Treasurer Peter Costello has rejected a proposal by the Productivity Commission to establish a national workers’ compensation scheme for private sector employers. The decision is a blow to large companies which want to cut the costs of complying with Australia’s multitude of state and territory schemes by joining the Government’s Comcare scheme. 

Apart from the unexpected rejection – one which has also upset the insurance industry – the Government has welcomed the commission’s other findings, which it released to the public last week. It says it supports the broad direction of recommendations to work towards nationally consistent workers’ compensation and occupational health and safety (OH&S) arrangements.

But Mr Costello and Workplace Relations Minister Tony Abbott will take a more roundabout approach to workers’ compensation reform by abolishing the National Occupational Health and Safety Commission and creating a new advisory body, the Australian Safety and Compensation Council (ASCC). The ASCC will develop policy advice on workers’ compensation and OH&S programs for the Workplace Relations Ministers’ Council.

The commission’s final report also recommended that the Federal Government develop an alternative national self-insurance scheme with the eventual goal of an alternative national workers’ compensation scheme.

Insurance Council of Australia (ICA) Deputy CEO Dallas Booth told Sunrise Exchange News he is disappointed there will be no national scheme at this stage, but says the formation of the ASCC has the potential to be a step in the right direction.

“At the moment, there is no ministerial responsibility for workers’ compensation across Australia and with the formation of the ASCC there is a body which will have the ability to co-ordinate the separate states,” he said.

Mr Booth says ICA is keen to play a constructive role with the ASCC to develop more consistency.