Scheme is now the worst performing scheme in Australia.

WorkCover in South Australia has the highest levy rate for employers, the worst return to work

rate for employees, the highest unfunded liability and the lowest funding ratio of any scheme in

Australia.

The Rann Government was very slow in reacting to WorkCover’s worsening position, which

was raised as early as 2003 by both the Opposition and industry groups. Calls for better

management and reform were ignored.

When the Liberal Party was last in Government the unfunded liability of WorkCover was $56

million. The Rann Government have delivered an unfunded liability peaking at $1.3 billion.

When the Rann Government finally reacted to the crisis in WorkCover, it slashed workers’

entitlements in a bid to improve WorkCover’s financial performance and reduce the levy rate.

Mr Rann promised a reduction in the levy rate of between 2.25% and 2.75% by the 1st July

2009.5 Today, the levy still stands at 3%. Workers’ entitlements have been slashed but the levy

rate remains the highest in Australia.

The Labor Party’s 2009 Platform states that Labor will;

‘…ensure there are no reductions in the average levy rate while the scheme carries

an unfunded liability’.

The WorkCover Board’s approved policy requires a funding rate between 90% and 110% with

any shortfall to be recovered over a board-approved time frame. The WorkCover Annual Report

states this time frame will be between six and seven years.

The Minister told the Parliament in regards to the time frame that ‘it is very difficult to put a time

frame with respect to when the fund would be fully funded’.

With an average levy rate of 3% being the highest in Australia, if Labor’s platform is delivered,

South Australia’s businesses can expect to pay the highest levy rate in Australia for years to

come.

The Liberal Party intends to totally reform WorkCover and target an average levy rate of less

than 2% as occurs in every other State.