WorkCover 1.3 Billion dollar unfunded liability

From The Advertiser April 2009

Timely reform of WorkCover

WORKCOVER'S $1.3 billion unfunded liabilities are an enormous problem for this state, particularly during a global downturn. This will have an impact on the state's already pressured balance sheet and cast more doubt on the imperilled AAA credit rating.

Business is, rightly, looking forward to a decrease in the average levy because of WorkCover reforms implemented by the State Government last year.

One can only imagine the situation if these vital reforms had not been passed. WorkCover has the important role of managing the rehabilitation and compensation of injured workers. One can only wonder why such vast amounts of money are then being invested with such high losses. Surely a loss of $300 Million dollars in six months is something that should be ringing the ALARM BELLS for every parliamentarian, employer and injured worker.

Posted by: Steve Christos of Toorak Gardens 3:14pm today
Comment 7 of 7
As an employer going through tough times I find it incredible that the penalty workcover apply for late payments is so high - a 50% fine regardless of how late you are.

Posted by: Graeme Logan of Dry Creek 12:30pm today
Comment 4 of 7
I can not see any reduction in WorkCover levies in the near future. Unemployment rates will mean less levy income and now with losses due to the global financial crisis only makes it worse. To suddenly lower levy rates at this crucial time will be the nail in the coffin for a scheme that has been on the decline for the last six years. The ¿safety net¿ of investments is just about to be removed!

Posted by: wayne mattner of plympton 10:27am today
Comment 3 of 7

The State Opposition says a blowout in WorkCover's unfunded liability will cost South Australian jobs.

WorkCover reported a growth in its unfunded liability of $313 million in the six months to December last year.

Opposition leader Martin Hamilton-Smith says says the growth in unfunded liability is unacceptable.

"It's crept up each year over seven years, this is not a result of the global financial downturn at all, it is the result of government mismanagement, a Rann Labor Government unable to competently manage the scheme," he said.

"Now they've got to justify and explain what they've done to the WorkCover scheme and what they've done is deliver ruin."

The Industrial Relations Minister, Paul Caica, says Mr Hamilton-Smith is ignoring the true economic situation.

"He's got his head in the sand, they must acknowledge the impact of the global financial crisis," he said.

"Everyone's investments have been hit hard and WorkCover is ... not immune to this."