Victoria introduced the Workers’ Compensation Act 1914 with benefits payable to workers arising ‘out of  and in the course of’ employment. The Workers’ Compensation Act 1946 changed to arising ‘out of or in the course’ of employment. Major amendments were made in 1984 and the Accident Compensation Act 1985 was introduced. The Accident Compensation Act 1985 made sweeping changes to the system including public underwriting, vocational rehabilitation, work health and safety reforms and a new dispute resolution system. 

The Act has been constantly updated with major reforms as follows:

1992

• restricting weekly benefits for workers with a partial work capacity
• introducing a non-adversarial dispute resolution system via conciliation
• establishing expert Medical Panels to determine medical questions
• limiting access to common law to seriously injured workers, and
• reinstating the right to sue for economic loss.

1993

• introducing the  premium system.

1997

• removing access to  common law
• significantly changing  the structure of weekly benefits
• introducing impairment  benefits to replace the Table of Maims, and
• restructuring death  benefits .

2000

• reinstating  access to common law damages for seriously injured workers with a new threshold for economic loss.

2004

• improving the  efficiency of the claims process, and
• facilitating early and sustainable return to work.

2005

• making provision for  previously injured workers whose employers exit the Victorian scheme to become licensed corporations under the Comcare scheme.

2006

• enhancing existing benefits including death benefits and the extension of the weekly benefits entitlement period from 104 to 130 weeks with increased payments for workers with a partial work capacity.

2007

• clarifying the  financial guarantee requirements on employers who exit the Victorian WorkCover scheme (or Victorian self-insurer arrangements) to self-insure under the federal Comcare scheme
• mandating the return of the management of tail claim liabilities to the Victorian WorkCover Authority (WorkSafe  Victoria ) for Victorian self-insurers who cease their self-insurance arrangements under the Victorian scheme
• restoring the original  approach to the assessment of permanent impairment for injured workers who suffer spinal injuries prior to the decision of the Full Court of the Supreme Court in Mountain Pine Furniture Pty Ltd v Taylor
• confirming that compulsory employer superannuation payments are not taken into account in the calculation of weekly benefit compensation
• improving counselling  benefits for the families of deceased or seriously injured workers, and
• contributions towards the purchase price of a car where the current car is unsuitable for modification, home relocation costs and portable semi-detachable units in addition to car and home modifications.

2008

• preservation of the higher  impairment rating regime for workers with musculoskeletal injuries assessed under Chapter 3 of the American Medical Association Guides (4th edition) in place since 2003
• retrospective amendments to the Act  to maintain the status quo regarding recovery rights against negligent third parties that contribute to the compensation costs payable for a worker’s injury, and
• workers with asbestos-related conditions can claim provisional damages and access expedited processes to bring on court  proceedings quickly where the worker is at imminent risk of death.

2009

• on 17 June 2009 the Victorian Government responded to 151 recommendations made in a commissioned report following a  review undertaken in 2008 by Mr Peter Hanks QC of the Accident Compensation Act 1985 and associated legislation, and
• improvements to benefit both workers and employers and aimed at enhancing the scheme as a whole were introduced into  Parliament in December 2009.

2010

The Accident Compensation Amendment Act 2010 was passed with the majority of the reforms commencing from 5 April 2010, except for new return to work rights and obligations commencing from 1 July 2010. The Act introduced the following changes:

• almost a doubling of lump  sum death benefits, and improved access to pensions for dependants of deceased workers

For injured workers who suffer a permanent impairment, the reforms provided:

• a 10% increase in no- fault lump sum benefits for workers with spinal impairments
• a 25% increase in the maximum impairment benefit, increasing no-fault lump sum benefits for the most profoundly injured  workers , and
• a 5-fold increase in benefits  awarded to workers who suffer a serious psychiatric impairment.

For injured workers who receive weekly payments:

• an increase in the rate of  compensation from 75% to 80% of income after workers have received compensation for 13 weeks
• a superannuation contribution for long term injured workers
• the extension of the inclusion of overtime and shift allowances from 26 weeks to 52 weeks when calculating a worker’s weekly payments
• increasing the statutory  maximum for weekly payments to twice the state average weekly earnings, and
• payment of limited further weekly payments for workers who have returned to work, but who require surgery for their work- related injury.

Other changes include:

• the replacement of prescriptive return to work requirements with a performance based regulatory framework from 1 July 2010 and the appointment of a Return to Work (RTW) Inspectorate with the power to enter workplaces and issue return to work improvement notices for any contravention by an employer of the return to work part of the Act
• greater accountability and transparency of decisions made by Victorian WorkCover Authority and its agents, including the right of employers to request written reasons for agents’ claims decisions and to appeal premium determinations, and
• less red tape for employers and improved understanding and usability of the legislation by the removal or reform of anomalous, obsolete, inoperative or unclear provisions.

Further reforms were introduced in the latter half of 2010 with amendments to:

• streamline the provision that sets out the calculation of pre-injury average weekly earnings (PIAWE) and correct an  anomaly in relation to the incorporation of commissions into PIAWE
• codify current policies that relate to the impact on remuneration of salary packaging and injury prior to taking up a  promotion , on the calculation of PIAWE
• restructure and streamline the provisions that govern the coverage of contractors
• align the value of impairment benefits for injured workers assessed at 71% WPI or above with the equivalent value of  common law damages payable for pain and suffering on an ongoing basis
• introduce greater clarity and equity for dependants of deceased workers in relation to medical and like benefits, how earnings are calculated and how partial dependant partners of deceased workers are compensated
• improve the usability of  provisions relating to medical expenses, and
• extend an existing provision in the Act to allow the making of a Governor in Council Order that would permit the introduction of a fixed costs model (FCM), with built-in increases linked to inflation, for plaintiff’s legal costs in the litigated phase of serious injury applications.

2011

On 1 July 2011, the new ANZSIC 2006 based WorkCover Industry Classification (WIC) system commenced.

2014

Workplace Injury Rehabilitation and Compensation Act 2013

The Workplace Injury Rehabilitation and Compensation Act 2013 commenced on 1 July 2014. The Act recast the Accident Compensation Act 1985 and the Accident Compensation (WorkCover Insurance) Act 1993 into a single Act. The WIRC Act also repealed the Accident Compensation (WorkCover Insurance) Act 1993 and streamlined provisions of the AC Act.⁴  

The WIRC Act:

• applies to injuries including physical and mental injuries, diseases, and industrial deafness 
• defines the term ‘worker’ and stipulates that a worker may be entitled to compensation for an injury arising out of or in the course of any employment, or to the exacerbation of which work has been a significant contributing factor 
• provides the framework for decisions about a worker’s claim and the respective roles, rights and duties of the worker, employer, WorkSafe and others 
• outlines what must legally happen when a Victorian worker is injured at work or loses their life because of a workplace injury 
• covers insurance, workers’ compensation, claims, rehabilitation, return to work, and dispute resolution 
• allows for employers to apply to be self-insurers and to manage and bear the costs and risks of their own workers’ compensation claims 
• covers the requirements and process of registration of employers, and determination and obligations regarding premiums.    

In doing so, the objectives of the WIRC Act are to: 

• reduce the incidence of  accidents and diseases in the workplace 
• make provision for the  effective occupational rehabilitation of injured workers and their early return to work 
• increase the provision of suitable employment to workers who are injured to enable their return to work 
• ensure appropriate  compensation under the WIRC Act or the AC Act is paid to injured workers in the most socially and economically appropriate manner, as expeditiously as possible  
• ensure workers compensation costs are contained, to minimise the burden on Victorian businesses 
• establish incentives that are conducive to efficiency and discourage abuse 
• enhance flexibility in the system and allow adaptation to the needs of disparate work situations  
• maintain a fully funded  scheme  
• improve the health and safety of persons at work and reduce the social and economic costs to the Victorian community of accident compensation.  

Workplace Injury Rehabilitation and Compensation Regulations 2014 

The Workplace Injury Rehabilitation and Compensation Regulations were made in 2014 following the introduction of the WIRC Act. 

The Regulations set out additional details and particulars surrounding compensation arrangements, such as amounts not to be taken as remuneration for certain classes of contractors, the formula for calculating contributions payable to the WorkCover Authority Fund by self-insurers, and prescribing certain other matters or things required or permitted to be prescribed or necessary to be prescribed to give effect to the WIRC Act and the AC Act. 

The Regulations are important for the effective operation of the WIRC Act and prescribe the following: 

• the prescribed particulars that, if certified in a certificate issued by WorkSafe, can be taken as evidence of those matters (for instance, the certificate can be used as evidence of payments made in fraud prosecutions) 
• the form search warrants should take 
• how inquiries and investigations into fraud should be conducted 
• the prescribed hours an employee must work to be considered a full-time worker when there is no applicable award  
• the prescribed hours for calculating injury payments when a worker works for more than one employer and there is no applicable award  
• the percentage of amount payable under timber contracts to a timber contractor that is not deemed to be remuneration 
• the percentage of amount payable under certain contracts to contractors deemed to be workers under the WIRC Act and the AC Act that are not deemed to be remuneration  
• payments to workers residing overseas 
• the period after which WorkSafe must pay interest to employers on reimbursements  
• the formula for calculating contributions payable by self-insurers to WorkSafe

2019

Firefighters' Presumptive Rights and Fire Services Amendment Legislation (Reform) Act 2019 

The  Firefighters' Presumptive Rights Compensation and Fire Services Legislation Amendment (Reform) Act 2019 came into effect in July 2019. It allows career and volunteer firefighters to access presumptive compensation for specified cancers contracted while serving as a firefighter. The compensation applies to career and volunteer firefighters who:

• have served in active firefighting roles for a specified number of years, depending on the cancer type
• have been diagnosed since 1 June 2016 with one of 12 specified cancer types
• are diagnosed during their service or within 10 years after the conclusion of their service, and
• have a listed cancer because of an exceptional exposure event in a firefighting capacity.

An advisory committee was established to provide advice to WorkSafe regarding the scheme.

2020

Justice Legislation Amendment (Supporting Victims and Other Matters) Act 2020  

The  Justice Legislation Amendment (Supporting Victims and Other Matters) Act 2020 was passed in November 2020. The Act temporarily amended the WIRC Act and AC Act to exclude earnings for workers financially impacted by the effects of COVID-19 for the period between 1 March 2020 and 31 December 2020. The intended effect of this was to ensure that a worker's PIAWE are calculated as if the worker was not financially disadvantaged by the impacts of COVID-19. The rationale for the proposed amendments is as follows:

• COVID-19 had a significant impact on Victoria with businesses and many workers needing to reduce hours and earnings or losing jobs as a result of COVID-19 restrictions.
• The reduction in a workers’ hours and earnings due to COVID-19 restrictions has a direct impact on PIAWE calculation and therefore a workers’ weekly compensation entitlements. A lower PIAWE will result in the worker being financially disadvantaged for the life of their claim. 

Provisional Payments for mental injury

In June 2019, the Victorian Government launched a Provisional Payments Pilot (pilot) for eligible emergency services industry workers and volunteers who lodge a claim for mental injury. The pilot preceded legislation in 2021 which provides all Victorian workers who lodge a mental injury claim with provisional payments. 

The pilot was expanded in November 2020 to also apply to all public health staff, including medical and support staff, who lodge a new mental injury claim. The inclusion of this cohort intended to provide additional support to healthcare workers in response to the pandemic. 

Under the pilot, eligible workers or volunteers who submit a claim for a primary mental injury were eligible to receive payments for medical and like services, prior to their claim being determined. The pilot also offers payments for medical and like expenses for up to 13 continuous weeks, from the date of lodgement, for participants where their claim is not accepted. 

COVID-19 Omnibus (Emergency Measures) and Other Acts Amendment Act 2020 

The  COVID-19 Omnibus (Emergency Measures) Act 2020 and the  COVID-19 Omnibus (Emergency Measures) Amendment Act 2020 (COVID-19 Omnibus Acts) were passed in October 2020, amending the Workplace Injury Rehabilitation and Compensation Act 2013 (WIRC Act). The amendments extended the notice period given to an injured worker for second entitlement determinations made during relevant period from 13 weeks to 39 weeks. 

Prior to the COVID-19 Omnibus Acts amendments, the WIRC Act specifies that a worker's entitlement to weekly payments must not be terminated on the ground that the second entitlement period has expired, unless and until the Victorian WorkCover Authority or the self-insurer has made a second entitlement determination and has given at least 13 weeks’ notice of the decision to terminate weekly payments.

The effect of the COVID-19 Omnibus Act’s amendments is that injured workers whose weekly payments are terminated as a result of the second entitlement period determination during the relevant period receive 39 weeks’ notice of termination, in lieu of the current 13 week notice period. The relevant period initially set by the first of the COVID-19 Omnibus Acts was to apply to workers who were due to receive their notice of termination between 1 December 2019 and 23 October 2020. The second of these Acts further extended the period to 31 December 2020.

2021

The WIRC Act and AC Act were amended in 2021 to: 

• allow the Accident Compensation Conciliation Service (ACCS) to hear and make binding determinations on disputes not resolved by conciliation. 
• give workers the choice to have their matter arbitrated by the ACCS instead of going to court
• introduce provisional payments for up to 13 weeks for workers who seek compensation for a mental injury under WorkCover to cover reasonably medical expenses while they await the outcome of their claim
• require employers to provide early notification of mental health claims to their agent (within 3 business days), agents to determine whether provisional payments should be provided (within 2 days) and self-insurers to determine whether provisional payments should be provided (within 5 business days). 

Workplace Injury Rehabilitation and Compensation Amendment (Provisional Payments) Act 2021 

The Workplace Injury Rehabilitation and Compensation Amendment (Provisional Payments) Act 2021 came into effect on 1 July 2021. This amended the WIRC and AC Acts to provide for a provisional payments scheme for workplace mental injuries.

Under the scheme, Victorian workers who seek compensation for a mental health injury under WorkCover will receive payments to cover reasonable medical expenses while they await the outcome of their claim. Provisional payments are payable up to the date of claim acceptance or, in any other case, 13 weeks after the day the worker is determined to be entitled to provisional payments.

The legislation also requires employers to provide early notification of mental injury claims to their Agent (within 3 business days of receiving the claim). Agents will then need to determine whether a claim is eligible to receive provisional payments within 2 business days. Self-insurers will have 5 business days to determine a provisional payments claim. Where employers do not meet these early notification requirements penalties will be applied. 

Forests Amendment (Forest Firefights Presumptive Rights Compensation) Act 2021 

The Forests Amendment (Forest Firefights Presumptive Rights Compensation) Act 2021 expanded the presumptive rights compensation scheme to cover eligible forest firefighters. This means that if a forest firefighter who satisfies the relevant criteria is diagnosed with a specified cancer, they no longer need to prove that the cancer is directly attributable to their service as a firefighter. The presumption applies unless it can be proven the cancer was not caused by firefighting.

2022

Changes to Firefighters' Presumptive Rights Compensation and Fire Services Legislation Amendment (Reform) Act 2019 (FPRC Act) commenced on 1 September 2022. The changes extend presumptive rights compensation to vehicle and equipment maintenance employees engaged by the Country Fire Authority (CFA) and Fire Rescue Victoria (FRV). 

Extending presumptive rights for specified cancers to vehicle and equipment maintenance employees employed by the CFA or FRV recognises the critical role they play in maintaining firefighting equipment at the fire scene and provides equal coverage for persons employed in those roles. Vehicle and equipment maintenance employees are required to attend fires to repair and refuel fire trucks. 

The Workplace Safety Legislation and Other Matters Amendment Act 2022 (Amendment Act)  

The Workplace Safety Legislation and Other Matters Amendment Act 2022 (Amendment Act) commenced on 16 March 2022 and aims to prevent and better respond to workplace safety incidents, improve outcomes for injured workers and their families, and increase WorkSafe Victoria’s ability to enhance Victoria’s workers' compensation scheme operations. 

On 1 July 2022, changes came into effect that improve compensation arrangements for workers with silicosis and similar occupational diseases. These changes enable workers with eligible diseases to access lump sum payments without needing to prove their injury has stabilised. The changes allow injured workers who have already received compensation for silica-related diseases to make a subsequent application for damages if they develop a further related disease or injury down the track. The changes also provide greater support to Victorians who have received a lung transplant due to a work-related injury and extends compensation for counselling services to families of workers diagnosed with an eligible disease.

The Workplace Injury Rehabilitation and Compensation Amendment (Arbitration) Act 2021 (the Arbitration Act) came into effect on 1 September 2022. The Arbitration Act amended the Workplace Injury Rehabilitation and Compensation Act 2013 (WIRC Act) and Accident Compensation Act 1985 (AC Act). The Arbitration Act amends the WIRC Act to:

• allow the Accident Compensation Conciliation Service (ACCS) to hear and make binding determinations on disputes not resolved by conciliation, and
• give workers the choice to have their matter arbitrated by the ACCS, instead of going to court, who must commence a hearing within 30 days of the dispute being referred.

The Arbitration Act delivered on the Victorian Government’s commitment to improve the dispute resolution process in line with a recommendation from the Victorian Ombudsman 2019 report “WorkSafe 2: Follow-up investigation into the management of complex workers’ compensation claims”.

2023

Justice Legislation Amendment Act 2023  

The Justice Legislation Amendment Act 2023 came into effect in October 2023. It expanded the presumptive rights scheme in the Firefighters’ Presumptive Rights Compensation and Fire Services Legislation Amendment (Reform) Act 2019 to include 3 additional cancers affecting female firefighters – primary site cervical, ovarian and uterine cancers. The rights apply to female careers and volunteer firefighters and vehicle and equipment maintenance employees who: 

• have served in active roles for a qualifying period of 10 years to align with other Australian and international jurisdictions 
• have been diagnosed on or after 1 June 2016 in line with cancers already included.

Workplace Injury Rehabilitation and Compensation Amendment (WorkCover Scheme Modernisation) Bill 2023 

The Victorian Government introduced the WorkCover Scheme Modernisation Bill into Parliament in 2023. 

The purpose of the Bill is to modernise the WorkCover scheme to better respond to mental injury claims and reinforce its financial sustainability.