Administrative and scheme delivery changes

The SIRA Inspectorate

In response to specific issues and complaints and using predictive data to identify risks associated with poor return to work outcomes, the SIRA Inspectorate has engaged several NSW employers across a spectrum of industries through 2023. Authorised inspectors have utilised a range of regulatory tools to assess and enforce employer compliance with their legislative obligations. This included the issuance of improvement notices and penalty notices for failure to comply with improvement notices, failure to provide suitable employment, failure to notify the insurer of workplace injury within 48 hours and failure to provide a compliant return to work program.

Worker or Contractor Tool

In June 2023, SIRA launched a ‘Worker or Contractor Tool’ that provides guidance to employers and head contractors as to whether a person working for them is either a ‘worker’, ‘deemed worker’ or a ‘contractor’ for the purpose of complying with their legislative obligations to have a workers compensation policy.

PIAWE post-implementation review 

SIRA undertook a post-implementation review of the 2019 pre-injury average weekly earnings (PIAWE) reforms to evaluate whether they met the intended objectives of increased simplicity, fairness, and transparency.

The review was conducted in collaboration with key industry stakeholder representatives including insurers, unions, employer groups, legal representatives and the Independent Review Office and the Personal Injury Commission. The overall findings show that the PIAWE amendments and improved methodology are delivering a simpler, fairer, and more transparent approach compared to the previous 2012 PIAWE provisions. The review did however highlight a few enduring challenges that still exist for some stakeholders, and SIRA has commenced work to address these.

Policy Developments

Travel reimbursement amendments

SIRA undertook a review of the travel reimbursement rate for workers to travel for medical, hospital and rehabilitation services. The review considered rates paid in other jurisdictions, fuel prices, CPI data, the Australian Tax Office rate and the Crown Employees Award (Public Sector- Salaries 2022) rate. None of the single measures reviewed were able to provide improved benefits for workers whilst also delivering sustainable outcomes for the scheme. As an alternate, a multi-factorial approach was adopted instead, which provided workers with an increase in travel entitlements from .55cents per kilometre to .58cents per kilometre, and prioritised scheme sustainability.

Legislative amendments

Lump sum death benefit – additional compensation for children of deceased workers

Following the passage of the Motor Accidents and Workers Compensation Legislation Amendment Act 2022, SIRA worked with government stakeholders to develop amendments to the Workers Compensation Regulation 2016 (the Regulation) to give effect to new entitlement to funds management compensation for children of deceased workers. The Regulation was amended to include Clause 177 which provides a formula to calculate the additional compensation amount to cover fees where a child’s lump sum death benefit is managed by the NSW Trustee and Guardian. This new entitlement commenced on 16 December 2022 and ensures that trust money payable to the children of deceased workers when they reach 18 is maximised.