The Workers’ Compensation Laws in WA are changing effective 1 July 2024

On 1 July 2024, the old workers’ compensation legislation is out, and the new laws and associated regulations will come into effect. The Workers’ Compensation and Injury Management Bill 2023 is a complete rewrite of the workers’ compensation legislation.

The new Act will deliver on the Government’s election commitments to:

• Increase the cap on medical and health expenses
• Extending the point a worker’s income compensation payments step down from 13 to 26 weeks
• Providing catastrophically injured workers lifetime care and support on the same footing as a person catastrophically injured from a motor vehicle accident.

Download our PDF summary of the changes here.

Changes to Pricing and Policy

The new Laws will deliver several key changes across pricing and policy:

1. Changes to the definition of worker;
   1.  A person who is defined by the Act in Section 12 (Contract of Service, Apprenticeship, Training contract, contracted for work and not in the course of incidental to the trade or business or where an individual does not sublet contract and performs part of the work personally.)
   2. A person in respect of which you are taken to be an “Employer” under Section 215 (Contractor or Principal)
   3. A person who is found to be doing work under an Avoidance arrangement.
   4. A Working Director as defined in Section 16 if they have complied with part 5 of the Act in regards to Provision of Remuneration Statements
2. New policy wording;
   1. Inclusion of Industrial Disease Coverage statutory costs, previously only insured by Insurance Commission of WA (ICWA) – This means IDCL Extensions are no longer required
   2. Greater clarity around ‘remuneration’; Workcover WA has produced a Guide as to what constitutes    ‘remuneration’
   3. The exclusion that prevented coverage of Public Company Directors removed in the New Act
3. Employers will be required to keep detailed records of number of workers, appropriate classification, total remuneration for each period of insurance and provide such information to insurers as prescribed by regulation.
4. New Remuneration Declaration Forms which are prescribed by Regulation- Employers will be required to submit these. Higher penalties for non submission of Declarations in a timely manner.
5. The extension of lifetime care scheme for catastrophic injuries (Catastrophic Injuries Support) to workers funded by a levy on collected by insurers
6. Terrorism is still excluded from the WA Workers Compensation Policy however the limits of Liability for an event is increased from $25M to $100M – this will be paid from the Default Insurance Fund (DIF). DIF payments are met by a levy of licensed insurers and self-insurers
7. Current process for 75% loading will be simplified, insurers will no longer have to apply to WorkCover WA to charge a loading that is 75% or greater, however, any loading request for 75% and greater can be reviewed by WorkCover WA who will determine what is a ‘proper premium’. Employer will have to apply for such review within 30 days of expiry.

Changes to Claims

The new Laws will deliver key changes across claims;

1. Changes to the Claims Prescribed Amount, the medical expenses limit will increase from 30% to 60% of the general maximum amount.
2. The introduction of new deadlines for pended (deferred) claims. Where a liability decision has not been made within the prescribed timeframe, there will be an obligation to begin making provisional payments 28 days after claim received by insurer, while completing investigations. If still no liability decision has been made by 120 days after claim received, liability will be deemed to be accepted
3. An expansion of the reasonable administrative action exclusion to cover for diseases caused by stress
4. First aid and emergency transport (including air ambulance costs) will now be a miscellaneous expense, and will not contribute to the general limit amount for medical treatment costs. This change will be retrospective where the general limit amount has not already been exhausted
5. Changes to weekly payments, the step down rate will be extended from 13 weeks to 26 weeks and simplification around the calculation of Rates of Pay for Injured Workers will be introduced. For all workers it will be based around the 52 weeks preceding the date of injury, or the length of time the worker was in that position (whichever is the lesser). Only periods of approved leave without pay will be excluded from the calculations
6. Changes to settlement options, the Memorandum of Agreement (MOA) will no longer be restricted and can be used to settle claims at any stage of the claim and any liability status, however they cannot include any amounts for common law damages. Settlement via deed can only occur where the claimant has a WPI of over 15% and they have registered an election
7. A worker can be compelled to attend return to work case conferences (no more than once every 4 weeks) and is required to engage. There are restrictions on what can and cannot be discussed during these conferences prescribed in the regulations, as well as who can attend
8. Catastrophic Injury Support Scheme (CISS) will be available to workers suffering a catastrophic injury after 1 July 2024 for medical and health expenses, workplace rehabilitation and miscellaneous expenses. Catastrophic injuries include: permanent blindness, traumatic brain injuries, spinal cord injuries, severe burns and amputations. Specific criteria apply.

What you can expect to see

• Further information to be provided at claims lodgement for pay history and claims to be investigated
• Expedited clinical and factual investigations using new technology and third-party services
• Updated claim form, employer report of injury form and regulated forms.

Changes to Policy Terminology

Changes to Claims Terminology

WorkCover WA Future Empowered Session

WorkCover WA is hosting a free, online targeted information session to support your operational readiness for the introduction of the Workers’ Compensation and Injury Management Act 2023, along with supporting regulations and administrative instruments, on 1 July 2024.

We invite you to attend their Future Empowered Session – Employers and Employer Representatives on Thursday, June 13 at 9:30am – 11:30am (AWST). This session is being hosted on Microsoft Teams, and will begin promptly at 9:30am AWST. We recommend you log in a few minutes early to ensure you are present for the start of the session. You can join on the day using the link below.

Meeting link to join event