Return to work has right focus
The effectiveness of the early intervention and new case management of injured workers that is at the heart of the State Government’s Return to Work regime will be crucial to keeping insurance premiums at a competitive level, according to Business SA.
Director of policy Rick Cairney said Business SA welcomed the reduction in insurance premiums from a previous average of 2.75 per cent of a company’s remuneration to 1.95 per cent in 2015-16, a move that will save the State’s 50,000 businesses an estimated $180 million annually.
Cairney also strongly supported the shift in focus of ReturnToWorkSA – which replaced WorkCoverSA – away from an emphasis on compensation towards a return to work with increased support from 100 mobile case managers from 1 July this year.
“The focus of the new scheme is on the capacity of employees to work rather than the previous attention to incapacity, and the provision of increased resources by way of mobile managers to help that to occur,” Cairney said.
“The new scheme has an appropriate level of compensation for injured employees but the change in emphasis to a return to work wherever possible, and as early as possible, is to be applauded because that should be the goal of employers and employees alike,” he said.
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“This is an important cultural shift not only within ReturnToWorkSA but amongst companies and their employees.”
“The business community looks forward to working with ReturnToWorkSA to ensure that the new regime delivers the results that are anticipated and ensures that insurance premiums remain at competitive levels, currently the lowest in the scheme’s history.”
Cairney’s comments came in the wake of the announcement by ReturnToWorkSA chairman, Jane Yuile that the scheme is now fully funded with mid-year financial results to 31 December 2014 showing a $20 million net asset position.
“This is an improvement from the previous unfunded liability of $1.132 billion at 30 June 2014, meaning the scheme is now 100.7% funded (previously 71%),” Yuile said last week.
“The scheme’s financial position has been completely turned around due to two significant factors; the impact of the legislative reform announced by the South Australian Government and our ongoing active management of the scheme,” she said.
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