South Australia’s workers’ compensation rules may change in July next year as the State Government presses ahead with plans for a major overhaul of the system, employers have been told.

The proposed changes would reduce average premiums, which are the highest of any state despite a recent improvement in WorkCover SA’s performance.

The state’s premium rate of 2.75% of wages compares with 1.298% in Victoria, while WA has announced a rate of 1.556% for next financial year.

The SA Government estimates a 2% level would deliver savings to employers of about $180 million.

Employers were updated at a seminar last week hosted by Marsh.

“This is a reform that is due,” WorkCover SA Scheme Improvement and Regulation GM Michael Francis told insuranceNEWS.com.au after the session.

“We can continue to improve the current scheme but given the rules of the game we have at present we won’t get to the 1.5-2% level the Government has put as a target to be jurisdictionally competitive.”

More than 50 people attended the Marsh seminar on likely changes, which are high on the agenda following a state election earlier this year. The Government has flagged July 1 next year to start new arrangements, but is yet to release draft legislation.

“We want to make sure this is a front-of-mind issue for employers, that change is on the way and they need to think about the potential impact on their business,” Marsh Workforce Strategies National Manager John Barnes told insuranceNEWS.com.au.

Expected reforms include a two-tier system, with separate rules for seriously injured workers and two-year limits on compensation payments for those not seriously hurt.

Employers are also closely watching plans to allow common law actions, although it is not yet clear what restrictions may apply on people pursuing cases through the courts.

A government discussion paper released this year notes support services have proved inadequate, with 25% of those off work for more than two weeks still sidelined at the two-year mark.

“Everybody says we need a more affordable, sustainable scheme that supports people to get back to work sooner in a more effective way, but clearly there are vastly different opinions on how you achieve that,” Mr Francis said.