New Improved Workers' Compensation System in the ACT

Monday 20 June 2016 @ 12.58 p.m. | Legal Research

On 15 June 2016, the ACT Legislative Assembly notified Act 27 of 2016, the Workers Compensation Amendment Act 2016 (No 2). This Act introduces amendments to the Workers Compensation Act 1951 (ACT) which ensure that workers who suffer from an imminently fatal asbestos-related disease receive equitable and timely access to statutory compensation.  

Background to the Bill

According to the Explanatory Statement, the Workers Compensation Act 1951 (ACT) (Compensation Act) establishes the regulatory framework for the Territory’s private sector workers’ compensation scheme (the Scheme).    The purpose of the Scheme is to establish a statutory safety net of benefits and support available to private sector workers in the event of injury, ensuring that they have access to essential services such as medical treatment, rehabilitation assistance and weekly compensation.  

In the context of imminently fatal asbestos-related diseases, the Scheme falls short of achieving these objectives and instead puts vulnerable workers in a position of disadvantage at a time of critical need.   Under the current Scheme arrangements, Territory workers who suffer from an imminently fatal asbestos-related disease experience difficulties receiving timely compensation-the reasons for this being two-fold:

  • Firstly, asbestos-related diseases are not included in the schedule of injuries for which lump sum compensation is available under the Compensation Act; and
  • Secondly, the medical reality that applies to imminently fatal asbestos?related diseases is such that there is a considerable lag time between the workers exposure to the asbestos product(s) giving rise to the disease and the initial onset of the disease.

The Aim of the Act

The Workers Compensation Amendment Act 2016 (No 2) (the Amending Act) recognises and addresses these issues, introducing amendments to the Compensation Act which ensure that workers who suffer from an imminently fatal asbestos-related disease receive equitable and timely access to statutory compensation.  

In particular, the Amending Act:

  • provides for statutory lump sum compensation for workers who suffer from an imminently fatal asbestos-related disease by including asbestos? related diseases within Schedule 1 to the Compensation Act;
  • sets the amount of non-economic loss lump sum compensation payable to workers suffering from an imminently fatal asbestos-related disease to 100% of the single loss amount provided in s 49 of the Compensation Act; 
  • modifies the DIF’s claim management arrangements so that liability on workers’ compensation claims for imminently fatal asbestos-related diseases may be accepted and paid without first requiring the claimant to pursue all other tortfeasors; and
  • allows the DIF to initiate legal action against another insurer or other tort? feasor and to use any contribution/damages received to offset statutory claim costs.

As stated in the Media Release by Minister Mick Gentleman:

"In addition to streamlining and offering a fairer process to sufferers, these amendments will also ensure the Territory’s position on the administration of asbestos-related claims is consistent with the majority of other Australian states and territories.

These changes to legislation will come into effect from 1 July 2017 and are yet another example of the ACT Government’s commitment to ensure that people whose lives have been impacted by exposure to asbestos through their work receive the support they need."

The main amendments contained in the Amending Act begin on 1 July 2017 while the naming and commencement provisions have commenced on notification of the Act.

TimeBase is an independent, privately owned Australian legal publisher specialising in the online delivery of accurate, comprehensive and innovative legislation research tools including LawOne and unique Point-in-Time Products.

Sources:

Workers Compensation Amendment Bill 2016 and new Act (No. 27 of 2016) (ACT) as reproduced on TimeBase LawOne

Media Release - ACT Government, also reproduced on TimeBase LawOne

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