The Federal Government will ask the Australian Competition and Consumer Commission (ACCC) to investigate whether the states are taking liberties with the law by trying to stop big companies from joining the national workers’ compensation scheme, Comcare.

The ACCC is expected to investigate SA WorkCover scheme’s plan to charge Optus a $1 million “exit fee” for moving to Comcare as a self-insurer.

All the states fear that large companies – which are usually good safety performers but pay large premiums – moving out of the local schemes will expose smaller companies to higher premiums. The Victorian Government has already announced that it will mount a High Court challenge on constitutional grounds against Optus joining Comcare.

Federal Workplace Relations Minister Kevin Andrews wants the ACCC to decide if SA WorkCover’s action constitutes a breach of section 46 of the Trade Practices Act.