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What is the Accident Compensation Amendment Bill 2009?
The Accident Compensation Amendment Bill 2009 (“the Bill”) is legislation to amend the Accident Compensation Act 1985 and Accident Compensation (WorkCover Insurance) Act 1993. These Acts regulate Victoria’s workers’ compensation scheme.
The Bill was developed to implement the Government’s response to the Hanks Review of Accident Compensation legislation, which recommended a series of changes to Victoria’s workers’ compensation scheme.
Further information about the Hanks Review is available at:
www.compensationreview.vic.gov.au
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Who will administer the changes to the Accident Compensation Act 1985?
The changes will be administrated by WorkSafe Victoria, which manages Victoria’s workers’ compensation scheme, providing support and services to employers and people who are injured at work.
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What are the key changes for injured workers?
The Government has increased benefits for injured workers as follows:
- an increase in weekly payments from 75% to 80% of pre-injury income after workers have received payments for longer than 13 weeks
- superannuation contributions at the superannuation guarantee rate (currently 9%) for workers still receiving payments after 52 weeks, calculated as a percentage of the worker’s weekly payment
- better compensation for workers entitled to overtime and shift allowances by extending the time for which these allowances are taken into account in the calculation of weekly payments, from 26 weeks to 52 weeks
- increasing the statutory maximum for weekly payments to twice Victoria’s average weekly earnings
- increasing the no-fault maximum lump sum benefit for a permanent injury from $409,200 to $503,000
- a 10 per cent increase in no fault lump sum benefits for workers with spinal impairments only
- an increase in no-fault lump sum benefits to workers who suffer a psychiatric impairment and who satisfy the existing 30% threshold, from $13,650 to $68,240
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What are the key reforms for employers?
Employers will have:
- revised return to work obligations which are designed to reduce the focus on complex processes and paper compliance, and increase the emphasis on outcomes
- a transparent process for review of premium decisions and better information and advice about their premiums - a review of decisions relating to liability for a claim in certain circumstances, and the ability to request written reasons from Agents where liability is accepted.
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What changes will be made to return to work?
Overall, the key changes to return to work include:
- return to work requirements will be reframed as performance based duties designed to improve flexibility
- the Return to Work section of the Act will include a statement of purpose which will help employers, workers, and others involved in return to work to understand the intention of the legislation
- WorkSafe will develop supporting materials which clearly set out how to comply with obligations for workers and employers
- the Return to Work Inspectorate will have a wider range of tools to improve the effectiveness of compliance activities in relation to return to work obligations, maintaining a fair and consistent application of the law.
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Will there be a change in obligations on employers to return injured workers to work?
There will be no reduction in standards, meaning employers will continue to be required to meet their obligations relating to returning an injured worker to work.
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What impact will the return to work changes have on employers who have injured workers on return to work arrangements?
For existing claims as at 1 July 2010, a nine month transitional period will be implemented between 1 July 2010 and 31 March 2011 to enable employers with existing claims to adjust to the changes in return to work obligations.
During this time, if an employer is complying with return to work obligations under the previous legislation, and continues to do so, they will be deemed to comply with the new legislation.
For new claims as at 1 July 2010, the new return to work requirements will apply.
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When will all the changes come into effect?
The changes will apply from different dates. The following is a summary of when the key changes will start to apply:
- Certain benefit increases such as payments to dependants and impairment benefits
- Most benefit increases such as weekly payments and superannuation
- Return to work provisions
- Premium provisions
- Self-insurance provisions
Please refer to the summary of changes document available on the WorkSafe website for more information.
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Will the reforms impact on current claims?
While the majority of changes will apply from 5 April 2010, some will apply from 10 December 2009.
These reforms broadly relate to:
- The payment of lump sum entitlements to dependants of deceased workers
- The payment of pensions to dependants of deceased workers
- The payment of lump sum impairment benefits to seriously injured workers
For more information about the impact of the legislation, you can contact WorkSafe on (03) 9641 1444 or 1800 136 089 or speak to your Agent to discuss your individual circumstances. Alternatively you can seek advice from your legal representative.
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What information is available for injured workers and employers to understand the changes?
WorkSafe has developed a Guide to the Act to assist workers and employers to broadly understand the changes to the legislation.
The Guide is available for download on the WorkSafe website.
WorkSafe has been working closely with its Agents and others involved in the scheme to ensure these changes are implemented progressively and smoothly and will provide enough time for those impacted to understand and make changes.
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Who can I contact if I need more information?
For general information about the changes, refer to the
summary of changes, visit worksafe.vic.gov.au or call WorkSafe on (03) 9641 1444 or freecall 1800 136 089.
For specific questions about the changes to the legislation, email
act_review@worksafe.vic.gov.au
If you are an employer or an injured worker, your WorkSafe Agent will be able to provide you with information relating to your circumstances.
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Can I access a copy of the Bill?
A copy of the Bill is available from the Parliament of Victoria website:
parliament.vic.gov.au.