Workers’ Compensation and Rehabilitation (National Injury Insurance Scheme) Amendment Bill 2016
Plain English Summary
Overview
This bill creates a lifetime no-fault scheme for Queensland workers who suffer catastrophic injuries at work, such as spinal cord injury, major brain injury, severe burns or loss of limbs. It guarantees them ongoing treatment, care and support regardless of who caused the accident, starting from 1 July 2016. The bill also reforms self-insurance rules, blocks injury costs being shifted onto subcontractors, and protects compensation payments from dropping when wages fall.
Who it affects
Workers who sustain catastrophic injuries at work gain a lifetime entitlement to treatment, care and support. Employers pay for it through workers' compensation premiums; subcontractors and labour hire employers are protected from carrying costs that belong to their principals.
Key changes
- Workers with serious injuries like spinal cord damage, major brain injury, double amputation, severe burns or permanent blindness get lifetime treatment, care and support regardless of fault
- Eligible workers can choose between a lump sum damages payment or ongoing scheme payments where their employer was at fault
- Workers' compensation payments can no longer go down if average Queensland earnings fall — they stay the same at minimum
- Contracts that shift injury costs from principals onto subcontractors and labour hire firms' insurance are banned, reversing the 2014 Byrne court decision
- Self-insurers get more flexibility: no $5 million minimum security, and insurance-company financial guarantees are accepted alongside bank guarantees
- The Workers' Compensation Regulator is now clearly responsible for fraud prosecutions, and insurers must refer suspected fraud without delay
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee14 June 2016View Hansard
Referred to Finance and Administration Committee
The Finance and Administration Committee (with the report tabled by the Education, Tourism, Innovation and Small Business Committee) examined the bill, which extends the National Injury Insurance Scheme to cover seriously injured workers. The committee made three recommendations, all supported by the government, focusing on stakeholder consultation for re-entry criteria, parliamentary oversight of the scheme for its first five years, and resolving coverage issues for principal contractors and host employers.
Key findings (5)
- The bill extends the National Injury Insurance Scheme to workplace accidents, providing lifetime care and support for seriously injured workers
- Stakeholders including disability service providers and insurers sought consultation on the regulations prescribing re-entry criteria after common law damages
- Principal contractors and host employers raised concerns about their exclusion from the WorkCover scheme and sought options for coverage
- The committee recommended ongoing parliamentary oversight of the scheme for its first five years of operation
- The bill also amends self-insurer security requirements to free up cash collateral and introduces an alternative indexation method for compensation entitlements
Recommendations (3)
- The committee recommends that Queensland Treasury consult with affected stakeholders, in particular insurers, employers, unions and disability service providers, on the drafting of the regulations to prescribe the assessment criteria for re-entry into the NIIS for workplace accidents after an injured person has received common law damages.
- The committee recommends that a parliamentary portfolio committee be given ongoing oversight responsibility for the NIIS for workplace accidents, including to review and report to Parliament on the scheme's operations on an annual basis for the first five years.
- The committee recommends that Queensland Treasury and WorkCover Queensland work with representatives of principal contractors and host employers to resolve issues arising from the exclusion of those entities from the WorkCover scheme and extend it to give them the option of participating in the scheme, taking out a private insurance policy, or both.
Committee report tabled
▸Second Reading30 Aug 2016View Hansard
▸18 members spoke11 support7 mixed
Did not oppose the bill in principle and supported extending the NIIS to workplace accidents, but strongly objected to the hybrid model and the provisions reversing the Byrne judgement which she said were introduced without consultation and on a retrospective basis.
“Whilst the LNP has led the way with the establishment of an NIIS and whilst we will not oppose this bill, we are very concerned about a number of its provisions.”— 2016-08-31View Hansard
As minister, introduced the bill as a landmark social reform implementing lifetime no-fault treatment, care and support for workers catastrophically injured at work, and reversing the Byrne decision to stop hold harmless clauses being used by principal contractors.
“This is a landmark reform. By implementing the National Injury Insurance Scheme for workplace accidents in Queensland, this bill continues to build on the Palaszczuk government's significant reforms, providing greater support and opportunities for the most vulnerable members of our community when they need it most.”— 2016-08-30View Hansard
As Minister for Disability Services, supported the bill as the companion reform to the NDIS, providing lifetime no-fault care and support for workers catastrophically injured on the job.
“This bill is about providing certainty and peace of mind that care and support will be available under the NIIS to every Queenslander who has or might acquire a serious disability as a result of a workplace incident.”— 2016-08-31View Hansard
Supported the NIIS extension to workplace injuries but strongly opposed clause 5 which reverses the Byrne judgement, arguing the government did not consult the Housing Industry Association or Master Builders Queensland on that amendment and the clause will shift $40 million in costs to industry retrospectively.
“We will be opposing clause 5 of this bill for the reasons, firstly, that it is not good policy and, secondly, we think the provisions should be deferred until proper consultation has occurred with industry about the unintended consequences.”— 2016-08-30View Hansard
Supported the extension of the NIIS to catastrophic workplace injuries but strongly opposed the Byrne judgement reversal, arguing it lacked consultation and could leave injured workers uninsured when principal contractors are uncovered.
“Let us make it clear: the LNP opposition supports the extension of the National Injury Insurance Scheme to those who are catastrophically injured at work, but we do not support the provisions which seek to reverse the Byrne judgement.”— 2016-08-31View Hansard
As committee chair, supported the bill saying it provides a workable and sustainable lifetime care scheme and defending the reversal of the Byrne judgement as necessary to stop principal contractors shifting liability to small subcontractors.
“It is essential that we protect our workers by ensuring that principal contractors or host employers maintain a safe work environment and by ensuring that in the event a worker sustains a catastrophic injury in their workplace they can rest assured that their treatment, lifetime care and support needs will be assured.”— 2016-08-30View Hansard
Supported the bill as fulfilling Queensland's commitment to the NIIS, extending the successful motor vehicle accident scheme model to workplace accidents.
“This package of amendments implements the National Injury Insurance scheme for workplace accidents in line with the related measure which recently passed through the House to provide for catastrophic motor vehicle injuries.”— 2016-08-31View Hansard
As committee deputy chair, supported the NIIS concept but opposed clause 5, saying the lack of consultation with Master Builders and the HIA on the Byrne amendment and its retrospective nature means principal contractors will not have insurance coverage, leaving injured workers at risk.
“We tried to negotiate with the government members on the committee. We said that we would love to support this bill because we appreciate the importance of the National Injury Insurance Scheme and we want to make sure that catastrophically injured workers are truly covered, but while this invidious clause 5 remains we cannot support this bill because it pulls a genie out of the bottle.”— 2016-08-30View Hansard
Supported the bill, including the reversal of the Byrne judgement, arguing that voiding hold harmless clauses would ensure negligent parties are held responsible and not shift costs onto subcontractors and small businesses.
“The proposed amendments will ensure that the costs associated with a person's negligence are allocated to them and not to the small to medium sized business required to indemnify the larger business.”— 2016-08-31View Hansard
Supported the bill, defending the government's consultation record and saying Queensland has the best workers compensation scheme in the country.
“I commend the bill to the House and I hope that the opposition keeps looking and learning.”— 2016-08-30View Hansard
Supported the bill and acknowledged advocate Marayke Jonkers, arguing the bill protects injured workers' rights while maintaining the financial solvency of Queensland's workers compensation scheme.
“The Palaszczuk Labor government remains committed to protecting the rights of injured workers to have access to fair and reasonable compensation benefits for their injuries.”— 2016-08-31View Hansard
As a committee member supported the extension of the NIIS to catastrophic workplace injuries but opposed the Byrne provisions, arguing they amount to cost-shifting from WorkCover to private insurance and create a gap in coverage for injured workers.
“Therefore, the opposition members of the committee are of the view that the Byrne provisions should be removed until such time as a process can be implemented to bring the principal contractors back into the WorkCover scheme.”— 2016-08-30View Hansard
Supported the bill as continuing the progression of social reform to support disabled people and those catastrophically injured, drawing on personal and family experience.
“Whether people have become disabled through birth, accident or workplace injury, through these mechanisms we are strengthening this state's care of our most disabled.”— 2016-08-31View Hansard
Supported the bill as a quality piece of legislation that establishes no-fault lifetime care and support for those with serious injuries, and addresses issues with lump sum dissipation and seriously injured young people being placed in nursing care.
“This is a quality, sound piece of legislation that has been brought forth by the Palaszczuk government to protect Queenslanders.”— 2016-08-30View Hansard
Agreed injured workers should be covered but objected to the retrospective element of clause 5 (the Byrne amendment), arguing it creates sovereign risk and undermines business trust in the law.
“I will reserve most of my comments to clause 5, the damage it will do to business and why, as a matter of principle, we should not be creating sovereign risk by bringing in things that are retrospective.”— 2016-08-31View Hansard
Supported the extension of the NIIS to catastrophically injured workers but opposed the provisions reversing the Byrne judgement, arguing the reversal is about cost-shifting from WorkCover to private insurers rather than protecting injured workers.
“The non-government committee members support the extension of the National Insurance Injury Scheme, the NIIS, to those who are catastrophically injured at work. However, we are not able to support the provisions of the bill which seek to reverse the Byrne judgement.”— 2016-08-30View Hansard
As Minister for Employment and Industrial Relations, defended the hybrid NIIS model and the reversal of the Byrne decision, arguing hold harmless clauses shift liability unfairly onto premium-paying small businesses.
“This bill before the House is yet another part of Labor's proud tradition of progressive social reform in support of those who need it the most.”— 2016-08-31View Hansard
As a former lawyer specialising in compensation claims, supported the bill saying it broadens and secures the safety net for catastrophically injured workers, striking an appropriate balance between preserving common law rights and bridging gaps in the fault-based system.
“The National Injury Insurance Scheme is a just, timely and vital reform. By providing lifetime care, assistance and medical treatment to some of Queensland's most vulnerable people, it ensures that we as a society are able to live up to the tradition of a fair go.”— 2016-08-30View Hansard
▸In Detail31 Aug 2016View Hansard
That the amendment be agreed to
Vote related to an amendment in this section's parliamentary business; passed on government numbers.
The motion passed.
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Ayes (44)
Noes (42)
That the motion, as amended, be agreed to
Vote on the amended motion; passed on government numbers.
The motion passed.
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Ayes (44)
Noes (42)
▸1 clause vote
Vote on clause 5
Vote on whether to keep clause 5 (the Byrne amendment) in the bill; defeated after the LNP, KAP, and Independent Gordon voted against the clause, resulting in clause 5 being removed from the bill.
The clause was removed.
A vote on whether a specific clause should remain in the bill as written.
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Ayes (43)
Noes (44)
Did not oppose the NIIS provisions but spoke against clause 5, arguing the Byrne amendment is retrospective, lacks consultation with industry, and could leave principal contractors uninsured and injured workers at risk.
“There are huge unintended consequences in passing this bill with clause 5 in it.”— 2016-08-31View Hansard
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