Not surprisingly, the state governments have signalled their resistance to big companies wanting to self-insure nationally and move out of various state workers’ compensation schemes.

Federal Workplace Relations Minister Kevin Andrews approved an Optus application last month for the company to become a self-insurer under the federal Comcare scheme, but the company’s application has since been frozen until after the October 9 election.

Optus was required to gain final approval from the regulator of the Comcare scheme – the Safety Rehabilitation and Compensation Commission – and was due to receive a licence on October 1. But its application for a self-insurance licence was not considered by the commission before the beginning of the caretaker period of government.

Victorian WorkCover Minister Rob Hulls has accused Mr Andrews of not consulting the states over the Optus application and not considering the effect on the Victorian WorkCover scheme. 

Mr Hulls’ irritation is understandable, if a tad irrational. After all, Telstra is part of the national scheme. And Optus is hardly the only national company to push 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 workers’ comp scheme. The Government conceded 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.

Insurance Council of Australia (ICA) Deputy CEO Dallas Booth says ICA is disappointed that the Government did not adopt the Productivity Commission findings. He says it is important for the Government to apply competition policy principles in the general insurance sector.

“The level of taxes and charges on general insurance in Australia has to be a major impediment. It operates as a major distortion on the insurance market.”