Queensland (Australia) businesses will pay more to insure employees through WorkCover from July 1 under new laws proposed by the state government.
Premier Anna Bligh and Industrial Relations Minister Cameron Dick announced the government would make major changes to the state's workers' comp scheme to bring it out of financial difficulties.
WorkCover premiums would increase from $1.15 per $100 of wages to $1.30 per $100 from July 1 and payouts would be capped.
Despite the proposed premium rise, Queensland would continue to have the least expensive workers’ comp premiums of any state or territory, followed by Victoria with $1.39 per $100.
Meanwhile, payouts for general damages of pain and suffering will be capped at $300,000, and damages for loss of future earnings will be capped at three time’s average earnings or approximately $176,000 in current terms.
Onus of proof will also be changed, meaning workers would have to demonstrate the employer breached a duty to take precautions against risk of harm that was foreseeable.
In the event a worker takes a claim to court and is unsuccessful, they'll have to pay costs.
WorkCover recorded an $800 million loss on its investments and an overall operating deficit of $1.3 billion over two years, he said. (workersxzcompxzkit)
The government is seeking to have the changes take effect by July.
There are approximately 96,000 claims from injured workers a year – 96% are settled through the statutory arrangements, with only 4% moving to the courts.
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: [email protected] or 860-553-6604.
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