Employment Minister Amanda Rishworth says the Comcare Scheme for compensation is outdated. Photo: Comcare.
Labor is reforming the federal workers’ compensation scheme to streamline claims and get injured public servants back to work sooner.
Employment and Workplace Relations Minister Amanda Rishworth flagged the changes at the Comcare National Conference in Canberra on Wednesday (16 September), saying much of the Comcare Scheme was stuck in the 1980s when it was first legislated.
“I would like to recognise that in many respects, the Comcare scheme does provide quality support for injured workers, at a very difficult time for them,” the minister said.
“Of course, like with any public administration scheme, there have been significant changes to Comcare’s operating environment since 1988.
“But the scheme’s underpinning legislation and design have not kept pace with these changes.
“Comcare now covers a much wider range of work environments and types of work, compared to when it was first established.
“The nature of work has also changed, meaning the scheme must respond to a broader range of work-related hazards, injuries and rehabilitation needs.
“The jobs of today involve far more non-routine cognitive tasks and emotional demands, increasing the risk of exposure to psychosocial hazards.”
Ms Rishworth said the Comcare Scheme does not have enough emphasis on early intervention, as is the case with some state government schemes.
She outlined the principles for reforms she will be implementing to support what she said will be the scheme’s effective operation and future sustainability.
This includes creating a system with better early supports for injured workers, focusing on recovery and maintaining a close connection with work.
“Because there is clear evidence that early support is critical to the recovery and return to work for injured workers,” she said.
“And timely support also reduces the potential additional harms that can be caused by lengthy claims processes.”
The second principle is ensuring the rehabilitation and recovery process for workers is ultimately focused on supporting them to safely return to work.
The minister noted that the longer someone is out of the workplace because of injury, the less likely they are to return to work.
The third principle Ms Rishworth wants to embed in the government’s targeted reform process is modernising Comcare, particularly through its claims processes.
She wants claims management streamlined to be fast and efficient, so both workers and employers can focus on recovery and a safe return to work “rather than wrestling with paperwork”, and she wants the process to be more user-friendly.
The Federal Government is also looking at ways to improve the Comcare Scheme’s oversight and governance, with a view to ensuring it becomes fit-for-purpose into the future.
“For example, I am interested in how we can improve Comcare’s ability to engage with key stakeholders at a strategic level,” the minister said.
“This would help identify emerging trends and challenges, as well as improve the scheme’s ability to respond to a changing environment.
“I also believe there are opportunities to modernise the Comcare framework in a way that will improve communication, coordination and cooperation between all parties.
“Like making the allocation of return-to-work responsibilities between employers and rehabilitation authorities much clearer.
“This will help promote a person-centred approach that benefits both workers and employers.”
The planned changes come amid a backdrop of increased claims for psychological injuries in the Australian Public Service.
For APS agencies, return-to-work rates for psychological claims are 54 per cent, compared to 91 per cent for physical injury claims.
Comcare Deputy CEO Michael Duke provided data of the rise on psychological injury claims. Photo: Comcare.
Comcare deputy CEO Michael Duke told the conference that psychological claims now account for 47 per cent of open claims Comcare is managing, and for half of overall claims costs.
“Across Australian Government workers’ compensation claims, mental health conditions are now the most prevalent type of condition claimed,” he said.
“In the 2025-26 financial year alone, Comcare received 963 claims for psychological injury. This compares with 440 psychological claims received in 2021-22. That is more than double in number …
“As you would be aware, these claims experience longer periods of time off work and poorer return-to-work outcomes.
“Median incapacity or time off work is more than 32 weeks.”
