The Federal Government is to review its Comcare workers’ compensation scheme in an attempt to cut red tape and to bring it up to contemporary best practice.

Financial Services Minister Bill Shorten says the review will “modernise” the Comcare scheme to ensure injured Federal Government workers are given every opportunity to return to full health.

“It is vital that the Comcare scheme strives to return injured workers to health and independence,” he said. “We must ensure that the compensation system does not create needless disability.”

The legislation underpinning the scheme will also be reviewed, with the aim of providing “an equitable and cost-effective compensation scheme, with a particular emphasis on the improved rehabilitation of injured workers”.

The review will also address Comcare’s financial sustainability and ways to improve its operation, including improved delivery of recovery and support services.

It will be finalised by February 1 next year.