Federal budget hints at releasing Comcare review, and stable premiums

The Federal Government has shown signs that it will release the long awaited Comcare review in the coming financial year, and forecast that employer premiums will stay at a similar rate as in 2008/09.

The 2009/10 budget papers, released last night say Comcare's actuary has forecast the required premium rate (to fund the lifetime cost of injuries expected to be incurred in 2009/10) will be "similar to the rate in 2008/09" - 1.36 per cent.

The papers also suggest that the Comcare review - commissioned by Workplace Relations Minister Julia Gillard in December 2007 and completed in July 2008 - will be released soon. The review examined whether the scheme should be expanded to include all employers that operate in multiple jurisdictions.

Comcare says any changes arising from the review will be implemented in the 2009/10 financial year in accordance with existing legislation and policies.

The agency also pledged its commitment to working with Safe Work Australia and other jurisdictions to achieve harmonised OHS laws by 2011.

It noted that as the Commonwealth's OHS regulator, it anticipates that it will be an "early adopter of any agreed legislative changes".

Comcare's expenses and revenue

The agency's actual expenses in 2008/09 came to $317.2 million compared to its estimate of $370.6 million last year.

Comcare's compensation claim expenses in 2009/10 are expected to decrease by a further $10 million to $306.7 million, due to an estimated reduction in net premium claim payments and a decline in pre-premium liabilities.

(The premium scheme covers injured workers that fall under the Safety, Rehabilitation and Compensation Act 1988 post 1 July 1989. Injuries sustained before that date are not covered by premiums and are funded by Parliamentary appropriation.)

Comcare's total revenue is also estimated to marginally decrease from $251.4 million in 2008/09 to $251.1 million in 2009/10. This is mainly due to a significant decrease in investment revenue, with interest estimated to yield $9.5 million, down from $20 million in 2008/09.

Comcare restructures strategic directions

Comcare's strategic direction was restructured in this year's budget to more accurately reflect the agency's three related - but separate - legislative responsibilities.

Comcare aims to provide:

• protection of the health, safety and welfare at work of workers covered by the Comcare scheme through education, assurance and enforcement;



• an early and safe return to work and access to compensation for injured workers covered by the Comcare scheme, through working in partnership with employers to create best practice in rehabilitation and quick and accurate management of workers compensation claims; and



• access to compensation for people with asbestos-related diseases, where the Commonwealth has a liability through the management of claims.

National OHS for the mining industry

The Federal Government has also committed $3.3 million over four years to implement the National Mine Safety Framework (NMSF).

The NMSF is working to deliver a nationally consistent OHS regime in the mining industry, which will reduce administrative costs for mining operators, increase worker mobility due to training requirements, and alleviate inconsistent data collection.

The framework will also improve the safety of workers; the efficiency of OHS regulation and monitoring; the capacity to identify health and safety trends in the industry; and workers' ability to seek employment throughout Australia in the knowledge that safety standards and practices are consistent.