The Federal Department of Employment and Workplace Relations has continued its attack on state-based workers’ compensation schemes, and now claims the schemes are outdated.

The attacks launched by Workplace Relations Minister Tony Abbott several weeks ago are aimed squarely at replacing the states’ and territories’ fragmented and confusing schemes with one centralised system. A departmental spokesman said last week that about 40% of the national workforce may no longer be covered by traditional workers’ compensation arrangements.

The department also believes up to 3.75 million staff working on a contracted or casual basis might not be covered by the different state arrangements. It said contract and casual work falls outside the legal definitions of employment, leaving such employees ineligible for compensation in the event of injury or illness.