Scheme history

Before 1916

Queensland's involvement with workers' compensation dates back to the Employers' Liability Act of 1886, which permitted recovery of common law damages in selected instances. In 1905 the then Workers' Compensation Act adopted the no fault principle and general coverage of the British model. Up until 1916 Queensland employers were expected, but not compelled, to seek accident insurance for their workers. Private insurers provided such insurance with little government involvement.

From 1916 to 1990: Workers' Compensation Act 1916

The Queensland Workers' Compensation Act 1916 repealed the former legislation and became the foundation for today's legislation, establishing the following major precedents:

As a result of legislative changes, judicial interpretation and administrative decisions, various amendments were made over the years to improve the systems e.g. to broaden coverage, increase recognition of work related conditions and improve benefits. Amongst the significant changes were:

• 1930 medical reports for compensation claims made mandatory
• 1944 term ‘accident’ repealed and definition of ‘injury’ inserted allowing compensation to a worker who had not met with a definite accident but was suffering from a condition brought about by their employment
• 1955 first medical board established
• 1963 merit bonus scheme introduced to provide accident and claim prevention incentives for employers. Extension of employers' insurance policies with the SGIO to cover against common law liability made compulsory.
• 1972 introduction of full award wages for injured workers during first 26 weeks disablement
• 1973 specific provision made for rehabilitation of injured workers.

In 1978, the Queensland Parliament determined that the administration of workers' compensation in Queensland would be better set up as a separate organisation outside the confines of the SGIO, due to workers' compensation being seen as essentially a social service.

On 1 July 1978 the Workers' Compensation Board of Queensland was established as a division of the then Department of Labour Relations. Responsibility for the administration and control of workers' compensation passed from the Queensland State Treasurer and SGIO to the Minister for Labour Relations and a six member board including representatives of employee and employer organisations.

The 1916 Act was subsequently amended in several key areas, including amendments to provide exclusion from the definition of "worker" of company directors (although those employed under a contract of service could elect to be insured), partners and trustees (unless specifically insured); clarification as to when contractors or sub-contractors were deemed to be workers; payment of certain permanent partial disabilities and in benefits associated with fatal claims; Medical Boards were to determine whether incapacity was partial or total.

1991 - 1996: Workers' Compensation Act 1990

The Queensland workers' compensation system itself remained relatively stable during this time. However, following extensive consultation with stakeholders, the Workers' Compensation Act 1990 commenced 1 January 1991, repealing the 1916 Act. The structure of the scheme was retained, as was the basic philosophy to provide fairness and equity for employers paying premium and for employees with work related injuries. However, major increases to benefits and services to injured workers were introduced based on outcomes of the consultation process.

The 1990 Act was subsequently amended, including to the definition of injury (employment to be "a significant contributing factor"); enhancement of the existing merit/bonus system with the introduction of penalties for adverse claims experience and providing greater financial incentive for employers to reduce the numbers and costs of workplace injuries; on 1 July 1995 moving Queensland public sector agencies into a premium based system and WCBQ took on the defence of common law claims on behalf of all government departments; employer excess introduced; surcharge on premiums; 'irrevocable election' for common law; comprehensive table of injuries including whole person impairment scales; changes to many statutory entitlements.

On 11 March 1996, the Government of the day announced the appointment of Mr Jim Kennedy to undertake an Inquiry into Workers' Compensation and Related Matters in Queensland. The Kennedy Report made a total of 79 recommendations in relation to the provision of workers' compensation in Queensland.

1997 – 2003: WorkCover Queensland Act 1996

These recommendations formed the basis of the WorkCover Queensland Act 1996, with the majority of provisions commencing on 1 February 1997 and the remaining provisions on 1 July 1997. Key features of the 1996 Act included:

• experience based premium rating to replace the merit bonus/penalty system
• changes in coverage in certain areas e.g. the definition of ‘worker’ and ‘injury’, journey claims and industrial deafness
• a pre-proceedings process for common law claims to promote early settlement of claims and minimise legal costs
• strengthening of employer and worker obligations for workplace rehabilitation and safety at work.

The main structural change introduced by the 1996 Act was the replacement of the Workers' Compensation Board of Queensland as a division of a government department with a new, independent statutory body, WorkCover Queensland. Whilst the portfolio Minister has reserve powers to influence WorkCover operations, responsibility and accountability for the commercial performance of WorkCover and oversight of the enforcement of regulatory responsibilities rested with the WorkCover Queensland Board.

WorkCover Queensland had two clearly identified roles: the first, to provide accident insurance as a commercial provider; and the second, to enforce the Act as a regulator.

In July 1997, the option was introduced for employers to self-insure, subject to the satisfaction of certain prudential and other criteria. Apart from the granting of self-insurance licences, WorkCover Queensland continued to be the exclusive provider of accident insurance.

In 1999, amendments to the 1996 Act included changes to the definitions of ‘injury’ and ‘worker’; self-insurance criteria (increase in minimum workers, requirements for occupational health and safety and assumption of liability for their tail of claims, no third party outsourcing of claims management); a Review Council to oversee the review process and the medical assessment tribunals; removal of the premium surcharge.

In May 2000 the WorkCover Regulatory Functions Division was relocated to separate premises and launched under the new name of Q-COMP. This separation reinforced the independence and impartiality of the regulatory services.

From 2003: Workers' Compensation and Rehabilitation Act 2003

In 2003 the Government approved the separation of WorkCover's insurance and regulatory functions as a result of the National Competition Policy review of the WorkCover Queensland Act 1996. Key features of the approved model included:

• the repeal of the WorkCover Queensland Act 1996 and provision for new legislation to provide for the separate delivery and regulation of the workers' compensation scheme
• maintaining WorkCover Queensland as a fully commercial statutory body
• providing for the establishment of a statutory authority to regulate the scheme
• centralising policy and legislative development functions within the Department of Industrial Relations.

The Workers' Compensation and Rehabilitation Act 2003 commenced on 1 July 2003. The change to the title of the legislation to the Workers' Compensation and Rehabilitation Act 2003 better reflects the function of the legislation, being to provide for a scheme of arrangements for the regulation and delivery of optimal workers' compensation and rehabilitation services to Queensland workers and employers.

To retain the integrity of the workers' compensation fund, WorkCover Queensland maintains premium setting and funds management as part of its functions together with insurance underwriting and service delivery. WorkCover Queensland insures over 143,000 employers, manages over 74,000 statutory and 2,400 common law claims annually.

The 2003 Act established Q-COMP, the Workers' Compensation Regulatory Authority of Queensland, whose primary function is to regulate the Queensland workers' compensation scheme, as a separate and autonomous statutory authority to ensure true independence and impartiality in relation to regulatory decisions made for all insurers, both self-insurers and WorkCover Queensland.

Q-COMP's functions under the Act include undertake review of insurers' decisions, support and oversee the efficient administration of medical assessment tribunals, undertake rehabilitation and compliance activities, maintain a database for scheme-wide reporting, promote education about the Queensland workers' compensation scheme, deciding applications relating to self-insurance.

At 1 July 2008 there are 24 self-insurers who manage and fund the cost of their employees' workers' compensation and damages claims.

Subsequent amendments to the 2003 Act provide for significantly enhanced benefits for injured workers and dependants of deceased workers; more flexible self-insurance arrangements; employers will not be able to dismiss more seriously injured workers for 12 months (up from six months); allow more flexible workplace rehabilitation practices.

2004 - 2008: Workers' Compensation and Rehabilitation Act 2003

The Workers’ Compensation and Rehabilitation Act 2003 was amended in 2004 to allow for the introduction of another appeals body. This effectively means that appeals can be heard by either an Industrial Magistrate or the Queensland Industrial Relations Commission. The change supports the objects of Chapter 13 of the Act and provides an alternative for claimants where conciliation, arbitration and mediation processes are desirable for resolving an appeal.

Key features introduced in 2005 include:

• amendment of the definition of 'rehabilitation' and 'rehabilitation and return to work co-ordinator'
• a greater obligation on employers to take all reasonable steps to assist or provide rehabilitation and suitable duties to injured workers
• provisions entitling a totally incapacitated worker to a higher compensation rate for a longer period of time
• provisions increasing the maximum amount of compensation payable and increasing the additional lump sum payable for certain workers.

Amendments were introduced in 2006 for further protection for injured workers, including an obligation on employers not to dismiss a worker solely or mainly because they are not fit for employment in their pre-accident role due to their injury. Provisions were also implemented to reaffirm the independent and non-adversarial nature of the Medical Asssment Tribunal (MAT) proceedings by clarifying that an insurer, employer or any other person, other than the worker or their representative, has no entitlement to be present or heard before the MAT. In addition the amendments give all parties an opportunity to comment on written material submitted to a MAT before it is considered at the hearing. This ensures that all of the parties are afforded natural justice.

A major new provision was introduced in 2007 giving insurers 20 business days to make a decision on an application for compensation. This provision applies to applications for compensation made after 1 January 2008. Insurers previously had 60 business days to decide a psychiatric or psychological claim and 40 business days to decide a physical claim.

In 2008 changes to criteria for becoming a rehabilitation and return to work coordinator were introduced. Obligations on certain employers to appoint rehabilitation and return to work coordinators and implement workplace rehabilitation policy and procedures were also established.

The Act was also amended to introduce a new benefit for dependants of a worker who has a latent onset injury that is a terminal condition. Dependants are now entitled to a payment of 15% of the maximum death benefit and 2% of the maximum death benefit for reasonable funeral expenses.

From 1 December 2008, certain approved forms may be lodged with an insurer or Q-COMP by telephone or another acceptable method, including:

• application for a WorkCover accident insurance policy
• application for compensation
• employer’s report
• application for review.