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WorkCover Tasmania an election issue

Tasmania’s lawyers have stepped up their campaign to roll back changes to the state’s workers’ compensation scheme. While health and education – and possibly some of the more questionable actions of Premier Paul Lennon – are tipped to be the big issues in the March 18 election, the ongoing debate between insurers and lawyers is sure to get some airplay.

Backed by several unions including the Australian Nurses Federation, the Law Council of Australia is conducting a press and radio advertising campaign in the lead-up to the poll.

Spokesman Elenore Eriksson says reforms made in 2001 have been detrimental to both workers and employers. The reforms created a set schedule of payments for injured workers and prevents them seeking common law damages for injuries that affect less than 30% of their body functions.

Ms Eriksson says WorkCover Tasmania’s payouts have fallen as a result of the reforms but premium rates have remained stable. “There’s been a huge amount of profit made,” she told Sunrise Exchange News.

But insurers say the lawyers and unions’ campaign is designed to mislead Tasmanians. Insurance Council of Australia Deputy CEO Dallas Booth says premiums have fallen significantly since the reforms. They now represent 2.46% of wages, down from 2.75% in 2000/01. The total revenue stream has also fallen. The $107.5 million received in workers’ compensation premiums in 2004/05 was 11% less than the previous year.

“Insurers would welcome an honest debate on the Tasmanian workers’ compensation scheme,” he said.