A bipartisan federal parliamentary inquiry has called for a consistent national approach to Australia’s workers’ compensation system in a bid to slash the $20 billion annual bill for workplace injuries. At present every government has its own scheme, and they are generally judged to be subject to political tinkering and inefficient.

The report of the 11-month inquiry chaired by Queensland MP De-Anne Kelly said employee fraud is not the major contributor to the problems inherent in the workers’ compensation system. It urges federal Workplace Relations Minister Tony Abbott to take the reins and introduce a single set of national standards.

According to the report, about half of the employees injured each year don’t even file a compensation claim. It added: “The level of employee fraud is generally considered low, with most injured workers committed to an early return to work.”

The inquiry found a streamlining of workers’ compensation is much more likely to have a positive financial impact rather than introducing unnecessary fraud detection systems.

The inquiry committee called for the elimination of “vertical integration” in workers’ comp, where insurance companies own and operate both rehabilitation and “return to work” services.

“The financial incentive for the insurer to process claims expediently may not match the best possible long-term outcome for the injured worker,” the report said.