Optus has been allowed to self-insure nationally and move out of various state workers’ compensation schemes, despite the Federal Government’s opposition to establishing a nationwide system.

The Optus win gives hope to other national companies that have been lobbying for a national workers’ compensation scheme to avoid divergent compliance issues and associated costs.

Sunrise Exchange News reported in July that the Federal Government had rejected a Productivity Commission proposal to create a nationwide scheme for workers’ compensation. The Government conceded that there was a need for national consistency and greater uniformity of state schemes, but it said workers’ compensation should be dealt with by each state.

It is believed the move to allow Optus to self-insure is due to the company being in competition with Telstra, which is under the Federal Government’s Comcare scheme.

Employment and Workplace Relations Minister Kevin Andrews says the Optus licence is subject to the company satisfying the prudential and regulatory conditions imposed by the committee regulating the Comcare scheme.

Insurance Council of Australia (ICA) Deputy Chief Executive Dallas Booth says the provision to self-insure has been in the legislation for some time and, contrary to some media reports, Optus is not the first company to use it. “Qantas and Telstra (which self-insure) are former fully owned government bodies. It would not be unexpected if an entity such as Virgin Blue was to follow the same path.” 

Mr Booth says ICA was disappointed that the Government did not adopt the findings of the Productivity Commission in July. However, the council now welcomes the move to allow Optus to apply for a licence. “Optus is operating on a national level, so it makes sense to be able to reduce its compliance and associated costs,” he said. “To roll out workplace practices that are nationwide – as well as OH&S – is a step forward.”