ACT Government wants to exit Comcare workers compensation scheme

The ACT Government wants to exit the Federal Government's Comcare scheme for workers compensation and develop its own cheaper arrangements.

The Federal Government's workplace insurer Comcare provides support for staff who were injured or incapacitated as a result of their job, however the ACT premiums have almost reached $100 million.

Comcare had previously been criticised for excessive premiums, paying for dubious claims and allowing injured workers to sit at home for lengthy periods rather than return to work.

ACT Workplace Safety and Industrial Relations Minister Mick Gentleman said consultation had begun to design a new workers' compensation scheme aimed at providing improved outcomes for injured public servants.

"The Comcare system hasn't been achieving the results the ACT Government would like to see," he said.

"We want to see the promotion of employees' recovery and return to work by providing early rehabilitation services focused on achieving specific health return-to-work outcomes and that hasn't been happening under the current system.

"We have been talking to unions across the territory and they seem to be coming on board."

The escalating costs of using the Comcare scheme was also cited as a factor.

"The trajectory is very high, the cost has doubled in the last five years and that hasn't translated to better outcomes for workers. This is the key issue I think.

"So we want to ensure that the cost comes down for our future workers and we have better outcomes for them."

The consultation will focus on promoting recovery and return to work, guaranteeing long-term compensation for seriously injured workers and making claims easier to process.

Currently there are no private sector insurance providers who offer the wide-ranging services under Comcare.

However the ACT Government is looking at constructing the scheme and going out to the private insurance market to see what they can offer.

Mr Gentleman said the proposed changes would only apply to the ACT public sector and not existing workers' compensation claims.

Unions give support to exit Comcare scheme

UnionsACT has welcomed the ACT Government decision to begin leaving the Comcare scheme.

UnionsACT secretary Alex White said it was an opportunity for the ACT to develop the best workers compensation scheme in the nation.

"It is widely known that Comcare has not always delivered the best outcomes for workers in the past, and the proposed changes to the scheme by the Abbott Government would materially reduce rights and entitlements," he said.

"Unions in the Canberra region looks forward to working with the ACT Government to develop a replacement scheme.

"We will ensure that any new compensation scheme improves the rights of workers and has better safety and return to work outcomes."

However the ACT Opposition has criticised the Government's decision as an attempt to go it alone without official justification.

Shadow treasurer Brendan Smyth said the Comcare decision was not based on facts.

"We all know that the Comcare premium has grown significantly over the last decade but what the ACT Government hasn't done is make the case for this change," he said.

"What they need to do is make public their calculations showing they can get a better premium and they can actually get a better result for those workers."

The consultation process will take six weeks.