafe Victoria). Changes like this do not take away an employer's duty: under the model WHS laws, a business must manage the risk of psychosocial hazards in the workplace (Safe Work Australia).

As the rules change, employers face the challenge of adapting to new criteria while looking after the wellbeing of their workforce.

Key takeaways

Workers compensation is going through significant changes, and Tradies365 wants you to be equipped to handle them. Here are some key takeaways for both tradies and employers:

For tradies:

• Be aware that the claim rules can change. Don't wait for an injury to understand your rights and responsibilities.
• Focus on workplace safety and injury prevention. Good practices can significantly reduce the risk of claims and protect your wellbeing.
• Seek early help if you have a work-related injury or mental health issue. Early treatment and support can lead to faster recovery and lessen the effect on your work and life.
• Know your rights and entitlements under workers compensation. Your state's workers compensation authority can explain them.

For employers:

• Proactively manage workplace safety and mental health risks. Invest in training, resources and programs that put employee wellbeing first.
• Stay informed about regulatory changes in your state. This will help you adapt your approach to workers compensation and manage costs.
• Talk to a broker. Tradies365 brokers can explain how workers compensation fits with your other business insurance.

Workers compensation insurance is crucial for protecting both employees and businesses. By staying informed and taking proactive steps, you can handle these changes with confidence and help keep your workplace safe for everyone. Contact us to talk about cover for your business.