New probe deals a blow to Allan govt’s WorkCover legislation

The Allan government’s contentious WorkCover legislation has been dealt a massive blow after it was adjourned to an inquiry at the eleventh hour.

The Allan government has been dealt a massive blow in state parliament with its contentious WorkCover legislation adjourned to an inquiry at the eleventh hour.

MPs in the state’s upper house voted to send the Bill, which would overhaul the state’s WorkCover scheme, to a committee late on Wednesday, to further probe the impacts of the changes to businesses and users.

The move means the Labor government will not meet its deadline of passing much-needed changes by the end of the parliamentary sitting year.

Opposition Leader John Pesutto said it was a win that would rework the government’s “massively flawed” legislation.

“It’s a victory for common sense and balanced reform,” he said.

“What this will enable the parliament to do is improve in an inadequate bill. This bill is half baked and what the work of this committee will allow is for a better bill to emerge.”

Opposition Leader John Pesutto says it’s a victory for common sense and balanced reform. Picture: Josie Hayden

The motion to probe the bill further was supported by the Greens and minor parties with all having previously raised concerns that the proposed overhaul will to severely limit legitimate mental health claims.

The state’s WorkCover scheme has been in crisis for sometime, with reform desperately needed.

Earlier this month, the Victorian WorkCover Authority posted an insurance operations deficit of $1.76bn.

It’s agreed change is needed, but MPs said the government gave little information and tried to ram the Bill through.

Jacinta Allan threatened to increase WorkCover premiums if the Victorian government failed to get support to pass the new legislation. Picture: David Geraghty

Earlier this month, Premier Jacinta Allan threatened to increase WorkCover premiums if the Victorian government failed to get support to pass the new legislation.

Premium hikes could be raised by 42 per cent raise that had already been flagged.

The Victorian government has been approached for comment.

Ms Allan this week said the government had consulted for most of the year with business, unions and members of parliament.

“Let’s be clear, it’s the Liberal Party and the leader of the opposition who are blocking sensible reforms to a WorkCover system that is fundamentally broken,” she said.

“We know premiums will have to go up if these laws don’t pass.