History of WorkCover Queensland
February 1996 - Kennedy Inquiry commissioned by State Government
Concern about the potential extent of the ‘unfunded’ liabilities of the then Workers’ Compensation Board of Queensland (WCBQ), together with other factors, led to the establishment of a Commission of Inquiry by the newly elected Coalition government. This inquiry was headed by Queensland businessman Jim Kennedy.
July 1996 - Kennedy report completed
On 30 June 1996, Mr Kennedy handed over his report, with a total of 79 recommendations, to the State Government and it was subsequently tabled in Parliament on 10 July 1996. The Report revealed a ‘black hole’ of $320 million in unfunded liabilities.
February 1997 - WorkCover Queensland Act 1996
Most of the Kennedy recommendations were incorporated in the WorkCover Queensland Act 1996, which established WorkCover as a commercially run, government-owned statutory authority.
July 1999 - Definitions of ‘worker’ and ‘injury'
While Kennedy’s recommendations were being implemented, Labor was returned to government in Queensland. The incoming Minister directed WorkCover to investigate and advise on policy options with respect to premium compliance, self-insurance, and the definition of ‘worker’ and ‘injury’. As a result, the WorkCover Queensland Amendment Act 1999 introduced changes to ensure that the rights of injured workers remained balanced with competitive premiums for employers whilst maintaining a secure and viable workers’ compensation system. Part of these changes included the removal of the self-rating option and surcharge, introduction of self-insurance criteria and also a more independent and transparent review process.
March 2000 - Review of Experience Based Rating (EBR)
On 1 March 2000, the Honourable Paul Braddy, Minister for Employment, Training and Industrial Relations sought external, independent opinion of recommendations in the form of a review of the EBR formula used by WorkCover to set premiums. Mr Braddy asked Jim Kennedy to report to him ‘as to the appropriateness or otherwise of [WorkCover and industry] recommendations’.
Mr Kennedy examined the recommendations and discussed them with the Chairman of WorkCover, Mr Ian Brusasco, the Chief Executive Mr Tony Hawkins, and with WorkCover’s actuaries.
July 2000 - Taxpaying status of workers
The WorkCover Queensland and Other Acts Amendment Act 2000 changed the definition of ‘worker’ from a PAYE taxpayer to a person working under contract of service, irrespective of taxpaying status.
December 2000 - National Competition Policy Review
During the latter part of 2000, the National Competition Policy (NCP) Review was conducted to examine the changes made based on Kennedy’s recommendations.
July 2001 - Increase in benefits payable
The WorkCover Queensland Amendment Act 2001 increased maximum lump sum benefits payable to dependants on the death of a worker to $250 000, and for an injured worker to
$150 000.
July 2003 - Workers’ Compensation and Rehabilitation Act 2003
The Workers’ Compensation and Rehabilitation Act 2003 established Q-COMP as a statutory body to regulate Queensland’s workers’ compensation scheme. This legislation maintained WorkCover as a ‘fully commercial’ statutory body.
October 2003 - Productivity Commission Interim Report
The federally initiated Productivity Commission reviewed the overall framework of national workers’ compensation. During this review, WorkCover strongly supported a consistent approach to the management of workers’ compensation benefits and premiums in general. However, as one of the only fully funded workers’ compensation insurers in Australia that satisfies any and all government prudential requirements, WorkCover opposed proposals for the imposition of a national workers’ compensation scheme that would completely erode its strong financial position.
July 2004 - Federal Government response to Productivity Commission Final Report
In July 2004, the Federal Government responded to the Productivity Commission’s Final Report by ruling out the establishment of a national workers’ compensation scheme.
October 2004 - The Successful Balance - A Status Review
The WorkCover Status Review assesses the milestone events, decisions and strategies that have underpinned WorkCover’s success to date, particularly with reference to Kennedy report recommendations. The Status Review also identifies the challenges ahead, and outline strategies to meet those challenges and continue WorkCover’s success. Read our Status Review
.
