Scheme modernisation

Scheme modernisation webinar

On 16 April 2024 WorkSafe held a Scheme modernisation webinar about the changes under the Scheme Modernisation Act, how the changes will be applied and the types of claims impacted. The audience also had an opportunity to ask questions. If you missed the live webinar, you can watch this recording.

Background

On 31 March 2024, a number of changes came into effect to modernise Victoria's WorkCover scheme.

These changes were made under the Workplace Injury Rehabilitation and Compensation Amendment (WorkCover Scheme Modernisation) Act 2024 (Scheme Modernisation Act).

The changes will deliver a more contemporary and sustainable scheme to make sure it continues to support Victorian workers in the future.

WorkSafe will continue to deliver enhanced, tailored support to workers through prevention, recovery and return to work.

The main changes to Victoria's WorkCover scheme are:

• new eligibility requirements for mental injury claims
• an additional whole person impairment requirement for workers to continue to receive weekly payments after the 130 week second entitlement period

We'll also increase our support for injured workers, helping them recover and return to work safely.

If these changes affect your WorkCover claim, WorkSafe or your agent will send you a letter with more information about what this means for you and the additional support available.

Changes have been made to the eligibility criteria for mental injury compensation.

These changes will only apply to new mental injuries that occurred on, or after 31 March 2024.

A new mental injury definition

A mental injury is now defined as an injury that:

1. causes significant behavioural, cognitive or psychological dysfunction, and
2. has been diagnosed by a medical practitioner in accordance with the Diagnostic Statistical Manual of Mental Disorders

A mental injury must meet this definition to be eligible for compensation.

Supporting mental injuries predominately caused by employment

For primary mental injury claims, employment must be the strongest or largest contributing cause of a worker's mental injury for it to be eligible for compensation.

A new exclusion for stress and burnout

Workers will not be eligible for compensation where a primary mental injury has been mainly caused by stress or burnout as a result of events that are considered usual or typical and are reasonably expected to occur in the course of their duties.

A worker may remain eligible for compensation in some situations, including:

• repeated and unreasonable conflict with people, which is considered bullying and harassment
• if a worker's mental injury has been predominantly caused by stress or burnout resulting from traumatic events that are considered usual or typical and reasonably expected to occur in their work

Information about the changes to mental injury eligibility

Information sheet Practice directive

New whole person impairment requirement

There is now an additional requirement to continue to receive weekly payments after the 130-week second entitlement period.

To continue receiving weekly payments after 130 weeks, workers must:

• have a whole person impairment (WPI) of 21% or more and
• meet the existing capacity test requirement

The WPI requirement will only apply to claims that reached 130 weeks on, or after 31 March 2024.

Information about WPI

Information sheet Practice directive

Other changes

A number of supporting changes have also been made to improve the way the WorkCover scheme operates and make sure the changes in the Scheme Modernisation Act are effective. These include:

• changes to WorkSafe's ability to share information across business units
• a requirement for certain rejected claims that can't be resolved through conciliation to be determined by the courts, instead of arbitration
• an independent review of the changes introduced under the Scheme Modernisation Act to be conducted by a panel of experts in 2027
• the establishment of the Return to Work Advisory Committee, to provide advice to the WorkSafe Victoria Board on return to work initiatives

Questions?

Not all WorkCover claims will be impacted. If these changes affect your WorkCover claim, WorkSafe or your agent will send you a letter with more information about what this means and the additional support available.

Questions about the Scheme Modernisation Act can be emailed to [email protected]