South Australians will be able to sue their employers at common law under a major redesign of the state’s workers’ compensation scheme.

Deputy Premier John Rau says the average premium – currently the highest in the country – will fall to 2% from 2.75% and save employers a total of $180 million.

He says the Government is ultimately aiming for a rate between 1.5% and 2%, and is placing more emphasis on getting injured workers back to work.

The SA scheme will distinguish between seriously injured and less-injured workers, with increased compensation for serious cases and capped payments for others. Payments will stop after two years.

A more stringent qualifying test will be applied to whether injuries arise from work, and employment will need to be the significant contributing factor in a psychiatric injury.

The Government has issued a policy paper and plans to introduce a reform bill if it is re-elected on March 15.