Increased compensation benefits for injured workers

14/9/93

Seriously injured workers subject to long-term incapacity for work and including those injured after June 30 will benefit through the Government's decision to increase statutory benefits under workers' compensation.

Labour Relations Minister Graham Kierath said the extra benefits were the result of an increase in the maximum compensation available for loss of earnings (the prescribed amount) from $88,232 to $100,000 which would be fully indexed for the first time in eleven years.

"The increase means a seriously injured worker will get up to six months' additional compensation," Mr Kierath said.

"The Government was accused of forcing injured workers on to social security benefits but the increase in the prescribed amount will result in the compensation system supporting workers for the extra period.

"Because the new prescribed amount will be backdated to July 1, 1993 workers injured previously, who were still on weekly payments at that date, will benefit from a longer period on compensation."

The Minister said that partial indexation of the prescribed amount was adopted eleven years ago because the State's maximum entitlement at that time was considered high in comparison to other Australian workers' compensation systems.

Since then, the majority of these systems had either substantial increases in the maximum amount payable or no maximum amount and the WA level had fallen below the national average.

"The new process of indexation will maintain the prescribed amount at a meaningful level to the benefit of the more seriously injured workers," Mr Kierath said.

About 87 per cent of lost time injuries extended to four weeks or less with only four per cent of lost-time injuries extending to one year or less.  This meant that only four to five per cent of claims ran to the prescribed amount and these workers would most benefit by the increase.

"A further effect of increasing the prescribed amount is to increase the monetary values of benefits under the second schedule.  This will ensure workers with permanent injuries are better compensated for their disabilities, which is a much fairer system," Mr Kierath said.

Media contact:  Brian Coulter 222 9595