Tasmania reviews soaring workers' compensation costs amid opposition concerns
Tasmania's workers' compensation payouts have surged, prompting WorkCover Board Tasmania to review the scheme as the Labor opposition fears tougher claim rules.
Over the last decade Tasmania's workers' compensation spending has more than tripled, rising from $32.7 million in 2015 to $143.4 million in 2024, according to the Tasmanian Risk Management Fund. The independent WorkCover Board Tasmania has therefore opened a review to ensure the scheme remains fair and financially sustainable, with public consultation closing in September. Labor leader Josh Willie pressed Treasurer Eric Abetz for assurances that no worker will receive reduced payments or face higher claim hurdles, while Abetz pointed to similar reviews in other states and emphasized the need for sustainability.
Union secretary Jessica Munday cautioned that any reduction could backfire, urging investment in prevention, bullying mitigation and support services. Health Minister Bridget Archer said the presumptive PTSD cover for first responders could be narrowed or removed, and a specialist wellbeing unit for Justice Department staff is set to be abolished, affecting about 200 workers. Experts note that psychosocial claims now dominate payouts, with police, fire and ambulance services seeing steep premium increases.
Why it matters
Rising compensation costs could reshape benefits for Tasmanian workers and affect state budgets.
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