SA WorkCover exit fees threaten self-insurance
South Australian employers are concerned a State Government proposal to charge WorkCover exit fees will prevent firms from self-insuring.
Next month the Government will debate a proposed amendment to workers’ compensation legislation aimed at reining in WorkCover SA’s unfunded liabilities of $911 million.
The proposal includes an exit fee charged to employers that choose to opt out of WorkCover SA and self-insure.
Self Insurers of SA Manager Robin Shaw says exit fees would range from $200,000 to around $1 million and would do little to address unfunded liabilities.
“In a good year [the Government] might make $5 million – it’s a drop in the ocean,” he told insuranceNEWS.com.au.
But a WorkCover SA spokesman said the exit fee was intended to cover unfunded liabilities left by employers departing the state scheme.
Currently Victoria is the only state to charge WorkCover exit fees.
Next month the Government will debate a proposed amendment to workers’ compensation legislation aimed at reining in WorkCover SA’s unfunded liabilities of $911 million.
The proposal includes an exit fee charged to employers that choose to opt out of WorkCover SA and self-insure.
Self Insurers of SA Manager Robin Shaw says exit fees would range from $200,000 to around $1 million and would do little to address unfunded liabilities.
“In a good year [the Government] might make $5 million – it’s a drop in the ocean,” he told insuranceNEWS.com.au.
But a WorkCover SA spokesman said the exit fee was intended to cover unfunded liabilities left by employers departing the state scheme.
Currently Victoria is the only state to charge WorkCover exit fees.