WA system settling down
WA’s new Labour Relations Minister John Kobelke is “hastening slowly” to implement changes in the state’s workers’ compensation scheme.
It’s an approach that is winning friends in the industry. Mr Kobelke is also understood to be supportive of brokers being involved in the workers’ comp system. His predecessor, the Liberals’ Cheryl Edwardes, was less than enthusiastic about the perceived cost of intermediaries in the system. Lobbying of Mr Kobelke and ALP leader Geoff Gallop while they were in opposition is understood to have helped cement brokers’ place in the system.
Recommended rates for the scheme, which are set by an independent actuary, are now falling – a situation that was largely expected by the industry.
The decision by the new Gallop Government to fund the shortfall caused by the demise of HIH through a 5% levy has also been generally well accepted.
Industry sources said the WA system is now settling down in terms of costs and payments after several rocky years. “The market is beginning to operate as a market,” one said.