Workers compo reforms lift age barrier

Commerce Minister Troy Buswell today announced a cut in recommended insurance rates for workers' compensation and a raft of improvements to the system, including the removal of provisions discriminating against older employees.

"Taking age out of the equation will be a major win for older workers and for our State's workforce in general," Mr Buswell said.

"Right now, workers who are 64 or older are entitled to a maximum of 12 months of weekly income payments. We intend scrapping that limit so that all workers - regardless of their age - have access to exactly the same entitlements."

Another reform will extend coverage to older workers for noise-induced hearing loss incurred after age 65, which does not apply at present either.

Mr Buswell said the changes would go a long way in recognising the immense value and contribution of older workers, while creating equity and opportunity for them to continue working past 65.

"It's in the best interests of older workers, and for the economy too, that we find ways to break down the barriers preventing them from staying in the workforce," he said.

Mr Buswell said that as well as bringing invaluable skills, experience and maturity with them, older workers helped address labour force shortages by staying in or returning to the workforce.

The proposed change is among 66 recommendations made following a review of the 1981 Workers' Compensation and Injury Management Act to deliver better outcomes for workers' compensation in the State.

Other legislative reforms to be put forward include improving protection for injured workers whose employers unlawfully fail to take out workers' compensation insurance.

"Currently, injured workers not covered by compensation insurance through their employer have no recourse through the courts", the minister said.

"I've long wanted to tackle this anomaly because I've seen first-hand the terrible impact it can have on the lives of injured workers and their families.

"Under the amended Act, the safety net provided by WorkCover WA will be extended to cover the payment of common law damages awarded to an injured worker through the courts."

A stronger emphasis on conciliation as an early intervention strategy would also see fewer disputes reach arbitration.

"Conciliation with clear time frames will support speedier negotiation and decisions and lessen the need to resolve disputes through arbitration," he said.

Mr Buswell plans to introduce the proposed amendments to State Parliament this year.

The minister also announced a reduction in the recommended premium rates for 2010-11 representing a 13.9 per cent drop from last year's rates.

"WorkCover WA's Board has agreed the average recommended premium rate for the next financial year will be 1.497 per cent of total wages, the lowest percentage rate in the system's history," he said.

"This follows the long-term trend of decreasing recommended insurance rates for employers, interrupted only last year because of the global financial crisis."

Mr Buswell said the reduction could be attributed to economic recovery from the financial crisis, continuing wages growth and a fall in workers' compensation claims.