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Workers’ Compensation and OHS Costs and Liabilities Breakfast Seminar July 2008
Objectives of the Session ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
South Australian Scheme ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Scheme Comparison Scheme Comparison 2005/06 Scheme Comparison 2006/07 [1]   Campbell Return to Work Monitor 88% 85% 87% 78% Return to work rate [1] 1.43% 1.62% 1.99% 3% Average levy rate QLD VIC NSW SA 85% 85% 86% 77% Return to work rate 1.2% 1.49% 1.77% 3% Average levy rate QLD VIC NSW SA
Impact of Unfunded Liability ,[object Object],[object Object],[object Object],[object Object]
Registered versus Self Insured Employers 21% 7,470 34,770 TOTAL 19% 2,430 37% 12,750 40% Self-insured 23% 5,040 63% 22,020 60% Registered % Time Lost Claims Time Lost Claims  % Scheme Claims Number of Claims Scheme Ratio
New Scheme Changes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Scheme Changes (continued) ,[object Object],Courtesy of the Advertiser
Scheme Changes (Continued) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Effective OHS and WC Systems  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Effective OHS and WC Systems (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Components of OHS and WC Systems ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Influencing your levy rate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Influencing your levy rate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Effect of Bonuses and Penalties Food manufacturing (per $1M wages) Agriculture NEC (per $1M wages) Construction NEC (per $1M wages) $55,793 $48,818 4.41% $104,611 9.45% 6.3% Difference Levy -30% bonus Levy  50% penalty SAWIC  $61,992 $54,243 4.9% $116,235 10.5% 7% Difference Levy -30% bonus Levy  50% penalty SAWIC  $99,630 $24,907 5.25% $124,537 11.25% 7.5% Difference Levy -30% bonus Levy  50% penalty SAWIC
Safework Incentive Scheme ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cost Benefit Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]
Selling your Proposal Internally ,[object Object],[object Object],[object Object],[object Object],[object Object]
Selling your Proposal Internally ,[object Object],[object Object],[object Object],[object Object],[object Object]
Selling your Proposal Internally ,[object Object],[object Object],[object Object],[object Object]
Selling your Objective – Key Stages
Example of Cost Savings $359,000 $10,000 $16,000 $27,000 $153,000 $153,000 NET CASH FLOW $345,000 $45,000 $50,000 $50,000 $80,000 $120,000 SUB TOTAL $10,000 $5,000 $5,000 Training programs $10,000 $5,000 $5,000 Increased administration $55,000 $15,000 $10,000 $10,000 $10,000 $10,000 Pre-employment Screening $270,000 $30,000 $40,000 $40,000 $60,000 $100,000 Personnel (tec) OUTFLOWS $704,000 $55,000 $66,000 $77,000 $233,000 $273,000 Levy – increased cash flow 5% 5% 5% 15% 20% Penalty/bonus improvement at  TOTAL Year Five Year Four Year Three  Year Two Year One INFLOWS
Indirect Costs and Factors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Directors’ Liabilities in OHS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Continuous Improvement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Setting Objectives and Targets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
OHS and RTW Policies ,[object Object],[object Object],[object Object],[object Object],[object Object]
Planning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Implementation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Measurement and Evaluation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Management Review ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Workers Comp and OHS Costs And Liabilities Seminar SA

  • 1. Workers’ Compensation and OHS Costs and Liabilities Breakfast Seminar July 2008
  • 2.
  • 3.
  • 4. Scheme Comparison Scheme Comparison 2005/06 Scheme Comparison 2006/07 [1] Campbell Return to Work Monitor 88% 85% 87% 78% Return to work rate [1] 1.43% 1.62% 1.99% 3% Average levy rate QLD VIC NSW SA 85% 85% 86% 77% Return to work rate 1.2% 1.49% 1.77% 3% Average levy rate QLD VIC NSW SA
  • 5.
  • 6. Registered versus Self Insured Employers 21% 7,470 34,770 TOTAL 19% 2,430 37% 12,750 40% Self-insured 23% 5,040 63% 22,020 60% Registered % Time Lost Claims Time Lost Claims % Scheme Claims Number of Claims Scheme Ratio
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15. Effect of Bonuses and Penalties Food manufacturing (per $1M wages) Agriculture NEC (per $1M wages) Construction NEC (per $1M wages) $55,793 $48,818 4.41% $104,611 9.45% 6.3% Difference Levy -30% bonus Levy 50% penalty SAWIC $61,992 $54,243 4.9% $116,235 10.5% 7% Difference Levy -30% bonus Levy 50% penalty SAWIC $99,630 $24,907 5.25% $124,537 11.25% 7.5% Difference Levy -30% bonus Levy 50% penalty SAWIC
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21. Selling your Objective – Key Stages
  • 22. Example of Cost Savings $359,000 $10,000 $16,000 $27,000 $153,000 $153,000 NET CASH FLOW $345,000 $45,000 $50,000 $50,000 $80,000 $120,000 SUB TOTAL $10,000 $5,000 $5,000 Training programs $10,000 $5,000 $5,000 Increased administration $55,000 $15,000 $10,000 $10,000 $10,000 $10,000 Pre-employment Screening $270,000 $30,000 $40,000 $40,000 $60,000 $100,000 Personnel (tec) OUTFLOWS $704,000 $55,000 $66,000 $77,000 $233,000 $273,000 Levy – increased cash flow 5% 5% 5% 15% 20% Penalty/bonus improvement at TOTAL Year Five Year Four Year Three Year Two Year One INFLOWS
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.