What you need to know about new workers compensation laws in WA
Key points
- The workers compensation system in Western Australia is being overhauled, with new legislation to be launched in July 2024.
- Changes include streamlined decision making, an emphasis on proactive reporting and greater penalties for non-compliance.
- The new law will be implemented quickly, so it’s important to understand how the changes will affect you.
- This article includes a list of critical changes.
Big changes to workers compensation in WA
Major changes to workers compensation in WA are set to rollout in July 2024. These changes come off the back of the Workers Compensation and Injury Management Bill 2023 (WA) (the Bill), introduced by the Legislative Council in October 2023.
The Bill is a complete revision of current workers compensation law in WA, with more than 700 provisions designed to streamline and modernise existing systems, improve benefits for injured workers and deliver greater support to employers
Here are key updates expected from the new legislation.
- Medical and health expenses limit increased
Injured workers will receive greater financial support for medical expenses and loss of income, with weekly compensation payments set to be extended from 13 to 26 weeks. This change is designed to ensure workers receive adequate financial assistance in the event of an injury.
- $124 million returned to premium pool
The ATO is currently reviewing all ABNs and wage rolls to ensure accuracy, and to identify discrepancies in data submitted for insurance premium calculations. As a result of these new calculations, the ATO will return $124 million to the premium pool, which will mean more funding for injured workers, employers, insurers and service providers.
- A proactive approach
WorkCover WA is emphasising the need for early notification for workplace incidents. Encouraging early intervention ensures workers receive timely treatment, which leads to faster recovery and greater employee retention. This change is particularly relevant, given the trending increase in mental health related claims in WA.
- Deadlines for provisional liability
Provisional liability decisions are now to be determined by day 14 of the claims process, with three possible outcomes: acceptance, rejection or investigation. A full liability determination must be made by day 28. If this is not possible, provisional payments are to commence until a decision is handed down.
- More settlements per annum
There are approximately 5,000 claims settled every year in WA. WorkCover WA aims to increase this rate by 30 to 40 per cent, by implementing improvements designed to streamline the settlement process. These improvements will expedite claims, by making the resolutions process smoother and more efficient.
- Penalties for non-compliance
Employers who fail to meet their obligations under the new Act will be met with increased penalties. From 1 July, penalties for non-compliance will double, from $5,000 to $10,000 per employee. This increased penalty aims to improve compliance by imposing harsher penalties on employers who violate their obligations under the Act.
- Confidentiality when screening
Under the new Act employers will be restricted from requesting a claims history from any worker during the pre-employment screening process. This means employers cannot ask former employers, colleagues or any other person about their compensation claim history. Breaching this provision could result in a $10,000 penalty. (Candidates in return-to-work programs are excluded from this restriction.)
- Legislative changes will happen fast
When the Bill is passed, the new legislation will roll out quickly. Work Cover WA and insurers are currently finalising the documentation and procedures required to practically implement the changes, including updated claim forms, declarations and important notices. This is why it’s important for employers to be aware of how the changes will impact them, and what needs to be done to maintain compliance.
Need support navigating new workers compensation requirements in WA?
If you need advice or guidance around the upcoming changes to workers compensation law in WA, we can assist you. We will make sure you have the right level of cover and understand how the changes will impact your business, as well as any claims that may arise.
If you’re not in WA, we can recommend workers compensation cover that aligns with legislation in your state, so you meet compulsory requirements and avoid unwanted penalties for non-compliance.
