Workers' comp rorts uncovered
A deep investigation of Australia’s $60 billion workers’ compensation system has uncovered widespread mismanagement.
A joint investigation by The Age, Sydney Morning Herald and the ABC into Australia’s workers' compensation system has uncovered mismanagement of the state government-run schemes in NSW and “unethical” conduct in Victoria.
The reports have already led regulators to refer conduct to the NSW anti-corruption authority, following repeated warnings about its deteriorating financial position and solvency risks.
The Victorian workers' compensation scheme has separately been accused by an ombudsman of presiding over immoral and unethical practices.
The scheme lost more than $800 million last year, as external insurance agents were offered financial incentives to terminate coverage for injured workers.
The two schemes together cover almost half the nation's workforce. Reports say their mismanagement is leading to delays and to denials of medical treatment, making some workers sicker and delaying their return to their jobs.