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Annual Report 2017–18 ANNUAL REPORT 2017–18 | COMCARE | SAFETY, REHABILITATION AND COMPENSATION COMMISSION Publication details Online access Published by Comcare Online access is available at www.comcare.gov.au/ annual_report or alternatively through the ‘About Us’ © Commonwealth of Australia 2018 page on the Comcare website. PUB 001—Comcare and SRCC Annual Reports 2017–18 Annual report contact ISSN 1325-1031 (hard copy) To obtain further information contact: ISSN 1832-0260 (online) Corporate Strategy and Communications ABN 41 640 788 304 (Comcare) Comcare, GPO Box 9905 CANBERRA ACT 2601 or All material presented in this publication is provided Phone 1300 366 979 under a Creative Commons Attribution 3.0 Australia (http://creativecommons.org/licenses/by/3.0/au/ deed.en) licence. For the avoidance of doubt, this means this licence only applies to material as set out in this document. The details of the relevant licence conditions are available on the Creative Commons website (accessible using the links provided) as is the full legal code for the CC BY 3.0 AU licence (http:// creativecommons.org/licenses/by/3.0/legalcode). Use of the Coat of Arms The terms under which the Coat of Arms can be used are detailed on the It’s an Honour website (www.itsanhonour.gov.au/coat-arms/index.cfm). Acknowledgements Design and print publication—Instant Colour Press Australasian Reporting Awards—Critique of 2016– 17 Annual Report COMCARE AND SAFETY, REHABILITATION AND COMPENSATION COMMISSION ANNUAL REPORTS 2017–18 About these reports Contents The Comcare and Safety, Rehabilitation and Management and accountability About these reports i Compensation Commission (SRCC) annual The management and accountability section PART ONE: reports document the activities of Comcare and details Comcare’s corporate governance, human Comcare Annual Report 2017–18 1 the SRCC, and the performance of the Comcare resources and business capability. It includes scheme from 1 July 2017 to 30 June 2018. information about Comcare’s committees, financial Ministers serving 2017–18 2 These annual reports have been prepared in review, internal and external scrutiny. Letter of transmittal - Comcare 3 accordance with section 46 of the Public, Comcare CEO’s review 4 Governance, Performance and Accountability Financial statements Act 2013 and Subdivision B of Division Chapter 1: Overview 6 3A of the Public Governance, Performance The financial statements provide detailed and Accountability Amendment (Corporate information about Comcare’s financial 1.1 - Performance highlights 8 Commonwealth Entity Annual Reporting) performance. 1.2 - About Comcare 10 Rule 2016. Chapter 2: Annual Performance Statements 2017–18 28 Appendices Overview 30 PART ONE The appendices contain further information Comcare Annual Report 2017–18 addressing mandatory reporting requirements 2.1 - Strategic Priority—Leading insurer 32 The Comcare Annual Report 2017–18 complies under respective legislations. This section includes 2.2 - Strategic Priority—National regulator 38 with the requirements contained in the Safety, the legislative compliance index. 2.3 - Strategic Priority—Excellence in scheme management and design 46 Rehabilitation and Compensation Act 1988 (SRC 2.4 - Strategic Priority—Efficient and effective operations 50 Act), the Work Health and Safety Act 2011 (WHS PART TWO Act), and the Public Governance, Performance and Chapter 3: Management and accountability 56 Accountability Act 2013 (PGPA Act). Safety, Rehabilitation and Compensation Commission Annual 3.1 - Our Governance 58 Report 2017–18 3.2 - External scrutiny 66 Overview The SRCC Annual Report 2017–18 complies with 3.3 - Our People 68 This section of the report provides an overview of the requirements of the SRC Act and the WHS Act. 3.4 - Work health and safety management 76 Comcare and Comcare’s Executive. It details the 3.5 - Financial review 81 objectives, functions, roles and responsibilities of This report details the objectives, roles, functions, Comcare. This section also highlights the overall membership and operations of the SRCC. It also performance of the provides details about the performance of the Chapter 4: Financial statements 84 Comcare scheme. SRCC. The SRCC does not have staff or a budget, so Chapter 5: Appendices 142 financial statements are only prepared and Annual performance statements Appendix A - Ecologically sustainable development and environmental performance 144 reported for Comcare. The annual performance statements provide Appendix B - Procurement and Comcover 147 information about Comcare’s performance in Appendix C - Compliance index 149 2017–18. i Comcare and SRCC Annual Reports 2017–18 Comcare and SRCC Annual Reports 2017–18 ii PART ONE: COMCARE PART TWO: Safety, Rehabilitation and Compensation Commission ANNUAL REPORT Annual Report 2017–18 151 2017–18 Letter of transmittal—Safety, Rehabilitation and Compensation Commission Annual Report 2017–18 153 Ministers serving 2017–18 2 Chairperson’s review 154 Letter of transmittal - Comcare 3 Comcare CEO’s review 4 About the Commission 156 Licensing 161 GLOSSARY AND INDEX 170 iii Comcare and SRCC Annual Reports 2017–18 Ministers Letter of ONE PART serving 2017–18 transmittal Responsible Ministers from 20 December 2017 to 30 June 2018 The Hon Craig Laundy MP Minister for Small and Family Business, the Workplace and Deregulation Member for Reid Senator the Hon Michaelia Cash Minister for Jobs and Innovation Senator for Western Australia Responsible Minister prior to 20 December 2017 Senator the Hon Michaelia Cash Minister for Employment Minister for Women Minister Assisting the Prime Minister for the Public Service Senator for Western Australia 2 Comcare and SRCC Annual Reports 2017–18 Comcare and SRCC Annual Reports 2017–18 3 Comcare ONE PART CEO’s review payment reducing by 12 per cent overall during Monash University researchers examined systems As the CEO and sole director of Comcare it gives me great the past year. Incapacity claims reaching 12 covering workers’ compensation, social security, pleasure to present this report to the Minister for Jobs, Industrial months and two years also continued to fall. veterans’ compensation, superannuation, life Relations and Women, the Hon Kelly O’Dwyer MP, and the insurance and motor accident compensation. The Australian Parliament on the performance of Comcare for the year research is the first to identify the flow of people Early intervention ending 30 June 2018. through the systems, how the systems interact, Claims for psychological injury remain and where they can be improved to deliver better disproportionately high in cost and duration, and health and productivity outcomes. This gives us we will be trialling new early intervention initiatives a basis for improving Australia’s service delivery Strategic direction Comcare’s scheme performance focusing on mental stress in the year ahead. model for supporting people in their return to We have built on the success of transforming The scheme’s performance improved further in Comcare has initiated three projects that will target work. Partnership members are using the study to our business, with improved return to work 2017–18 with better return to work outcomes, the incidence and cost of psychological claims in consider improvements such as data sharing to outcomes and stronger financial health for lower premiums and a stronger financial position. the Australian Government sector. These include help the benefit systems interact more effectively. the scheme. While we remain committed to This shows our focus on early intervention and a six-month trial of beyondblue’s NewAccess the strategic priorities that ensure safer and return to and recovery at work continues to program—an evidence-based early intervention healthier workplaces, we are looking beyond our improve outcomes for employees and employers. initiative to support people experiencing mild to Outlook jurisdiction to influence positive change. Results were driven by continued improvement moderate symptoms of depression and anxiety. In the year ahead Comcare will continue to focus in claim frequency and the duration of incapacity on core issues such as improving return to work Comcare remains committed to the business Early intervention has been key to the scheme’s benefits. Importantly, the number of long-term outcomes, managing liability and premiums, priorities of being a leading workers’ improved performance. These initiatives are incapacity claims is decreasing, and this trend is delivering effective work health and safety compensation insurer and effective national work excellent opportunities to test different approaches expected to continue. regulation, and adapting to and learning from a health and safety regulator, with excellence in to making the workplaces in our scheme safer and new claims services model. scheme design and management and efficient and The average Commonwealth premium rate healthier. effective operations. We have now expanded these for 2018–19 is 1.06 per cent of payroll – It will also be important to expand our efforts priorities to include driving innovation and better down 14 per cent from 2017–18 and saving to explore opportunities to deliver better work practice to enhance our knowledge of current and Commonwealth agencies an estimated A new approach to health-related and health outcomes across all schemes. Every emerging trends. $35 million. There has been a 45 per cent work incapacity jurisdiction is grappling with a constantly evolving reduction in the premium rate since 2014–15, Comcare continues
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