SA Scheme Still Most Expensive

The South Australian Government has worked at revamping the state’s traditionally poor-performing workers compensation scheme.   However, it remains the country’s most expensive system.

Last week WorkCover SA announced that the average premium rate for business under the South Australian WorkCover system will   remain at 2.75% for the 2013/14 financial year — the highest in Australia. And the opposition is making the most of it.

“Why should South Australian businesses suffer the highest WorkCover costs in Australia?” Shadow Treasurer Iain Evans said.

Mr Evans also said that it was a “great understatement” for the Chair of WorkCover, Phillip Bentley, to claim that: “While   the funding ratio has improved there still needs to be significant improvements in reducing the claims liability.”

Mr Evans pointed out this was a reference to the scheme’s unfunded liability, now stands at $1.4 billion. He also pointed   out that the funding ratio is currently 60.2%, compared to 93.5% when the Liberal Kerin government was defeated in 2002.

“The South Australian WorkCover Scheme is regarded as the worst performing scheme in Australia. These figures show why,” the   Minister said.

According to SafeWork Australia’s latest figures, South Australia now sits around the national average when it comes to the   rate of injury per 1,000 workers. However, it is second only to the ACT when it comes to the number of long-term claims per capita.

REF: CCH, 26th March 2013