Claims blowout hits Tasmanian workers' compensation scheme

The Tasmanian government has seen a significant increase in payments for workers' compensation claims, with the amount paid rising from $32.7 million to $143.4 million between the 2015 and 2024 financial years. The government is currently reviewing the scheme to ensure its fairness and financial sustainability, a move that has raised concerns among the Labor opposition.

The opposition fears the review could make it harder for workers to claim compensation, particularly for psychological injuries and post-traumatic stress disorder (PTSD). The Tasmanian Risk Management Fund, which self-insures the government's workers' compensation risk, reported that 28% of state service claims in 2024-2025 were mental-health related, with 15% of those being PTSD claims.

These figures suggest a growing trend of psychosocial injury claims. The government has flagged 1,700 job cuts across the state service and is considering changes that could narrow or remove the presumptive cover for PTSD, which was introduced in 2019. Labor leader Josh Willie questioned the treasurer about potential changes, asking if no injured Tasmanian worker would face a lower payment, loss of coverage, or a higher barrier to make a claim as a result.

The treasurer, Eric Abetz, sought to ease concerns by citing other states' reviews of workers' compensation rules. Unions Tasmania secretary Jessica Munday expressed worry that any changes reducing compensation could be detrimental, emphasizing the importance of preventative measures. The opposition also claimed that a specialist wellbeing unit for Department of Justice staff would be abolished, affecting around 200 workers.