New report savages state’s compensation system as workplace injuries set to cost SA $100m

A new report has savaged the state’s compensation system, revealing the “sleeper issue” is set to plague the state’s economy to the tune of more than $100m.

Workplace injuries are plaguing the state’s economy to the tune of more than $100m, as a new report savages the state’s compensation system for leaving South Australians “mired in poverty”.

A report to be released on Monday by the McKell Institute think tank reveals the “sleeper issue” is set to cost the state economy at least $106m over the next seven years, as more than 1200 South Australians each year are injured so badly on the job they can’t return to work.

The overall hit to the economy is expected to be far higher than the conservative estimate, which does not consider the multitude of knock-on effects caused by thousands of workers losing huge chunks of annual income.

Attorney-General Kyam Maher flagged future improvements to the system.

“We are consulting with workers, employers and the wider community on potential improvements to the existing return to work processes under the Act, including the duty to provide suitable employment to injured workers,” Mr Maher said.

Attorney-General Kyam Maher. Picture Matt Turner.

The McKell Institute took at Return to Work SA and claimed the system was “leaving many South Australians mired in poverty” by reducing weekly compensation payments by 20 per cent after 12 months and enforcing a two-year cap on weekly payments for all but the most seriously injured workers.

“Too many injured workers in SA are being undermined by an inadequate workers’ comp system, which is impacting hundreds of families every year and weakening our state’s economy,” said Edward Cavanough, the Director of Policy at the McKell Institute.

The report found 90.7 per cent of South Australians who received workers’ compensation for an injury returned to work at some point in their lifetime. The report claims it lags the national average and is behind Tasmania, Queensland, NSW and the Northern Territory.

However, Return to Work SA’s latest annual report showed 93 per cent of injured workers made a complete return within a year after their injury.

“ReturnToWorkSA remains committed to continuing to improve the performance of the Scheme and working with stakeholders to support the best possible outcomes for South Australians,” a spokesman said.

Originally published as New report savages state’s compensation system as workplace injuries set to cost SA $100m