COMPENDIUM OF WHS AND WORKERS COMPENSATION STATISTICS. October 2015 7th Edition

COMPENDIUM OF WHS AND WORKERS COMPENSATION STATISTICS October 215 7th Edition

DISCLAIMER This information is for guidance only and is not to be taken as an expression of the law. It should be read in conjunction with the relevant legislation. For more information contact your local workplace health and safety authority. PUBLICATION DETAILS Published by Comcare Commonwealth of Australia 215 All material presented in this publication is provided under a Creative Commons Attribution 3. Australia (http://creativecommons.org/licenses/by/3./au/deed.en) licence. For the avoidance of doubt, this means this licence only applies to material as set out in this document. The details of the relevant licence conditions are available on the Creative Commons website (accessible using the links provided) as is the full legal code for the CC BY 3. AU licence (http://creativecommons.org/licenses/by/3./legalcode). USE OF THE COAT OF ARMS The terms under which the Coat of Arms can be used are detailed on the It s an Honour website (http://www.itsanhonour.gov.au/coat-arms/index.cfm). CONTACT US Inquiries regarding the licence and any use of this document are welcome at: Communications Comcare GPO Box 995 Canberra ACT 261 Ph: 13 366 979 Email: helpdesk.communications@comcare.gov.au www.comcare.gov.au 2 COMCARE Compendium of WHS and Workers Compensation Statistics

CONTENTS 1 INTRODUCTION 5 2 SCHEME SNAPSHOT 214 15 6 3 COVERAGE 7 3.1 WHS Act coverage 9 3.2 SRC Act coverage 12 4 WORKERS COMPENSATION AND WORK HEALTH AND SAFETY DATA 15 4.1 Workers compensation claims 16 4.1.1 Incidence of accepted claims 16 4.1.2 Claims by nature of injury 17 4.1.3 Claims by mechanism of incident 18 4.1.4 Time lost 19 4.2 Workers compensation claim characteristics 2 4.2.1 Incurred costs 2 4.2.2 Incurred cost by mechanism of incident 21 4.2.3 Body stressing 22 4.2.4 Mental stress 24 4.2.5 Claims by mechanism of incident and gender 27 4.2.6 Claims by age group 28 4.2.7 Claims by mechanism of incident and age group 29 4.2.8 Average estimated incurred cost of claims by age group (premium payers) 3 4.3 Prevention targets 31 4.3.1 Compensable worker fatalities 31 4.3.2 Accepted claims with one week or more time lost 32 4.4 Notifications of WHS incidents 33 4.4.1 Notification incidence rate 33 4.4.2 Notifications by mechanism of incident 34 4.4.3 Notified worker fatalities 35 5 WORKERS COMPENSATION CLAIMS MANAGEMENT 36 5.1 Workers compensation claims summary 36 5.1.1 Claims lodged 36 5.1.2 Claims determined 37 5.1.3 Determination timeframes 37 5.1.4 Initial claims acceptance rate 38 5.2 Reconsiderations 39 5.3 AAT reviews 4 6 REHABILITATION AND RETURN TO WORK 42 6.1 Claim duration 42 6.1.1 Time lost to date 43 6.1.2 Time lost to date incapacity durations 44 6.1.3 Median time lost injury and disease 45 6.1.4 Current return to work rate 47 7 SCHEME REVENUE AND EXPENDITURE 48 7.1 Revenue 48 7.2 Premiums 49 7.3 Scheme payments 5 7.3.1 Scheme claim payments by type 5 7.4 Performance 51 7.4.1 Outstanding claims liabilities 51 7.4.2 Funding ratio 51 8 DATA SOURCES AND RELATED INFORMATION 52 9 GLOSSARY/DEFINITIONS 53 COMCARE Compendium of WHS and Workers Compensation Statistics 3

FIGURES AND TABLES Figure 3.1 Legislative coverage of relevant Acts 215 8 Figure 3.2 WHS Act coverage 9 Figure 4.1 Incidence of accepted claims 16 Figure 4.2 Accepted claims by nature of injury (scheme) 17 Figure 4.3 Accepted claims by nature of injury (premium payers) 17 Figure 4.4 Accepted claims by nature of injury (self-insured licensees) 18 Figure 4.5 Accepted claims initially determined in 214 15 by mechanism of incident 18 Figure 4.6 Frequency of claims with one day time lost 19 Figure 4.7 Incidence of claims with one week time lost 19 Figure 4.8 Percentage and number of claims determined from 21 11 to 214 15 by mechanism of incident by incurred cost band (premium payers) 21 Figure 4.9 Incidence of body stressing claims 22 Figure 4.1 Average estimated incurred cost of body stressing claims (premium payers) 22 Figure 4.11 Body stressing claims by mechanism of incident initially accepted in 214 15 23 Figure 4.12 Body stressing claims by occupation initially accepted in 214 15 23 Figure 4.13 Incidence of mental stress claims 24 Figure 4.14 Average incurred cost of mental stress claims (premium payers) 24 Figure 4.15 Mental stress claims initially accepted in 214 15 by mechanism of incident 25 Figure 4.16 Proportion of mental stress claims initially accepted in 214 15 by mechanism of incident 25 Figure 4.17 Mental stress claims by occupation (initially accepted in 214 15) 26 Figure 4.18 Claims initially accepted in 214 15 by mechanism of incident (Males) 27 Figure 4.19 Claims initially accepted in 214 15 by mechanism of incident (Females) 27 Figure 4.2 Estimated incidence of claims by age group 214 15 28 Figure 4.21 Estimated incidence of claims accepted in 214 15 by mechanism of incident and age group (premium payers) 29 Figure 4.22 Estimated incidence of claims accepted in 214 15 by mechanism of incident and age group (self-insured licensees) 3 Figure 4.23 Average estimated incurred cost of claims by age group (premium payers) 214 15 3 Figure 4.24 Accepted claims with one week time lost (Australian Government premium payers (excluding ACT Government) and self-insured licensees) 32 Figure 4.25 Notifications incidence rate (Comcare s WHS jurisdiction) 33 Figure 5.1 Incidence of claims lodged 36 Figure 5.2 Incidence of claims determined 37 Figure 5.3 Distribution of time (calendar days) to determine claims during 214 15 (premium payers and self insured licensees) 38 Figure 5.4 Initial claims acceptance rate 38 Figure 6.1 Incidence of claims with one week or more time lost (premium payers) 42 Figure 6.2 Incidence of claims with one week or more time lost (self-insured licensees) 43 Figure 6.3 Time lost to date continuance rate 21 11 to 214 15 (Comcare scheme) 43 Figure 6.4 Median incapacity (scheme) 45 Figure 6.5 Median incapacity (premium payers) 45 Figure 6.6 Median incapacity (self-insured licensees) 46 Figure 6.7 Current return to work rate 47 Figure 7.1 Australian Government and ACT Government premium rates (excluding GST) 49 Figure 7.2 Workers compensation payments 5 Figure 7.3 Workers compensation payments by type 5 Table 3.1 WHS Act coverage as a percentage of Australian industry as at 3 June 215 1 Table 3.2 WHS Act coverage by location as at 3 June 215 11 Table 3.3 WHS Act coverage by size as at 3 June 215 11 Table 3.4 SRC Act coverage as a percentage of Australian industry as at 3 June 215 13 Table 3.5 SRC Act coverage by location as at 3 June 215 14 Table 3.6 SRC Act coverage by size as at 3 June 215 14 Table 4.1 Incurred costs for claims by mechanism of incident (premium payers only) 2 Table 4.2 Compensated fatalities (premium payers and self-insured licensees) 31 Table 4.3 Notifications by mechanism of incident 214 15 34 Table 4.4 Number of notified worker fatalities 35 Table 5.1 Average time (calendar days) to determine claims 37 Table 5.2 Requests for reconsiderations received and decided 39 Table 5.3 Outcome of applications to the AAT (premium payers) 4 Table 5.4 Outcome of applications to the AAT (Self-insured licensees) 41 Table 6.1 Time lost to date 44 Table 7.1 Scheme revenue 48 Table 7.2 Outstanding claims liabilities (premium funded scheme) 51 Table 7.3 Comcare funding ratio 51 4 COMCARE Compendium of WHS and Workers Compensation Statistics

1 INTRODUCTION Comcare was established as a body under the Safety, Rehabilitation and Compensation Act 1988 (SRC Act) and reports to the responsible Australian Government Minister for Employment. Comcare administers both the Commonwealth s statutory framework for rehabilitation and workers compensation under the SRC Act, and is the regulator under the Work Health and Safety Act 211 (Cth) (WHS Act). The Comcare scheme is a national safety, rehabilitation and workers compensation system that covers the Australian Government, the Australian Capital Territory (ACT) Government and self-insured licensees. The Comcare Compendium of WHS and Workers Compensation Statistics (Compendium) helps Comcare meet its functions to collect, analyse and publish statistics relating to work health and safety (section 152(d) of the WHS Act), and to publish material relating to the rehabilitation of employees under the SRC Act (as described in section 69(e)). Scheme performance information presented in this Compendium has been compiled from a variety of sources including workers compensation claims, WHS incident notifications, survey data and financial reports. Claims based data can be subject to development and performance information and may therefore be updated when reported in future editions of the Compendium. Estimates of employee numbers used in this publication are as supplied to Comcare. For the most recent year for Australian Government and ACT Government employers, this may be an estimate which is subject to revision. COMCARE Compendium of WHS and Workers Compensation Statistics 5

2 SCHEME SNAPSHOT 214 15 Area 1 213 14 214 15 Coverage 2 Full time equivalent employees Under WHS Act Under SRC Act 415 37 415 375 3 Workers compensation data Incidence of accepted claims 17.4 14.9 Incidence of serious claims 8.3 7.1 Average incurred cost of claims (premium payers only) $119 $111 Incidence of body stressing claims 7.8 6.5 Incidence of mental stress claims 1.4 1.1 Number of compensable deaths From injury Number of compensable deaths From disease 11 18 Notification of WHS incidents Incidence rate of notifications Serious illness or injury Dangerous incident 1.3 2.9 1.2 2.5 Notifiable worker fatalities Comcare s WHS jurisdiction 8 1 Workers compensation management and disputation claims Incidence of claims lodged 21.5 17.3 Incidence of claims determined 21.7 19.2 Initial claims acceptance rate 8% 77% Reconsiderations Requests for reconsideration 2994 3132 Reconsiderations Affirmation rate 79% 78% AAT applications received 193 195 Rehabilitation and return to work Median time lost (weeks) injury claims 4.8 4.6 Median time lost (weeks) disease claims 8. 7.2 1. Incidence rates are expressed per 1 Full Time Equivalent (FTE) employees 2. Coverage represents FTE employees covered by relevant Acts as at 3 June in each period 6 COMCARE Compendium of WHS and Workers Compensation Statistics

3 COVERAGE Key points: > There were approximately 415 FTE employees covered under the WHS Act, representing approximately 3.5 per cent of all Australian employment. > The SRC Act covered approximately 375 3 FTE employees, representing approximately 3.2 per cent of all Australian employment. > Four self-insured licensees joined the Comcare scheme in 214 15. Figure 3.1 provides an overview of the Comcare scheme and shows the differences in coverage between the SRC Act and the WHS Act as at 3 June 215. This also illustrates the interaction between entities in the Comcare scheme with both the Military Rehabilitation and Compensation Act 24 (MRC Act) and the Asbestos-related Claims (Management of Commonwealth Liabilities) Act 25 (ARC Act). The WHS Act covers Australian Government entities, self-insured licensees, a number of Commonwealth public authorities covered only by the WHS Act and the Australian Defence Force (ADF). The SRC Act covers Australian Government and ACT Government premium payers and self-insured licensees. Of the four self insured licensees that joined the scheme in 214 15, two have coverage under the SRC Act only. Since 1 July 24, ADF members have been covered for workers compensation by the MRC Act. COMCARE Compendium of WHS and Workers Compensation Statistics 7

Figure 3.1 Legislative coverage of relevant Acts 215 Commonwealth safety, rehabilitation and compensation scheme WHS Act 1 Comcare regulator Duties of care ARC Act 2 Comcare manages the Commonwealth s asbestos claims Commonwealth public authorities covered only by the WHS Act Australian Defence Force 62 FTE 5 Self-insured licensees 16 FTE Australian Government premium payers 188 FTE ACT Government premium payers 21 FTE Self-insured licensees (SRC Act only) 7 FTE 5 FTE MRC Act 3 MRCC regulator > DVA manages claims* > DVA meets liabilities > Defence manages rehabilitation > Employer protects health and safety of its employees at work > Employer manages claims > Employer meets liabilities > Employer protects health and safety of its employees at work > Comcare delivers recovery and support services > Comcare meets liabilities > Employer protects health and safety of its employees at work > Employer manages claims > Employer meets liabilities * Pre 24 injuries determined under the SRC Act Defence manages rehabilitation > Employer manages rehabilitation > Employer manages rehabilitation > Employer manages rehabilitation Discharging of liabilities Discharging of liabilities SRC Act 4 SRCC regulates licensee arrangements and Comcare regulates rehabilitation and other matters 1. Work Health and Safety Act 211. 2. Asbestos-related Claims (Management of Commonwealth Liabilities) Act 25. 3. Military Rehabilitation and Compensation Act 24. 4. Safety, Rehabilitation and Compensation Act 1988. 5. Prior to the 6th edition of the Compendium, a component of the ADF had been included on a headcount basis. as at 3 June 215 8 COMCARE Compendium of WHS and Workers Compensation Statistics

3.1 WHS ACT COVERAGE The total number of FTE employees covered by the WHS Act between 3 June 211 and 3 June 215 is shown below in Figure 3.2. Employers covered by the WHS Act include Australian Government premium payers, self-insured licensees and the Australian Defence Force (ADF). Employers covered by the WHS Act pay an annual contribution for the regulatory and advisory functions provided by Comcare. As at 3 June 215, approximately 415 FTE employees were covered under the WHS Act. This coverage consisted of 193 FTE employees from the Australian Government, 16 FTE employees from self-insured licensees and 62 FTE employees from the ADF. There has been a two per cent decrease in the number of FTE employees covered between 3 June 212 and 3 June 215. In the year from 3 June 214 to 3 June 215, whilst there was no appreciable change in total FTE, there was a three per cent decrease in Australian Government FTE which was offset by a two per cent increase in self-insured licensee FTE. Figure 3.2 WHS Act coverage Number of FTE employees ( ) 5 4 15% 3 39% 2 1 46% 212 Australian Government 15% 14% 14% 39% 39% 38% 46% 47% 48% 213 214 215 As at 3 June in each period Self-insured licensees Australian Defence Force COMCARE Compendium of WHS and Workers Compensation Statistics 9

Coverage as a percentage of industry WHS Act Table 3.1 provides a breakdown of FTE employees covered under the WHS Act, by Australian and New Zealand Industrial Classification (ANZSIC) 3, as a percentage of all Australian industry as at 3 June 215. The data show that the Comcare scheme s WHS jurisdiction covers approximately 3.5 per cent of all Australian industry. The Public administration and safety industry has the largest proportion of coverage (28.1 per cent), followed by the Information media and telecommunications industry (24.2 per cent) and the Financial and insurance services industry (15.5 per cent). Table 3.1 WHS Act coverage as a percentage of Australian industry as at 3 June 215 Industry Comcare WHS jurisdiction FTE at 3 June 215 Australian Gov t FTE* Self-insured licensees ADF Comcare WHS jurisdiction Australian industry FTE at May 215 Comcare as percentage of total industry Public administration and safety 144.9.8 62. 27.7 74.2 28.1% Information media and telecommunications 9.5 39.5 49. 22.6 24.2% Financial and insurance services 1.7 59.1 6.8 392.7 15.5% Transport, postal and warehousing 6.5 46.1 52.6 616.1 8.5% Professional, scientific and technical services 15.7.2 15.9 125.8 1.6% Manufacturing 3.5 5.3 8.8 915.3 1.% All other industries 4.9 4.1 9. 4434.2.2% Construction 4.6 4.6 14.8.4% Education and training 4.6 4.6 915.8.5% Health care and social assistance 1.4.1 1.5 1476.7.1% All industries 193 16 62 415 11 76 3.5% *includes a small number of employees within Commonwealth public authorities covered only by the WHS Act. Notes: 1. All other industries includes: Accommodation and food services; Administration and support services; Agriculture, forestry and fishing; Arts and recreation services; Electricity, gas, water and waste services; Mining; Other services; Rental, hiring and real estate services; and Wholesale trade as defined in ANZSIC 26. 2. Australian industry FTE estimate includes ADF. 3. Totals may not sum from components due to rounding. 4. ADF coverage estimated includes reservist and cadets on a FTE basis consistent with other coverage estimates as at 22 September 214. Prior to the 6th edition of the Compendium, this component of the ADF had been included on a headcount basis. This change has resulted in a lower coverage estimate for this sector of Comcare s WHS jurisdiction. 3 ANZSIC 26 Australian & New Zealand Standard Industrial Classification (ANZSIC) 26 ( ABS cat no. 1292.) 1 COMCARE Compendium of WHS and Workers Compensation Statistics

Coverage by location and organisation size WHS Act The geographic distribution of employees covered by the WHS Act across all Australian states and territories as at 3 June 215 is provided in Table 3.2. The majority of workers covered by the Comcare scheme approximately 29 per cent were located within New South Wales. Table 3.2 WHS Act coverage by location as at 3 June 215 State Australian Government ( ) Self-insured licensees ( ) Australian Defence Force ( ) Total ( ) Percentage of total scheme coverage New South Wales 42.3 61.2 18.2 121.7 29.3% Victoria 35.6 53.6 7.3 96.4 23.2% Queensland 21.7 2.1 15.8 57.5 13.9% South Australia 13.4 7.7 4.1 25.2 6.1% Western Australia 12.7 11.9 4.7 29.4 7.1% Tasmania 4.9 2.2.6 7.6 1.8% Northern Territory 4..9 4.5 9.4 2.3% Australian Capital Territory 58.5 2.3 7. 67.8 16.3% Total 193 16 62 415 1% Table 3.3 WHS Act coverage by size as at 3 June 215 Table 3.3 provides a breakdown of employers covered by the WHS Act according to employer size (small, medium and large) as at 3 June 215. Approximately 99 per cent of employees from self-insured licensees worked for large employers, whilst approximately 91 per cent of employees from Australian Government worked for large employers. Employer size Premium payers Self-insured licensees ADF Number % of total Number % of total Number % of total Comcare WHS Jurisdiction Number % of total Small (less than 1 FTE employees) Medium (1 to 499 FTE employees) Large (5 or more FTE employees) All employers Employers 83 41.3%.%.% 83 35.8% FTE employees 2834 1.5%.%.% 2834.7% Employers 63 31.3% 7 22.6%.% 7 3.2% FTE employees 14 839 7.7% 2132 1.3%.% 16 971 4.1% Employers 55 27.4% 24 77.4% 1 1.% 8 34.5% FTE employees 1752 43 9.8% 157 729 98.7% 62 149 1.% 395 121 95.2% Employers 21 1% 31 1% 1 1% 232 1% FTE employees 192 916 1% 159 861 1% 62 149 1% 414 926 1% COMCARE Compendium of WHS and Workers Compensation Statistics 11

3.2 SRC ACT COVERAGE This section summarises scheme demographics including industry classification, employer size and the geographical location of employers covered by the SRC Act. The Comcare scheme includes all Australian and ACT Government premium payers and self-insured licensees. Section 1 of the SRC Act enables the Minister for Employment to declare a corporation eligible to be granted a self-insurance licence if satisfied that the corporation: a) is, but is about to cease to be, a Commonwealth authority; or b) was previously a Commonwealth authority; or c) is carrying on business in competition with a Commonwealth authority or with another corporation that was previously a Commonwealth authority. As at 3 June 215, there were 33 self-insured licensees in the Comcare scheme with DHL Supply Chain and BankWest joining the scheme in 214 15. Medibank Private and Medibank Health Solutions also transferred from premium paying agencies to become self-insured licensees. There were approximately 375 3 FTE employees covered by the SRC Act, which is approximately 3.2 per cent of all employed persons in Australia 4 as at 3 June 215. There were approximately 28 7 FTE employees from premium payers (including the ACT Government) and approximately 166 6 from self-insured licensees. As at 3 June 215, self-insured licensees accounted for around 44 per cent of total FTE employees covered by the SRC Act. Figure 3.3 shows the number of full time equivalent (FTE) employees covered by the SRC Act as at 3 June 215. During 214 15, there was a reduction in Australian Government FTE of approximately 44, offset by an increase in self-insured licensee FTE of approximately 1. Overall, there was an increase of approximately 55 FTE in SRC Act coverage. Figure 3.3 SRC Act coverage Number of FTE employees ( ) 5 4 3 2 1 44% 56% 211 43% 43% 42% 44% 57% 57% 58% 56% 212 213 214 215 As at 3 June in each period Premium payers Self-insured licensees 4 Australian Bureau of Statistics (ABS) catalogue 6291..55.3, Labour Force, Australia, May 215. 12 COMCARE Compendium of WHS and Workers Compensation Statistics

Coverage as a percentage of industry SRC Act Table 3.4 provides a breakdown of FTE employees covered under the SRC Act, by ANZSIC 5 industrial classification, as a percentage of all Australian industry as at 3 June 215. The data show that the SRC Act coverage is approximately 3.2 per cent of persons employed in Australia. The highest proportion are employed in the Information media and telecommunications industry (24.2 per cent) followed by those employed in the Public administration and safety industry (2.5 per cent) and Financial and insurance services industry (16.5 per cent). Table 3.4 SRC Act coverage as a percentage of Australian industry as at 3 June 215 Comcare scheme FTE at 3 June 215 Industry Australian and ACT Government Self-insured licensees Comcare scheme Australian industry FTE at May 215 Comcare as percentage of total industry Information, media and telecommunications 9.5 39.5 49. 22.6 24.2% Public administration and safety 15.6.8 151.4 74.2 2.5% Financial and insurance services 1.7 63. 64.7 392.7 16.5% Transport, postal and warehousing 6.5 48.9 55.4 616.1 9.% Professional, scientific and technical services 15.8.2 16. 125.8 1.6% Education and training 11.4. 11.4 915.8 1.2% Health care and social assistance 9.7.1 9.8 1476.7.7% Manufacturing.5 5.3 5.8 915.3.6% Construction. 4.6 4.6 14.8.4% All other industries 3. 4.1 7.1 4434.2.2% All industries 29 167 375 11 76 3.2% Notes: 1. All others includes: Accommodation and food services, Administration and support services, Agriculture, forestry and fishing, Arts and recreation services, Electricity, gas, water and waste services, Mining, Other services, Rental, hiring and real estate services and Wholesale trade. 2. Australian industry FTE estimate includes ADF. 3. Australian industry FTE source: ABS 615. Australian Labour Market Statistics. 4. Totals may not sum from components due to rounding. 5 ANZSIC 26 Australian & New Zealand Standard Industrial Classification (ANZSIC) 26 ( ABS cat no. 1292.) COMCARE Compendium of WHS and Workers Compensation Statistics 13

Coverage by location and organisation size SRC Act The geographic distribution of employees covered by the SRC Act across all Australian states and territories as at 3 June 215 is provided in Table 3.5. The majority of workers covered by the Comcare scheme approximately 28 per cent were located within New South Wales, for both premium payers and self-insured licensees. Table 3.5 SRC Act coverage by location as at 3 June 215 State Premium payers ( ) Self insured licensees ( ) Total ( ) Percentage of total scheme coverage New South Wales 43. 63. 16. 28.2% Victoria 36. 55. 91. 24.2% Queensland 21.5 2.7 42.1 11.2% South Australia 12.2 7.9 2.1 5.4% Western Australia 1.2 14.5 24.7 6.6% Tasmania 3.9 2.2 6.1 1.6% Northern Territory 24.3.9 25.2 6.7% Australian Capital Territory 57.7 2.3 6. 16.% Total 29 167 375 1% Note: Totals may not sum from components due to rounding. Table 3.6 provides a breakdown of employers covered by the SRC Act according to employer size (small, medium and large) as at 3 June 215. Approximately 99 per cent of employees from self-insured licensees worked for large employers, whilst approximately 89 per cent of employees from premium payers worked for large employers. Table 3.6 SRC Act coverage by size as at 3 June 215 Employer size Small (less than 1 FTE employees) Medium (1 to 499 FTE employees) Large (5 or more FTE employees) All employers Premium payers Self-insured licensees Scheme Number % of total Number % of total Number % of total Employers 73 38.2%.% 73 32.6% FTE employees 2822 1.4%.% 2822.8% Employers 61 31.9% 7 21.2% 68 3.4% FTE employees 19 27 9.2% 2132 1.3% 21 42 5.7% Employers 57 29.8% 26 78.8% 83 37.1% FTE employees 186 622 89.4% 164 488 98.7% 351 9 93.5% Employers 191 1% 33 1% 224 1% FTE employees 28 714 1% 16 66 1% 375 314 1% Note: Totals may not sum from components due to rounding. 14 COMCARE Compendium of WHS and Workers Compensation Statistics

4 WORKERS COMPENSATION AND WORK HEALTH AND SAFETY DATA Key points: > As at 3 June 215, there has been a 37 per cent reduction in the incidence of accepted claims across the scheme since 21 11. > Body stressing was the most prevalent mechanism of incident among accepted claims in 214 15, representing 44 per cent of claims initially determined in the period. > The incidence of serious claims (claims with one week or more of incapacity) has been reducing over time, with the scheme recording an incidence rate of 7.1 claims per 1 FTE in 214 15. > The incidence rate of mental stress claims has been reducing since the 212 13 reporting period, with the 214 15 incidence rate sitting at 1.1 claims per 1 FTE. > There were nine worker fatalities notified to Comcare during 214 15, under the WHS Act, that were assessed as notifiable. Comcare maintains a data warehouse which contains unit claims data supplied by self-insured licensees and Comcare for all claims lodged under the SRC Act. The records include, but are not limited to, occurrence details, incapacity determinations, claim payments, medical, rehabilitation and disputation data. The data warehouse does not contain data for pre-24 ADF claims managed by the Department of Veterans Affairs. While total claim costs and estimates of outstanding liability are available for claims managed by Comcare, only actual claim payments are analysable for claims managed by self-insured licensees. As a result, it is not possible to report aggregate scheme data relating to total claims costs within this Compendium. The data in this section is sourced from workers compensations claims lodged under the SRC Act and notifiable WHS incidents notified to Comcare under the WHS Act. Incidence rates are calculated utilising an adjusted FTE employee total for the full 12 month reporting periods. COMCARE Compendium of WHS and Workers Compensation Statistics 15

4.1 WORKERS COMPENSATION CLAIMS 4.1.1 Incidence of accepted claims Figure 4.1 shows the incidence of claims accepted during the period 21 11 to 214 15 for premium payers, self-insured licensees and for the overall scheme. There has been a decrease of approximately 37 per cent in the incidence of claims accepted across the scheme since 21 11, with the scheme recording an incidence rate of 14.9 claims per 1 FTE in 214 15. In 214 15, self-insured licensees accepted approximately 19 claims per 1 FTE employees, compared to approximately 12 claims per 1 FTE employees for premium payers. Over time, the incidence of claims accepted by self-insured licensees was higher than that of premium payers. Figure 4.1 Incidence of accepted claims 4 35 Claims per 1 FTE employees 3 25 2 15 1 16.1 33.3 15.5 3.7 14.3 25.7 13.3 23. 11.5 19.2 5 21 11 211 12 212 13 213 14 214 15 Year of initial determination Premium payers Self-insured licensees Scheme 16 COMCARE Compendium of WHS and Workers Compensation Statistics

4.1.2 Claims by nature of injury Figures 4.2, 4.3 and 4.4 show the incidence of claims accepted during the period 21 11 to 214 15 by condition claimed. Workers compensation claims are coded using the Type of Occurrence Classification System (TOOCS) see the glossary for more information. An injury is generally the result of a single identifiable incident, such as tripping over a bin at work, or as a result of a vehicle accident. A disease usually results from repeated or long-term exposure to an agent or event such as repetitive typing or driving for long periods in a static position. Under the SRC Act, psychological conditions are determined using the disease provisions. Between 21 11 and 214 15, the scheme has observed an overall decrease in the incidence of disease claims, but increases in both injury and psychological claims. Since 21 11, both premium payers and self-insured licensees have shown a decrease in injury, disease and psychological claims. Figure 4.2 Accepted claims by nature of injury (scheme) 35 Claims per 1 FTE employees 3 25 2 15 1 5 6% 6% 35% 8% 7% 34% 8% 31% 3% 34% 58% 6% 61% 62% 59% 21 11 211 12 212 13 213 14 214 15 Year of initial determination Injury Disease Psychological Figure 4.3 Accepted claims by nature of injury (premium payers) 35 Claims per 1 FTE employees 3 25 2 15 1 5 13% 12% 17% 16% 15% 41% 36% 36% 36% 37% 45% 52% 47% 48% 48% 21 11 211 12 212 13 213 14 214 15 Year of initial determination Injury Disease Psychological COMCARE Compendium of WHS and Workers Compensation Statistics 17

Figure 4.4 Accepted claims by nature of injury (self-insured licensees) Claims per 1 FTE employees 35 3 25 2 15 1 5 2% 2% 32% 2% 33% 1% 26% 24% 2% 31% 67% 65% 72% 74% 67% 21 11 211 12 212 13 213 14 214 15 Year of initial determination Injury Disease Psychological 4.1.3 Claims by mechanism of incident Figure 4.5 shows the percentage of claims by mechanism of incident for claims accepted during 214 15 for both premium payers and self-insured licensees. The mechanism of incident identifies the overall action, exposure or event that best describes the circumstances that resulted in the most serious injury or disease. Body stressing was the most prevalent mechanism of incident over the reporting period. During 214 15, around half of all accepted claims for both premium payers and self insured licensees were due to body stressing. Falls, trips and slips also represented a significant proportion of claims, accounting for around 2 per cent of both premium payers and self-insured licensees claims. Being hit by moving objects accounted for seven per cent of premium payers and 11 per cent of self-insured licensees claims. Mental stress was a significant cause of claims for premium payers, accounting for 15 per cent of claims, compared to two per cent of claims for self-insured licensees. Figure 4.5 Accepted claims initially determined in 214 15 by mechanism of incident 5% 45% 46% Percentage of accepted claims 4% 35% 3% 25% 2% 15% 1% 5% % 41% 21% 19% 7% 11% 4% 12% 15% 2% 4% 6% 7% 4% Body stressing Falls, trips and slips of a person Hit by moving objects Vehicle incidents and other Mechanism of incident Mental stress Hitting objects with body All other Premium payers Self-insured licensees 18 COMCARE Compendium of WHS and Workers Compensation Statistics

4.1.4 Time lost A frequency rate provides an exposure measure that broadly shows the rate of harm for each hour worked. Figure 4.6 shows the frequency of claims that first reached one day time lost during the period 21 11 to 214 15. In 214 15, the scheme recorded 3.9 claims with one day time lost per million hours worked a 2 per cent decrease from 21 11. The higher frequency rate recorded by self-insured licensees reflects, in part, differences in risk profile between premium payers and self-insured licensees. Figure 4.6 Frequency of claims with one day time lost Claims per million hours worked 8 6 4 2 5.3 5.4 4.6 4.5 4.8 4.9 4.4 4.6 3.8 3.9 21 11 211 12 212 13 213 14 214 15 Year claim reached 1 day time lost Premium payers Self-insured licensees Scheme Figure 4.7 shows the incidence rate of claims that first reached one week time lost during the period 21 11 to 214 15. Since 21 11, the incidence rate of serious claims claims that reached one week time lost decreased by 17 per cent for premium payers and by 24 per cent for self-insured licensees. Figure 4.7 Incidence of claims with one week time lost 12 Claims per 1 FTE employees 1 8 6 4 2 8.4 9.5 8.2 1. 8.7 9. 8. 8.5 7. 7.3 21 11 211 12 212 13 213 14 214 15 Year claim reached 1 week time lost Premium payers Self-insured licensees Scheme COMCARE Compendium of WHS and Workers Compensation Statistics 19

4.2 WORKERS COMPENSATION CLAIM CHARACTERISTICS 4.2.1 Incurred costs For claims accepted during the period 213 14 and 214 15, Table 4.1 shows a breakdown of incurred cost by mechanism of incident. The data below covers premium payers only as incurred claim costs are not available for self-insured licensees. The average incurred cost per claim is the cost to date plus estimated outstanding liability (estimated at March 215). It should be noted that the average incurred cost per claim is an estimate which may change as the claims mature. During the period, body stressing injuries/diseases accounted for approximately 4 per cent of all claims for premium payers. They also accounted for approximately 3 per cent of incurred cost, with an average incurred cost per claim of approximately $89 currently reported for claims determined in 214 15. Mental stress claims accounted for approximately 15 per cent of all accepted claims in 214 15, however these claims represented a higher proportion of incurred cost at 4 per cent. The average incurred cost per mental stress claim in this period is approximately $288. Table 4.1 Incurred costs for claims by mechanism of incident (premium payers only) Mechanism of incident % of all accepted claims % of total claim costs* 213 14** Average incurred cost per claim ($) Body stressing 44% 34% 9 Falls, trips and slips of a person 19% 9% 6 Mental stress 16% 46% 338 Hit by moving objects 9% 4% 59 Hitting objects with the body 3% 1% 39 Vehicle incidents and other 3% 3% 11 Sound and pressure 2% Less than 1% 35 Chemicals and other substances 2% 1% 97 Heat, radiation and electricity Less than 1% Less than 1% 36 Biological factors Less than 1% Less than 1% 165 All mechanisms of incident 1% 1% 119 214 15** Body stressing 41% 33% 89 Falls, trips and slips of a person 21% 14% 75 Mental stress 15% 38% 288 Hit by moving objects 7% 4% 66 Vehicle incidents and other 4% 4% 94 Hitting objects with the body 4% 1% 41 Sound and pressure 3% Less than 1% 24 Chemicals and other substances 2% 3% 168 Heat, radiation and electricity 1% Less than 1% 39 Biological factors 1% 1% 13 All mechanisms of incident 1% 1% 111 * Incurred cost is the cost to date plus estimated outstanding liability (estimated at March 215). ** Year of initial determination. 2 COMCARE Compendium of WHS and Workers Compensation Statistics

4.2.2 Incurred cost by mechanism of incident Figure 4.8 shows the distribution of costs of claims for the three most common mechanisms of incident compared to all claims determined during 21 11 to 214 15. > The mental stress band shows that 24 per cent of mental stress claims had an incurred cost of more than $5. > With regards to falls, trips and slips of a person, over 4 per cent of claims will incur a cost of under $5 per claim. > Body stressing claims also had a significant proportion of claims incurring costs of under $5, though it also had a significant number of claims with a total incurred cost in the higher cost bands. > These three categories of claim account for approximately 8 per cent of the total claims over the same period. Figure 4.8 Percentage and number of claims determined from 21 11 to 214 15 by mechanism of incident by incurred cost band (premium payers) Mental stress Falls, trips and slips of a person Body stressing All claims 14 24 34 418 292 443 167 1 349 295 66 76 1865 36 115 9 1388 218 4364 813 1984 1862 2865 83 Incurred cost band $ <5k 5k to <2k 2k to <5k 5k to <2k 2k to <5k >=5k % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Percentage of claims COMCARE Compendium of WHS and Workers Compensation Statistics 21

4.2.3 Body stressing Figure 4.9 shows the incidence of body stressing claims accepted during the period 21 11 to 214 15. The data show that the incidence of these claims across the scheme continues to decline, with the reduction most evident in workers compensation claims from self-insured licensees. Figure 4.9 Incidence of body stressing claims 16 Claims per 1 FTE employees 14 12 1 8 6 4 2 21 11 211 12 212 13 213 14 214 15 Year of initial determination Premium payers Self-insured licensees Scheme Incurred cost of body stressing claims premium payers Since 21 11, despite an increase in the average incurred cost of accepted body stressing claims, the average incurred cost of these claims remained below that of all other claims (Figure 4.1). Latest estimates indicate that the average incurred cost of body stressing claims is approximately $89 per claim. The data below covers premium payers only, as incurred costs are not available for self-insured licensees. Figure 4.1 Average estimated incurred cost of body stressing claims (premium payers) 2 Average incurred cost $(') 15 1 5 21 11 211 12 212 13 213 14 214 15 Year of initial determination Body stressing All claims (excluding body stressing) 22 COMCARE Compendium of WHS and Workers Compensation Statistics

Body stressing claims by mechanism of incident and occupation Figure 4.11 shows a breakdown, by mechanism of incident, of body stressing claims accepted during 214 15 for both premium payers (985 claims) and self-insured licensees (1449 claims). Approximately 45 per cent of body stressing claims for premium payers were due to repetitive movement with low muscle loading (which includes occupational overuse), with a further 24 per cent due to muscular stress while lifting, carrying or putting down objects. The predominant cause of body stressing claims for self-insured licensees was muscular stress while lifting, carrying or putting down objects (42 per cent) with muscular stress while handling objects (other than lifting, carrying or putting down) accounting for 31 per cent. Figure 4.11 Body stressing claims by mechanism of incident initially accepted in 214 15 Muscular stress while lifting, carrying, putting down objects 845 Repetitive movement, low muscle loading 624 Muscular stress while handling objects excluding lift, carry, putting down 586 Muscular stress with no objects being handled 379 2 4 6 8 1 12 14 Number of claims Premium payers Self-insured licensees Figure 4.12 shows a breakdown of body stressing claims accepted during 214 15 by occupation group. Clerical and administration workers accounted for the largest number of body stressing claims (approximately 43 per cent of all body stressing claims across the scheme). Self-insured licensees also recorded a significant number of body stressing claims in the machinery operators and drivers, technicians and trades workers and labourers occupational groups. Figure 4.12 Body stressing claims by occupation initially accepted in 214 15 Clerical and administrative workers Machinery operators/drivers 475 158 Technical and trades workers Professionals Community and personal service workers Labourers Managers 226 218 187 146 96 Sales workers 36 2 4 6 8 1 12 14 Number of claims Premium payers Self-insured licensees COMCARE Compendium of WHS and Workers Compensation Statistics 23

4.2.4 Mental stress The incidence of mental stress claims accepted during the period 21 11 to 214 15 is shown in Figure 4.13 below. During the period the incidence of mental stress claims across the scheme decreased by 25 per cent, with a 22 per cent decrease seen for premium payers and a 38 per cent decrease for self-insured licensees. The incidence of mental stress claims has been consistently lower for self-insured licensees than for premium payers in the scheme. Figure 4.13 Incidence of mental stress claims 3. Claims per 1 FTE employees 2.5 2. 1.5 1..5. 21 11 211 12 212 13 213 14 214 15 Year of initial determination Premium payers Self-insured licensees Scheme Figure 4.14 shows that during the reporting period the average incurred cost of accepted mental stress claims remained high compared to all other claims. Latest estimates indicate that the average incurred cost of mental stress claims was approximately $288. The data below covers premium payers only as total claim costs are not available for self-insured licensees. Figure 4.14 Average incurred cost of mental stress claims (premium payers) 35 Average incurred cost $(') 3 25 2 15 1 5 21 11 211 12 212 13 213 14 214 15 Year of initial determination Mental stress All claims (excl. mental stress) 24 COMCARE Compendium of WHS and Workers Compensation Statistics

Mental stress claims initially accepted in 214 15 A breakdown by mechanism of incident of the number of mental stress claims accepted during 214 15 is shown in Figure 4.15 below. This figure shows the similarities in the mechanism of incident sub-groups for mental stress claims between premium payers and self-insured licensees. For both premium payers and self-insured licensees, the most significant sub-groups for mental stress claims were work pressure and work related harassment and/or bullying (36 and 27 per cent of claims respectively). Figure 4.15 Mental stress claims initially accepted in 214 15 by mechanism of incident Work pressure 15 Work-related harassment and/or bullying 141 Exposure to workplace or occupational violence 58 Exposure to traumatic event 31 Other mental stress factors 28 2 4 6 8 1 12 14 16 18 Number of claims Premium payers Self-insured licensees Figure 4.16 shows that self-insured licensees, when compared to premium payers, had higher proportions of claims in the subgroups of exposure to workplace and/or occupational violence (16 per cent of claims compared to 14 per cent respectively) and exposure to traumatic event (24 per cent of claims compared to five per cent of claims respectively). Figure 4.16 Proportion of mental stress claims initially accepted in 214 15 by mechanism of incident Work pressure 25% 39% Work-related harassment and/or bullying 27% 36% Exposure to workplace or occupational violence 14% 16% Exposure to traumatic event 5% 24% Other mental stress factors 6% 7% % 1% 2% 3% 4% 5% Percentage of claims Premium payers Self-insured licensees COMCARE Compendium of WHS and Workers Compensation Statistics 25

Figure 4.17 shows the number of mental stress claims accepted during 214 15 by occupation group. The largest number of claims for premium payers was for employees classified as clerical and administration workers followed by managers, professionals and community and personal service workers. The largest number of mental stress claims for self-insured licensees was also for clerical and administration workers with the second highest group being machinery operators and drivers. Figure 4.17 Mental stress claims by occupation (initially accepted in 214 15) Clerical and administrative workers Managers 69 2 Professionals Community and personal service workers Technical and trades workers Machinery operators/drivers 15 15 35 64 Labourers Sales workers 5 3 2 4 6 8 1 12 14 16 18 2 22 Number of claims Premium payers Self-insured licensees 26 COMCARE Compendium of WHS and Workers Compensation Statistics

4.2.5 Claims by mechanism of incident and gender Figures 4.18 and 4.19 show the distribution of claims accepted during 214 15 by mechanism of incident and gender. These figures are actual claim numbers and do not take into account the relative proportion of male and female workers employed by premium payers and self-insured licensees. For premium payers, males accounted for approximately 37 per cent of all claims related to falls, trips and slips and body stressing, while for self-insured licensees, males accounted for approximately 76 per cent of claims related to falls, trips and slips and body stressing. Note: The category all other mechanisms of incidents includes biological factors, sound and pressure, heat, electricity and other environmental factors and chemicals and other substances. Figure 4.18 Claims initially accepted in 214 15 by mechanism of incident (Males) 16 14 12 Number of claims 1 8 6 4 2 Body stressing Falls, trips and slips of a person Mental stress Hit by moving objects Mechanism of incident Hitting objects with the body Vehicle incidents and other All other mechanisms of incident Premium payers Male Self-insured licensees Male Figure 4.19 Claims initially accepted in 214 15 by mechanism of incident (Females) 16 14 12 Number of claims 1 8 6 4 2 Body stressing Falls, trips and slips of a person Mental stress Hit by moving objects Mechanism of incident Hitting objects with the body Vehicle incidents and other All other mechanisms of incident Premium payers Female Self-insured licensees Female COMCARE Compendium of WHS and Workers Compensation Statistics 27

4.2.6 Claims by age group Figure 4.2 shows the estimated incidence of claims accepted during the period 214 15 by age group. The incidence rates shown below were estimated using age distribution data for self-insured licensees 6, the ACT Government 7 and the Australian Public Service 8. The data show that with the exception of the under 25s for self-insured licensees, the number of claims per 1 FTE employees increased with age, with the highest incidence rates in both sectors occurring in the 55 years and over bracket. Understanding the distribution of claims by age can assist an employer in identifying workplace hazards and developing preventative strategies to minimise the risk of harm of its workers. Figure 4.2 Estimated incidence of claims by age group 214 15 Claims determined per 1 FTE employees 45 4 35 3 25 2 15 1 5 32.8 26.1 16.7 15. 13.9 1.6 12.1 1.8 6.5 5.9 under 25 25 34 35 44 45 54 55 and over Year of initial determination Premium payers Self-insured licensees Scheme 6 Estimates for self-insured licensees as supplied by self-insured licensees 7 Estimates for ACT Government age distribution data supplied by ACT Government 8 Australian Public Service Commission, Australian Public Service Employee Database internet interface (APSEDii) 28 COMCARE Compendium of WHS and Workers Compensation Statistics

4.2.7 Claims by mechanism of incident and age group Figure 4.21 shows the estimated incidence of claims accepted during 214 15 by mechanism of incident and age group for premium payers. The incidence rates shown below were estimated using age distribution data for the ACT Government 9 and the Australian Public Service 1. The data show that the incidence of claims for body stressing peaks for those workers aged 45 and over. The incidence of claims for falls, trips and slips generally increases with age, and mental stress is more prevalent within the over 55 age group. Figure 4.21 Estimated incidence of claims accepted in 214 15 by mechanism of incident and age group (premium payers) Claims per 1 FTE employees 8 7 6 5 4 3 2 1 Body stressing Falls, trips and slips of a person Under 25 25 34 Mental stress Hit by moving objects Mechanism of injury 35 44 45 54 Hitting objects with the body Vehicle incidents and other All other mechanisms of incident 55 and over Average Note: All other mechanisms of incident category is a sub-total of biological factors, chemicals and other substances, heat, radiation and electricity, and sound and pressure. 9 Estimates for ACT Government age distribution data supplied by ACT Government 1 Australian Public Service Commission, Australian Public Service Employee Database internet interface (APSEDii) COMCARE Compendium of WHS and Workers Compensation Statistics 29

Figure 4.22 below shows the estimated incidence of claims accepted during 214 15 by mechanism of incident and age group for self-insured licensees. The incidence rates shown below were estimated using age distribution data for self-insured licensees 11. The data show that the incidence of claims for body stressing peaks for those workers aged 45 and over. The incidence of claims for falls, trips and slips and vehicle incidence generally increases with age, whilst mental stress shows the least variation of any mechanism of incident. Figure 4.22 Estimated incidence of claims accepted in 214 15 by mechanism of incident and age group (self-insured licensees) Claims per 1 FTE employees 16 14 12 1 8 6 4 2 Body stressing Falls, trips and slips of a person Under 25 25 34 Hit by moving objects Vehicle incidents and other Mechanism of injury 35 44 45 54 Hitting objects with the body Mental stress All other mechanisms of incident 55 and over Average Note: All other mechanisms of incident category is a sub-total of biological factors, chemicals and other substances, heat, radiation and electricity, and sound and pressure. 4.2.8 Average estimated incurred cost of claims by age group (premium payers) Figure 4.23 shows the average incurred cost of claims accepted during 214 15 by age group. The data covers claims for the Australian and ACT Government premium payers only. This figure shows that the 35 44 years age group has the highest average incurred cost of claims, followed by the 25 34 years age group. This should be taken into consideration with workforce demographic data published by the Australian Public Service Commission 12. The date shows that higher classification levels (APS6 and above) are significantly more prevalent in these age groups, with the APS6 classification group being the largest by number of employees in the Australian Public Service for the 214 15 year. Figure 4.23 Average estimated incurred cost of claims by age group (premium payers) 214 15 Average incurred cost $(') 14 12 1 8 6 4 2 126.4 131.3 114. 78.4 82.1 Under 25 25 34 35 44 45 54 55 and over Age group 11 Estimates for self-insured licensees as supplied by employers 12 Australian Public Service Commission, Australian Public Service Employee Database internet interface (APSEDii) 3 COMCARE Compendium of WHS and Workers Compensation Statistics

4.3 PREVENTION TARGETS The Australian Work Health Safety Strategy 212 222 (Australian Strategy), implemented by Safe Work Australia, succeeds the previous National OHS Strategy and sets three national targets with a reduction of at least: > 2 per cent in the number of worker fatalities due to injury > 3 per cent in the incidence rate of claims resulting in one or more weeks off work > 3 per cent in the incidence rate of claims for musculoskeletal disorders resulting in one or more weeks off work. 4.3.1 Compensable worker fatalities The number of worker fatalities reported in Table 4.2 is based on accepted claims lodged under the SRC Act (i.e. compensated deaths). Due to the different statutory definitions which apply to compensated deaths under the SRC Act, as compared to notifiable deaths under the WHS Act, the number of compensated deaths reported may not correlate with the number of notified deaths in each year. For example, incidents resulting in bystander deaths are notifiable under the WHS Act, whereas compensated deaths only relate to employees under the SRC Act. No compensable injury death claims were accepted by the scheme during 214 15. There were 18 compensable disease death claims accepted by the scheme in 214 15. Premium payers (includes Australian Government and ACT Government in this table) reported 13 of these deaths and five were reported by self-insured licensees. Table 4.2 Compensated fatalities (premium payers and self-insured licensees) 21 11 211 12 212 13 213 14 214 15 Premium payers Injury 2 2 Disease 25 12 21 1 13 Self-insured licensees Injury 2 2 2 Disease 2 6 6 1 5 Total Injury 2 4 4 Disease 27 18 27 11 18 COMCARE Compendium of WHS and Workers Compensation Statistics 31

4.3.2 Accepted claims with one week or more time lost Performance against the Australian Strategy is based on the incidence of claims (excluding commuting claims) that first reached one week time lost during the period. Figure 4.24 shows that under the current Australian Strategy, scheme performance has continued to improve in 214 15 with the incidence rate reducing to approximately 6.7 claims per 1 FTE. Comcare scheme targets based on the Australian Strategy were approved by the Safety, Rehabilitation and Compensation Commission and reviewed and implemented during 213 14. The 214 15 target for the incidence of claims resulting in one or more weeks off work was set at 7.3. Figure 4.24 Accepted claims with one week time lost (Australian Government premium payers (excluding ACT Government) and self-insured licensees) 12 Claims per 1 FTE employees 1 8 6 4 2 11. 1.5 7.5 8.3 8.2 8.3 8.5 8.3 7.5 6.7 25 6 26 7 27 8 28 9 29 1 21 11 211 12 212 13 213 14 214 15 Year claim reached 1 week time lost Result Australian strategy 32 COMCARE Compendium of WHS and Workers Compensation Statistics

4.4 NOTIFICATIONS OF WHS INCIDENTS A person conducting a business or undertaking (PCBU) is required to notify Comcare of dangerous incidents that expose a person to a serious risk to that person s health or safety and incidents that result in a death, serious injury or illness of a person. For these incidents to be notifiable, they must have arisen out of the conduct of the PCBU s business or undertaking. Dangerous incidents must also be attributed to a workplace. Since the introduction of the WHS Act from 1 January 212, death, serious injury or illness and dangerous incident notifications relate to workers and third parties such as bystanders. Under the WHS Act, the term worker is broader than employee and in addition to employees includes contractors, subcontractors, employees of labour hire companies working for the PCBU, outworkers, apprentices, trainees and volunteers. 4.4.1 Notification incidence rate Figure 4.25 shows the incidence of WHS notifications during the period 212 13 to 214 15 reported as a rate per 1 FTE employees, with the exception of death notifications which are reported per 1 FTE employees. > There has been an overall decrease in the number of incidents notified to Comcare since the 212 13 reporting period. > The majority of notifications over the three reporting periods related to dangerous incidents, which comprised approximately 65 per cent of all notifications received during 214 15 (excluding deaths). > The incidence rate for notified deaths has decreased in the 214 15 year to 6.31 notified deaths per 1 FTE, from 7.35 notified deaths per 1 FTE in 213 14. Figure 4.25 Notifications incidence rate (Comcare s WHS jurisdiction) 4 25 Notifications (excluding deaths) per 1 FTE employees 3 2 1 212 13 213 14 214 15 Notification received in period 2 15 1 5 Notified deaths per 1 FTE employees Serious injury or illness Dangerous incident Death (right axis) COMCARE Compendium of WHS and Workers Compensation Statistics 33

4.4.2 Notifications by mechanism of incident Table 4.3 shows a breakdown of WHS incident notifications received by Comcare during 214 15 and assessed as notifiable, by mechanism of incident and incident type. > Overall, being hit by moving objects accounted for 28 per cent of all notifications, followed by heat, electricity and other environmental factors (22 per cent), chemicals and other substances (16 per cent) and falls, trips and slips of a person (11 per cent). > The largest number of notifications received by Comcare related to dangerous incidents, with 11 notifications in total. The leading mechanism of incident was heat, electricity and other environmental factors, closely followed by being hit by moving objects. > Approximately 23 per cent of serious injury or illness notifications related to being hit by moving objects or falls, trips and slips of a person and 15 per cent to vehicle incidents and other. > The number of notified deaths reported in this section is based on the number of notifications received under the WHS Act. Due to the different statutory definitions, the number of notified deaths reported may not correlate with the number of compensated deaths under the SRC Act in each year. Table 4.3 Notifications by mechanism of incident 214 15 Incident type Mechanism of incident Death Dangerous incident Serious injury or illness Total % of all notifications Being hit by moving objects 8 36 122 436 28% Heat, electricity and other environmental factors 1 322 14 35 22% Chemicals and other substances 21 17 247 16% Falls, trips and slips of a person 1 73 46 177 11% Vehicle incidents and other 13 57 13 151 1% Mental stress 3 4 26 79 5% Sound and pressure 37 38 43 3% Hitting objects with a part of the body 2 71 4 3% Biological factors 8 7 22 1% Body stressing 2 18 1% Unspecified 81 1 % All mechanisms of incident 26 11 527 1563 1% 34 COMCARE Compendium of WHS and Workers Compensation Statistics

4.4.3 Notified worker fatalities Table 4.4 shows a breakdown of worker fatalities notified to Comcare under the WHS Act and assessed as being notifiable under the WHS Act. Overall, the number of worker fatalities assessed as notifiable has remained relatively stable over the period 212 13 through 214 15, though over the same period there has been a slight reduction in notifiable worker fatalities from Australian Government premium payers and an increase from both self-insured licensees and the Australian Defence Force (ADF). Of the nine fatalities in the 214 15 year assessed as notifiable, the largest proportion was from the ADF. The number of notified deaths reported in this section is based on the number of notifications received under the WHS Act. Due to the different statutory definitions, the number of notified deaths reported may not correlate with the number of compensated deaths under the SRC Act in each year. Table 4.4 Number of notified worker fatalities 212 13 213 14 214 15 Australian Government premium payers 2 3 2 Self-insured licensees 3 1 3 Australian Defence Force 3 4 5 Total fatalities 8 8 1 COMCARE Compendium of WHS and Workers Compensation Statistics 35

5 WORKERS COMPENSATION CLAIMS MANAGEMENT Key points: > The incidence rate of claims lodged per 1 FTE has been decreasing across the scheme since 21 11. > As at 3 June 215, 77 per cent of claims first determined in 214 15 were accepted across the scheme. > There were 3132 requests for reconsideration received in 214 15 across the scheme, and 195 applications for AAT Merit Review. 5.1 WORKERS COMPENSATION CLAIMS SUMMARY 5.1.1 Claims lodged There has been a decrease of approximately 35 per cent in the incidence of claims lodgement across the scheme with the most recent period experiencing a 2 per cent reduction in the incidence of claims lodged, as shown in Figure 5.1 below. Premium payers experienced a 26 per cent decrease in the incidence of claims lodged, from approximately 18.5 claims lodged per 1 FTE employees during 21 11 to approximately 12.9 claims lodged per 1 FTE employees during 214 15. The data also show that self-insured licensees had a 41 per cent decrease in the incidence of claims lodged, from approximately 38.5 claims lodged per 1 FTE employees during 21 11 to approximately 22.8 claims lodged per 1 FTE employees during 214 15. Over the reporting period, the incidence of claims lodged for self-insured licensees has remained higher than that of premium payers. Figure 5.1 Incidence of claims lodged Claims lodged per 1 FTE employees 45 4 35 3 25 2 15 1 5 38.5 36.1 3.6 28.6 22.8 17.6 18.5 17.6 16.3 12.9 21 11 211 12 212 13 213 14 214 15 Year claim lodged Premium payers Self-insured licensees Scheme 36 COMCARE Compendium of WHS and Workers Compensation Statistics

5.1.2 Claims determined Figure 5.2 provides the number of claims determined per 1 FTE during the period 21 11 to 214 15. The trend over time has seen a reduction in the incidence rate across the scheme, with premium payers recording lower incidence rates over time than self insured licensees. Figure 5.2 Incidence of claims determined Claims determined per 1 FTE employees 45 4 35 3 25 2 15 1 5 38.3 35.6 31. 28.5 24.7 18.7 18.1 17. 16.7 14.8 21 11 211 12 212 13 213 14 214 15 Year of initial determination Premium payers Self-insured licensees Scheme 5.1.3 Determination timeframes Table 5.1 shows the average time taken to determine new claims, from date of receipt by the determining authority, for all claims determined in the period 21 11 to 214 15. This highlights the significant differences in the claim determination time between Comcare and self-insured licensees. Table 5.1 Average time (calendar days) to determine claims Nature of claim Year of initial determination 21 11 211 12 212 13 213 14 214 15 Comcare (premium payers) Self-insured licensees Injury 16 11 15 18 15 Disease (excluding psychological) 43 33 48 54 47 Psychological 82 62 79 77 66 Injury 14 13 15 16 19 Disease (excluding psychological) 26 26 32 33 35 Psychological 44 41 46 48 49 Injury 14 12 15 17 18 Scheme Disease (excluding psychological) 33 29 4 44 41 Psychological 71 55 7 69 61 COMCARE Compendium of WHS and Workers Compensation Statistics 37

Figure 5.3 shows the distribution of time taken to determine new claims, from date of receipt by the determining authority, for all claims determined in 214 15. The data show significant differences in the claim determination time depending on nature of injury. Figure 5.3 Distribution of time (calendar days) to determine claims during 214 15 (premium payers and self insured licensees) 26 weeks 1 Determination percentage 8 6 4 2 2 4 6 8 1 12 14 Time to determine (days) Injury Disease (excluding psychological) Psychological 5.1.4 Initial claims acceptance rate Figure 5.4 shows the percentage of claims determined during the period 21 11 to 214 15 that were accepted. This includes claims that were accepted following reconsideration or review. These data are subject to development as claims may still be going through the review process. As at 3 June 215, 77 per cent of claims first determined in 214 15 were accepted across the scheme. Self insured licensees and Comcare (for premium paying employers) have accepted a similar proportion of claims in each of the four most recent reporting periods. Figure 5.4 Initial claims acceptance rate Percentage of determined claims 1 9 8 7 6 5 4 3 2 1 86% 87% 86% 86% 84% 83% 79% 81% 77% 78% 21 11 211 12 212 13 213 14 214 15 Year of initial determination Premium payers Self-insured licensees Scheme 38 COMCARE Compendium of WHS and Workers Compensation Statistics

5.2 RECONSIDERATIONS Table 5.2 provides data relating to requests for reconsideration received and decided during the period 21 11 to 214 15. The table also shows the percentage of determining authorities original decisions which were upheld following a request for reconsideration (affirmation rate). There has been a 25 per cent increase in the number of reconsideration requests received since 21 11. The average time taken to decide requests for reconsideration has increased 15 per cent over the same period. The affirmation rate for both Comcare and self-insured licensees remained relatively stable over the period 21 11 to 214 15. Table 5.2 Requests for reconsiderations received and decided 21 11 211 12 212 13 213 14 214 15 Number of requests received Comcare (premium payers) 1214 1117 1346 165 1746 Self-insured licensees 1285 1253 1261 1344 1386 Scheme 2499 237 267 2994 3132 Number of requests decided Comcare (premium payers) 993 161 133 1319 159 Self-insured licensees 127 16 1162 1223 1128 Scheme 22 267 2195 2542 2718 Average time (calendar days) to decide requests for reconsideration Comcare (premium payers)* Self-insured licensees Injury 47 43 4 49 48 Disease (excluding psychological) 44 47 39 49 49 Psychological 46 48 41 54 49 Injury 21 25 21 21 18 Disease (excluding psychological) 2 21 2 21 17 Psychological 2 21 27 22 25 Injury 31 33 27 32 32 Scheme Disease (excluding psychological) 32 33 28 36 35 Psychological 38 4 37 45 44 Affirmation rate at reconsideration Comcare (premium payers) 7% 68% 72% 72% 77% Self-insured licensees 8% 78% 76% 85% 79% Scheme 75% 73% 74% 79% 78% * Based on the number of calendar days from the date of commencement of the reconsideration to the decision date for a reviewable decision. A delay between receipt and commencement of a review may occur when the injured worker has indicated they will follow up their request for reconsideration at a later date with further evidence (e.g. additional medical report) to support their claim. COMCARE Compendium of WHS and Workers Compensation Statistics 39

5.3 AAT REVIEWS Tables 5.3 and 5.4 show the number of AAT Merit Review applications finalised during 213 14 and 214 15 for premium payers and self-insured licensees. The data in Table 5.3 shows that the number of applications to the AAT that were finalised increased by 52 per cent for premium payers from 43 during 213 14 to 652 during 214 15. Approximately 52 per cent of Comcare s original decisions were affirmed without variation during 214 15. Table 5.3 Outcome of applications to the AAT (premium payers) Applications received 213 14 51 Applications received 214 15 573 Outcome of applications Number of applications finalised Number of original decisions affirmed Number of original decisions set aside or varied Affirmation rate 213 14 Applications heard and determined by the Tribunal 92 68 24 74% Applications finalised by consent 198 38 16 19% Applications dismissed by consent 5 5 n/a n/a Applications withdrawn by applicant 117 117 n/a n/a Other applications dismissed, etc 18 18 n/a n/a Outcome of all applications 43 246 184 57% 214 15 Applications heard and determined by the Tribunal 95 71 24 75% Applications finalised by consent 367 28 172 8% Applications dismissed by consent 3 3 n/a n/a Applications withdrawn by applicant 167 167 n/a n/a Other applications dismissed, etc 2 2 n/a n/a Outcome of all applications 652 289 196 52% Source: Administrative Appeals Tribunal 4 COMCARE Compendium of WHS and Workers Compensation Statistics

Table 5.4 shows the outcome of applications to the AAT for self-insured licensees. The number of applications finalised decreased by 12 per cent from 715 during 213 14 to 627 during 214 15. Self-insured licensees original decisions were affirmed without variation in 71 per cent of cases during 214 15. Table 5.4 Outcome of applications to the AAT (Self-insured licensees) Applications received 213 14 583 Applications received 214 15 522 Outcome of applications Number of applications finalised Number of original decisions affirmed Number of original decisions set aside or varied Affirmation rate 213 14 Applications heard and determined by the Tribunal 73 41 32 56% Applications finalised by consent 484 342 142 71% Applications dismissed by consent 3 3 n/a n/a Applications withdrawn by applicant 138 138 n/a n/a Other applications dismissed, etc 17 17 n/a n/a Outcome of all applications 715 541 174 76% 214 15 Applications heard and determined by the Tribunal 85 5 35 59% Applications finalised by consent 55 35 157 69% Applications dismissed by consent 6 4 n/a n/a Applications withdrawn by applicant 124 124 n/a n/a Other applications dismissed, etc 11 11 n/a n/a Outcome of all applications 627 446 181 71% Source: Administrative Appeals Tribunal COMCARE Compendium of WHS and Workers Compensation Statistics 41

6 REHABILITATION AND RETURN TO WORK Key points: > The scheme incidence rate of claims reaching one week of time lost in 214 15 was 7.2 claims per 1 FTE. > The incidence rate of claims reaching one week time lost for premium payers was 7.1 claims per 1 FTE in 214 15. > For self-insured licensees, the incidence rate of claims reaching one week time lost in 214 15 was 7.3 claims per 1 FTE. > Across the scheme, the median incapacity (time lost) in 214 15 for injury claims was 4.6 weeks. > The median incapacity for disease claims was 7.2 weeks. 6.1 CLAIM DURATION Figures 6.1 and 6.2 show the incidence of claims that first reached one, 12, 26 and 52 weeks time lost during the period 21 11 to 214 15 for premium payers and self-insured licensees. Premium payers experienced a 16 per cent decrease in the incidence of claims reaching one week time lost and has been relatively stable for the other time lost categories from 21 11 to 214 15. Self-insured licensees recorded a decrease in time lost during the period 21 11 to 214 15 in all periods of time lost experienced, with the exception of the 52 week category. Figure 6.1 Incidence of claims with one week or more time lost (premium payers) 12 Claims per 1 FTE employees 1 8 6 4 2 21 11 211 12 212 13 213 14 214 15 Year incapacity threshold reached 1 week 12 weeks 26 weeks 52 weeks 42 COMCARE Compendium of WHS and Workers Compensation Statistics

Figure 6.2 Incidence of claims with one week or more time lost (self-insured licensees) 12 Claims per 1 FTE employees 1 8 6 4 2 21 11 211 12 212 13 213 14 214 15 Year incapacity threshold reached 1 week 12 weeks 26 weeks 52 weeks 6.1.1 Time lost to date In the Comcare scheme, not all accepted claims have time lost. This varies according to the nature of injury with only approximately 5 per cent of injury and physical disease claims having any time lost. For psychological claims the number is much higher, with approximately 8 per cent having some time lost. For claims with any time lost, the typical duration on incapacity varies depending on nature of injury, with psychological injury claims continuing on incapacity for longer periods than claims for injury or physical disease (Figure 6.3). Figure 6.3 Time lost to date continuance rate 21 11 to 214 15 (Comcare scheme) Percentage of accepted claims with time lost 1 8 6 4 2 6 weeks 12 weeks 26 weeks 4 8 12 16 2 24 28 32 36 4 44 48 52 Time lost to date (weeks) Injury Disease (excl. psychological) Psychological COMCARE Compendium of WHS and Workers Compensation Statistics 43

6.1.2 Time lost to date incapacity durations Table 6.1 shows the percentage of time lost claims accepted during the period 21 11 to 214 15 that reached selected incapacity durations. The data show that claim durations for premium payers are longer than for self-insured licensees. It should be noted that these figures may change as claims mature, in particular for the most recent reporting periods. Table 6.1 Time lost to date Time lost claims accepted in the period Time lost to date 21 11 211 12 212 13 213 14 214 15 Premium payers injury Accepted claims 115 182 95 853 558 One week or more 72% 77% 76% 78% 74% Six or more weeks 36% 37% 4% 39% 35% 12 or more weeks 23% 23% 27% 27% 2% 26 or more weeks 14% 14% 14% 12% 6% Premium payers disease* Accepted claims 1284 1113 1159 147 641 One week or more 88% 88% 9% 89% 87% Six or more weeks 6% 62% 65% 61% 56% 12 or more weeks 45% 48% 52% 47% 4% 26 or more weeks 3% 34% 36% 3% 18% Self-insured licensees injury Accepted claims 1787 172 164 152 1122 One week or more 56% 57% 57% 59% 58% Six or more weeks 22% 25% 26% 25% 2% 12 or more weeks 13% 15% 16% 13% 9% 26 or more weeks 7% 9% 7% 5% 3% Self-insured licensees disease* Accepted claims 856 853 624 493 484 One week or more 72% 71% 68% 7% 65% Six or more weeks 32% 35% 33% 35% 25% 12 or more weeks 18% 23% 2% 2% 12% 26 or more weeks 1% 13% 9% 1% 5% *Inclusive of psychological disease claims 44 COMCARE Compendium of WHS and Workers Compensation Statistics

6.1.3 Median time lost injury and disease Figures 6.4. 6.5 and 6.6 show the median duration of time lost to date for claims accepted during the period 21 11 to 214 15. This is based on claims reaching one week or more of incapacity that had an injury date between 3 and 18 months prior to the calculation date. Across the scheme, the median incapacity for injury claims has fallen slightly from approximately 4.8 weeks during 213 14 to approximately 4.6 weeks during 214 15. For disease claims, the median duration of time lost has decreased from 8. weeks to 7.2 weeks over the same period. Figure 6.4 Median incapacity (scheme) 12 Time lost from work (weeks) 1 8 6 4 2 3.7 5.9 4.3 6.4 4.6 7.4 8. 4.8 4.6 7.2 21 11 211 12 212 13 213 14 214 15 Calculation date Injury Disease Figure 6.5 Median incapacity (premium payers) 12 Median incapacity (weeks) 1 8 6 4 2 4. 7.7 1.3 9.9 8.4 5. 5.4 5.5 5.6 9.9 21 11 211 12 212 13 213 14 214 15 Calculation date Injury Disease COMCARE Compendium of WHS and Workers Compensation Statistics 45

Figure 6.6 shows that during the period 21 11 to 214 15, the median duration of incapacity for self-insured licensees claims was consistently lower than for premium payers. The number of weeks lost in each period for injury claims and disease claims shows less variation than for premium payers. Figure 6.6 Median incapacity (self-insured licensees) 12 Median incapacity (weeks) 1 8 6 4 2 3.4 4.2 3.9 4.8 4.8 4.1 4.3 4.9 4. 4.6 21 11 211 12 212 13 213 14 214 15 Calculation date Injury Disease 46 COMCARE Compendium of WHS and Workers Compensation Statistics

6.1.4 Current return to work rate Figure 6.7 shows the proportion of injured employees who had returned to work and were working seven to nine months after lodging their claim (current return to work rate). The return to work performance reported below is from the Safe Work Australia National Return to Work Survey 13 which has replaced the National Return to Work Monitor previously published by the Heads of Workers Compensation Authorities. This measure is equivalent to the previously reported Durable Return to Work Rate. From 212 13, the current return to work estimate for self-insured licensees has been derived from applying the ratio of the premium payers historic outcome to the outcome from the new method, this was then applied to the new figure reported for self-insured licensees. The return to work performance of both premium payers and self-insured licensees has remained at a consistently high level over the five periods reported. Noting that the return to work performance is based on a survey of injured workers, and may be influenced to some extent by the survey sample, these results show only minor differences in the performance of self-insured licensees, where available or derived, compared to the premium payers. Figure 6.7 Current return to work rate 1 9 8 7 81% 88% 8% 9% 8% 79% 81% 89% 81% 94% Percentage (%) 6 5 4 3 2 1 21 11 211 12 212 13 213 14 214 15 Year of survey Premium payers Self-insured licensees National 13 Safe Work Australia National Return to Work Survey 214 (http://www.safeworkaustralia.gov.au/sites/swa/about/publications/pages/national-return-to-work-survey) COMCARE Compendium of WHS and Workers Compensation Statistics 47

7 SCHEME REVENUE AND EXPENDITURE 7.1 REVENUE The Comcare scheme revenue sources include a combination of premiums, licence fees and regulatory contributions under the SRC Act and the WHS Act. Premium payers pay a workers compensation premium and a regulatory contribution, while self insured licensees pay a licence fee. Under the SRC Act, Comcare managed workers compensation liabilities of $3.2 billion and held assets of $2.5 billion (as at 3 June 215) on behalf of Commonwealth premium payers. Comcare does not manage such liabilities or hold assets for the self-insured component of the scheme, which has estimated workers compensation liabilities of $469 million (June 215). Each self-insured licensee is required to make provisions in its audited accounts for these liabilities. In addition, these liabilities are backed by bank guarantees of some $7 million as well as other prudential safeguards. The revenue from premiums in 214 15 was $491.8 million, compared to $411.1 million in 213 14. Table 7.1 Scheme revenue 21 11 211 12 212 13 213 14 214 15 Premium revenue $M 221.4 271.3 341.7 411.1 491.8 Licence fee revenue $M 13.3 13.8 14.8 14.8 16.2 Government appropriations $M 572.8 338.2 56.9 69.7 91.9 Interest $M 19.6 21 21.4 21.7 26.2 Sales of goods and rendering of services $M (including regulatory contribution) 19.6 21.1 2.3 22.1 21.2 Note: Government appropriations in 21 11 and 211 12 have been adjusted to reflect additional revenue available to Comcare following a change in accounting policy on the provision for outstanding claims liabilities. Refer to 7.4.1 Outstanding claims liabilities for additional information. 48 COMCARE Compendium of WHS and Workers Compensation Statistics

7.2 PREMIUMS The average premium rates for Australian Government employers and the ACT Government are shown in Figure 7.1 below. Employers are financially accountable for the cost of work-related injury and disease through the payment of an annual premium. The premium rate that Comcare sets for each employer reflects that employer s claim frequency and average claim cost as a percentage of their payroll. In 214 15 there was an increase in the average premium rate for premium payers in the Comcare scheme. Australian Government premium payers have seen an average increase of 17 per cent, whilst over the same period the ACT Government experienced an increase of 1 per cent. In addition, Safe Work Australia s Comparative Performance Monitoring Report 14 states that in 214 15, the standardised Australian average premium rate was 1.48 per cent of payroll. The Australian Government scheme recorded the lowest standardised premium rate of all jurisdictions at.19 per cent of payroll. Figure 7.1 Australian Government and ACT Government premium rates (excluding GST) 4.5 4. 3.5 3. 2.73 3.8 3.56 3.55 3.89 Premium rate (% of payroll) 2.5 2. 1.5 1..5 1.9 1.28 1.61 1.65 1.93. 21 11 211 12 212 13 213 14 214 15 Australian Government ACT Government 14 Comparative Performance Monitoring Report (CPM Report), Seventeenth Edition, 215 www.swa.gov.au. Note that these data are different from Comcare published rates due to the adjustments made to the data to enable more accurate jurisdictional comparisons. COMCARE Compendium of WHS and Workers Compensation Statistics 49

7.3 SCHEME PAYMENTS Figure 7.2 shows total payments made for workers compensation claims for the financial years 21 11 to 214 15. These figures include payments to injured workers and payments for medical, rehabilitation, legal and administrative costs. The total payments for workers compensation claims in 214 15 was $4 million, representing an increase of approximately 17 per cent from 21 11. Figure 7.2 Workers compensation payments Total expenditure $(M) 45 4 35 3 25 2 15 1 5 399.9 411.2 4.1 364.4 343.1 21 11 211 12 212 13 213 14 214 15 Financial year 7.3.1 Scheme claim payments by type The proportion of claim payments by payment type for the financial years 21 11 to 214 15 is provided in Figure 7.3 below. This shows that over time, incapacity has consistently been the leading payment type. There has been an overall downwards trend in medical costs over time, with the other payment categories remaining relatively stable. Figure 7.3 Workers compensation payments by type 1% 9% 8% 9% 8% 5% 1% 6% 5% 1% 6% 5% 1% 7% 6% 1% 8% 6% Percentage of all payments 7% 6% 5% 4% 3% 2% 24% 54% 25% 54% 23% 55% 21% 55% 22% 55% 1% % 21 11 211 12 212 13 Paid in the financial year 213 14 214 15 Incapcity Medical Rehabilitation Legal Other Note: Other includes: Death benefits, lump sum payments and non-compensation payments such as general investigation and travel (excluding ambulance) costs. 5 COMCARE Compendium of WHS and Workers Compensation Statistics

7.4 PERFORMANCE 7.4.1 Outstanding claims liabilities Table 7.2 shows the value of outstanding claims liabilities for the premium-funded scheme for the period 3 June 211 to 3 June 215. In 212 13 Comcare changed its accounting policy on the provision for outstanding claims liabilities. The change was made in response to recommendations from an internal financial framework review, which was supported by the 213 review of the SRC Act by Mr Peter Hanks QC and Dr Allan Hawke AC. The change involves reporting claims provisions on the basis of the actuarial estimate at a 75 per cent probability of sufficiency instead of the central estimate (5 per cent probability of sufficiency). In line with this change, all previous years liability figures have been adjusted to enable comparability. The liability estimates are provided by independent consulting actuaries. The increase in liability reflects the changes in valuation assumptions to take account of the most recent claims experience and changing economic conditions. Table 7.2 Outstanding claims liabilities (premium funded scheme) 3 June 211 3 June 212 3 June 213 3 June 214 3 June 215 Premium payers $M 1695 2458 2658 2766 2857 7.4.2 Funding ratio Table 7.3 sets out the funding ratio of assets to net outstanding claim liabilities (at 75 per cent probability of sufficiency). The measure indicates Comcare s ability to meet future claim payments from assets currently available. Comcare s funding ratio saw a modest increase in 214 15. This improvement is the result of a concerted and ongoing effort to enhance its claims management practices and partnering with employers to improve return to work outcomes. The initial decline was due to a substantial increase in the value of total claim liabilities. Table 7.3 Comcare funding ratio 3 June 211 3 June 212 3 June 213 3 June 214 3 June 215 Funding ratio 91% 65% 64% 68% 75% COMCARE Compendium of WHS and Workers Compensation Statistics 51

8 DATA SOURCES AND RELATED INFORMATION Workers compensation claims data presented in this report are extracted from Comcare s Enterprise Data Warehouse using data as at 3 June 215. The Data Warehouse is maintained by Comcare and holds unit record claims information for all determining authorities covered under the SRC Act. This includes the Australian and ACT Governments and self-insured licensees. The Safety, Rehabilitation and Compensation and Other Legislation Amendment Act 27 amended the provisions of the Safety, Rehabilitation and Compensation Act 1988 to remove coverage for injuries sustained during non-work related journeys. Therefore, injuries sustained while travelling to and from work are not included in this report. Work health safety notification and notified fatalities data presented in this report are extracted from Comcare s Regulatory Management System. The Regulatory Management System holds information on all notifiable incidents that result in death, serious injury or illness or dangerous incident. Full time equivalent (FTE) employee data are collected by Comcare from all Australian and ACT Government and self-insured licensees. Australian Defence Force (ADF) FTE is obtained from the ADF Annual Report or the Department of Defence directly. Related data sources: Comcare Annual Reports http://www.comcare.gov.au/forms_and_publications/publications/corporate_publications/comcare_annual_reports List of current self-insured licensees under the SRC Act http://www.srcc.gov.au/self_insurance/current_licensees Safe Work Australia national jurisdictional data: Safe Work Australia s Comparative Performance Monitoring Report (CPM) http://www.safeworkaustralia.gov.au/sites/swa/statistics/pages/comparativeperformancemonitoring Comparison of Workers Compensation Arrangements in Australia and New Zealand http://www.safeworkaustralia.gov.au/sites/swa/workers-compensation/compensation-information/pages/compensationinformation National Return to Work Survey Headline Measures Report http://www.safeworkaustralia.gov.au/sites/swa/workers-compensation/rtw/pages/rtw Australian Bureau of Statistics data: Employment and Earnings, Public Sector, Australia, 213 14 #6248..55.2 http://www.abs.gov.au/ausstats/abs@.nsf/allprimarymainfeatures/389ebf547c7d5aaca25755ad9cc? opendocument Labour Force, Australia #6291..55.3 http://www.abs.gov.au/ausstats/abs@.nsf/productsbycatalogue/356594eb1126b2ca257132f9189? OpenDocument Australian and New Zealand Standard Industrial Classification (ANZSIC), 26 http://www.abs.gov.au/ausstats/abs@.nsf/allprimarymainfeatures/a77d93484dc49d63ca25712356842?opendocument Type of Occurrence Classification System (TOOCS) http://www.safeworkaustralia.gov.au/sites/swa/about/publications/pages/sr2851toocs3rdeditionrevision Australian Public Service Employment Database internet interface (APSEDii) http://www.apsc.gov.au/about-the-apsc/commission-services/apsed/apsedii 52 COMCARE Compendium of WHS and Workers Compensation Statistics

9 GLOSSARY/DEFINITIONS AAT Accepted claim ACT ADF Administrative Appeals Tribunal Affirmation rate (appeals) Affirmation rate (reconsiderations) ANZSIC 26 Average claim cost to date Average time lost to date Central estimate Claim Claim received Claims acceptance rate Claims management Comcare scheme Commission CPM Report Commuting Dangerous incident Administrative Appeals Tribunal, which can on request, review administrative decisions by most Australian and ACT Government departments and authorities. This includes reviewing reconsideration decisions made by Comcare. Either an employee or an employer may request a review of a decision. A claim for compensation where liability has been accepted under the SRC Act. Australian Capital Territory Australian Defence Force See AAT The percentage of the AAT s affirmation of a determining authority s original decision following an appeal. The percentage of the determining authority s affirmation of its original decision following a reconsideration. The industry of the entity in which an occupational injury or disease occurred is classified in accordance with the Australian and New Zealand Standard Industrial Classification 26 (ANZSIC) (cat no. 1292.). Average cost per claim (for a defined period of time) as at a specified date. Average amount of time lost accumulated per claim as at a specified date for a defined period of time. An estimate that represents an expected value over the range of reasonably possible outcomes. Any compliant claim for compensation, for example, the initial liability claim, claim for payment of medical expenses, claim for impairment payments, claim for cost of services rendered or claim for incapacity benefits. A claim for compensation where liability has not yet been determined under the SRC Act. Accepted claims expressed as a percentage of determined claims. The management of an injured person s claim, including registration of a claim, decision making, benefit payment and return to work planning. For a claim lodged with Comcare, a Comcare employee manages the claim. The Commonwealth work health and safety, rehabilitation and workers compensation scheme. See Safety, Rehabilitation and Compensation Commission Comparative Performance Monitoring report, which is produced annually by Safework Australia and provides a comparison of work health and safety and workers compensation schemes in Australia and New Zealand. Travel to or from work as defined in section 6 of the SRC Act. This does not include travel associated with employment. That is where travel is part of an employee s duties or where the cost of travel is met by the employer. Under section 37 of the Work Health and Safety Act 211, a dangerous incident means an incident in relation to a workplace that exposes a worker or any other person to a serious risk to a person s health and safety. COMCARE Compendium of WHS and Workers Compensation Statistics 53

Date of determination Date of injury or date of disease Date of receipt Determination Determining authority Disease claim Disease Frequency rate Full-time equivalent (FTE) employees HWCA Impairment Incapacity Incapacity benefit Incidence rate Incurred cost Injury claim Injured worker Liability Mechanism of incident The date upon which a decision was made regarding liability to pay a claim or to provide rehabilitation. For a new claim the date of determination means the date upon which the first decision was taken to either accept or deny liability. Date when medical treatment was first sought, or first resulted in incapacity or impairment (disease) as defined by section 7(4) of the SRC Act. Refers to the date on which the claim or request for reconsideration, being compliant with legislative requirements, was received in the area responsible for determining claims. A decision regarding liability for compensation or rehabilitation under the SRC Act. For a new claim, determination means the initial decision regarding liability. An entity with legislative responsibility to receive, determine and pay workers compensation claims under the SRC Act, namely: > Comcare > corporations or Commonwealth authorities holding a self-insurance licence > the Military, Rehabilitation and Compensation Commission. Workers compensation claim coded with a nature of injury of between 41 and 599 or 721 and 949 using the Type of Occurrence Classification System 3rd Edition. From 13 April 27 any ailment suffered by an employee, or the aggravation of such an ailment, that is contributed to, to a significant degree (previously contributed to in a material degree ), by the employee s employment. Disease is defined by the Nature of Injury classification in Type of Occurrence Classification System 3rd Edition. The number of cases expressed as a rate per million hours worked by employees. The total hours worked by all employees in the reporting period divided by the average/standard hours worked in full-time jobs. Heads of Workers Compensation Authorities The loss, the loss of use, or the damage or malfunction, of any bodily system or function or part of such system or function. A permanent impairment is one that is likely to continue indefinitely. A diminished ability to engage in any work; or to engage in work at the same level at which he or she was engaged immediately before the injury happened. A payment made by a determining authority to compensate for a period of incapacity. The number of cases expressed as a rate per 1 FTE employees. Incidence rates for deaths are expressed as a rate per 1 FTE employees. Costs to date plus an actuarial estimate of outstanding liabilities. Workers compensation claim coded with a nature of injury of between 11 and 399 or 951 and 999 using the Type of Occurrence Classification System 3rd Edition. An employee who makes a claim for compensation benefits in accordance with the SRC Act. The effect of a determination. Where liability is accepted a legal obligation is created to pay compensation under the SRC Act. Type of Occurrence Classification System classification that identifies the overall action, exposure or event that best describes the circumstances that resulted in the most serious injury or disease. 54 COMCARE Compendium of WHS and Workers Compensation Statistics

Median MOI The median is a measure of central tendency of a sample and is the value for which one half (5 per cent) of the observations when ranked will lie above that value and one half will lie below that value. See mechanism of incident MRC Act Military Rehabilitation and Compensation Act 24 Non-commuting injury Notifiable incident Occupational rehabilitation Person Conducting Business or Undertaking (PCBU) Premium An injury sustained other than when travelling to or from work, as defined in s.6 of the SRC Act. This includes travel associated with employment. That is where the travel is part of an employee s duties or where the cost of travel is met by the employer (see commuting). Under section 35 of the Work Health and Safety Act 211 a notifiable incident means: (a) the death of a person; or (b) a serious injury or illness of a person; or (c) a dangerous incident. A managed process involving early intervention with appropriate, adequate and timely services based on assessed needs, and which is aimed at maintaining injured or ill employees in, or returning them to, suitable employment. A person who conducts the business or undertaking. This could be an individual undertaking or a business working with others. The definition of a PCBU focuses on the work arrangements and the relationships to carry out the work. A contribution made to Comcare in respect of the estimated costs of an employer s workers compensation costs for a given financial year. It is based on fully funded principles and is designed to be responsive to the employer s claims experience. Premium claim Claim with a date of injury after the introduction of Comcare s premium system on 1 July 1989. Also referred to as an insured claim. Premium rate Rate expressed as a percentage of wage/salary dollar, which when multiplied by the estimate of wage/salary, will provide the premium payable by that employer. Pre-premium claim Claim with a date of injury prior to the introduction of Comcare s premium system on 1 July 1989. These claims and the resultant expenditure may also be called uninsured. Provider Psychological Disease claim Reconsideration Rehabilitation Return to work plan (RTWP) Reviewable decision Person or organisation providing medical, rehabilitation or health services in relation to a workrelated injury or disease. Workers compensation claim coded with a nature of injury of between 72 and 719 Mental Diseases using the Type of Occurrence Classification System 3rd Edition. An employee or employer, who is dissatisfied with a decision made by Comcare, may ask for that decision to be reviewed by an officer not involved in the making of the decision in question. The result of such a review is a reviewable decision. See occupational rehabilitation A document detailing an injured worker s rehabilitation program including return to work objectives, timeframes, a breakdown of proposed services and costs. The term used to describe a decision reconsidered by Comcare under s.38 or s.62 of the SRC Act. Only when there is a reviewable decision can there be an application to the AAT (see also reconsideration and AAT). COMCARE Compendium of WHS and Workers Compensation Statistics 55

Safe Work Australia Safety, Rehabilitation and Compensation Act 1988 (SRC Act) Safety, Rehabilitation and Compensation Commission (SRCC or the Commission) Scheme Serious injury or illness Self-insured licensees Safe Work Australia was established by the Safe Work Australia Act 28 with primary responsibility to lead the development of policy to improve work health and safety and workers compensation across Australia. The legislation which established Comcare and defines how the workers compensation function is to be administered for the Australian Government or ACT Government and any corporation that is a holder of a licence under Part VIII of the SRC Act. The SRCC is responsible for issuing licences for self-insurance and claims management. It reports to the Minister for Employment and Workplace Relations. See Comcare scheme Under section 36 of the Work Health and Safety Act 211, a serious injury or illness of a person means an injury or illness requiring the person to have: (a) immediate treatment as an in patient in a hospital; or (b) immediate treatment for: (i) (ii) the amputation of any part of his or her body; or a serious head injury; or (iii) a serious eye injury; or (iv) (v) a serious burn; or the separation of his or her skin from an underlying tissue (such as degloving or scalping); or (vi) a spinal injury; or (vii) the loss of a bodily function; or (viii) serious lacerations; or (c) medical treatment within 48 hours of exposure to a substance; and includes any other injury or illness prescribed by th regulations but does not include an illness or injury of a prescribed kind. A Commonwealth authority or a corporation that is a holder of a licence under Part VIII of the SRC Act. SRC Act See Safety, Rehabilitation and Compensation Act 1988 SRCC Time lost claims TOOCS Type of Occurrence Classification System (TOOCS) See Safety, Rehabilitation and Compensation Commission All accepted claims which have resulted in one day or more time lost from work. See Type of Occurrence Classification System Provides a system for coding the circumstances surrounding an injury/disease occurrence. Current classification system in use is the Type of Occurrence Classification System 3rd Edition TOOCS 3.1. WHS Act Work Health and Safety Act 211 WHS Code 211 Work Health and Safety approved Codes of Practice 211 Work Health and Safety Act 211 (WHS Act) Provides a balanced and consistent framework to secure the health and safety of workers and workplaces for Australian Government departments and authorities, and self-insured licensees. 56 COMCARE Compendium of WHS and Workers Compensation Statistics

Work-related Workers compensation expenditure Workplace WRP Year of initial determination The incident arose out of the conduct of the employer's undertaking, or work performed by an employee in connection with the employer's undertaking. Expenditure under the SRC Act. Includes expenditure on incapacity, medical and associated travel, rehabilitation costs, certain legal costs and other claim related expenses. A workplace under section 8 of the Work Health and Safety Act 211, a workplace is: (1) A place where work is carried out for a business or undertaking and includes any place where a worker goes, or is likely to be, while at work. (2) In this section, place includes: > a vehicle, vessel, aircraft or other mobile structure; and > any waters and any installation on land, on the bed of any waters or floating on any waters. Workplace Rehabilitation Provider under the SRC Act. Employers may only engage rehabilitation providers that have been approved by Comcare. Rehabilitation providers assist the employer s case manager to identify medically suitable duties as part of the return to work plan. Financial year in which liability is first accepted or rejected for a claim. COMCARE Compendium of WHS and Workers Compensation Statistics 57

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