Federal Workplace Relations Minister Kevin Andrews is cutting benefits in the Commonwealth workers’ compensation scheme, saying it’s a move to make Comcare more consistent with the systems run by the states and territories.

He says the changes, announced in last week’s Federal Budget, will strengthen the connection between work and eligibility for workers’ comp, and bring it more into line with the states and territories. The changes include workers’ compensation cover being removed for journeys to and from work. However, employees will continue to be covered for journey claims involving motor vehicle accidents under state and territory compulsory third party insurance.

Changes will also be made to the calculation of retirees’ incapacity benefits. Mr Andrews says the deeming rate for interest on superannuation lump sums will be changed in order to reflect more accurately real rates of interest being earned. Funeral benefits will also be substantially increased.

“Overall, the changes will reduce the pressure for further increases in workers’ compensation premiums paid by Australian Government employers,” he said. “This outcome will ultimately benefit all Australian taxpayers,” he said. 

Some minor changes will remove barriers to Comcare’s more efficient administration of the scheme by, for example, enabling Comcare to make payments directly to approved medical services providers.