Recently there have been various articles in the media discussing the WorkCover scheme. There has been the suggestion that employers in Queensland were turning to private investigators to expose alleged WorkCover fraud, as well as allegations that WorkCover has pressured staff to close injured workers’ claims quickly with incentives.
Fraud in any scheme is simply unacceptable and strong regulatory, enforcement and prosecution ought to occur for anyone seeking to defraud WorkCover.
I am a realist and, whilst unpalatable, in any government scheme there are unfortunately bad actors who will seek to defraud. WorkCover is no different. It is also trite to say that fraud can occur not only by workers but also by employers on the scheme.
The article in relation to worker fraud refers to a business owner suggesting that 30% of WorkCover claims were not legitimate, and that the Deputy Premier noted an increase in the average workers compensation premium rate from 1.2% to 1.343%. It is also noted by the Deputy Premier that WorkCover’s new leadership has made fraud detection a priority.
I applaud and encourage additional resources being invested into the Office of Industrial Relations and their regulatory and investigative powers, together with resources for prosecutions of fraud – both by workers and employers. However, in relation to premium rates for WorkCover, between 2016 and 2022 the premium rate remained steady at 1.2%, moving to 1.23% and 1.29% in financial years 2023 and 2024 respectively.[1] For financial year 2025 it has increased to 1.34%.[2] There is zero link between any alleged fraud on the WorkCover scheme and these premium increases.
Whilst premium increases are unpalatable for business, Queensland has one of the lowest workers compensation premium rates in the country. New South Wales is at 1.823%,[3] Victoria 1.8%[4], South Australia 1.85%,[5] Western Australia 1.823%[6] and Tasmania 2.06%[7]. Not only is the workers compensation premium rate in Queensland the most competitive, Queensland retains common law rights, which allow injured workers to be fairly compensated for injuries sustained at work through negligence by an employer. It is important to understand that compensation is not a windfall, it arises when a worker suffers injuries through no fault of their own; the overwhelming majority of workers do not seek to be injured.
We can proudly boast one of the healthiest workers’ compensation schemes in the country. The target funding ratio for FY2025 was 120%, and WorkCover is currently sitting at 141%. This means that, if WorkCover was wound up today, not only would they be able to meet all their outstanding liabilities, but there would be a very significant cash reserve windfall for the government. This is the envy of other schemes.
As to the allegation that 30% of WorkCover claims are fraudulent, there is zero evidence to sustain this allegation. If there were fraud to this scale, it is simply inconceivable that the scheme would continue to be operating in such a financially healthy state.
In saying this, there is no excuse for fraud. Unfortunately, fraud will occur in any scheme, including WorkCover (both by workers and employers), and I am not in any way suggesting it is not a serious matter. It should be treated seriously. The Office of Industrial Relations should be adequately resourced to undertake regulatory, enforcement and investigative activities. Adequate resourcing needs to be allocated for prosecution of fraud – both by workers and by employers. However, to allege that the scheme is in some dire trouble because of wholescale fraud is simply not borne out and is an unsubstantiated, alarmist allegation.
A more fulsome discussion about our workers’ compensation scheme in Queensland is needed. In particular, those prominent issues which require stakeholder engagement including, mental health claims, support for gig workers, internal WorkCover processes incentivising unreasonable and precipitous decisions, and of course fraud.
[1] ibid
[2] WorkCover Queensland Annual Report 2023 – 2024
[3] https://www.icare.nsw.gov.au/employers/premiums/premium-updates
[4] https://www.worksafe.vic.gov.au/industry-rates-and-key-dates
[5] https://www.rtwsa.com/about-us/news-room/articles/returntoworksa-average-premium-rate-for-2025-26-maintained-at-the-same-level
[6] https://www.workcover.wa.gov.au/news/workcover-wa-recommended-premium-rates-2025-26/
[7] https://worksafe.tas.gov.au/__data/assets/pdf_file/0006/808566/Suggested-Premium-Rates-2025-26-full-report.pdf
