History of workers' compensation

Queensland’s involvement in workers’ compensation
Queensland's involvement with workers' compensation dates back to the Employers' Liability Act of 1886, which permitted recovery of common law damages in selected instances. In 1905, the Workers' Compensation Act adopted the no fault principle and general coverage of the British model. Up until 1916 Queensland employers were expected, but not compelled to seek accident insurance for their workers. Private insurers provided such insurance with little government involvement.

1916 - three major precedents set
The Queensland Workers' Compensation Act of 1916 repealed the former legislation and became the foundation for today's legislation, establishing the following major precedents:

• Insurance became mandatory for employers (with the exception of government departments) and extended coverage from manual workers to practically all workers in the state.
• A monopoly on workers' compensation insurance was granted to the State Accident Insurance Office based on the principle that workers' compensation, being an essentially social service, should be administered by a single authority. Later the same year the Insurance Act of 1916 authorised the transaction of all classes of insurance business by this office and changed its name to the State Government Insurance Office (SGIO). The monopoly was retained by the SGIO.
• Provided for the inclusion of journey (travel) claims.

Establishment of SGIO
In 1978, the Queensland Parliament determined that the administration of workers' compensation in Queensland would be better set up as a separate organisation outside the confines of the SGIO, because workers' compensation was seen as essentially a social service. On 1 July 1978 the Workers' Compensation Board of Queensland was established as a division of the then Department of Labour Relations. Responsibility for the administration and control of workers' compensation passed from the Queensland State Treasurer and SGIO to the Minister of the Department of Labour Relations and a six-member board including representatives of employee and employer organisations.

Who is a ‘worker’?
On 27 August 1986, the Workers' Compensation Amendment Act 1986 was given assent. One of the major amendments was the exclusion of company directors from the definition of ‘worker’ (although those employed under a contract of service could elect to be insured). Partners and trustees were also excluded from the definition (unless specifically insured). It was also clarified when contractors or sub-contractors were deemed to be workers.

Assent was given to the Workers' Compensation Act Amendment Act 1988 on 12 May 1988. The Act made changes to the Workers' Compensation Act in several areas, but most importantly in payment of certain permanent partial disabilities and in benefits associated with fatal claims. Medical Boards were to determine whether incapacity was partial or total.

Injured worker benefits and services increase
The Queensland workers' compensation system itself remained relatively stable during this time. However, following extensive consultation with stakeholders, the Workers' Compensation Act 1990 was passed, repealing the legislation of 1916-1988. The structure of the scheme was retained, as was the basic philosophy to provide fairness and equity for employers paying premium and for employees with work related injuries. However, major increases to benefits and services to injured workers were introduced based on outcomes of the consultation process.

The Kennedy inquiry
On 11 March 1996, the Queensland Coalition Government announced the appointment of Mr Jim Kennedy to undertake an inquiry into workers' compensation and related matters in Queensland. The Kennedy Report made a total of 79 recommendations in relation to the provision of workers' compensation in Queensland. The Queensland Government endorsed all but six of the inquiry's recommendations.

WorkCover Queensland Act 1996
These recommendations formed the basis of the WorkCover Queensland Act 1996, which received assent on 12 December 1996, with the majority of provisions commencing on 1 February 1997 and the remaining provisions on 1 July 1997. Key features of the Act included:

• experience based premium rating to replace the merit bonus/penalty system of calculating employer premium
• changes in coverage in certain areas e.g. the definition of ‘worker’ and ‘injury’, journey claims and industrial deafness
• a pre-proceedings process for common law claims to promote early settlement of claims and minimise legal costs
• strengthening of employer and worker obligations for workplace rehabilitation and safety at work.

WorkCover Queensland established
The main structural change introduced by the 1996 Act was the replacement of the Workers' Compensation Board of Queensland as a division of a government department with a new, independent statutory body, WorkCover Queensland. Whilst the portfolio Minister has reserve powers to influence WorkCover operations, responsibility and accountability for the commercial performance of WorkCover and oversight of the enforcement of regulatory responsibilities rests with the WorkCover Queensland Board.

In 1997, the option was introduced for employers to self-insure, subject to the satisfaction of certain prudential and other criteria. Apart from the granting of self-insurance licences, WorkCover Queensland continues to be the exclusive provider of accident insurance.

In March 1999, the Labor Government announced its future policy directions for workers' compensation in a paper, ‘Restoring the Balance’. These policies were incorporated into the WorkCover Queensland Amendment Act 1999, assented to on 22 April 1999. Key features included:

• reverting to the previous definition of ‘injury'
• reverting to the previous definition of ‘worker’
• self-insurance criteria (increase in minimum workers, requirements for occupational health and safety and assumption of liability for their tail of claims, no third party outsourcing of claims management)
• a review council to oversee the review process and the Medical Assessment Tribunals
• removal of the ten percent premium surcharge
• a solvency requirement for full funding reduced to 20%.

Role of WorkCover
Under the WorkCover Queensland Act 1996 WorkCover Queensland had two clearly identified roles: the first, to provide accident insurance as a commercial provider; and the second, to enforce the Act as a regulator. On 24 May 2000 the WorkCover Regulatory Functions Division was relocated to separate premises and launched under the new name of Q-COMP by, the Hon. Paul Braddy MLA, Minister for Employment, Training and Industrial Relations. This separation reinforced the independence and impartiality of the regulatory services.

Q-COMP separates from WorkCover

In July 2003, the Workers’ Compensation and Rehabilitation Act 2003 established Q-COMP as a statutory body to regulate the workers’ compensation scheme. This legislation maintained WorkCover as a fully commercial statutory body and a stand-alone insurer.