Comparison of Workers’ Compensation Arrangements in Australia and New Zealand (2012)

Table 3.4: Workers’ compensation arrangements for government employers

	Legislation	Self-insurance	Claims managers	Premiums
New South Wales	Workers Compensation Act 1987 Workplace Injury Management and Workers Compensation Act 1998	Several different types of cover are available to public sector employers in NSW: • NSW Self-Insurance Corporation (previously known as NSW Treasury Managed Fund) is a self insurance scheme owned and underwritten by the NSW Government for all participating budget dependent agencies. • A number of agencies and state owned corporations are self-insured with WorkCover NSW. •Specialised Insurers are licensed in similar fashion to self-insurers but organised on an industry basis - most local councils are insured through StateCover Mutual, a specialised insurer in NSW.	- All claims are handled by claim agents, which are approved insurers on behalf of SICorp. - Claims managed by the self-insured organisation. - Claims managed by StateCover Mutual.	StateCover Mutual determines annual contributions in accordance with its published premium rating methodology.
Victoria	Accident Compensation Act 1985.	Bodies corporate and the Municipal Association of Victoria can apply to become self-insurers in Victoria: s141. Government agencies are neither, and therefore cannot become self-insurers under Victorian legislation.	Each government agency chooses one of the agents appointed to manage claims in Victoria to manage claims on their behalf Employers, including government agencies, may change agents once per year if they believe another agent will provide better service.	Government agencies must have worker’s compensation insurance and pay premiums to the WorkCover fund. Administration of policies and the calculation of premium is the same as for private sector employers.
Queensland	Workers’ Compensation and Rehabilitation Act 2003	Local governments can apply for self-insurance. State Government Owned Corporations and other statutory bodies were able to self-insure until a 1998 government directive stating they were to remain with the WorkCover system. Departments of government cannot apply for single self-insurance licences unless all departments are joined in the licence.	All claims are handled by WorkCover Queensland. *	All employers are required to pay a premium for a workers’ compensation policy.*
Western Australia	Workers’ Compensation and Injury Management Act 1981.	Agencies are underwritten by the Insurance Commission of WA through the “RiskCover” fund. No government agencies are directly self insured.	All government agency claims are handled by RiskCover.	All government agencies must have workers’ compensation coverage with RiskCover. Premiums are paid direct to RiskCover.^1
South Australia	Workers Rehabilitation and Compensation Act 1986.	The Crown and any agency or instrumentality of the Crown is deemed to be a self-insured employer under Section 61 of the Act and are therefore meets all of the costs associated with worker’s compensation claims.	Crown agencies assume the role of the compensating authority in respect of the management of workers’ compensation.	Crown agencies are required to pay an administrative levy each year to meet the costs associated with scheme administration.
Tasmania	Workers’ Rehabilitation and Compensation Act 1988.	The Crown and any agency or instrumentality of the Crown is deemed to be an exempt employer under Sections 97(9) and 114(5) of the Act and is therefore self- insured and meets all of the costs associated with worker’s compensation claims. The Tasmanian Risk Management Fund is a whole-of-government self-insurance arrangement for funding and managing the insurable liabilities of inner-Budget agencies. The Fund is administered by the Department of Treasury and Finance	Claims administration is undertaken by a Fund Administration Agent, Marsh Pty Ltd, who is engaged under contract.	The Fund operates on a cost recovery basis with contributions set to ensure adequate financial provision for the cost of risk now and into the future. The level of Agencies contributions is determined by an independent actuary to reflect their risk exposure, claims experience and nominated excess amount.*
Northern Territory	Workers Rehabilitation and Compensation Act 2008.	Local Government and some statutory agencies are insured with approved insurers. The majority of the Northern Territory Public Service is ‘insurance exempt’ and is treated as a self insurer.	For the majority of the Nothern Territory Public service claims are managed by an approved insurer, TIO,, in partnership with the Dept of Business and Employment (DBE) and the parent agency. The NTPS pays a fee for this service. Some agencies are insured commercially, and the insurer manages these claims.	Unless the government agency insures with an approved insurer, no premium is paid. Claims are paid by the Agency.
Australian Capital Territory	Safety, Rehabilitation and Compensation Act 1988 (Cth).	All ACT Government workers are covered under the COMCARE scheme.	All government claims are handled by Comcare.	A premium is paid to Comcare annually.
Commonwealth Comcare	-	Commonwealth Authorities (defined in the Act) may be granted a licence to self insure which may include self management of claims. Departments of state are not such authorities and are not eligible to apply. Note: current licensed authorities are Australia Postal Corporation and Reserve Bank of Australia.	All government claims except those covered by self - insurance are managed by Comcare. Claims by the 2 licensed authorities are managed in-house by those authorities.	Commonwealth entities, other than those 2 licensed Commonwealth authorities pay experienced based premiums to Comcare annually.
Commonwealth Seacare	Seafarers Rehabilitation and Compensation Act 1992.	Not applicable.	Act does not apply to employees covered by the Safety, Rehabilitation and Compensation Act 1988.	Act does not apply to employees covered by the Safety, Rehabilitation and Compensation Act 1988.
Commonwealth DVA	N/A.	N/A.	N/A.	N/A.
New Zealand	Accident Compensation Act 2001.		All government claims except those covered by Accredited Employers are managed by ACC. Claims by Accredited Employers are managed by those employers, either in-house or by a contracted third-party administrator.	Government employers pay levies to ACC like all other employers unless they are Accredited Employers.