Personal Injuries Proceedings and Other Legislation Amendment Bill 2022
Plain English Summary
Overview
This bill cracks down on 'claim farming' — the practice of cold-calling people to pressure them into making personal injury or workers' compensation claims, then selling their details to law firms. It also tightens rules on legal billing in personal injury cases, confirms when terminally ill workers can access lump sum compensation, and fixes technical issues with Queensland's political donation caps.
Who it affects
People who have been targeted by unsolicited calls about compensation claims will be better protected. Law firms must now certify their claims were not obtained through farming, and workers with terminal workplace illnesses have confirmed access to lump sum compensation within a 3-year life expectancy timeframe.
Stopping claim farming
Creates new criminal offences targeting claim farmers who cold-call or pressure people into making personal injury or workers' compensation claims. Law firms must provide signed certificates confirming their cases were not obtained through claim farming, and enforcement bodies gain new investigation powers.
- Paying or receiving fees for referring injury or workers' compensation claims is now a criminal offence (up to 300 penalty units)
- Cold-calling or personally approaching someone to pressure them into making a claim is prohibited
- Law firms must provide certified declarations at multiple stages of a claim confirming no claim farming occurred
- The Legal Services Commissioner and Workers' Compensation Regulator can appoint special investigators with powers to compel evidence and override legal professional privilege
- Enforcement agencies can share information across the personal injury, CTP, and workers' compensation schemes to detect patterns
Legal billing in personal injury cases
Tightens the '50:50 rule' which limits how much law firms can charge personal injury claimants. Certain costs that firms were treating as separate outlays must now be counted towards the cap, preventing firms from overcharging clients.
- Fees paid to third parties for obtaining instructions or preparing claim statements must count towards the 50:50 cap
- Interest on loans arranged by the law firm to fund disbursements must also count towards the cap
- Regulations can prescribe additional amounts that must be included in the calculation
Terminal workers' compensation
Re-inserts a specific timeframe into the definition of 'terminal condition' for workers' compensation. Following a court decision that removed all time limits, this bill confirms that terminal lump sum compensation (approximately $750,000) is available when a worker's condition is expected to end their life within 3 years.
- Terminal condition now requires a doctor to certify life expectancy of 3 years or less (previously had no time limit after a 2021 court decision)
- The 3-year timeframe applies to latent onset injuries sustained on or after 31 January 2015
- Workers who have already received terminal compensation are not affected by the change
- Queensland's 3-year timeframe remains more generous than any other Australian jurisdiction
Political donation cap fixes
Makes technical corrections to ensure fundraising contributions cannot be used to bypass Queensland's political donation caps, and improves disclosure reporting so the Electoral Commission can properly monitor compliance.
- Fundraising contributions over $200 can no longer be deposited into State campaign accounts without being treated as political donations
- Disclosure returns must now specify whether a gift is a political donation or another type of gift
- Returns must identify the relevant electoral committee when donations are received for one
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee31 Mar 2022View Hansard
Referred to Legal Affairs and Safety Committee
The Legal Affairs and Safety Committee examined the bill and recommended it be passed, while urging the Government to adopt several amendments before passage. The committee's three recommendations addressed the bill's core provisions on claim farming, Law Practice Certificates, and the terminal condition definition for workers' compensation. The Government accepted one recommendation in principle (the terminal condition commencement date) but largely did not adopt the committee's proposed changes to Law Practice Certificate recipients, instead making a narrower simplification to statutory claims requirements.
Key findings (5)
- Submitters unanimously condemned claim farming practices, describing them as abhorrent and a threat to insurance scheme viability and vulnerable community members.
- Stakeholders raised concerns about the complexity and administrative burden of Law Practice Certificate requirements, particularly having multiple regulatory agencies oversighting compliance.
- The committee found that the proposed terminal condition definition risked operating retrospectively against workers who had already lodged claims based on existing law, prompting a recommendation for transitional arrangements.
- Several submitters highlighted that Queensland's restrictions on advertising personal injury legal services are outdated and limit access to justice, which the committee agreed warranted a separate review.
- The Government partially responded by proposing to extend the terminal condition timeframe from three years to five years and providing transitional protections for existing claimants.
Recommendations (3)
- The majority of the committee recommends that the Personal Injuries Proceedings and Other Legislation Amendment Bill 2022 be passed, with the amendments recommended in the report made before the bill is passed.
- The majority of the committee recommends that the bill be amended to change the recipients of Law Practice Certificates: WorkCover certificates to the Office of Industrial Relations, and Personal Injury Proceedings and Institutional Child Sexual Abuse certificates to the Legal Services Commission.
- The majority of the committee recommends that the proposed new terminal condition definition in section 39A of the Workers' Compensation and Rehabilitation Act have an operational date of 1 July 2022 or on proclamation.
Committee report tabled
▸Second Reading21 June 2022View Hansard
▸20 members spoke15 support5 mixed
Supported the bill, highlighting reforms to terminal benefits payments for workers with terminal conditions and commending the committee process that led to improvements.
“These types of financial compensation schemes recognise that workers who have suffered an injury in the workplace, like silicosis or asbestosis, really do not have the time or the energy to be pursuing common-law damages for negligence where that has contributed to their terminal condition.”— 2022-06-22View Hansard
As Attorney-General, moved the second reading and defended the bill's objectives of stopping claim farming, preventing undesirable billing practices, confirming terminal compensation policy intent, and making electoral act amendments. Foreshadowed government amendments including extending the terminal condition timeframe from three to five years.
“The claim-farming amendments included in the bill will not affect the rights of genuinely injured Queenslanders to access justice.”— 2022-06-21View Hansard
Supported the claim farming provisions but filed a dissenting committee report against the original terminal illness timeframe. Argued the law practice certificate regime did not go far enough and tabled draft amendments.
“As I outlined in my dissenting report, this is about human beings—not dollars. Using the sustainability of the scheme, without appropriate analysis, as a rationale to traumatise Queenslanders who are dying through their efforts for us all, was unacceptable.”— 2022-06-22View Hansard
Supported the objectives of stopping claim farming and preventing undesirable costs agreements but heavily criticised the government's drafting, last-minute amendments, and the original proposal to retrospectively change terminal compensation entitlements. Called the bill a 'shemozzle' and accused the government of incompetence.
“While some of these objectives, such as stopping claim farming and preventing undesirable costs agreements, are sensible and desirable, they are handled poorly in this bill as it was presented to this House.”— 2022-06-21View Hansard
Strongly supported the bill as Minister for Industrial Relations, emphasising Queensland would be the first workers compensation scheme to legislate against claim farming and defending the government's record on workers compensation.
“Every worker deserves to return home each and every day safe and sound. One of the Palaszczuk government's key priorities is to ensure robust work health and safety and worker protection laws.”— 2022-06-22View Hansard
As committee chair, spoke in support of the bill and the amendments to be moved during consideration in detail. Highlighted the committee's work examining claim farming, survivor farming, and the impact of terminal condition provisions on workers.
“I rise to speak in support of the Personal Injuries Proceedings and Other Legislation Amendment Bill 2022 and the amendments to be moved during consideration in detail by the Attorney-General.”— 2022-06-21View Hansard
Supported the bill, particularly praising the committee process that led to significant amendments on the terminal illness provisions and condemning claim farming and survivor farming practices.
“Nothing could be more disgraceful, nothing could be more unethical and few things could be more exploitative than some of these practices.”— 2022-06-22View Hansard
Stated the LNP would not oppose the bill but heavily criticised the government for repeatedly amending its own legislation, describing the process as incompetent. Focused on the Minister for Industrial Relations' track record of legislative errors and criticised the donation cap changes.
“As the shadow Attorney-General said, we are not going to be opposing these provisions of the bill. However, we could not let the opportunity go past without explaining to the House that we are not going to let the Labor government, who claim they are the party for the workers, make that claim any longer.”— 2022-06-21View Hansard
Supported the bill, highlighting the bipartisan committee work and the need to protect vulnerable people from claim farming practices.
“They are targeting people when they are at a low point in their life when they need to be protected from insidious and unscrupulous behaviour. That is exactly what this legislation aims to do.”— 2022-06-22View Hansard
As a committee member, spoke in support of the bill. Detailed the evidence received about claim farming and survivor farming, and expressed satisfaction that the government had listened to concerns about the terminal condition timeframe and retrospectivity.
“After hearing these people and hearing the victims through their industrial representatives, I am very pleased to be able to say that the ministers and this government have heard you.”— 2022-06-21View Hansard
Stated the LNP was not opposing the bill but was highly critical of the government's handling of the terminal illness compensation provisions, calling it a 'shemozzle' and criticising the original retrospective application and three-year timeframe.
“How could the government have got it so wrong? How did such a provision in a bill get through cabinet? Was nobody paying attention that day? It just shows how tone-deaf those members opposite are when it comes to these types of provisions.”— 2022-06-22View Hansard
Stated the LNP would not oppose the bill but raised significant concerns about the complexity of the law practice certificate regime, the government's failure to adopt committee recommendations, and the original proposal to retrospectively abolish terminal compensation entitlements. Called the government's drafting 'sloppy'.
“In summary, the LNP will not be opposing the bill, but the concerns raised by stakeholders during the committee process need to be acknowledged and I would suggest that those issues which form the basis of the recommendations of the Legal Affairs and Safety Committee not taken up by the government need to be monitored closely.”— 2022-06-21View Hansard
Supported the bill's claim farming prohibitions, emphasising the impact on survivors of childhood sexual abuse who are cold-called and pressured into claims against their will.
“Let it be on their terms that they come to services that support them and let them get the financial support they deserve for the betrayal they faced.”— 2022-06-22View Hansard
Spoke in support of the bill, focusing on the exploitative nature of claim farming and survivor farming. Highlighted evidence from knowmore about fees charged by claim farmers and the impact on vulnerable abuse survivors. Adjourned debate before completing her speech.
“This is exploitative. We heard no evidence that they are referring victims to support services. What they are doing is referring them to a legal firm to make an application for compensation which they may or may not receive.”— 2022-06-21View Hansard
Supported the bill's provisions against claim farming, reflecting on the broader societal issue of predatory practices targeting vulnerable people.
“This bill embodies the notions of fairness and equity that animate many of us in government. I believe the notions embodied in this bill are at the core of what we do as a government.”— 2022-06-22View Hansard
Supported the bill, focusing on the impact of claim farming on survivors of child sexual abuse and condemning those who profit from such practices.
“To think that there are individuals or institutions out there that see dollar signs above the survivors of child sexual abuse, the word abhorrent is not enough. It is absolutely disgusting that there are people whose pursuit of money is more important than humanity.”— 2022-06-22View Hansard
Supported the bill as strengthening protections for vulnerable Queenslanders, noting Queensland would be the first jurisdiction to introduce explicit claim-farming offences for workers compensation.
“We as a government want to strengthen the protections of Queenslanders, protecting them from the worst sorts of predatory behaviour—and this legislation delivers just that.”— 2022-06-22View Hansard
Supported the bill's provisions to ban claim farming, extend terminal compensation timeframes to five years, and clarify political donation caps.
“This bill will ban the practice of cold calling and coaxing people into making a claim. It will also make it an offence for anyone to pay claim farmers for someone's personal details or receive payments for a claim referral.”— 2022-06-22View Hansard
Stated KAP would support the bill but raised concerns about the Electoral Act amendments, arguing donation caps and additional reporting requirements disadvantage minor parties like KAP.
“Minor parties are the voice of regional Queensland right now and we need every opportunity to make sure we have the funds to keep going. Unfortunately, this legislation erodes democracy as far as we are concerned.”— 2022-06-22View Hansard
Replied to the second reading debate as Attorney-General, defending the bill's provisions, the amendment process, and announcing the terminal condition timeframe would be extended to five years.
“The bill is a further testament to the Palaszczuk government's commitment to stamp out the insidious practice of claim farming in Queensland.”— 2022-06-22View Hansard
▸In Detail21 June 2022 – 22 June 2022View Hansard
Government amendments 1-4 to clause 2 adjusting commencement dates for various provisions of the bill, including the Electoral Act amendments commencing 1 July 2022.
Government amendment 5 to clause 16, expanding the scope of when the fifty-fifty rule on legal costs applies to include claims under WorkCover and urgent proceedings.
Government amendments 6-7 to clause 36, correcting cross-references in the dictionary schedule.
Government amendment 8 to clause 42, simplifying the law practice certificate requirements for claims under section 9 of the Personal Injuries Proceedings Act.
Government amendment 9 to clause 51, clarifying the definition of contact for claim-farming prohibition purposes to include all forms of communication.
Government amendments 10-11 to clauses 52-53, correcting cross-reference numbering.
Government amendment 12 to clause 58, extending the terminal condition timeframe from 3 years to 5 years for workers compensation terminal lump sum payments.
Government amendment 13 to clause 59, allowing copies of law practice certificates to be provided when giving notice of a claim for damages under WorkCover.
Government amendments 14-15 to clause 60, simplifying the law practice certificate requirements for WorkCover claims to require one certificate when a law practice is retained.
Government amendment 16 to clause 62, correcting a cross-reference numbering error.
Government amendments 17-18 to clause 66, removing the retrospective application of the terminal condition timeframe and providing transitional protections for workers who had already made applications and provided medical evidence before commencement.