July 2024

Changes to Workers Compensation in WA

On July 1, 2024, WorkCover WA introduced significant legislative changes impacting employers throughout the state. The new Workers Compensation and Injury Management Bill 2023 extensively updates and modernizes the existing regulations.

Key updates include higher standards for employers and increased fines for non-compliance. However, the changes also offer benefits such as higher caps on medical expenses and easier access to provisional payments for deferred liability claims. For detailed information, visit the WorkCover WA website or contact us directly.

Summary of Changes to Workers Compensation Laws in WA

  • Employers can no longer accompany injured workers to medical exams but are able to attend mandatory return-to-work meetings, even if the worker is unfit to work.
  • Asking about past workers’ compensation claims during hiring is now prohibited, with severe fines for violations.
  • Claim forms and medical certificates must be sent to insurers within 7 days, or a $5,000 fine will be imposed (previously 5 days and $1,000).
  • If an insurance company delays a decision, they must start provisional payments within 28 days, covering wages, medical costs, and compensation. Back payments will begin from the date of injury, and insurers must decide on a claim within 120 days, or liability is deemed accepted.
  • Workers are no longer required to report injuries immediately but must do so within a year.
  • Medical expense coverage increases from 30% to 60%, and emergency medical transport by air will now be covered.
  • Workers’ income compensation payments are extended, stepping down after 26 weeks instead of 13. Compensation will be based on 12 months of earnings, ensuring workers earn at least their basic salary. Annual leave can be used alongside income compensation.
  • Psychological injuries from formal administrative actions are excluded unless the action is deemed harsh or unfair. Proper documentation and adequate policies and procedures, such as allowing a support person for the employee, are necessary.
  • Contractors are covered as workers unless performing work related to their own or their business’s trade or business.
  • Catastrophically injured workers may now receive lifetime care and support similar to those injured in motor vehicle accidents under the Catastrophic Injuries Support Scheme.
  • New rules apply to disability workers and NDIS participants. NDIS participants are deemed the employer only if they engage a disability worker through a self-managed fund.

What This Means for Employers

Employers now have greater responsibilities and must ensure adequate coverage. Workers’ compensation insurance is mandatory for any Australian business with employees, your commitment as an employer, ensures wellbeing in the workplace. 

Employee safety and protocols around safety are critical. It is important that these mechanisms are regularly review and updated, and support injured workers in returning to work when possible.

Early Intervention Matters

Engaging early intervention injury management providers can be beneficial. These providers manage communications, coordinate treatment plans and reports, and help achieve the best outcomes for employees. Using a claims coordinator can:

  • Improve injury recovery times
  • Reduce claim costs
  • Shorten work absence durations
  • Identify risks and prevent chronic injuries
  • Enhance workplace culture

We are here to help. Contact us today.