Victorian workers who experience stress and burnout will no longer be able to access weekly benefits from the State’s WorkCover Scheme under proposed changes to the rules.
Announced by Premier Daniel Andrews, the changes are also set to establish a new Government body, ‘Return to Work Victoria’, to pilot initiatives designed to improve return to work and prevention outcomes.
“WorkCover is fundamentally broken,” Mr Andrews said, “no longer meeting the modern needs of those it was designed to assist more than 30 years ago.”
“Since 2010, WorkCover’s claims liability has tripled, mainly driven by the increased cost of weekly income support and many workers staying on the scheme long-term,” he said.
“The increase is partially driven by mental injury claims – now representing 16 per cent of new claims – which was never envisaged when the scheme was designed.”
Mr Andrews said workers suffering from stress and burnout would be eligible for provisional payments for 13 weeks to cover medical treatment, alongside enhanced psychosocial supports to help them return to the workplace or training pathways.
He said WorkSafe would also update the test for workers receiving WorkCover weekly payments beyond two and a half years, with Whole Person Impairment greater than 20 per cent to be required for a worker to continue receiving weekly payments.
“Planned eligibility changes will come into effect in 2024 and will only apply prospectively,” the Premier said.
“Victorians already receiving WorkCover who have passed the two-and-a-half-year mark will continue under the current scheme, will continue to receive payments, and will also benefit from the services of Return to Work Victoria to help them get better and back into the workforce.”
Raising concerns about the proposed reforms, the Community and Public Sector Union Victoria (CPSU VIC) said the changes, which require a mental injury to be predominantly caused by employment through traumatic events with clinically significant outcomes, are anticipated to have a significant impact on the number of claims lodged and accepted.
“The draconian changes proposed by the Victorian Government to the WorkCover legislation have significant implications for workers seeking compensation for mental injuries,” CPSU VIC said.
“By denying compensation to workers with genuine work-related mental injuries, the Government risks inflicting substantial financial costs and increased stress on these individuals,” it said.
“Provisional payments do not adequately address the challenges of accessing timely treatment and covering out-of-pocket expenses.”
The Union called on members to sign a petition opposing the changes.
Further information on the proposed WorkCover changes can be accessed at this PS News link and CPSU’s information flyer at this link.
