State WorkCover schemes are suffering worsening deficits, with the losses in South Australia now more than $1 billion. A recent audit by the NSW Audit General in November reported that the deficit of WorkCover NSW grew by $900m in the year to June 30 as injured workers found new ways to exploit the scheme! How SICK!
WorkCover deficit unmitigated disaster and blamed on injured workers
A $222 million blowout in the unfunded liability of the South Australian scheme has created more headaches for the government and businesses struggling to pay growing premiums.
The latest actuarial figures to December 31 show the unfunded liability has grown from $952m to $1.174bn in just six months. The unfunded liability was $55m in June 2001.
The state-based WorkCover schemes oversee the compensation of employees injured in workplace accidents.
An audit by the NSW Auditor-General in November found the NSW WorkCover scheme had a deficit of $2.4bn.
The South Australian opposition finance spokesman, Rob Lucas, said yesterday that Labor’s management of WorkCover had been an “unmitigated disaster”.
“Employers are still paying the highest levies in the nation and the scheme is suffering from the worst return-to-work figures in the nation,” Mr Lucas said.
“When the Labor government introduced their controversial amendments to the legislation in 2008 they claimed their actuarial advice was the scheme would be fully funded within five to six years. It is clear this will be yet another Labor broken promise. Labor can’t lay all the blame on global economic conditions, because for most of the past 10 years there was strong national economic growth, yet the unfunded liability rose year after year.”
SA Treasurer Jack Snelling yesterday said the underlying performance of WorkCover was still strong. “The reasons for an increase in the unfunded liability is because of reduced earnings on assets due to global economic factors as well as a reduction in the discount rate,” he said.
- Michael Owen, SA Political Reporter
- From: The Australian: http://www.theaustralian.com.au/national-affairs/workcover-deficits-unmitigated-disaster/story-fn59niix-1226308682150
- March 24, 2012 12:00AM
As we previously stated, WorkCover assumes INCORRECTLY that it is seriously injured workers’ FAULT (again) for the WorkCover scheme’s multimillion deficit, eh! “The WorkCover NSW deficit grew by $900m in the year to June 30 as workers found new ways to exploit the scheme, which struggled under the weight of losses already sustained during the global financial crisis”
Now, now, don’t you think that those seriously injured workers are getting “benefits” for a reason? And what would that reason be? “A new way of exploiting the workcover scheme”? What a joke! How about “an accident at work and more often than not, due to the sheer negligence of the employer!”
Injured Workers do not ever – that we know of- receive half the “benefits” they are entitled to under the law!
Why don’t you blame it on how you have been allowing the WorkCover system to run? Lowest ever premiums – does that ring a bell? Employer fraud? Insurer fraud? Sounds familiar?