The Victorian Government has taken legal action to try to stop Optus from joining the national Comcare workers’ compensation scheme. Industrial Relations Minister Rob Hulls says if big businesses quit state schemes, those left behind will have to bear the cost of outstanding liabilities.

That’s pretty obvious logic, but it does point out the problem that many nationwide companies have in Australia. Optus has to deal with Australia’s 11 workers’ comp schemes while arch-rival Telstra – a former government instrumentality – deals with Comcare only.

Insurance Council of Australia Deputy CEO Dallas Booth says insurers support choice of provider for employers. “Competition and choice is widely acknowledged to deliver benefits to the economy.”

He says there will be no great ripple effect if Victoria is successful in dragging Optus back into the state scheme. “A number of states and territories are privately underwritten, so there would be no impact there. It would depend on the nature of the scheme – there would be limited impact in the privately underwritten schemes.”