Worksafe Victoria Annual Report 2011

WorkSafe
Victoria
annual report
2011
Helping
Victorian workers
return home safe
every day
letter to MiniSter
13 September 2011
The Hon. Gordon Rich-Phillips MLC
Assistant Treasurer, Minister for WorkCover
and the Transport Accident Commission,
Minister for Technology and Minister Responsible
for the Aviation Industry.
Level 5, 1 Macarthur Street
East Melbourne Vic 3000
Dear Minister
I am pleased to submit the 2010/11 Annual Report
of the Victorian WorkCover Authority, trading as WorkSafe Victoria,
for presentation to the Parliament, as required by section 46
of the Financial Management Act 1994.
Yours sincerely
Elana Rubin
Chair
contentS
01 Vision and Mission
01 About WorkSafe
02 Our Performance
04 Chairs Report
05 Chief Executives Report
06 Board
07 Senior Management
08 Safety
16 Service
24 Sustainability
27 / Our Organisation
28 / Our OHS
30 / Financial Management
32 Financial Report
74 Appendices
74 / Appendix 1
Prosecutions
77 / Appendix 2
Agent performance
81 / Appendix 3
Self-insurance report
84 / Appendix 4
Governance and compliance
90 / Appendix 5
Disclosure index
1
Our Vision
Victorian workers returning
home safe every day.
Our Mission
Working with the community
to deliver outstanding workplace
safety, together with quality
care and insurance protection
to workers and employers.
ABOUT
WORKSAFE
WORKSAFE VicTORiA:
/ strives to prevent workplace injuries
and illness
/ enforces Victorias occupational health
and safety laws (including relevant
Commonwealth laws)
/ provides reasonably priced workplace
injury insurance for employers
/ helps injured workers return to the workforce
/ manages the WorkSafe injury insurance
scheme by ensuring the prompt delivery of
appropriate services and adopting prudent
fnancial practices
/ provides an Emergency Response Service
that operates 24 hours a day, every day,
across Victoria.
OUR STATUTORy OBligATiOnS
ARE cOVEREd in SEVERAl AcTS
OF PARliAMEnT, inclUding:
/ health, safety and welfare in the workplace
under the Occupational Health and Safety
Act 2004
/ workers compensation and the
rehabilitation of injured workers under the
Accident Compensation Act 1985
/ WorkSafe injury insurance premiums
under the Accident Compensation
(WorkCover Insurance) Act 1993
/ explosives and other dangerous goods
under the Dangerous Goods Act 1985
/ high-risk equipment used in non-work
related situations under the Equipment
(Public Safety) Act 1994
/ mines and quarries under the Mines
Act 1958.
WORKSAFE PROVidES A RAngE OF
BEnEFiTS TO injUREd WORKERS,
inclUding:
/ weekly payments
/ medical and allied health treatment
/ ambulance transport
/ hospital treatment
/ personal and household help
/ impairment lump sum
/ common law damages (where certain
criteria are met).
FUnding
The organisation is primarily funded by
insurance premiums paid by Victorian
employers who are covered by the
WorkSafe injury insurance scheme.
In 2010/11 this totalled $1.80 billion.
WorkSafe Victoria Annual Report 2011 2
HIGHLIGHTS
SafeTy
/ Lowest injury rate on record
/ Over 175,000 WorkHealth checks delivered
/ Over 40,000 workplace visits
ServIce
/ Sustained outstanding client satisfaction
with the Inspectorate and guidance
/ Improved return to work result
/ Transition to new Agent panel
SuSTaInabILITy
/ Sustained lowest average premium rate in Victorias history
/ Tenth successive full-year actuarial release
/ Strong performance from insurance operations
OUR
PERFORMAncE
Strategy 2012
Our five
year gOalS
Our Performance
2006-07
Baseline
2009/10
Results
2010/11
Target
2010/11
Results
8.35 claims
per 1000 workers
11.3 10.58 9.47 10.34
30% improvement
in return to work
1
75.8% 74.1% 78.6% 77.2%
Client satisfaction
up to 90%
2
82.6% 87.2% 88.0% 85.8%
Improved employee
satisfaction
64% 68% 71% 63%
Actuarial release of
$1.7 billion
$394M $189M $200M $136M
Premium break even
rate of 1.2%
3
1.38% 1.333% 1.302% 1.316%
1
Refer to footnote 2 underneath the table on page 16
2
3
Target set pre-Hanks reforms
3
HIGHLIGHTS
SafeTy
/ Lowest injury rate on record
/ Over 175,000 WorkHealth checks delivered
/ Over 40,000 workplace visits
ServIce
/ Sustained outstanding client satisfaction
with the Inspectorate and guidance
/ Improved return to work result
/ Transition to new Agent panel
SuSTaInabILITy
/ Sustained lowest average premium rate in Victorias history
/ Tenth successive full-year actuarial release
/ Strong performance from insurance operations
Strategy 2012
Our five
year gOalS
Our Performance
2006-07
Baseline
2009/10
Results
2010/11
Target
2010/11
Results
8.35 claims
per 1000 workers
11.3 10.58 9.47 10.34
30% improvement
in return to work
1
75.8% 74.1% 78.6% 77.2%
Client satisfaction
up to 90%
2
82.6% 87.2% 88.0% 85.8%
Improved employee
satisfaction
64% 68% 71% 63%
Actuarial release of
$1.7 billion
$394M $189M $200M $136M
Premium break even
rate of 1.2%
3
1.38% 1.333% 1.302% 1.316%
1
2
3
Target set pre-Hanks reforms
Throughout Strategy 2012 we have
worked on the basics: reducing
work-related fatalities and injuries,
improving our services, and delivering
a sustainable and affordable WorkSafe
Injury Insurance scheme. This year,
regardless of a challenging external
environment, we continued to
demonstrate that our business strategy
is sound. We are well-placed to respond
to change and the fundamentals
of the scheme are strong.
In 2010/11 our workplace safety and
fnancial results maintained Victorias
position as a national leader in workers
compensation, and our return-to-work results
were also very pleasing. Nevertheless, we
will continue to pursue our ambitious goals.
This is part of our social contract; to keep
improving what we do and the value of our
services to the Victorian community.
cOMPETiTiVE WORKSAFE
injURy inSURAncE
Our focus on injury reduction, return to
work, and sound claims management over
a sustained period of time has resulted
in affordable WorkSafe injury insurance.
Victoria continues to have the lowest
average premium rate in its history at
1.338 per cent, while providing generous
benefts to injured workers. In 2011/12
we will have the lowest average premium
of any workers compensation scheme
in Australia. This is a great competitive
advantage for Victoria and we will remain
vigilant to ensure sustainable and affordable
WorkSafe injury insurance into the future.
ThE EnhAncEd
AgEncy MOdEl
A clear aim of Strategy 2012 is to continue
to improve our return to work performance,
as well as worker and employer satisfaction
with our Agents. During the year we
conducted a major tender process for Agent
services. The new Agent contract introduces
an Enhanced Agency Model (EAM). The
EAM is designed to drive better outcomes
in the areas of return to work and client
service. While we know it will take time for
the new model to deliver results, the EAM is
an important next step in achieving improved
service, client care and rehabilitation.
nATiOnAl WORK hEAlTh
And SAFETy REFORM
Victoria is a national leader in terms of
workplace health and safety outcomes and
our existing laws have formed much of the
base for the proposed harmonisation of
OHS laws.
The Victorian Government has confrmed
its in-principle support for national reform,
subject to the satisfactory assessment
of the regulatory impacts and benefts to
Victoria. WorkSafe is working with the
Government to meet its objective to capture
the benefts of harmonisation whilst avoiding
any additional regulatory or cost burdens
that harmonisation may pose for Victorian
businesses.
WorkSafe will continue to communicate and
work with all stakeholders to ensure they
have the information they need and that
Victorias existing OHS framework, which
has helped deliver the safest workplaces in
our history, is maintained.

ThAnK yOU
This year Susan Bitter and James MacKenzie
retired from the Board and we thank them
for their contribution to the organisation.
On behalf of WorkSafe I would particularly
like to acknowledge James MacKenzies
work in the governance and management
of personal injury schemes in Victoria.
James served on the Board for over a
decade, of which six years he was Chair.
During that time he led the transformation
of WorkSafe.
Our achievements refect the hard work
and commitment of many people. I would
like to thank my colleagues on the Board,
Greg Tweedly and the senior management
team, and all our employees. I also thank our
stakeholders, Agents and service providers
for their efforts during the year and the
critical role they play in keeping our scheme
strong. On behalf of the board I welcome
and thank the Assistant Treasurer, the Hon
Gordon Rich-Phillips MLC, and his staff for
their support, as well as the previous Minister,
the Hon Tim Holding MP, and his staff.
Elana Rubin
Chair
chAiRS
REPORT
5
chiEF EXEcUTiVES
REPORT
In partnership with the Victorian
community, we have remained focused
on our mission of outstanding workplace
safety, quality care and competitive
injury insurance. During the year,
despite increased claims volatility as the
economy recovered, Victoria maintained
its long-term trend of workplace injury
reduction. We also saw an improvement
in our return to work performance and
maintained affordable injury insurance.
These outcomes refect the continuing
efforts of Victorian employers, workers
and our dedicated employees.
SAFETy
In 2010/11 Victoria once again achieved
the lowest injury rate on record. However,
we must continue to reduce the number of
severe workplace injuries and work-related
fatalities. To this end we implemented a
12-month, state-wide operation to reduce
deaths and injuries on farms during the
yearone of our most dangerous industries.
We aim to continue implementing innovative
and effective prevention strategies such as
WorkHealthour world-leading voluntary
and confdential health check program. In a
year of signifcant change, we undertook a
review of our approach to injury prevention
and how we are structured to deliver it. This
will ensure that our business is strongly
positioned for the future, to maintain and
improve our performance. A clear area of
focus will be to enhance the responsiveness
of our investigation and prosecution activities
to drive strong results into the future.
SERVicE
Our client service results generally remained
stable. While the WorkSafe Inspectorate
maintained its outstanding record of high
client satisfaction, injured worker satisfaction
with Agents dropped slightly.
During the year WorkSafe identifed
deterioration in CGUs processing of accounts
and discovered that a small number of CGU
employees had implemented an elaborate
process to manipulate account processing
data. After a thorough investigation CGUs
remuneration was reduced under the
Agency Agreement and CGU also agreed to
reimburse WorkSafe for amounts received
inappropriately. CGU has put in place new
processes and structures to ensure appropriate
account management in the future.
In May the Ombudsman tabled a report in
Parliament of his investigation into record
keeping and the administrative practices
of our Agents. While managing millions
of documents and thousands of claims
is never easy in a system like ours, we
recognise theres room for improvement.
We have accepted the Ombudsmans
recommendations and will continue to reform
to ensure that our systems and record
keeping within Agents does not get in the
way of providing support for injured workers
when they need it.
SUSTAinABiliTy
Our performance from insurance operations
(PFIO) was $293.9 million and although lower
than our 2009/10 PFIO, this is a very strong
result and better than budget. The PFIO was
achieved through effective claims management
and a lower claims rate. Our PFIO provides a
picture of the underlying health of the scheme
and excludes external factors such as
investment markets. These external factors
impacted on our net result of $520.8 million.
The organisation recorded its tenth
successive full-year actuarial release
or write-down in projected liabilities
of $136 million. Over the past decade
the scheme has benefted from actuarial
releases worth around $2.6 billion.
ThAnK yOU
I would like to thank the Board, the senior
management team, and all our employees,
as well as our Agents, providers and
stakeholders for their work and commitment
to our goals during the year. While there
is still much work to do, I know we can
continue to achieve great things for the
Victorian community.
Greg Tweedly
Chief Executive
FinAnciAl RESUlTS 2010/11
($M)
2009/10
($M)
2008/09
($M)
2007/08
($M)
2006/07
($M)
Impact on result from internal factors
Performance from insurance operations 293.9 654.1 277.4 957.6 728.5
WorkHealth and Research
Institute initiatives 23.6 23.1 42.9
Result from internal factors 317.5 677.2 320.3 957.6 728.5
Impact on result from external factors
Difference between actual returns
and long-term expected returns
1
410.1

369.9 (2,061.1) (1,776.7) 742.8
Change in infation assumptions
and discount rates
2
8.5 (531.3) (68.1) (57.6) 159.7
Impact from legislative changes
3
(9.4) (270.3)
Tax (205.9) (69.9) 554.4 289.6 (460.6)
Net result 520.8 175.6 (1,254.5) (587.1) 1,170.4
1
Improved conditions experienced in the fnancial markets in 2010/11 resulted in the actual return being above the expected long-term rate of return.
2
There was a favourable impact from changes in economic assumptions (i.e. increases in assumed short-term discount rates partially offset by higher
than expected actual infation) used to determine claims liability in 2010/11.
3
The legislative changes arising from the Transport Accident and Accident Compensation Legislation Amendment Act 2010 resulted in an increase
in claims incurred in 2010/11.
BOARd
Elana Rubin
BA(Hons), MA, FFin, FAICD, FAIM
Chair
Appointed 2001
Appointed Chair 2006
Paul Barker
BBus, FCA, ACIS
Deputy Chair
Appointed 2001
Appointed Deputy Chair 2006

jane Bell
LLB, BEc, LLM(London), FAICD
Appointed 2009
Susan Bitter
BEcon (Hons), FCA, FFin
Appointed 2003,
term expired 30 June 2011
Chair
Financial and Investment
Strategies Committee;
Remuneration and People
Committee; Occupational Health
and Safety Advisory Committee;
Legal Liaison Group; WorkCover
Advisory Committee; WorkHealth
Advisory Group
Chair
AustralianSuper Pty Ltd
Director
Transport Accident Commission;
TAL; Infrastructure Australia
(Commonwealth); Mirvac Group Ltd
Member
Audit and Risk Management
Committee; Remuneration and
People Committee
Chair
Transport Accident Commission;
Residential Independence Pty Ltd
(a company wholly owned by the
Transport Accident Commission);
Emergency Services
Telecommunications Authority;
Mirvac Funds Management Ltd;
Hotel Capital Partners Ltd
Member
Committee
Deputy Chair
Westernport Water Corporation
Director
Melbourne Health; Prince Henrys
Institute of Medical Research
Chair
Committee: Rehabilitation and
Compensation Working Group
Chief Operating Offcer
Corrs Chambers Westgarth
Director
Corrs Support Services Pty Ltd;
The Medical Indemnity Protection
Society Ltd
dr geoff Brooke
MBBS, MBA
Appointed 2009
geoff hilton
BSc(Hons), MSc, FCA, MAPS
Appointed 2007
james MacKenzie
BBus, FCA, FAICD
Appointed 2000,
term expired 30 June 2011
(Chair 2001-2006)
greg Tweedly
BComm, CPA
Chief Executive
Appointed 2003
Member
Health Issues Committee
Director
Cerylid Biosciences Ltd;
GBS Venture Partners Pty Ltd
(and related companies);
Sunshine Heart Inc
Member
Committee: IT Shared Solutions
Committee
Chair
Victorian Neurotrauma Initiative
Pty Ltd
Director
Transport Accident Commission
Member
Remuneration and People
Committee
Chairman
Mirvac Group; Pacifc Brands Ltd;
Institute for Safety, Compensation
and Recovery Research;
Gloucester Coal Ltd
Director
Melco Crown Entertainment Ltd
Chair
OHS Committee; Major Hazards
Advisory Committee
Member
WorkCover Advisory Committee;
Occupational Health and Safety
Advisory Committee; Rehabilitation
and Compensation Working Group;
Legal Liaison Group; Financial and
Investment Strategies Committee;
WorkHealth Advisory Group; Health
Issues Committee; IT Shared
Solutions Committee; Remuneration
and People Committee;
Safe Work Australia Council
Chair
Heads of Workers Compensation
Authorities; Safe Work Australia
Strategic Issues GroupWorkers
Compensation
Director
Personal Injury Education
Foundation; Institute for Safety,
Compensation and Recovery
Research
7
ORgAniSATiOnAl
STRUcTURE
Greg
Tweedly
Chief Executive
*Joint TAC/WorkSafe Collaboration
Board of
Management
Bernie
Dean
Executive
Director
Marketing &
Communications
Marlo
Baragwanath
General Counsel
Legal, Legislative
& Employer
Services
Anthony
Ventura
Chief Risk Offcer
Anne
Warner
Director
Internal Review
Unit
Rachel
Gualano
Acting Director
WorkHealth
Geraldine
Coy
Executive Director
Human Resources
& Change
Management
Ian
Sargent
Chief Financial
Offcer
Glenn
Ockerby
Executive Director
Corporate Strategy
& Business
Performance
Management
Andrew
Saunders
Chief Executive
IT Shared
Solutions*
Clare
Amies
Head
Health Services
Group*
Paul
Lange
Program Director
Treatment
Payments
and Connectivity*
Len
Boehm
Executive Director
Injury Support
& Service
Executive Director
Health & Safety
Deputy Chief
Executive
Ian
Forsyth
SAFETy
We work to reduce the number of
workplace fatalities and injuries, now
and for future generations, by supporting
employers and employees to improve
their OHS and wellbeing.
As a modern regulator, we do this by
changing attitudes and behaviours about
OHS through a mix of enforcement,
encouragement and promotion.
One of the key measures of our safety
performance is the number of injury
claims per thousand workers. Despite
claims volatility in the wake of the global
fnancial crisis, in 2010/11 Victoria once
again achieved its lowest injury rate on
record. Claims per 1,000 workers reduced
from 10.58 to 10.34. Although above
our aspirational target, this is a pleasing
outcome and further cements Victorias
position as a national leader in workplace
health and safety. We will continue to work
with the community to push for further
improvements. In the coming year we will
sharpen our focus on the most signifcant
causes of injury and illness; known hazards
and known solutions.
Sadly there were19 work-related deaths
during the year. While this is fewer than
last year, one workplace death is too
many. Workplace fatalities are devastating
for families and workplaces and we are
determined to continue to reduce the
number that occur. One of the most
powerful ways we infuence OHS is through
our enforcement activities and public
awareness campaigns.
Victoria continues to achieve
improvements in workplace
health and safety.
Emp|oyer Satlsfactlon
Over Tlme - Scheme
In[ured Worker Satlsfactlon
Over Tlme - Scheme*
Average Premlum
Pates 2010/11
Number of In[urles
(C|alms)
Percentage of In[ured Workers Satlsfled
Wlth Servlce Over Tlme - Se|f-lnsurers
1
.
2
0
1
.
3
3
8
1
.
6
6
1
.
3
0
1
.
4
9
7
2
.
7
5
2
.
1
0
C8
C9
C9
1C
C7
C8
1C
11
C3
C4
C4
C5
C5
C6
C6
C7
5
7
.
3
6
0
.
5 6
8
.
7
6
8
.
6
6
9
.
8
6
8
.
9
7
2
.
8
1C
11
7
8
.
8
7
5
.
3
SW OLD SA TAS
l|mo |oss slunouro
vlC WA Comcuro
Workp|ace In[ury Insurance Scheme
C.5%
1.C%
1.5%
2.5%
C.C%
3.5%
3.C%
2.C%
25
2C
15
1C
5
C
C4
C5
C5
C6
C6
C7
C7
C8
C8
C9
C9
1C
Year
C8
C9
C9
1C
C7
C8
C3
C4
C4
C5
C5
C6
C6
C7
Year Year
1CC%
8C%
6C%
4C%
2C%
C%
1CC%
8C%
6C%
4C%
2C%
C%
7
1
.
8
7
4
.
7 8
3
.
5
8
2
.
3
8
4
.
4
8
4
.
4
8
1
.
4
1CC%
75%
5C%
25%
C%
Year
6
3
.
3
*
1C
11
6
4
.
5
C5
C6
6
1
.
7
C6
C7
6
1
.
3
C7
C8
6
6
.
7
C8
C9
6
7
.
8
C9
1C
Number of In[ury
and I||ness C|alms
34,CCC
32,CCC
28,CCC
26,CCC
22,CCC
2C,CCC
3C,CCC
24,CCC
Year
08
09
09
10
0?
08
05
06
06
0?
3
0
,
3
2
7
2
8
,
8
5
6
2
9
,
1
0
7
2
8
,
6
8
9
2
8
,
8
5
4
10
11
2
9
,
6
2
8
At Work 14-19 Months
After In[ury Peported*
1CC%
4C%
6C%
2C%
C
8C%
Year
08
09
09
10
0?
08
06
0?
7
5
.
8
%
7
8
.
3
%
7
6
.
1
%
7
4
.
1
%
10
11
7
7
.
2
%
In[ured Worker
Satlsfactlon by Agent*
A|||unz
Agent
Xchung|ng CO OlO OBE OBS Schomo
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
1
.
8
?
2
.
5
?
4
.
9
?
4
.
1
?
0
.
3
?
3
.
2
?
2
.
8
?
5
.
?
?
2
.
3 ?
?
.
6
8
0
.
5
?
3
.
?
?
3
.
0
?
5
.
3
by Agent
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
5
.
3
8
3
.
0
8
0
.
1
?
3
.
3
?
8
.
3
8
0
.
2
?
8
.
8
8
2
.
4
8
1
.
6
8
3
.
0
8
2
.
9
?
?
.
3
8
2
.
6
8
1
.
4
WorkSafe In[ury Insurance
Average Premlum
1.5C%
2.CC%
1.CC%
2.5C%
Year
1
.
3
3
8
11
12
C4
C5
C5
C6
C6
C7
C7
C8
1
.
9
9
8
1
.
8
0
1
.
6
2
1
.
4
6
1
.
3
3
8
1
.
3
8
7
1
.
3
8
7
C8
C9
1C
11
C9
1C
6
1
8
3
2
1
6
1
8
7
1
8
6
2
2
1
0
1
0
3
7
2
2
1C
11
* Brou| |n sor|os commonc|ng 2C1C/11. Wo huvo unoorlu|on lo
|mprovo lh|s mousuro lo u||ow |njuroo wor|ors ol so|l |nsurors lo g|vo
u moro comprohons|vo rosponso on lho sorv|co lhoy oxpor|oncoo.
Tho rov|soo |||o-w|lh-|||o mousuromonl lor 2CC9/1C |s 72.1%.
10.34
4.19 19
3.51
Four-week claims
per 1,000 workers
Hospital admissions
of two or more nights
per 10,000 workers
Claims
per 1,000 workers
Fatalities
SAFETy
OUR STRATEgic APPROAch
WorkSafes Strategy 2012 refects the
targets contained in the 10-year National
OHS Strategy 2002-12. The national
strategy targets a 20 per cent reduction
in work-related fatalities and a 40 per
cent reduction in the rate of work-related
injuries. In line with this strategy our
prevention activities are focused in three
key areas: reducing the biggest causes of
harm to Victorian workers, protecting the
most vulnerable, and preparing for future
challenges.
During 2010/11 we concentrated on
making stronger improvements in poor
performing industries and sub-sectors and
high-risk occupations. We also targeted
manual handling; slip, trip and fall hazards;
and the psychosocial risks of bullying and
stress. Our strategic approach aims to
prevent injuries: through targeted programs
and intervention; by reducing exposure to
hazards; and increasingly through employer
size segmentation.
During the year we began the signifcant
task of reviewing and restructuring our
approach to the development of injury
prevention strategies. This will ensure
WorkSafe is well positioned for future
challenges and that we continue to lead
the country in the development of innovative
and effective prevention programs. We
also began the process of improving the
agility, responsiveness and alignment of our
inspection, investigation and prosecution
activities which will deliver strong benefts
in coming years.
With an eye to the future, we also established
a new offce in Essendon Fields, replacing
our Preston and Bourke Street premises.
The new offce is located close to industry
at a signifcant transport hub and in a major
growth corridor of Melbourne.
nATiOnAl WORK hEAlTh
And SAFETy REFORM
Our stakeholders and the community have
been actively involved throughout the
national OHS harmonisation process, as
members of WorkSafes stakeholder groups
or by making submissions during the public
comment process.
Our current Act and regulations were taken
up as the basis for discussions about what
model should apply nationally. Our laws
and our approach to administering them
strike the right balance between enshrining
safer work practices, without unnecessarily
jeopardising business effciency or productivity.
The challenge is to ensure the benefts
harmonisation delivers to multi-state
businesses are not at the expense of small
and medium sized businesses which make
up a large portion of our State economy.
Further research will take place to better
quantify the benefts to all Victorian
businesses before Victoria commits to the
national model laws and regulations. We
will continue to work to identify areas of
the reform process where we can capture
benefts, especially as they relate to multi-
state employers.
nEW lAWS On WORKPlAcE BUllying
In May 2011 amendments were made to
Victorias Crimes Act 1958 to broaden
the current offence of stalking to include
conduct that may be categorised as bullying.
The offence carries a maximum penalty of
10 years jail.
The change occurred after the tragic suicide
of Brodie Panlock in 2006. Brodie endured
daily bullying at the cafe where she worked.
Four men were convicted and fned between
$10,000 and $45,000 each, under the
Occupational Health and Safety Act 2004.
The owner of the cafe was fned $220,000.
With greater awareness about bullying in the
community, WorkSafe is working to ensure
that community perceptions about what is and
is not bullying, align with occupational health
and safety legislation. We are also working
closely with Victoria Police on the application
of the new laws.
AchiEVing SAFETy OUTcOMES
WorkSafe engages with the Victorian
community through information, education
and social marketing to infuence OHS
outcomes. These activities ensure
that our Inspectorate has a clear platform
to enforce the law when it is necessary
to do so, and is also supported by
campaigns designed to change attitudes
and behaviours.
We ran a number of public awareness
campaigns during the year:
/ A campaign aimed at preventing
musculoskeletal injuries, which highlighted
the importance of responsible safety
supervision and the avoidance of short cuts.
/ The emotional knock at the door campaign
showed a woman and her daughter after
a major safety incident at her husbands
workplace. This campaign refected
WorkSafes tougher approach in encouraging
Victorians to value workplace safety.
/ We continued the WorkSafe Enforcement
campaign which raises awareness of
WorkSafes Inspectorate activity.
SAFETy 2009/10
Result
2010/11
Target
2010/11
Result
Claims per 1,000 workers 10.58 9.47 10.34
Rate of four-week claims per 1,000 workers 4.15 3.71 4.19
Fatalities 26 <16 19
Hospital admissions of two or more nights
per 10,000 workers
3.79 3.39 3.51
11
Our annual information roadshow
spanned 18 locations and approximately
2,600 attendees across regional Victoria
and metropolitan Melbourne, providing a
one stop shop for advice and information.
This year we focused on the new
proposed OHS laws, return to work, and
modernisation of the industry classifcation
system used for premium purposes.
Through sponsorships WorkSafe engages
directly with different communities on OHS
and return to work, particularly in regional
areas. This year we continued sponsorships
with the Victorian Country Football League,
the Victorian Country Netball League and
the Western Bulldogs Football Club.
An intensive state-wide campaign to
reduce deaths and injuries on farms was
implemented as part of our farm safety
program. Throughout the year WorkSafe
inspectors issued 431 safety improvement
notices in 576 visits.
WorkSafe provides an important advisory
service to the Victorian community through
our telephone information line and
website. During the year there were:
/ 916,668 visits to the website
/ 9,674,091 visits to specifc pages
of the website
/ 29,379 emails answered
/ 210,539 telephone calls for assistance
about OHS, rehabilitation and
compensation (including calls about
licensing for high risk work).
Our annual information roadshow
spanned 18 locations and approximately
2600 attendees across regional Victoria
and metropolitan Melbourne, providing
a one stop shop for advice and information.
Participants at a recent information roadshow
SAFETy
Work Safe Week, Victorias premier safety
event, is now in its eighteenth year and is
one of the most popular ways Victorians
get involved in OHS with sessions on a
wide variety of topics. Feedback from the
previous year found that 75 per cent of
those who had attended a Work Safe Week
event subsequently made changes at their
workplace.
Recognising OHS excellence
The WorkSafe Awards are an important
and powerful way to recognise outstanding
OHS. From a strong feld the 2010
WorkSafe Award winners were:
Health and Safety Representative
of the year
Glen Barber, Loy Yang Power.
Best OHS Management System
GHD Pty Ltd.
Best OHS Solution in Public Sector
and Community Services
Bendigo Health Care Group.
Best OHS Solution in Construction
and Utilities
Tenix (Melbourne).
Best OHS Solution in Manufacturing,
Logistics and Agriculture
FreshBins Pty Ltd (Warrnambool).
Best OHS Solution in Small Business
Kooka Brothas, Wodonga.
In 2011 the Awards have been broadened
to include return to work and health and
wellbeing. The entry process has been
simplifed and members of the public and
industry professionals are able to comment
on-line and provide their rankings of entries.
Practical and innovative approaches
to improving OHS
Injury hotspots information sheets
pinpoint where and how people get hurt at
work, and provide practical industry-based
solutions and prevention strategies. During
the year WorkSafe developed injury hotspot
posters to make the information even
more accessible.
Safer work zones and safe towns
campaigns help small businesses to
improve their compliance with occupational
health and safety and return to work laws
in a constructive way. Small businesses are
given the opportunity to improve OHS and
return to work before formal inspections
occur. In 2010/11, over 1,500 small
businesses received a visit from a WorkSafe
Inspector as part of these campaigns.
24 prohibition notices and more than
2,100 improvement notices were issued.
WorkSafes Prevention Fund supports
initiatives that: create workplace change,
provide information and education to
improve OHS, or address specifc gaps in
knowledge. This year WorkSafe invested
$2.73 million to support projects in a range
of industries.
The small business program provides
practical services and tools to help
employers, who face the day-to-day
pressures of running a small business, better
manage OHS and return to work. Services
include a free, three-hour OHS consultancy,
information resources and advice. The
program also proactively targets poor
performing small businesses.
The owner visit program works with
medium-sized businesses to address their
safety performance. WorkSafe engages
directly with business owners about their
OHS obligations and the impact of poor
OHS on the businesses WorkSafe injury
insurance, proftability and employee
wellbeing. An improvement plan is
developed to drive systemic change
within the business.
WorkHealth is a voluntary workplace health
promotion program offering all Victorian
workers a free, confdential health check at
work. It aims to address type 2 diabetes and
cardiovascular disease and the impact these
major and preventable conditions have on
worker health and safety and business
productivity. This world-leading program
is the frst of its kind to explore the links
between employee health and wellbeing
and improved OHS across an entire
workforce. It will save lives and set
a new international standard for OHS.
During the year we delivered over
175,000 WorkHealth checks, bringing
the total number of checks completed
to more than 357,000 with over 16,000
employers signed up across Victoria. We
also increased our support for workplaces
through workplace grants and resources.
An innovative new coaching program for at-
risk workers was introducedWorkHealth
Coachto help workers make changes to
improve their long-term health and reduce
their risk of chronic disease.
FlOOd REcOVERy
In response to Victorias foods, WorkSafe
acted quickly to protect public and workplace
safety, particularly in relation to food clean-up
work. WorkSafe developed a post-food web
page bringing together guidance on:
/ working at height
/ demolition
/ asbestos
/ chemical hazards
/ slips, trips and falls
/ managing fatigue
/ watching for wildlife
/ using quad bikes and operating
machinery in the wet.
Businesses in food-affected areas
received fyers with their premium invoices.
The fyers encouraged employers to contact
their Agent and investigate relief options,
such as alternative payment arrangements
for premiums.
13
175,000
+
16,000
+
Employers signed up
with Workheath across Victoria
Workhealth checks
completed during the year
WorkHealtH
and Baulderstone
WorkHealth has established partnerships
with a range of industry bodies and
employer associations to coordinate the
successful roll-out of WorkHealth checks
and improve access in many industries to
our suite of workplace resources.
Earlier this year, WorkHealths construction
industry partner, Incolink, coordinated the
delivery of WorkHealth checks to nearly
90 per cent of Baulderstones employees
and subcontractors at the Epworth Hospital
redevelopment site. After their WorkHealth
checks, a number of workers made positive
changes to their lifestyle, received support
through the free WorkHealth Coach program,
and felt ftter and healthier as a result.
The WorkHealth checks helped to further
enhance Baulderstones commitment to
the safety and wellbeing of its workers,
who enjoyed the fact the checks were
confdential and quick.
SAFETy
cOMPliAncE And EnFORcEMEnT
One of the most powerful ways WorkSafe
infuences health and safety in Victorian
workplaces is through our enforcement
activities. We detect and deal with breaches of
the law in a way that deters non-compliance
with OHS laws.
In the second half of 2010/11, there has
been considerable work to improve the
timeliness and number of prosecutions
occurring. We have made a number of
signifcant changes to the Enforcement
Group structure and operational approach to
ensure we are positioned well for the future.
We anticipate the benefts of these reforms
will progressively fow through to improved
outcomes over the next 12-24 months.
In 2010/11, 103 prosecutions were
completed. Prosecutions can take up
to two years to complete and due to a
number of more complex investigations and
preparation for the introduction of model
OHS laws, the number of prosecutions was
lower this year compared to 2009/10. The
following are some signifcant prosecutions
and their outcomes:
/ Two men, who assaulted, threatened and
intimidated WorkSafe Inspectors at a
Pascoe Vale domestic construction site
over two separate visits were sentenced
to suspended periods of imprisonment
and were each fned $2,000. One of
the men was also convicted and fned a
further $1,500 in relation to a separate
incident of intimidation and verbal threats.
/ A Bayswater company that failed
to make safety improvements set out
in a WorkSafe notice was placed on
an adjourned undertaking to be of
good behaviour for 18 months, without
conviction. The company was also ordered
to pay $10,000 to the court fund.
/ A Geelong man undertaking unlicensed
asbestos removal was convicted and
fned a total of $35,400. The court
also required him to enter into an
undertaking with special conditions,
including removing advertisements
for his company from the Yellow Pages
and apologising to property owners.
/ A man was convicted and fned $60,000
after the death of an 18-year-old worker
at his Thomastown cardboard packaging
factory. The worker was dragged into an
exposed roller on a machine that printed
and stacked cardboard. The man and his
business partner were placed on good
behaviour undertakings which required
them to complete a managers safety
training course.
cOMPliAncE
MEASURES
2008/09 2009/10 2010/11
Annual workplace visits 42,184 46,211 42,317
Prosecution success rate 90.8% 89.9% 74%
Investigations proceeding to prosecution
charges within 12 months
40.5% 53.8% 29%
Completed investigations proceeding
to legal review
78.5% 87.3% 77%
The SkeleTon
ProjecT
The Skeleton Project encouraged
employers and workers to bare the
bones of workplace safety and
showed leadership in OHS in action.
The web-based campaign documented
the experiences of three CEOs -
Neil Coulson of Jayco Corporation,
Phil Smith of Fletcher Jones and
Greg Pullen of Northern Health -
who agreed to go undercover in their
businesses. The objective was to
get them to better understand OHS
from their workers perspectives and
prevent the most common sources of
workplace injuriesslips, trips and falls,
and manual handling.
The results of the project were
illuminating. The CEO of Northern
Health, Greg Pullen, found implementing
small changes could make a big
difference. After his day undercover,
Greg changed work arrangements to
reduce slipping hazards, as well as
introducing a policy about uniforms so
nurses could wear more comfortable
shoes at work. He also set up processes
to address equipment failures and
established a taskforce to reduce fatigue
associated with rostering practices.
15
in 2010/11 WorkSafe inspectors
visited construction sites as part
of the three-year, state-wide
Back to Basics campaign.
Back
to basics:

Every week 50 Victorian construction
workers are seriously injured and have to
stop work. This is often because basic site
safety is not up to scratch. Construction
workers may hurt their back or neck,
tear a ligament, cut themselves, or break
a bone. On average these injuries will
keep them off the job for about 15 weeks,
costing the industry over $50 million a year.
In 2010/11 WorkSafe inspectors
visited construction sites as part of the
three-year, state-wide Back to Basics
campaign. The campaign focuses
on issues such as the selection and
maintenance of tools and equipment
for the job, site planning, housekeeping
and supervision.
SERVicE
Our client satisfaction results were generally
stable in 2010/11, maintaining gains in this
area over the course of Strategy 2012.
WORKSAFE inSPEcTORATE
SERVicE RESUlTS
WorkSafe Inspectors maintained their strong
performance in client service during the year.
The satisfaction of worker representatives
and employers with the Inspectorate
remained extraordinarily high at 96.6
per cent and 96.8 per cent respectively.
This is a fantastic achievement, particularly
as the Inspectorates high satisfaction levels
have been maintained over the last fve years.
SATiSFAcTiOn WiTh
WORKSAFE AgEnTS
Both employer and injured worker satisfaction
with our Agents dropped marginally in
2010/11. Employers satisfaction with
Agents was 78.8 per cent, compared with
81.4 per cent the previous year. Injured
worker satisfaction was 72.8 per cent
a reduction of 2.5 percentage points.
Despite our long-term efforts we have
not achieved the next step-change in
our Agents service results. Continued
collaboration with our Agents is essential
to drive improvement.
SERVicE 2009/10
Result
2010/11
Target
2010/11
Result
Client service index 87.2% 88.0% 85.8%
Employer satisfaction with advice
and guidance
95.6% 94.0% 94.7%
Worker representative satisfaction
with OHS inspectorate
96.4% 94.0% 96.6%
Employer satisfaction with
OHS inspectorate
97.3% 94.0% 96.8%
Employer satisfaction with Agents 81.4% 85.2% 78.8%
Injured worker satisfaction with Agents
1
75.3% 79.7% 72.8%
At work 14-19 months after injury reported
(sustained RTW)
2
74.1% 78.6% 77.2%
Agent employee turnover (claims related)
3
21.9 % 20.8% 29.7%
Enrolments in tertiary and vocational
personal injury management courses
116 140 124
1
We have undertaken to improve this measure to allow injured workers to give a more comprehensive response on
the service we provide through our Agents. Beginning in 2009/10 we expanded the number of eligible workers to
be surveyed by including workers who have had less than 20 days off work and those who have had a common law
settlement but continue to receive treatment benefts. In 2010/11 we extended the measure to focus on injured workers
that have experienced a major injury (i.e. a common law settlement, impairment beneft or high cost medical and like)
and draw out their specifc service experience.
2
Indicative result in 2009/10. Injured workers returning to work between 11 and 20 days after submitting a claim
were erroneously excluded from the survey and a three year average of results for this cohort has been applied to the
2009/10 result.
3
This fgure excludes GIO which concluded its role as a WorkSafe Agent at 4pm on 30 June 2011. Transitional
arrangements following the announcement of the Agent tender outcome meant that GIOs employee turnover was not
comparable to other Agents.
We aim to deliver services
that satisfy at least 90 per cent
of workers and employers.
This goal refects our social
contract with the Victorian
community to constantly
improve our services and
the value we provide.
96.8
%
72.8
%
96.6
%
78.8
%
94.7
%
Injured worker
satisfaction with Agents
Employer satisfaction
with Agents
with advice and guidance
with OHS Inspectorate
Worker representative
satisfaction with
OHS Inspectorate
SERVicE
The charts to the right show the
performance of our Agents in relation to
service. Employers may also wish to review
the detailed Agent performance statistics
provided in Appendix 2 of this report.
SERVicE And ThE EnhAncEd
AgEncy MOdEl
During the year we conducted a major
tender process for a new Agent panel to
provide claims and premium management
services from July 2011 June 2016. The
panel comprises Allianz, Xchanging, CGU,
GBS, and QBE.
Following the announcement of the new
panel, we worked to minimise disruption
over the transition period and ensure
affected injured workers, employers and
service providers received timely information
about the changes.
The new Agent contract introduces an
Enhanced Agency Model (EAM). The EAM
will provide a solid foundation on which to
deliver improved client services. We invested
signifcantly in the development of roles for
the new model to improve specialisation,
technical training and structures, and embed
much greater return to work capability.
iniTiATiVES TO iMPROVE
AgEnT SERVicES
Our approach to improving Agent services is
based on two principles: ensuring the right
foundation through the EAM and developing
the capability of claims managers working
within our Agents. During the year we also
implemented discrete projects:
/ Supporting Agent service managers
to improve service performance.
We provided a forum to network and
collaborate; met monthly with each
manager to discuss performance, and
provided active support, coaching, training
and development. We also established a
framework to ensure Agent Service Plans
are implemented and supported by senior
management within our Agents.
/ Communicating decisions
constructively. We introduced a set of
nine training DVDs aimed at frontline
Agent employees dealing directly with
injured workers. The DVDs are designed
to initiate discussion and debate by
presenting a range of scenarios to
support and guide Agent employees to
communicate decisions.
MAnAging AgEnT PERFORMAncE
The timeliness of accounts processing is a key
indicator of Agent performance. It drives client
service outcomes, infuences the schemes
stability and WorkSafes ability to accurately
monitor trends. Through regular monitoring,
WorkSafe identifed deterioration in CGUs
processing of accounts during the year. It
was discovered that a small number of CGU
employees had implemented an elaborate
* Refer to footnote 1 underneath the table on page 16
Over Tlme - Scheme
Over Tlme - Scheme*
Average Premlum
Pates 2010/11
Number of In[urles
(C|alms)
1
.
2
0
1
.
3
3
8
1
.
6
6
1
.
3
0
1
.
4
9
7
2
.
7
5
2
.
1
0
C8
C9
C9
1C
C7
C8
1C
11
C3
C4
C4
C5
C5
C6
C6
C7
5
7
.
3
6
0
.
5 6
8
.
7
6
8
.
6
6
9
.
8
6
8
.
9
7
2
.
8
1C
11
7
8
.
8
7
5
.
3
SW OLD SA TAS
l|mo |oss slunouro
vlC WA Comcuro
C.5%
1.C%
1.5%
2.5%
C.C%
3.5%
3.C%
2.C%
25
2C
15
1C
5
C
C4
C5
C5
C6
C6
C7
C7
C8
C8
C9
C9
1C
Year
C8
C9
C9
1C
C7
C8
C3
C4
C4
C5
C5
C6
C6
C7
Year Year
1CC%
8C%
6C%
4C%
2C%
C%
1CC%
8C%
6C%
4C%
2C%
C%
7
1
.
8
7
4
.
7 8
3
.
5
8
2
.
3
8
4
.
4
8
4
.
4
8
1
.
4
1CC%
75%
5C%
25%
C%
Year
6
3
.
3
*
1C
11
6
4
.
5
C5
C6
6
1
.
7
C6
C7
6
1
.
3
C7
C8
6
6
.
7
C8
C9
6
7
.
8
C9
1C
Number of In[ury
and I||ness C|alms
34,CCC
32,CCC
28,CCC
26,CCC
22,CCC
2C,CCC
3C,CCC
24,CCC
Year
08
09
09
10
0?
08
05
06
06
0?
3
0
,
3
2
7
2
8
,
8
5
6
2
9
,
1
0
7
2
8
,
6
8
9
2
8
,
8
5
4
10
11
2
9
,
6
2
8
1CC%
4C%
6C%
2C%
C
8C%
Year
08
09
09
10
0?
08
06
0?
7
5
.
8
%
7
8
.
3
%
7
6
.
1
%
7
4
.
1
%
10
11
7
7
.
2
%
In[ured Worker
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
1
.
8
?
2
.
5
?
4
.
9
?
4
.
1
?
0
.
3
?
3
.
2
?
2
.
8
?
5
.
?
?
2
.
3 ?
?
.
6
8
0
.
5
?
3
.
?
?
3
.
0
?
5
.
3
by Agent
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
5
.
3
8
3
.
0
8
0
.
1
?
3
.
3
?
8
.
3
8
0
.
2
?
8
.
8
8
2
.
4
8
1
.
6
8
3
.
0
8
2
.
9
?
?
.
3
8
2
.
6
8
1
.
4
Average Premlum
1.5C%
2.CC%
1.CC%
2.5C%
Year
1
.
3
3
8
11
12
C4
C5
C5
C6
C6
C7
C7
C8
1
.
9
9
8
1
.
8
0
1
.
6
2
1
.
4
6
1
.
3
3
8
1
.
3
8
7
1
.
3
8
7
C8
C9
1C
11
C9
1C
6
1
8
3
2
1
6
1
8
7
1
8
6
2
2
1
0
1
0
3
7
2
2
1C
11
Over Tlme - Scheme
Over Tlme - Scheme*
Average Premlum
Pates 2010/11
Number of In[urles
(C|alms)
1
.
2
0
1
.
3
3
8
1
.
6
6
1
.
3
0
1
.
4
9
7
2
.
7
5
2
.
1
0
C8
C9
C9
1C
C7
C8
1C
11
C3
C4
C4
C5
C5
C6
C6
C7
5
7
.
3
6
0
.
5 6
8
.
7
6
8
.
6
6
9
.
8
6
8
.
9
7
2
.
8
1C
11
7
8
.
8
7
5
.
3
SW OLD SA TAS
l|mo |oss slunouro
vlC WA Comcuro
C.5%
1.C%
1.5%
2.5%
C.C%
3.5%
3.C%
2.C%
25
2C
15
1C
5
C
C4
C5
C5
C6
C6
C7
C7
C8
C8
C9
C9
1C
Year
C8
C9
C9
1C
C7
C8
C3
C4
C4
C5
C5
C6
C6
C7
Year Year
1CC%
8C%
6C%
4C%
2C%
C%
1CC%
8C%
6C%
4C%
2C%
C%
7
1
.
8
7
4
.
7 8
3
.
5
8
2
.
3
8
4
.
4
8
4
.
4
8
1
.
4
1CC%
75%
5C%
25%
C%
Year
6
3
.
3
*
1C
11
6
4
.
5
C5
C6
6
1
.
7
C6
C7
6
1
.
3
C7
C8
6
6
.
7
C8
C9
6
7
.
8
C9
1C
Number of In[ury
and I||ness C|alms
34,CCC
32,CCC
28,CCC
26,CCC
22,CCC
2C,CCC
3C,CCC
24,CCC
Year
08
09
09
10
0?
08
05
06
06
0?
3
0
,
3
2
7
2
8
,
8
5
6
2
9
,
1
0
7
2
8
,
6
8
9
2
8
,
8
5
4
10
11
2
9
,
6
2
8
1CC%
4C%
6C%
2C%
C
8C%
Year
08
09
09
10
0?
08
06
0?
7
5
.
8
%
7
8
.
3
%
7
6
.
1
%
7
4
.
1
%
10
11
7
7
.
2
%
In[ured Worker
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
1
.
8
?
2
.
5
?
4
.
9
?
4
.
1
?
0
.
3
?
3
.
2
?
2
.
8
?
5
.
?
?
2
.
3 ?
?
.
6
8
0
.
5
?
3
.
?
?
3
.
0
?
5
.
3
by Agent
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
5
.
3
8
3
.
0
8
0
.
1
?
3
.
3
?
8
.
3
8
0
.
2
?
8
.
8
8
2
.
4
8
1
.
6
8
3
.
0
8
2
.
9
?
?
.
3
8
2
.
6
8
1
.
4
Average Premlum
1.5C%
2.CC%
1.CC%
2.5C%
Year
1
.
3
3
8
11
12
C4
C5
C5
C6
C6
C7
C7
C8
1
.
9
9
8
1
.
8
0
1
.
6
2
1
.
4
6
1
.
3
3
8
1
.
3
8
7
1
.
3
8
7
C8
C9
1C
11
C9
1C
6
1
8
3
2
1
6
1
8
7
1
8
6
2
2
1
0
1
0
3
7
2
2
1C
11
Over Tlme - Scheme
Over Tlme - Scheme*
Average Premlum
Pates 2010/11
Number of In[urles
(C|alms)
1
.
2
0
1
.
3
3
8
1
.
6
6
1
.
3
0
1
.
4
9
7
2
.
7
5
2
.
1
0
C8
C9
C9
1C
C7
C8
1C
11
C3
C4
C4
C5
C5
C6
C6
C7
5
7
.
3
6
0
.
5 6
8
.
7
6
8
.
6
6
9
.
8
6
8
.
9
7
2
.
8
1C
11
7
8
.
8
7
5
.
3
SW OLD SA TAS
l|mo |oss slunouro
vlC WA Comcuro
C.5%
1.C%
1.5%
2.5%
C.C%
3.5%
3.C%
2.C%
25
2C
15
1C
5
C
C4
C5
C5
C6
C6
C7
C7
C8
C8
C9
C9
1C
Year
C8
C9
C9
1C
C7
C8
C3
C4
C4
C5
C5
C6
C6
C7
Year Year
1CC%
8C%
6C%
4C%
2C%
C%
1CC%
8C%
6C%
4C%
2C%
C%
7
1
.
8
7
4
.
7 8
3
.
5
8
2
.
3
8
4
.
4
8
4
.
4
8
1
.
4
1CC%
75%
5C%
25%
C%
Year
6
3
.
3
*
1C
11
6
4
.
5
C5
C6
6
1
.
7
C6
C7
6
1
.
3
C7
C8
6
6
.
7
C8
C9
6
7
.
8
C9
1C
Number of In[ury
and I||ness C|alms
34,CCC
32,CCC
28,CCC
26,CCC
22,CCC
2C,CCC
3C,CCC
24,CCC
Year
08
09
09
10
0?
08
05
06
06
0?
3
0
,
3
2
7
2
8
,
8
5
6
2
9
,
1
0
7
2
8
,
6
8
9
2
8
,
8
5
4
10
11
2
9
,
6
2
8
1CC%
4C%
6C%
2C%
C
8C%
Year
08
09
09
10
0?
08
06
0?
7
5
.
8
%
7
8
.
3
%
7
6
.
1
%
7
4
.
1
%
10
11
7
7
.
2
%
In[ured Worker
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
1
.
8
?
2
.
5
?
4
.
9
?
4
.
1
?
0
.
3
?
3
.
2
?
2
.
8
?
5
.
?
?
2
.
3 ?
?
.
6
8
0
.
5
?
3
.
?
?
3
.
0
?
5
.
3
by Agent
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
5
.
3
8
3
.
0
8
0
.
1
?
3
.
3
?
8
.
3
8
0
.
2
?
8
.
8
8
2
.
4
8
1
.
6
8
3
.
0
8
2
.
9
?
?
.
3
8
2
.
6
8
1
.
4
Average Premlum
1.5C%
2.CC%
1.CC%
2.5C%
Year
1
.
3
3
8
11
12
C4
C5
C5
C6
C6
C7
C7
C8
1
.
9
9
8
1
.
8
0
1
.
6
2
1
.
4
6
1
.
3
3
8
1
.
3
8
7
1
.
3
8
7
C8
C9
1C
11
C9
1C
6
1
8
3
2
1
6
1
8
7
1
8
6
2
2
1
0
1
0
3
7
2
2
1C
11
Over Tlme - Scheme
Over Tlme - Scheme*
Average Premlum
Pates 2010/11
Number of In[urles
(C|alms)
1
.
2
0
1
.
3
3
8
1
.
6
6
1
.
3
0
1
.
4
9
7
2
.
7
5
2
.
1
0
C8
C9
C9
1C
C7
C8
1C
11
C3
C4
C4
C5
C5
C6
C6
C7
5
7
.
3
6
0
.
5 6
8
.
7
6
8
.
6
6
9
.
8
6
8
.
9
7
2
.
8
1C
11
7
8
.
8
7
5
.
3
SW OLD SA TAS
l|mo |oss slunouro
vlC WA Comcuro
C.5%
1.C%
1.5%
2.5%
C.C%
3.5%
3.C%
2.C%
25
2C
15
1C
5
C
C4
C5
C5
C6
C6
C7
C7
C8
C8
C9
C9
1C
Year
C8
C9
C9
1C
C7
C8
C3
C4
C4
C5
C5
C6
C6
C7
Year Year
1CC%
8C%
6C%
4C%
2C%
C%
1CC%
8C%
6C%
4C%
2C%
C%
7
1
.
8
7
4
.
7 8
3
.
5
8
2
.
3
8
4
.
4
8
4
.
4
8
1
.
4
1CC%
75%
5C%
25%
C%
Year
6
3
.
3
*
1C
11
6
4
.
5
C5
C6
6
1
.
7
C6
C7
6
1
.
3
C7
C8
6
6
.
7
C8
C9
6
7
.
8
C9
1C
Number of In[ury
and I||ness C|alms
34,CCC
32,CCC
28,CCC
26,CCC
22,CCC
2C,CCC
3C,CCC
24,CCC
Year
08
09
09
10
0?
08
05
06
06
0?
3
0
,
3
2
7
2
8
,
8
5
6
2
9
,
1
0
7
2
8
,
6
8
9
2
8
,
8
5
4
10
11
2
9
,
6
2
8
1CC%
4C%
6C%
2C%
C
8C%
Year
08
09
09
10
0?
08
06
0?
7
5
.
8
%
7
8
.
3
%
7
6
.
1
%
7
4
.
1
%
10
11
7
7
.
2
%
In[ured Worker
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
1
.
8
?
2
.
5
?
4
.
9
?
4
.
1
?
0
.
3
?
3
.
2
?
2
.
8
?
5
.
?
?
2
.
3 ?
?
.
6
8
0
.
5
?
3
.
?
?
3
.
0
?
5
.
3
by Agent
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
5
.
3
8
3
.
0
8
0
.
1
?
3
.
3
?
8
.
3
8
0
.
2
?
8
.
8
8
2
.
4
8
1
.
6
8
3
.
0
8
2
.
9
?
?
.
3
8
2
.
6
8
1
.
4
Average Premlum
1.5C%
2.CC%
1.CC%
2.5C%
Year
1
.
3
3
8
11
12
C4
C5
C5
C6
C6
C7
C7
C8
1
.
9
9
8
1
.
8
0
1
.
6
2
1
.
4
6
1
.
3
3
8
1
.
3
8
7
1
.
3
8
7
C8
C9
1C
11
C9
1C
6
1
8
3
2
1
6
1
8
7
1
8
6
2
2
1
0
1
0
3
7
2
2
1C
11
19
process to manipulate account processing
data and bypass both CGU audit and WorkSafe
monitoring controls. This led to delays in the
processing of invoices for some service providers.
As a result CGUs remuneration was reduced
by $2.8 million, the highest fnancial penalty
under the Agency Agreement. CGU was
also required to reimburse WorkSafe $1.5
million for amounts received inappropriately
or penalties that they had avoided. CGU has
put in place new processes and structures
to ensure appropriate account management
in the future; including new management,
cultural training and new compliance controls.
VicTORiAn OMBUdSMAnS REPORT
In May the Victorian Ombudsman tabled a
report in Parliament into record keeping and
the administrative practices of WorkSafes
Agents. It followed an increase in the
number of complaints to the Ombudsmans
offce about the management of claim
records and the impact that this can have
on workers accessing timely support.
While managing millions of documents
and thousands of claims is never easy in a
system like ours, we recognise theres room
for improvement. We have accepted the
Ombudsmans recommendations and will
continue to invest in reforms to make sure
that our systems and record keeping within
Agents doesnt get in the way of providing
support for injured workers when they need it.
TRAnSPAREnT REgUlATORy
dEciSiOn-MAKing
Our internal review process enables anyone
who is directly affected by certain decisions
of WorkSafe Inspectors to request a review.
Strict procedural rules mean all reviews are
completed within the statutory requirements
and the review team ensures high quality
and transparent decision-making.
There continued to be strong demand for the
review service during the year. 2,131 requests
for review were received and 2,127 were
concluded. Despite the increase in the number
of reviews, high levels of client satisfaction
with the process were maintained.
FURThER dEVElOPing ThE
PERSOnAl injURy PROFESSiOn

Enhancing the capability of the personal
injury profession and driving cultural change
in the industry to improve client service is a
key element of Strategy 2012. As part of
the EAM we embedded a framework to build
scheme capability, including career pathways
and talent and succession programs.
As a result of our work in this area
employees of WorkSafe, our Agents and
self-insurers are now able to access
a number of different courses and
vocational qualifcations. During the year:
/ 124 people participated in vocational
education studies through WorkSafes
industry capability project.
/ Nine people have graduated with
postgraduate qualifcations from Deakin
University. These qualifcations were
developed by the Personal Injury Education
Foundation, which was established to further
drive excellence in the delivery of health and
return to work outcomes for injured workers
in Australia and New Zealand.
REcOgniSing EXcEllEncE
in PERSOnAl injURy SUPPORT
The winners for the Personal Injury
Education Foundations 2010 Excellence
in Personal Injury Management Awards
were announced at a special ceremony
in October 2010:
Excellence in Personal
Injury Management
Natalie Moss (Allianz Australia).
Innovation in Personal
Injury Management
Return to Work Inspectorate
(WorkSafe Victoria).
Outstanding Contribution
by an Individual
Liz Cairns (Accident Compensation
Corporation of New Zealand).
Excellence in Return
to Work/Return to Community
Marcia Barker (WorkSafe Victoria)
Excellence in Customer Service
Melissa Upson
(QBE Workers Compensation (Vic) Ltd).
Student Excellence
Michelle Carse (WorkCover South Australia).
The satisfaction of worker representatives
and employers with the inspectorate
remained high at 96.6 per cent and 96.8 per
cent respectively.
inTERnAl REViEW OUTcOMES 2009/10 2010/11
Inspectors decision affrmed (no change) 135 129
Licensing decision affrmed 3 13
Inspectors decision set aside 102 114
Licensing decision set aside 3 1
Inspectors decision varied 13 20
Compliance date only changed 1,369 1,668
Application withdrawn 52 88
Licensing decision withdrawn 1 1
Application ineligible/no reviewable decision 22 35
Licensing application ineligible/no reviewable decision 0 2
Extension refused 34 51
Application refused 0 5
TOTAL 1,734 2,127
SERVicE
RETURn TO WORK
Return to work is a key social objective of
the scheme. We are committed to working
with all stakeholders to drive the message
that long-term absence from work is harmful
to workers physical and mental wellbeing.
Safe and sustainable return to work also
helps to reduce an employers premium and
enhances the productivity of their workplace.
Return to work is a major challenge for all
compensation schemes. After the volatility
of the global fnancial crisis, our efforts in
this area are once again achieving results.
As can be seen from the graph below, early
in Strategy 2012 we made signifcant gains
in return to work. However, the uncertain
economic climate over the last few years
impacted return to work outcomes.
This year, as conditions began to normalise,
our return to work results have improved.
The percentage of workers that had at least
10 days off work and returned to work within
14 to 19 months post-injury increased to
77.2 per cent.

WorkSafes programs to support return
to work are set out below.
/ Our small employer program provides
expert advice to small employers soon
after a workplace injury. The program
recognises that small employers have
little or no experience with workers
compensation and return to work.
/ Under a new contract with occupational
rehabilitation providers, we continued to
strengthen their contribution to improving
return to work through a competency
matrix, provider education, training, and
outcome benchmarks.
/ Through the worksite visit initiative we
identifed and targeted claims where the
specialised knowledge of occupational
physicians could help identify duties that
match a workers capacity for work.
/ The Original Employer Service supported
the timely, safe and sustainable return to
work of injured workers to their pre-injury
employer.
/ We strongly promoted New Employer
Services and the WorkSafe Incentive
Scheme for Employers (WISE) which
support employers who assist workers to
resume new employment.
WiSE
WorkSafes Incentive Scheme for
Employers (WISE) has developed a
register that helps match job vacancies
with qualifed and experienced workers
who cannot return to their old employer
after suffering a workplace injury.
After years of carrying bricks, pushing
barrows and working with mortar, brick
layer Alex Sullivan needed operations on
each shoulder and a lengthy period off
work for post-surgery recovery. Through
WISE, Alex joined Allmore Constructions
as an assistant site manager and health
and safety representative.
Allmores OHS manager, Mick Grollo,
said, First off, weve got someone whos
been in the industry, understands it and
whats required. Second, return to work
is all about getting guys back on track
and doing what they like doing.

Alex said it was demoralising being at
home after the two operations. The
company has been very helpful and
understanding and the OHS courses I
did while I was away have been useful
as a HSR.
* Refer to footnote 2 underneath the table on page 16
Over Tlme - Scheme
Over Tlme - Scheme*
Average Premlum
Pates 2010/11
Number of In[urles
(C|alms)
1
.
2
0
1
.
3
3
8
1
.
6
6
1
.
3
0
1
.
4
9
7
2
.
7
5
2
.
1
0
C8
C9
C9
1C
C7
C8
1C
11
C3
C4
C4
C5
C5
C6
C6
C7
5
7
.
3
6
0
.
5 6
8
.
7
6
8
.
6
6
9
.
8
6
8
.
9
7
2
.
8
1C
11
7
8
.
8
7
5
.
3
SW OLD SA TAS
l|mo |oss slunouro
vlC WA Comcuro
C.5%
1.C%
1.5%
2.5%
C.C%
3.5%
3.C%
2.C%
25
2C
15
1C
5
C
C4
C5
C5
C6
C6
C7
C7
C8
C8
C9
C9
1C
Year
C8
C9
C9
1C
C7
C8
C3
C4
C4
C5
C5
C6
C6
C7
Year Year
1CC%
8C%
6C%
4C%
2C%
C%
1CC%
8C%
6C%
4C%
2C%
C%
7
1
.
8
7
4
.
7 8
3
.
5
8
2
.
3
8
4
.
4
8
4
.
4
8
1
.
4
1CC%
75%
5C%
25%
C%
Year
6
3
.
3
*
1C
11
6
4
.
5
C5
C6
6
1
.
7
C6
C7
6
1
.
3
C7
C8
6
6
.
7
C8
C9
6
7
.
8
C9
1C
Number of In[ury
and I||ness C|alms
34,CCC
32,CCC
28,CCC
26,CCC
22,CCC
2C,CCC
3C,CCC
24,CCC
Year
08
09
09
10
0?
08
05
06
06
0?
3
0
,
3
2
7
2
8
,
8
5
6
2
9
,
1
0
7
2
8
,
6
8
9
2
8
,
8
5
4
10
11
2
9
,
6
2
8
1CC%
4C%
6C%
2C%
C
8C%
Year
08
09
09
10
0?
08
06
0?
7
5
.
8
%
7
8
.
3
%
7
6
.
1
%
7
4
.
1
%
10
11
7
7
.
2
%
In[ured Worker
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
1
.
8
?
2
.
5
?
4
.
9
?
4
.
1
?
0
.
3
?
3
.
2
?
2
.
8
?
5
.
?
?
2
.
3 ?
?
.
6
8
0
.
5
?
3
.
?
?
3
.
0
?
5
.
3
by Agent
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
5
.
3
8
3
.
0
8
0
.
1
?
3
.
3
?
8
.
3
8
0
.
2
?
8
.
8
8
2
.
4
8
1
.
6
8
3
.
0
8
2
.
9
?
?
.
3
8
2
.
6
8
1
.
4
Average Premlum
1.5C%
2.CC%
1.CC%
2.5C%
Year
1
.
3
3
8
11
12
C4
C5
C5
C6
C6
C7
C7
C8
1
.
9
9
8
1
.
8
0
1
.
6
2
1
.
4
6
1
.
3
3
8
1
.
3
8
7
1
.
3
8
7
C8
C9
1C
11
C9
1C
6
1
8
3
2
1
6
1
8
7
1
8
6
2
2
1
0
1
0
3
7
2
2
1C
11
21
Return to Work Forum 2011
In May 2011, WorkSafe hosted a forum to
highlight the health benefts of work attended
by over 500 people, including return to work
coordinators, health care providers and
others involved in return to work. The forum
was addressed by international expert Dame
Carol Black. At the forum a number of the
participants in return to work fund projects
showcased their initiatives.
Return to Work Fund
The Return to Work Fund was established to
support projects aimed at improving return
to work opportunities through collaboration
between the workplace parties. The Return
to Work Fund concluded in June 2010
after funding 21 projects over three years.
A summary of the projects can be accessed
via the WorkSafe website.
One of the largest barriers to return to work
is a lack of tools to help employers, treating
practitioners and workers identify suitable jobs
for injured workers. The CFMEU Construction
and General Division developed and piloted a
construction industry Suitable Jobs Register in
consultation with construction industry bodies.
The register is an easy-to-use guide for the
construction industry.
cOMPliAncE And EnFORcEMEnT
UndER ThE AccidEnT
cOMPEnSATiOn AcT 1985
WorkSafe ensures that employers, workers
and service providers meet their return
to work, rehabilitation and other legal
obligations through regulatory activities. In
2010/11 Return to Work Inspectors gained
a wider range of tools to enforce the law.
These included new compliance codes
and the power to issue notices requiring
compliance, where necessary.
During the year there were 31 prosecutions
under the Accident Compensation Act
1985, compared with 23 the previous year.
A number of systemic investigations were
completed at workplaces where breaches
were detected, ensuring a proactive
approach to compliance. The following are
examples of signifcant prosecutions and
their outcomes:
/ A bus body builder injured his left
shoulder and was certifed ft for modifed
duties. Five months later he was sent
home, although he was still certifed ft
for modifed duties. After some time the
worker had surgery on his left shoulder
and after his recovery he was again
certifed ft for modifed duties, but no
suitable employment was provided.
His employer had no contact with him until
nearly 10 months later. The worker did
return to work. His employer pleaded guilty
and was fned $1,000 without conviction.
/ A major supermarket chain pleaded guilty
in the Werribee Magistrates Court to one
charge of failing to prepare a return to work
plan, and 33 charges of late lodgement
of claims. The employer was placed on
a 12-month bond without conviction, with
a special condition that it pay $12,000
to the Salvation Armys Bridge Program,
which provides drug and alcohol
rehabilitation services.
/ A man received a 21-month prison sentence
after he was convicted on eight charges of
obtaining fnancial advantage by deception.
He was also ordered to repay $136,979.60
in workers compensation payments.
/ A man was ordered to carry out 160 hours
of unpaid community work after fraudulently
obtaining over $18,000 in payments and
providing false information on 15 certifcates
of capacity. The man, who admitted to having
worked in several jobs while on benefts,
was ordered to repay $18,477.20.
In 2010/11 we also referred 10 health
practitioners to the Australian Health
Practitioner Regulation Agency (AHPRA)
in relation to concerns regarding their
clinical conduct (seven psychologists, two
physiotherapists and one osteopath).
WorkSafe is committed to working with
all stakeholders to promote the benefts
of safe and sustainable return to work.
SERVicE
iMPROVing ThE AccidEnT
cOMPEnSATiOn AcT 1985
On 1 July 2010 the last of the legislative
amendments fowing from the Hanks Review
of the Accident Compensation Act 1985
came into effect. The amendments included:
enhanced protection against discrimination
for workers pursuing compensation claims,
changes to employers rights in relation to
premium, and a simpler test for employers to
use when determining whether contractors
are deemed workers. A suite of changes
regarding return to work obligations also
came into effect during the year.
In March 2011 the Assistant Treasurer
announced a project to rewrite Victorias
accident compensation legislation in a
simplifed, logical and plain language
format. The rewrite will refect the principle
of no policy or beneft change. The aim is
to ensure employers, workers and Agents
can more easily understand and comply
with their responsibilities. Further goals of
the project are to help reduce compliance
costs for employers and protect the level of
benefts for injured workers. This project will
continue into 2011/12.
cOllABORATiOn WiTh ThE TAc

WorkSafe continues to collaborate with
the TAC in areas and projects designed to
beneft the clients of both organisations.
Through the Health Services Group
WorkSafe is working to deliver the best
health outcomes for injured workers. The
encouragement of better clinical practice
and ensuring effective treatment, positively
impacts on return to work and quality of life
for injured workers. The Health Services
Group achieves these goals by engaging
with providers, targeting treatment strategies
and conducting peer reviews and case
follow-up. During the year it:
/ increased the number and capability of
network healthcare providers who have
the appropriate skills and experience
to become specialists in managing the
medical treatment of injured workers
/ fostered effective working relationships
with GPs and examined innovative ways to
build the capability of GPs in compensable
medicine
/ responded to emerging issues relating to
the provision of health services
/ provided professional support and advice
to healthcare providers who treat injured
workers through our Clinical Panel
/ continued to support the implementation of
the Treatment Payments and Connectivity
Program which will make the way we
manage treatment payments more effective
and effcient.
Information Technology Shared
Solutions (ITSS) is delivering next
generation systems to improve processes
and enhance the services the TAC and
WorkSafe provides to clients. ITSS optimises
economies of scale and provides a common
approach to projects and initiatives,
while recognising the differing business
requirements. Key achievements during
the year included:
/ further system changes required to support
amendments to the Accident Compensation
Act 1985 and proposed OHS model laws
/ improvements to online services and
systems for employers, particularly in
relation to WorkSafe injury insurance
processes
/ an upgrade of the advisory service
system to support call routing, queue
management and call recording
/ changes to support the updated industry
classifcation system
/ upgrading the claims management system
(Novus) to improve effciency and usability
by Agents
/ transitioning the IT Service Desk to a
common service management approach
aligned to industry standards
/ a new common approach with the TAC
to manage IT operations
/ developed the frst in a series of
standardised, automated rules for
the payment of health providers.
Through the health Services group
WorkSafe is working to deliver the
best health outcomes for injured
workers.
23
SElF-inSURAncE
The role of self-insurance in Victoria is
to provide choice to eligible employers to
manage and bear the costs and risks of
their own claims. Self-insurers are some
of the largest companies in Victoria and
employ almost eight per cent of the States
workforce.
Our Self-insurance Performance Management
System provides a framework that is
transparent, encourages high performance,
and ensures there are consequences for
under-performance in relation to OHS and
return to work. WorkSafe also uses targeted
interventions to drive the performance of
self-insurers. Self-insurance is complex due
to corporate acquisitions and divestments,
and a self-insurers entitlement to manage
and underwrite the claims of a company
that it acquires.
In 2010/11 the measurement of injured
worker satisfaction with the services provided
by self-insurers was broadened to provide
consistency with the way satisfaction
of injured workers covered by agents is
measured. This year 63.3% of injured
workers were satisfed with the service
they experienced. This result has decreased
from 72.1% in 2009/10 (using a revised,
like-with-like measurement. See Appendix 3).
The lower level of satisfaction than the
previous year is consistent with injured
workers covered by WorkSafes Agents.
The sustained return to work rate for
injured workers of self-insurers was 81.1%.
This is stable on the strong performance
in 2010 (82.7%). We continue to work with
self-insurers to improve their performance
in client satisfaction and return to work.
There is a moratorium on exits of national
employers from state and territory schemes
to the national self-insurance scheme until
the end of 2011.
SUSTAinABiliTy
Over the last decade, sound scheme
management has enabled us to improve
benefts for injured workers and reduce
business costs for employers. However,
ensuring the sustainability of our scheme
requires constant vigilance. Small changes
in claim trends can impact our actuarial
valuations because of the long-term nature
of our liabilities. We gauge our ongoing
sustainability using break even premium and
actuarial release, which demonstrate our
success in managing the scheme for the
long term.
STAKEhOldER EngAgEMEnT
WorkSafes stakeholder forums and
committees enable us to engage and
collaborate with our stakeholders, helping
to ensure the success of our strategies
and programs. Our stakeholder forums
include employer, worker, health and legal
representatives who are passionate and
knowledgeable about OHS and workers
compensation. We thank them for their
commitment.
Statutory Committees
The Occupational Health and Safety
Advisory Committee provides feedback
to the Board on the most effective means
of promoting healthy and safe working
environments in our administration of the
Occupational Health and Safety Act 2004
and its Regulations.
The WorkCover Advisory Committee
provides the Board with feedback on the
best ways to compensate injured workers
and assist them to return to work.
Non-statutory Committees
The Rehabilitation and Compensation
Working Group is a sub-group of the
WorkCover Advisory Committee. It provides
feedback on the application of the Accident
Compensation Act 1985 and related policy
on the rehabilitation and compensation of
injured workers.
The Major Hazard Advisory Committee
enables WorkSafe to consult with industry
experts on the implementation of the Major
Hazard Facilities Regulations.
The Legal Liaison Group facilitates
discussion about the common law and
statutory beneft litigation policies of
WorkSafe and its panel frms. The group
also provides input into legislative change,
Ministerial Directions and protocols.
The WorkHealth Advisory Group
facilitates discussion about the health and
wellbeing of the Victorian workforce and the
implementation, monitoring and evaluation
of WorkHealth.
SUSTAinABiliTy 2009/10
Result
2010/11
Target
2010/11
Result
Performance from Insurance operations (PFIO) $654M $220M $294M
Actuarial Release $189M $200M $136M
Break even premium (June) 1.333% 1.302% 1.316%
Operating expenses
(excluding WorkHealth and
Research Institute initiatives)
$237M $257M $243M
Premium revenue $1.712B $1.709B $1.802B
Employee Opinion Survey Index 68% 71% 63%
We aspire to continually improve
our schemes sustainability.
A well-managed scheme and our
committed and talented workforce
will enable us to keep delivering
vital services to injured workers and
employers in collaboration with our
partners and stakeholders.
294
M
136
M
63
%
1.338
%
$ Actuarial release
Average premium rate
Employee Opinion
Survey Index
$ Performance from Insurance
operations (PFIO)
Delivering results
in Worksafe injury insurance
Throughout Strategy 2012 WorkSafe
has worked with the community to
reduce workplace injuries and supported
employers and injured workers to pursue
safe and sustainable return to work. These
actions help to contain costs, ensuring
WorkSafe injury insurance premiums are
affordable. Our injury insurance system
also provides strong incentives for sound
OHS and return to work practices.
By successfully pursuing our basic goals
of injury reduction and return to work,
and ensuring sound claims management,
improved outcomes have been achieved
in Victoria over a sustained period of time.
The last few years have been particularly
volatile for workers compensation
schemes around the world. Nevertheless,
Victoria continues to have the lowest
premium rate in its history at 1.338
per cent. Following announcements by
Comcare and Queensland, in 2011/12
Victoria will have the lowest premium rate
of any workers compensation scheme in
Australia. WorkSafe will remain vigilant
to ensure sustainable and affordable
WorkSafe injury insurance for Victorian
employers.
SUSTAinABiliTy
The Senior Occupational Health and
Safety Roundtable is a forum for senior
management from across the Victorian
public sector and unions.
The Stakeholder Reference Group
is a forum which facilitates consultation
and information sharing on a range of
occupational health and safety programs,
policies and issues. Its purpose has been
to support the OHSAC in discharging its
functions.
UPdATEd indUSTRy
clASSiFicATiOnS
WorkSafe updated its workplace industry
classifcation system with the new system
coming into effect on 1 July 2011. The
updated system is based on the Australian
and New Zealand Standard Industrial
Classifcation (ANZSIC) 2006. It will better
refect changes in the Victorian economy
since 1985. The new classifcations will
distribute claim costs more fairly across the
industries responsible for causing injuries
and align with most other Australian states.
inSTiTUTE FOR SAFETy
cOMPEnSATiOn And
REcOVERy RESEARch
The Institute for Safety Compensation and
Recovery Research is a joint initiative of
WorkSafe, the TAC, and Monash University.
It was established to undertake research
that supports both WorkSafes and the TACs
activities by establishing best practice in injury
prevention, rehabilitation and beneft delivery.
After extensive consultation with industry
partners and the safety, compensation and
recovery sector, ISCRR fnalised its fve-year
research strategy. The strategy covers fve
theme areas: performance measurement,
effciency and effectiveness of regulatory
systems, health and disability service
delivery, the impact of social factors and
research to action. In 2011/12, ISCRR will
continue to implement the 2015 strategy
with an increase in core research and
competitive grant activity.
Over Tlme - Scheme
Over Tlme - Scheme*
Average Premlum
Pates 2010/11
Number of In[urles
(C|alms)
1
.
2
0
1
.
3
3
8
1
.
6
6
1
.
3
0
1
.
4
9
7
2
.
7
5
2
.
1
0
C8
C9
C9
1C
C7
C8
1C
11
C3
C4
C4
C5
C5
C6
C6
C7
5
7
.
3
6
0
.
5 6
8
.
7
6
8
.
6
6
9
.
8
6
8
.
9
7
2
.
8
1C
11
7
8
.
8
7
5
.
3
SW OLD SA TAS
l|mo |oss slunouro
vlC WA Comcuro
C.5%
1.C%
1.5%
2.5%
C.C%
3.5%
3.C%
2.C%
25
2C
15
1C
5
C
C4
C5
C5
C6
C6
C7
C7
C8
C8
C9
C9
1C
Year
C8
C9
C9
1C
C7
C8
C3
C4
C4
C5
C5
C6
C6
C7
Year Year
1CC%
8C%
6C%
4C%
2C%
C%
1CC%
8C%
6C%
4C%
2C%
C%
7
1
.
8
7
4
.
7 8
3
.
5
8
2
.
3
8
4
.
4
8
4
.
4
8
1
.
4
1CC%
75%
5C%
25%
C%
Year
6
3
.
3
*
1C
11
6
4
.
5
C5
C6
6
1
.
7
C6
C7
6
1
.
3
C7
C8
6
6
.
7
C8
C9
6
7
.
8
C9
1C
Number of In[ury
and I||ness C|alms
34,CCC
32,CCC
28,CCC
26,CCC
22,CCC
2C,CCC
3C,CCC
24,CCC
Year
08
09
09
10
0?
08
05
06
06
0?
3
0
,
3
2
7
2
8
,
8
5
6
2
9
,
1
0
7
2
8
,
6
8
9
2
8
,
8
5
4
10
11
2
9
,
6
2
8
1CC%
4C%
6C%
2C%
C
8C%
Year
08
09
09
10
0?
08
06
0?
7
5
.
8
%
7
8
.
3
%
7
6
.
1
%
7
4
.
1
%
10
11
7
7
.
2
%
In[ured Worker
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
1
.
8
?
2
.
5
?
4
.
9
?
4
.
1
?
0
.
3
?
3
.
2
?
2
.
8
?
5
.
?
?
2
.
3 ?
?
.
6
8
0
.
5
?
3
.
?
?
3
.
0
?
5
.
3
by Agent
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
5
.
3
8
3
.
0
8
0
.
1
?
3
.
3
?
8
.
3
8
0
.
2
?
8
.
8
8
2
.
4
8
1
.
6
8
3
.
0
8
2
.
9
?
?
.
3
8
2
.
6
8
1
.
4
Average Premlum
1.5C%
2.CC%
1.CC%
2.5C%
Year
1
.
3
3
8
11
12
C4
C5
C5
C6
C6
C7
C7
C8
1
.
9
9
8
1
.
8
0
1
.
6
2
1
.
4
6
1
.
3
3
8
1
.
3
8
7
1
.
3
8
7
C8
C9
1C
11
C9
1C
6
1
8
3
2
1
6
1
8
7
1
8
6
2
2
1
0
1
0
3
7
2
2
1C
11
Over Tlme - Scheme
Over Tlme - Scheme*
Average Premlum
Pates 2010/11
Number of In[urles
(C|alms)
1
.
2
0
1
.
3
3
8
1
.
6
6
1
.
3
0
1
.
4
9
7
2
.
7
5
2
.
1
0
C8
C9
C9
1C
C7
C8
1C
11
C3
C4
C4
C5
C5
C6
C6
C7
5
7
.
3
6
0
.
5 6
8
.
7
6
8
.
6
6
9
.
8
6
8
.
9
7
2
.
8
1C
11
7
8
.
8
7
5
.
3
SW OLD SA TAS
l|mo |oss slunouro
vlC WA Comcuro
C.5%
1.C%
1.5%
2.5%
C.C%
3.5%
3.C%
2.C%
25
2C
15
1C
5
C
C4
C5
C5
C6
C6
C7
C7
C8
C8
C9
C9
1C
Year
C8
C9
C9
1C
C7
C8
C3
C4
C4
C5
C5
C6
C6
C7
Year Year
1CC%
8C%
6C%
4C%
2C%
C%
1CC%
8C%
6C%
4C%
2C%
C%
7
1
.
8
7
4
.
7 8
3
.
5
8
2
.
3
8
4
.
4
8
4
.
4
8
1
.
4
1CC%
75%
5C%
25%
C%
Year
6
3
.
3
*
1C
11
6
4
.
5
C5
C6
6
1
.
7
C6
C7
6
1
.
3
C7
C8
6
6
.
7
C8
C9
6
7
.
8
C9
1C
Number of In[ury
and I||ness C|alms
34,CCC
32,CCC
28,CCC
26,CCC
22,CCC
2C,CCC
3C,CCC
24,CCC
Year
08
09
09
10
0?
08
05
06
06
0?
3
0
,
3
2
7
2
8
,
8
5
6
2
9
,
1
0
7
2
8
,
6
8
9
2
8
,
8
5
4
10
11
2
9
,
6
2
8
1CC%
4C%
6C%
2C%
C
8C%
Year
08
09
09
10
0?
08
06
0?
7
5
.
8
%
7
8
.
3
%
7
6
.
1
%
7
4
.
1
%
10
11
7
7
.
2
%
In[ured Worker
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
1
.
8
?
2
.
5
?
4
.
9
?
4
.
1
?
0
.
3
?
3
.
2
?
2
.
8
?
5
.
?
?
2
.
3 ?
?
.
6
8
0
.
5
?
3
.
?
?
3
.
0
?
5
.
3
by Agent
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
5
.
3
8
3
.
0
8
0
.
1
?
3
.
3
?
8
.
3
8
0
.
2
?
8
.
8
8
2
.
4
8
1
.
6
8
3
.
0
8
2
.
9
?
?
.
3
8
2
.
6
8
1
.
4
Average Premlum
1.5C%
2.CC%
1.CC%
2.5C%
Year
1
.
3
3
8
11
12
C4
C5
C5
C6
C6
C7
C7
C8
1
.
9
9
8
1
.
8
0
1
.
6
2
1
.
4
6
1
.
3
3
8
1
.
3
8
7
1
.
3
8
7
C8
C9
1C
11
C9
1C
6
1
8
3
2
1
6
1
8
7
1
8
6
2
2
1
0
1
0
3
7
2
2
1C
11
lOng-TERM diSABiliTy
cARE And SUPPORT SchEME
The Productivity Commission conducted an
inquiry into the design of a national disability
scheme during the year.
The Commission assessed how potential
models for the scheme would interact with
Australias health, aged care, informal care,
income support and injury insurance systems.
WorkSafe provided input into the inquiry as
part of the Victorian Governments response.
27
We aim to be recognised
as a great place to work
and fully utilise the talents
of our employees.
SUSTAinABiliTy
OUR ORgAniSATiOn
Our employees help to protect and improve
peoples lives. We are proud of our mission
and role in delivering high quality services to
the Victorian community.
Each year our Employee Opinion
Survey (EOS) enables our employees to
provide feedback that helps to shape the
organisations culture. This year we achieved
a response rate of 84 per cent.
In a year of signifcant change for many
parts of our business, our overall EOS results
slipped from the record highs of recent
years. While still comparing favourably with
the Australian National Norm result, we
will continue to strive for improved results
in 2011/12 with particular attention to
managing organisational change.
Social responsibility is incorporated into our
day-to-day business operations and, together
with our values, informs the way we work
with our clients, stakeholders, the Victorian
community and our employees. The following
are our social responsibility principles:
/ Communitywe exist to serve and
strengthen the Victorian community by
driving better safety and return to work,
and providing quality care and insurance
protection.
/ Partnerships, alliances and suppliers
we work with many suppliers, allies and
partners to deliver services and social
marketing messages. We aim to deal
with others who are socially and ethically
responsible, and use our infuence to
encourage others to join us in having
a positive impact on our community.
/ Governance and fnancial
accountabilitywe uphold responsible
governance as a cornerstone of our
operations and our accountability to the
public. We have transparent processes,
checks and balances and hold ourselves
up to public scrutiny.
/ Environmentwe ensure that we
conduct business in a way that is
respectful to the environment, continually
looking for ways to minimise the impact
of our operations. We are committed to
meeting all environmental government
standards. Our environmental policy
underpins our being green strategy and
is supported by the fantastic work that
volunteer employees have accomplished
through the Green Offce Program and
the Green Business Champions.
EMPlOyER OF chOicE
WorkSafe received the Employer
of Choice (Public Sector) Award at the
Australia Wide HR Leader Compass Awards
held in October 2010. This is a great
achievement, and recognises the many things
that make WorkSafe a great place to work.
Feelingood@work is all about the great things
on offer to keep employees happy, healthy
and engaged at WorkSafe in four key areas:
/ Career and Development
/ Health and Wellbeing
/ Rewards and Benefts and
/ Community.
Our values guide everything we do.
/ We are constructive in the way we
provide information, advice and services.
/ We are accountable for what we do
and what we say. We live up to our
promises.
/ We work in a transparent way in an
environment which is open and honest.
/ We are effective by working
collaboratively to deliver high quality
services.
/ We demonstrate care by showing
empathy in our dealings with everyone
we work with.
SUSTAinABiliTy
OUR ORgAniSATiOn
lEAdERShiP And TAlEnT
WorkSafe continued a number of programs
and projects to develop leadership and talent
within the organisation during the year:
/ The Leadership Development Program
provides assessment and feedback for
individual leaders on leadership style and
the climate created for direct reports.
/ Rotational Development rotates
employees across and outside
WorkSafe to build skills, knowledge and
competencies to promote more holistic
thinking and behaviour.
/ The Ambassador Program develops
talent through participation in an overseas
study tour.
/ The Diploma of Management develops
frontline managers and project team
leaders to effectively lead their teams
and manage resources.
/ The Graduate Program builds future
capability and addresses our ageing
workforce profle by recruiting young
and adaptable employees.
/ The People Leaders Program builds
the capability of all people leaders to lead
and manage their teams and resources.
/ A comprehensive review of the recruitment
and selection process system continued,
including the development of better
guidance and online forms and alignment
with our Employee Value Proposition.
OUR OhS PERFORMAncE
We strive to set the standard for all of
Victoria in OHS. We demonstrate leadership
through best practice systems to prevent
workplace injury, improve employee
wellbeing, and ensure effective rehabilitation
and return to work. A healthy workforce
enables our organisation to remain
sustainable.
The main features of our best practice OHS
system are set out below:
/ Consultation and active engagement with
employees is the foundation of sound
OHS, particularly during the development
of policies and procedures.
/ Our Board of Management and Chief
Executive lead OHS in the organisation.
Our OHS Committee meets bi-monthly
and is chaired by the Chief Executive
and made up of senior managers and
Health and Safety Representatives.
Its charter and protocols ensure a clear
focus on strategic issues, priorities and
the organisations OHS performance.
/ We facilitate access to OHS policies
and procedures for our employees.
/ We invest in training to ensure our
employees and all managers have high
OHS competencies. We keep all our
employees, including managers, up to date
on OHS requirements by ensuring they
receive refresher training at least once
every three years. Our Health and Safety
Representatives are also offered training
including fve-day and refresher courses.
/ We are accredited under the SafetyMap
certifcation system. Each year we participate
in audits managed by an external provider.
The audits drive improvements and measure
our compliance with the OHS governance
model for the Victorian public sector. During
the year audits were completed at our
Warrnambool and Exhibition Street sites.
/ WorkSafe is also accredited under the
International Disability Management
Standards Council certifcation system.
/ Our employees are strongly encouraged to
report all hazards and incidents. We ensure
managers are trained in the investigation
of hazards and incidents, and in eliminating
and controlling risks. Our systems ensure
Health and Safety Representatives are
actively involved in the management of
reported hazards and incidents.
/ Our comprehensive wellbeing program
supports employees to lower chronic health
risk factors and improve their overall level
of health. Based on extensive research, the
program aims to leverage the connection
between employee wellbeing and a
resilient, productive and healthy workforce.
/ Research provides us with evidence-based
approaches to OHS and our employees
continue to participate in research projects
with health and educational institutions.
Over Tlme - Scheme
Over Tlme - Scheme*
Average Premlum
Pates 2010/11
Number of In[urles
(C|alms)
1
.
2
0
1
.
3
3
8
1
.
6
6
1
.
3
0
1
.
4
9
7
2
.
7
5
2
.
1
0
C8
C9
C9
1C
C7
C8
1C
11
C3
C4
C4
C5
C5
C6
C6
C7
5
7
.
3
6
0
.
5 6
8
.
7
6
8
.
6
6
9
.
8
6
8
.
9
7
2
.
8
1C
11
7
8
.
8
7
5
.
3
SW OLD SA TAS
l|mo |oss slunouro
vlC WA Comcuro
C.5%
1.C%
1.5%
2.5%
C.C%
3.5%
3.C%
2.C%
25
2C
15
1C
5
C
C4
C5
C5
C6
C6
C7
C7
C8
C8
C9
C9
1C
Year
C8
C9
C9
1C
C7
C8
C3
C4
C4
C5
C5
C6
C6
C7
Year Year
1CC%
8C%
6C%
4C%
2C%
C%
1CC%
8C%
6C%
4C%
2C%
C%
7
1
.
8
7
4
.
7 8
3
.
5
8
2
.
3
8
4
.
4
8
4
.
4
8
1
.
4
1CC%
75%
5C%
25%
C%
Year
6
3
.
3
*
1C
11
6
4
.
5
C5
C6
6
1
.
7
C6
C7
6
1
.
3
C7
C8
6
6
.
7
C8
C9
6
7
.
8
C9
1C
Number of In[ury
and I||ness C|alms
34,CCC
32,CCC
28,CCC
26,CCC
22,CCC
2C,CCC
3C,CCC
24,CCC
Year
08
09
09
10
0?
08
05
06
06
0?
3
0
,
3
2
7
2
8
,
8
5
6
2
9
,
1
0
7
2
8
,
6
8
9
2
8
,
8
5
4
10
11
2
9
,
6
2
8
1CC%
4C%
6C%
2C%
C
8C%
Year
08
09
09
10
0?
08
06
0?
7
5
.
8
%
7
8
.
3
%
7
6
.
1
%
7
4
.
1
%
10
11
7
7
.
2
%
In[ured Worker
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
1
.
8
?
2
.
5
?
4
.
9
?
4
.
1
?
0
.
3
?
3
.
2
?
2
.
8
?
5
.
?
?
2
.
3 ?
?
.
6
8
0
.
5
?
3
.
?
?
3
.
0
?
5
.
3
by Agent
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
5
.
3
8
3
.
0
8
0
.
1
?
3
.
3
?
8
.
3
8
0
.
2
?
8
.
8
8
2
.
4
8
1
.
6
8
3
.
0
8
2
.
9
?
?
.
3
8
2
.
6
8
1
.
4
Average Premlum
1.5C%
2.CC%
1.CC%
2.5C%
Year
1
.
3
3
8
11
12
C4
C5
C5
C6
C6
C7
C7
C8
1
.
9
9
8
1
.
8
0
1
.
6
2
1
.
4
6
1
.
3
3
8
1
.
3
8
7
1
.
3
8
7
C8
C9
1C
11
C9
1C
6
1
8
3
2
1
6
1
8
7
1
8
6
2
2
1
0
1
0
3
7
2
2
1C
11
Performance highlights
Building on our strong performance in
2009/10 we maintained solid results
in injury reduction this year. Employees
also continued robust reporting of
hazards and injuries, enabling us to
control hazards effectively.
The following are further highlights of
our OHS performance:
/ 40 employees trained to provide advice
on ergonomic workstation setup
/ all OHS Committee members
completed refresher training relating
to OHS roles and responsibilities
/ no nonconformities were identifed
during the SafetyMap audit process.
29
Incidents & Hazards 2008/09 2009/10 2010/11
Number of hazards reported 168 189 148
Hazardrate per 100 FTEs 14.94 15.81 13.12
Number of incidents 142 183 175
Incidentrate per 100 FTEs 12.64 14.62 15.51
Injurynon compensable 56 70 51
Employee OHS Appraisal 2008/09 2009/10 2010/11
(% positive response)
My work area is a safe place
to work
96 93 94
Is adequate OHS training
provided?
84 84 82
Is WorkSafe proactive on OHS
matters?
81 77 77
Is reporting of incidents and
injuries encouraged?
91 91 91
Is corrective action taken by
management?
81 80 78
Is there meaningful consultation
on OHS relevant matters?
74 73 70
Do work instructions, procedures
etc. address OHS issues?
80 81 85
My manager is committed to
OHS improvements
83 83 83
Senior management cares about
OHS and employee wellbeing
89 73 70
Inspections 2008/09 2009/10 2010/11
Percentage of scheduled
workplace inspections
conducted
85% 80% 80%
Resolution of OHS issues
arising from inspections/audits
100% 100% 100%
Number of Provisional
Improvement Notices
0 0 0
Number of improvement and
prohibition notices
0 0 0
OHS committee
recommendations implemented
100% 100% 100%
Our employees help to protect and improve
peoples lives. We are proud of our mission
and our role in delivering high quality
services to the Victorian community.
Claims & Return to Work 2008/09 2009/10 2010/11
Number of claims
(standardised)
22 10 10
Claims
rate per 100 FTEs
1.957 0.799 0.886
Number of time-loss claims 6 7 3
Time-loss claims
rate per 100 FTEs
0.533 0.559 0.265
Number of 13-week claims 2 4 4
13-week claims
rate per 100 FTEs
0.178 0.319 0.354
Number of fatality claims 0 0 0
Average cost per claim $43,763 $66,337 $164,945
Number of claims
with RTW plans initiated
21 7 4
Percentage of 13-week claims
with RTW plans initiated
100% 100% 100%
A comprehensive report on our progress against
our key performance indicators follows.
SUSTAinABiliTy
FinAnciAl MAnAgEMEnT
We aspire to improve our schemes
sustainability so we can deliver services
to injured workers and employers over
the long term.
In considering WorkSafes average premium
rates we assume a four per cent per annum
real investment return over fve yearsthe
average duration of our claims liabilities. Our
investments are managed by the Victorian
Funds Management Corporation (VFMC).
The VFMCs investment strategy aims
to achieve this return within established
risk parameters. The VFMC continues to
maintain an allocation of 70 per cent to
growth assets.
WorkSafes assets and liabilities are valued in
line with market movements and Australian
Accounting Standards. Infation and bond
yields affect the valuation of WorkSafes
claims liabilities. Large changes in the
valuation of our balance sheet can be
caused by small market and economic shifts,
signifcantly impacting on our annual results.
The organisation has no control over
external factors such as investment market
fuctuations, infation, and claims discount
rates. However, we do have infuence over
internal factors such as our operational
and claims management performance. As
a result, our reporting framework identifes
the internal and external factors that impact
on our fnancial results. This provides a clear
and transparent picture of our operations, as
well as the overall health of the scheme. This
measure is also known as our performance
from insurance operations, or PFIO.
In 2010/11, while the injury claim rate
continued to improve, we faced increases
in the volume of claims, increased durations
on weekly compensation and increased
medical and like costs. We continue to
actively manage these issues.
The number of common law lodgements and
associated legal costs increased more rapidly
than forecast. Plaintiff legal costs in particular
have been a high growth area in the past and
we introduced a Fixed Cost Model this year
to address this area of our liabilities. The Fixed
Cost Model enables us to provide plaintiff
lawyers with predictable and fair remuneration
for a successful or well-managed application.
We will keep working with our legal and other
stakeholders to ensure common law benefts
remain sustainable.

We continue to manage the scheme
responsibly and focus on our internal
administrative costs. These costs, as a
proportion of scheme costs, are the lowest
they have been in three years. Through our
business planning process we have identifed
opportunities to further improve our operating
effciency and effectiveness.
FinAnciAl RESUlTS
In 2010/11 the organisation recorded its
tenth successive full-year actuarial release
of $136 million.
An actuarial releaseor write down in
liabilitiesis achieved when projected claims
costs are reduced due to improvements in
actual claims experience. This calculation does
not include external factors such as infation,
investment returns and legislative change.
Our after-tax operating result was
$521million, compared with $176 million
in 2009/10. The PFIO of $294 million was
impacted by our actuarial release result and
was lower than our 2009/10 PFIO of $654
million. External factors impacted on the net
result in the order of $409 million.
The following factors impacted on our
net result:
/ Investment returns of 11.79 per cent had
a positive impact of $410 million above
the long-term return objective. This
compared with a return of 12.36 per cent
in the previous year
/ Changes to economic assumptions and
the discount rate resulted in a positive
impact of $8 million
/ Further legislative amendments fowing
from the Hanks reforms had a negative
impact of $9 million.
Through sound management we have
been able to deliver enhanced benefts
for injured workers and record low
premiums for employers.
31
WORKSAFE injURy inSURAncE
PREMiUM chARgE
The average premium rate charged to
employers for 2010/11 was 1.338 per cent
of payroll. This rate will remain the same in
2011/12.
ASSETS And liABiliTiES
As at 30 June 2011 WorkSafes total assets
were $10.9 billion, compared with $10.2
billion at 30 June 2010. Our total liabilities
were $9.4 billion, compared with $9.2 billion
at 30 June 2010. Our funding ratio at 30
June 2011 was 108 per cent (compared
with 100 per cent at 30 June 2010). This
funding ratio is within the preferred range
of 85-115 per cent.
in 2010/11 the organisation recorded
its tenth successive full-year actuarial
release of $136 million.
WORKSAFE ScOREcARd 20012011
Year
Average
premium
rate
Funding
ratio
Net
result PFIO*
Actuarial
release
2000/01 2.22% 88% ($260M) ($262M) ($366M)
2001/02 2.22% 87% ($98M) $465M $121M
2002/03 2.22% 83% ($315M) $505M $157M
2003/04 2.22% 101% $1.222B $718M $316M
2004/05 1.998% 113% $775M $747M $439M
2005/06 1.8% 119% $1.003B $476M $260M
2006/07 1.62% 134% $1.17B $729M $394M
2007/08 1.46% 120% ($587M) $958M $511M
2008/09 1.387% 97% ($1.254B) $277M $78M
2009/10 1.387% 100% $176M $654M $189M
2010/11 1.338% 108% $521M $294M $136M
*Performance from insurance operations.
FinAnciAl RESUlTS 2010/11
($M)
2009/10
($M)
2008/09
($M)
2007/08
($M)
2006/07
($M)
Impact on result from internal factors
Performance from insurance operations 293.9 654.1 277.4 957.6 728.5
WorkHealth and Research Institute initiatives 23.6 23.1 42.9 - -
Result from internal factors 317.5 677.2 320.3 957.6 728.5
Impact on result from external factors
Difference between actual returns and long-term expected returns
1
410.1 369.9 (2,061.1) (1,776.7) 742.8
Change in infation assumptions and discount rates
2
8.5 (531.3) (68.1) (57.6) 159.7
Impact from legislative changes
3
(9.4) (270.3)
Tax (205.9) (69.9) 554.4 289.6 (460.6)
Net result 520.8 175.6 (1,254.5) (587.1) 1,170.4
1
Improved conditions experienced in the fnancial markets in 2010/11 resulted in the actual return being above the expected long-term rate of return.
2
There was a favourable impact from changes in economic assumptions (i.e. increases in assumed short-term discount rates partially offset by higher than expected actual infation) used to determine claims liability in 2010/11.
3
The legislative changes arising from the Transport Accident and Accident Compensation Legislation Amendment Act 2010 resulted in an increase in claims incurred in 2010/11.
FinAnciAl
REPORT
cOnTEnTS
33 Financial Statements
37 Notes to the Financial Statements
71 Statement by Chair,
Chief Executive and
Chief Financial Offcer
72 Auditor-Generals report
33
COMPREHENSIVE OPERATING STATEMENT
FOR THE YEAR ENDED 30 JUNE 2011
2011 2010
Note $000s $000s
Revenue and Income
Premium revenue 8 1,801,506 1,711,864
Investment income 9 1,075,528 1,011,753
Recoveries revenue 11 (a) 151,726 137,666
Other income 10 25,134 23,421
Total revenue and income 3,053,894 2,884,704
Expenses
Claims expense 11 (b) (1,824,421) (2,139,507)
Authorised agent fees 12 (205,522) (212,521)
Investment expenses 9 (31,532) (27,500)
Other operating costs 13 (265,719) (259,705)
Total expenses (2,327,194) (2,639,233)
Result before income tax 726,700 245,471
Tax expense 16 (a) (205,858) (69,901)
Net result for the year 520,842 175,570
Other comprehensive income
Other comprehensive income, net of income tax
Total comprehensive income for the year 520,842 175,570
The comprehensive operating statement should be read in conjunction with the accompanying notes to the fnancial statements.
BALANCE SHEET
AS AT 30 JUNE 2011
2011 2010
Note $000s $000s
Current Assets
Cash and cash equivalents 27 (a) 26,354 17,898
Receivables 17 68,196 40,797
Investments 18 1,730,933 1,370,652
Recoveries receivable 19 40,938 35,658
Tax recoveries 16 (b) 139 139
Other assets 20 10,981 8,606
Total current assets 1,877,541 1,473,750
NonCurrent Assets
Investments 18 7,961,304 7,469,010
Recoveries receivable 19 196,701 171,492
Plant and equipment 21 26,251 27,110
Intangibles 22 63,764 47,559
Deferred tax assets 16 (c) 775,913 981,770
Total noncurrent assets 9,023,933 8,696,941
Total assets 10,901,474 10,170,691
Current Liabilities
Payables 23 127,829 173,171
Outstanding claims 24 (a) 1,752,886 1,710,511
Provisions 25 27,688 26,105
Total current liabilities 1,908,403 1,909,787
NonCurrent Liabilities
Outstanding claims 24 (a) 7,476,052 7,264,473
Provisions 25 6,376 6,630
Total noncurrent liabilities 7,482,428 7,271,103
Total liabilities 9,390,831 9,180,890
Net assets 1,510,643 989,801
Equity
Reserves 26 704,322 651,570
Accumulated surplus 26 806,321 338,231
Total equity 1,510,643 989,801
The balance sheet should be read in conjunction with the accompanying notes to the fnancial statements.
35
STATEMENT OF CHANGES IN EQUITY
WorkHealth
Reserve
Research
Reserve
Accumulated
Surplus
Total
Equity
Note $000s $000s $000s $000s
Balance at 1 July 2009 514,565 86,435 213,231 814,231
Total comprehensive income for the year
Transactions with owners, recorded directly in equity
Transfer of initiatives' net results for the year 26 41,934 8,636 (50,570)
Total transactions with owners 41,934 8,636 (50,570)
Balance at 30 June 2010 556,499 95,071 338,231 989,801
Total comprehensive income for the year
Transactions with owners, recorded directly in equity
Transfer of initiatives' net results for the year 26 44,204 8,548 (52,752)
Total transactions with owners 44,204 8,548 (52,752)
Balance at 30 June 2011 600,703 103,619 806,321 1,510,643
The statement of changes in equity should be read in conjunction with the accompanying notes to the fnancial statements.
CASH FLOW STATEMENT
2011 2010
Note $000s $000s
Cash Flows from Operating Activities
Premium received 1,922,571 1,864,849
Claims paid (1,561,360) (1,473,364)
Self insurers reentry / (exit) settlements 2,315 4,001
Claim recoveries received 117,270 88,496
Authorised and management agent fees (267,771) (228,385)
Certifed payments to the Department of Justice (7,037)
Dividends received 227,393 203,894
Interest received 287,945 290,922
Health and Safety licence registration fees received 5,516 6,254
Contribution from DTF Consolidated Fund 925
Distributions from prior insurers under liquidation 364 284
Sundry receipts 24,292 13,607
Goods and services tax paid to the ATO (115,307) (114,660)
Payments to suppliers and employees (314,747) (283,635)
Net cash fows from operating activities 27 (b) 329,406 365,226
Cash Flows from Investing Activities
Sale of investments 6,235,401 5,372,100
Purchase of investments (6,218,492) (5,645,152)
Purchase of plant and equipment (5,538) (22,946)
Proceeds from disposal of plant and equipment 5 6
Payments for intangibles (24,447) (14,976)
Net cash fows used in investing activities (13,071) (310,968)
Net increase in cash and cash equivalents 316,335 54,258
Cash and cash equivalents at beginning of the year 1,126,577 1,085,423
Effects of exchange rate changes on cash held in foreign
currencies
(14,419) (13,104)
Cash and cash equivalents at end of the year 27 (a) 1,428,493 1,126,577
The cash fow statement should be read in conjunction with the accompanying notes to the fnancial statements.
37
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
1. WORkCOVER AUTHORITY FUND
The WorkCover Authority Fund was established on 1 December 1992 under Section 32 of the Accident Compensation Act 1985
subsequent to the proclamation of the Accident Compensation (WorkCover) Act 1992. The fnancial affairs of the Victorian WorkCover
Authority (VWA) are refected in the WorkCover Authority Fund, which is maintained pursuant to Section 32 of the Accident Compensation
Act 1985. The Victorian WorkCover Authority uses the trading name of WorkSafe Victoria (WorkSafe).
2. ACCIDENT COMPENSATION (AMENDMENT) ACT 1998
The Accident Compensation (Amendment) Act 1998 was assented to on 17 November 1998. Resulting from Part 2 of this Act all
Authorised Insurer licences issued under the Accident Compensation (WorkCover Insurance) Act 1993 were cancelled and reinsurance
arrangements in force were terminated on 30 June 1999. The liabilities for outstanding claims as at 1 July 1999 for injuries on and from
1 September 1985 were assigned to the WorkCover Authority Fund as principal insurer of the scheme. Under the Act, Authorised Agents
appointed under an instrument of appointment act on behalf of WorkSafe in the issuing of Workplace Injury Insurance policies, collection
of premiums and the administration of claims.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Statement of compliance
These general purpose fnancial statements have been prepared in accordance with the Financial Management Act 1994 and applicable
Australian Accounting Standards (AAS) which include Interpretations, issued by the Australian Accounting Standards Board (AASB). For
the purposes of AIFRS, the Victorian State Government has determined that WorkSafe is a notforproft entity.
The annual fnancial statements were authorised for issue in accordance with a resolution of the directors on 26 August 2011.
Basis of preparation
The fnancial statements cover WorkSafe as an individual reporting entity. WorkSafe is a statutory authority established by statute enacted
by the Victorian State Parliament and domiciled in Australia.
The fnancial statements have been prepared on an accruals basis, and are based on historical costs and do not take into account
changing money values, except for outstanding claims liabilities, recoveries receivable, employee leave liabilities and leasehold restoration
provisions which are included at present value, and investments and plant and equipment which are included at fair value. Historical cost
is based on the fair values of the consideration given in exchange for assets.
Accounting policies are selected and applied in a manner which ensures that the resulting fnancial information satisfes the concepts of
relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.
The accounting policies set out below have been applied in preparing the fnancial statements for the year ended 30 June 2011 and the
comparative information for the year ended 30 June 2010.
The preparation of fnancial statements in conformity with AAS requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying WorkSafes accounting policies. The areas involving a higher degree
of judgement or complexity, or areas where assumptions and estimates are signifcant to the fnancial statements have been disclosed
in Notes 3(c), 3(f), 4 and 33(d). Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from
these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revisions affect only that period or in the period of the revision and future periods if the
revisions affect both current and future periods.
Australian Accounting Standards issued but not yet effective
The AASB has issued the following amendments to Australian Accounting Standards, which are applicable to WorkSafe:
AASB Title Operative Date
124 Related party disclosures (Dec 2009) 1 January 2011
9 Financial Instruments 1 January 2013
200911 Amendments to Australian Accounting Standards arising from AASB 9 1 January 2013
20107 Amendments to Australian Accounting Standards arising from AASB 9 1 January 2013
These amendments are not effective for the annual reporting period ended 30 June 2011 and have not been applied in preparing
WorkSafes fnancial statements. Except for AASB 9, AASB 200911 and AASB 20107, the impact of the application of these
standards is disclosure only. Details of the impact of adopting AASB 9, AASB 200911 and AASB 20107 have not yet been assessed.
WorkSafe will apply these standards for the annual reporting periods beginning on or after the operative dates set out above.
The following signifcant accounting policies have been adopted in the preparation and presentation of the fnancial statements:
(a) Insurance premium
Premium revenue comprises policy amounts charged to employers by WorkSafe under Workplace Injury Insurance policies. The earned
portion of premiums received and receivable is recognised as revenue. Premium is treated as earned from the policy effective date and is
recognised as revenue over the policy period.
At year end, a provision is made for confrmed premium based on certifcation of employer remuneration and is assessed by an independent
actuary. The actuary uses historical data at points in time and the most recent certifed remuneration for the current year in assessing the fnal
remuneration estimate. The premium increase or decrease that may result from the reassessment of prior years premium estimate (i.e. the
difference between the actuarial estimation and actual certifcation) is taken up as a part of current years premium.
(b) Unexpired risk liability
All Workplace Injury Insurance policies expire on 30 June and hence no unearned premium exists at the year end reporting date.
Given no unearned premium exists at the year end reporting date a liability adequacy test is not undertaken at 30 June. A liability adequacy
test assesses whether the unearned premium liability is suffcient to cover all expected future cash fows relating to future claims against
current insurance contracts.
(c) Assets backing general insurance liabilities
With the exception of plant and equipment and intangibles, WorkSafe has determined that all assets are held to back Workplace Injury
Insurance liabilities and their accounting treatment is described below.
Investments
WorkSafes investment portfolio is managed by the Victorian Funds Management Corporation (VFMC) through internal management, fund
managers and a Master Custodian. The Master Custodian holds the investments and conducts settlements pursuant to instructions from the
VFMCs internal management and the fund managers.
Investments are designated at fair value through the comprehensive operating statement. Initial recognition is at cost in the balance sheet,
with attributable transaction costs expensed as incurred. Subsequent measurement is at fair value with any resultant realised and unrealised
gains or losses recognised in the comprehensive operating statement.
The following methods and assumptions are used to determine the fair value of investments:
fnancial instruments traded in an organised fnancial market (traded securities) current quoted market price for the instrument. Quoted
market prices are used to value listed shares, options, debentures and other equity and debt securities
fnancial instruments not readily traded in an organised fnancial market the present value of contractual future cash fows. Cash fows
are discounted using standard valuation techniques at the applicable market yield having regard to the timing of the cash fows.
Details of fair value for the different types of investment assets are listed below:
cash assets and deposits held at call with banks are carried at face value, which approximates to their fair value
investments in discounted money market instruments are valued at their quoted mid price at the reporting date, as with fne trading spreads
in this market, there is an ability to transact at mid price
shares, fxed interest securities, options and units in trusts listed on stock exchanges are stated at their quoted bid price at the reporting date
futures contracts listed on recognised exchanges are valued using the quoted settlement price
units in unlisted trusts are recorded at fair value as determined by the fund manager or valuations by other skilled independent third parties. In
determining fair value observable market transactions of the units and the underlying assets are used where available and applicable; some of
the underlying assets of the trusts are valued using valuation models that include inputs which are not based on observable market data.
All purchases and sales of investments that require delivery of the asset within the time frame established by regulation or market
convention (regular way transactions) are recognised at trade date, being the date on which the commitment is made to buy or sell the
asset. In cases where the period between trade and settlement exceeds this time frame, the transaction is recognised at settlement date.
Investments are derecognised when the rights to receive future cash fows from the assets have expired, or have been transferred, and
WorkSafe has transferred substantially all the risks and rewards of ownership.
Investments that are due to mature, expire or be realised within twelve months of reporting date are classifed as current investments for
the purposes of classifcation in the balance sheet. While this classifcation policy may result in a reported working capital defcit, included
in noncurrent investments is a large proportion of listed securities which the VFMC also uses to ensure suffcient liquidity is available at all
times to meet WorkSafes operating requirements.
Dividend income is recognised when WorkSafes right to receive payment has been established, whilst interest revenue is recognised on
an accrual basis. Trust distribution income is recognised when the market prices are quoted exdistribution for listed trusts. Unlisted trust
distribution income is recognised when the trustee declares distributions.
Changes in fair value of investments at reporting date, as compared with their fair value at the previous reporting date, or fair value at
acquisition if acquired during the fnancial year, are recognised as investment income or loss. Realised gains or losses on the termination of
derivative positions and unrealised gains or losses on changes in its fair values are included in investment income or loss.
39
Receivables
Premium receivable amounts due from employers (being the amounts due excluding the provision for confrmed premium) are initially
recognised at fair value. They are subsequently measured at fair value which is approximated to by taking the initially recognised amount and
reducing it for impairment as appropriate.
A provision for impairment of receivables is established when there is objective evidence that WorkSafe will not be able to collect all amounts
due according to the original terms of the receivables. The amount of the provision is the difference between the assets carrying amount and
the present value of estimated future cash fows. The impairment charge is recognised in the comprehensive operating statement.
Amounts owing to employers as a result of policies being in credit at reporting date are shown as premium creditors (Note 23).
(d) Foreign currency transactions and balances
Foreign currency transactions are converted to Australian currency at the rates of exchange applicable at the dates of the transactions.
Investments held at reporting date in foreign currencies are converted to Australian currency using the rates of exchange ruling at that date.
Gains or losses arising on foreign currency transactions are included in investment income in the period in which they arise.
(e) Derivative fnancial instruments
The VFMC and its managers use derivative fnancial instruments such as foreign exchange contracts, futures, swaps and options to more
effectively manage the risks associated with investing large institutional portfolios. Derivatives are originally recognised at fair value at
the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date with gain or loss
recognised in the comprehensive operating statement.
The fair value of forward exchange contracts is calculated by reference to current forward exchange rates for contracts with similar maturity
profles. The fair value of interest rate swap contracts is determined by reference to market values for similar instruments.
(f) Claims
Claims expense which includes the movement in the liability for outstanding claims, is recognised in respect of insurance business and
uninsured employers.
The liability for outstanding claims is measured as the central estimate of the present value of expected future payments against claims
incurred at the reporting date under Workplace Injury Insurance contracts issued by WorkSafe, with an additional risk margin to allow for the
inherent uncertainty in the central estimate.
The ultimate liability arising from claims made under insurance contracts
Provision is made for the estimated cost of claims incurred but not settled at the reporting date, including the cost of claims incurred but not
yet reported to WorkSafe.
The estimated cost of claims includes direct expenses to be incurred in settling claims gross of the expected value of recoveries. WorkSafe
takes all reasonable steps to ensure that it has appropriate information regarding its claims exposures. However, given the uncertainty in
establishing claims provisions, it is likely that the fnal outcome will prove to be different from the original liability established.
The estimation of claims incurred but not reported (IBNR) is generally subject to a greater degree of uncertainty than the estimation of the
cost of settling claims already notifed to WorkSafe, where more information about the claim event is generally available. IBNR claims may
often not be apparent to the insured until many years after the event giving rise to the claims has happened. In calculating the estimated cost
of unpaid claims WorkSafes valuation actuary uses a variety of estimation techniques, generally based upon statistical analyses of historical
experience, which assume that the development pattern of the current claims will be consistent with past experience. Allowance is made,
however, for changes or uncertainties which may create distortions in the underlying statistics or which might cause the cost of unsettled
claims to increase or reduce when compared with the cost of previously settled claims including:
changes in WorkSafe processes which might accelerate or slow down the development and/or recording of paid or incurred claims,
compared with the statistics from previous periods
changes in the legal environment
the effects of infation
medical and technological developments.
Where possible, WorkSafes valuation actuary adopts multiple techniques to estimate the required level of provisions. This assists in giving
greater understanding of the trends inherent in the data being projected. The projections given by the various methodologies also assist in
setting the range of possible outcomes. The most appropriate estimation technique is selected taking into account the characteristics of the
beneft type and the extent of the development of each accident year.
Details of specifc assumptions used in deriving the outstanding claims liability at year end are detailed in Note 4.
(g) Recoveries receivable
Recoveries from the Transport Accident Commission, prior insurers and other third parties are recognised as revenue. Recoveries receivable
are reported as assets and measured as the present value of the expected future receipts. The actuarial assessment of the recoveries
receivable is in a manner similar to the assessment of outstanding claims (see Note 3 (f)). A provision for impairment is established when
there is objective evidence that WorkSafe will not be able to collect all the recovery amounts.
(h) Dispute resolution expenses
Claims expense also includes the cost associated with resolving disputes with claimants. Dispute resolution expenses comprise payments made
to the Department of Justice for courts management functions, the Accident Compensation Conciliation Service (ACCS) for conciliation matters
arising out of Workplace Injury Insurance claims, and the cost relating to Medical Panels, Union Assist and WorkCover Assist.
(i) Operating leases
WorkSafe has continuing obligations under operating lease agreements for certain buildings, motor vehicles and offce equipment. Operating
lease payments are charged as an expense in the comprehensive operating statement on a straight line basis over the lease term, except where
another systematic basis is more representative of the time pattern in which economic benefts from the leased asset are consumed.
(j) Income tax
In accordance with Section 88 (3D) of the State Owned Enterprises Act 1992 WorkSafe is required to pay income tax equivalent under the
National Tax Equivalent Regime (NTER).
The tax expense or income represents the tax payable or recoverable on the current years taxable income or tax loss based on the
prevailing income tax rate adjusted for changes in deferred tax assets and liabilities.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between
the carrying amount of assets and liabilities in the fnancial statements and the corresponding tax base of those items. Deferred tax assets
and liabilities are recognised for temporary differences at the tax rates that are expected to apply when the assets and liabilities are realised
or settled, based on tax rates that have been enacted or substantially enacted by the reporting date.
Deferred tax assets are recognised to the extent that it is probable that suffcient taxable amounts will be available against which deductible
temporary differences or unused tax losses and tax offsets can be utilised. However, deferred tax assets and liabilities are not recognised if
the temporary differences giving rise to them arise from the initial recognition of assets and liabilities which affect neither taxable income nor
accounting result.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that
suffcient taxable proft will be available to allow all or part of the deferred tax asset to be utilised.
Deferred tax assets and liabilities are offset as WorkSafe settles its current tax assets and liabilities on a net basis.
(k) Dividends
WorkSafe is not subject to the Victorian State Governments dividend policy. The Accident Compensation Act 1985 does not provide for the
payment of dividends by WorkSafe.
(l) Other income
Fines and penalties income is recognised upon receipt of the payment.
(m) Sundry receivables
Sundry receivables are stated at amounts due less any provision for impairment.
(n) Plant and equipment
Plant and equipment assets are measured initially at cost and subsequently at fair value. Fair value is determined by reference to the assets
depreciated cost, less impairment.
The cost of leasehold improvements is capitalised as an asset and depreciated over the remaining term of the lease. This includes the fair
value of any dismantling, removal or restoration costs, where an obligation existed at the time of entering the contract for the premises to be
returned to their original state upon vacation of the premises.
(o) Depreciation
Depreciation is provided on a straightline basis on plant and equipment to writeoff those assets over their estimated useful lives to
WorkSafe to estimated residual value. The depreciation rates applied to each of the asset classes are as follows:
2011 2010
Computer equipment 33
1
/3% 33
1
/3%
Furniture and equipment 20% 20%
Leasehold improvements to buildings are writtenoff over their estimated useful lives to WorkSafe or the lease term, whichever is the lesser,
using the straight line method. The lease terms range from 3 to 10 years (2010: 3 to 10 years).
The estimated useful lives, residual values, depreciation methods are reviewed at the end of each annual reporting period.
(p) Impairment of assets
Assets are assessed annually for indications of impairment except for:
fnancial instrument assets
deferred tax assets.
If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where
an assets carrying value exceeds its recoverable amount, the difference is writtenoff by a charge to the comprehensive operating statement.
The recoverable amount for assets is measured at the higher of the present value of future cash fows expected to be obtained from the
asset and fair value less costs to sell, where applicable.
(q) Intangible assets
Intangible assets represent identifable nonmonetary assets without physical substance.
Intangible assets are recognised at cost. Costs incurred subsequent to initial recognition are capitalised when it is expected that additional
future economic benefts will fow to WorkSafe.
41
Amortisation is allocated to intangible assets with fnite useful lives on a systematic basis over the assets useful life. The amortisation period
and the amortisation method for intangible assets with a fnite useful life are reviewed at least at each year end. In addition an assessment
is made at each reporting date to determine whether there are indicators that the intangible assets concerned are impaired. If so, the assets
concerned are tested as to whether their carrying value exceeds their recoverable amount.
All intangible assets of WorkSafe have defnite useful lives. The useful lives range from 3 to 10 years (2010: 3 to 10 years).
Internallygenerated intangible assets representing internally developed software is recognised only from the point that it is probable that
the expected future economic benefts attributable to the asset will fow to WorkSafe and that the cost of the item can be measured reliably.
Where no internallygenerated intangible asset can be recognised, development expenditure is expensed in the period as incurred.
Internallygenerated intangible assets are stated at cost less accumulated amortisation and impairment, and are amortised on a straightline basis
over their useful lives from the date the assets are available for use. Impairment losses are included in the comprehensive operating statement.
(r) Employee benefts
Provision is made for benefts accruing to employees in relation to salaries, annual leave and long service leave for services rendered to the
reporting date.
In determining the provision, allowance is made for oncosts including superannuation, payroll tax and Workplace Injury Insurance premium, and
consideration is given to future increases in salary rates and experience of employee departures. Expected future payments are discounted using
interest rates on selected Commonwealth Government securities with terms to maturity, which closely match the estimated future cash outfows.
Wages and salaries, annual leave and sick leave
Liabilities for wages, salaries and annual leave are recognised in the provision for employee benefts, classifed as current liabilities.
No provision is made for nonvesting sick leave as the anticipated pattern of future sick leave taken indicates that accumulated nonvesting
leave will never be paid. Those liabilities which are expected to be settled within 12 months of the reporting period, are measured at their
nominal values using the remuneration rate expected to apply at the time of settlement.
Those liabilities that are not expected to be settled within twelve months are also recognised in the provision for employee benefts as current
liabilities, where WorkSafe does not have the unconditional right to defer settlement. These liabilities are measured at the present value of the
amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.
Long service leave
Liability for long service leave (LSL) is recognised in the provision for employee benefts.
Unconditional LSL is disclosed in the notes to the fnancial statements as a current liability, even where WorkSafe does not expect to settle
the liability within 12 months, because it will not have the unconditional right to defer settlement of the entitlement should an employee take
leave within 12 months.
The components of this current LSL liability are measured at:
nominal value component that WorkSafe expects to settle within 12 months
present value component that WorkSafe does not expect to settle within 12 months.
Conditional LSL is disclosed as a noncurrent liability. There is an unconditional right to defer the settlement of the entitlement until the
employee has completed the requisite years of service. This noncurrent LSL liability is measured at present value.
Defned contribution superannuation plans
Contributions to defned contribution superannuation plans are expensed when incurred.
Defned beneft superannuation plans
The amount charged to the comprehensive operating statement in respect of defned beneft plan superannuation represents the
contributions made by WorkSafe to the superannuation plans in respect of the current services of current WorkSafe employees.
Superannuation contributions are made to the plans based on the relevant rules of each plan.
WorkSafe does not recognise any defned beneft liability in respect of the superannuation schemes because it has no legal or constructive
obligation to pay future benefts relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The
Department of Treasury and Finance administers and discloses the States defned beneft liabilities in its fnancial report.
(s) Goods and services tax
Income, expenses and assets are recognised net of the amount of associated goods and services tax (GST), unless the GST incurred is not
recoverable from the Australian Taxation Offce (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the
asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or
payable to, the ATO is included as part of the receivables or payables in the balance sheet.
Cash fows are presented on a gross basis. The GST components of cash fows arising from investing and fnancing activities, which is
recoverable from, or payable to, the ATO are classifed as operating cash fows.
(t) Commitments
Commitments include those operating, capital and other outsourcing commitments arising from noncancellable contractual sources and are
disclosed at their nominal value, inclusive of GST.
(u) Contingent assets and contingent liabilities
Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifable,
are measured at nominal value, inclusive of GST.
(v) Events after reporting date
Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement
between WorkSafe and other parties, the transactions are only recognised when the agreement is irrevocable at or before the reporting date.
Adjustments are made to amounts recognised in the fnancial statements for events which occur after the reporting date and before the date
the statements are authorised for issue, where those events provide information about conditions which existed at the reporting date. Note
disclosure is made about events between the reporting date and the date the statements are authorised for issue where the events relate to
conditions which arose after the reporting date and which may have a material impact on the results of subsequent years.
(w) Rounding of amounts
Amounts have been rounded to the nearest thousand dollars, unless otherwise stated.
(x) Presentation and functional currencies
The presentation currency of WorkSafe is the Australian dollar, which is also the functional currency of WorkSafe.
4. ACTUARIAL ASSUMPTIONS AND METHODS
WorkSafe writes Workplace Injury Insurance business, which is long tail in nature, meaning that claims are typically settled more than one
year after being reported.
Signifcant estimates and judgements are made by WorkSafes valuation actuary in respect of certain key asset and liability amounts
disclosed in the fnancial statements. These estimates and judgements are continually being evaluated and are based on historical
experience, as well as enhancements to actuarial modelling techniques.
The key areas of signifcant estimates and judgements and the methodologies used to determine key assumptions are set out below.
Provision is made for the estimated cost of claims incurred but not settled at the reporting date, including the cost of claims incurred but not
reported to WorkSafe.
The estimation of outstanding claims liabilities is based largely on the assumption that past developments are an appropriate predictor of the
future and involves a variety of actuarial techniques that analyse experience, trends and other relevant factors. The process commences with
the actuarial projection of the future claims payments and claims handling costs incurred to the reporting date. The various payment codes
of WorkSafe are grouped into a number of beneft categories and analysed separately.
The modeling approaches that are used to analyse and project the various beneft types fall into three broad categories including:
payments per claim incurred (PPCI)
payments per active claim (PPAC)
payments per claim resolved (PPCR).
Projected future claims payments and associated claims handling costs are obtained by examining the results from the above methods. This
projection is made without bias toward over or under estimation. As such, the resulting estimate is considered to be a net central estimate of
outstanding claims liabilities that has an approximately equal chance of proving adequate as not. Where possible and appropriate, multiple
actuarial methods will be applied to project future claims payments. This assists in providing a greater understanding of the trends inherent
in the past data. The projections obtained from various methods also assist in setting the range of possible outcomes. The most appropriate
method, or even a combination of methods, is selected taking into account the characteristics of each beneft type and the extent of the
development of each past accident period.
The estimated liability is converted to infated values, taking into account assumptions about future infation. The present value of this liability
is then calculated, by discounting the infated cashfows to allow for future returns on the underlying assets using appropriate risk free
discount rates. A projection of future claims payments is undertaken separately for both gross claims payments and recoveries.
(a) Actuarial assumptions
The following assumptions have been made in determining the outstanding claims liabilities:
2011 2010
Average weighted term to settlement from injury date 5.4 years 5.4 years
Average claim frequency (claims per worker) 1.17% 1.14%
Average claim size $48,603 $46,796
Expense rate 11.5% 11.3%
Shortterm discount rate (frst 5 years) 4.8% 5.2% 4.5% 5.3%
Shortterm infation (AWE) (frst 5 years) 3.8% 4.0% 3.8% 4.0%
Mediumterm discount rate (6 12 years) 5.5% 5.7% 5.5% 5.8%
Mediumterm infation (AWE) ( 6 12 years) 3.8% 3.8%
Longterm gap (Discount AWE) 2.0% 2.0%
Risk Margin 8.5% 8.5%
43
(b) Process used to determine assumptions
A description of the processes used to determine these assumptions is provided below:
Average weighted term to settlement
The average weighted term to settlement is calculated separately by beneft type based on historic settlement patterns. For most beneft
types, it is an outworking of the models rather than an explicit assumption.
Average claim frequency
Claim frequency for the current underwriting year is estimated by projecting the number of claims incurred and dividing this by the number of
workers for the year. The average claim frequency is not used directly in the valuation models.
Average claim size
Average claims size is in respect of the current underwriting year and takes into account the expected payments for each payment type
(e.g. weekly, medical, impairment benefts, common law, other), as well as the proportion of total claims which receive each beneft.
Expense rate
At 30 June 2011, claims handling expenses are calculated by reference to forecast claims handling costs as a percentage of projected
claim payments. The assumptions are:
2011 2010
Impairment and maims benefts (including associated medical reports) 22% 19%
Common law and common law legal 3% 3%
Weekly, medical reports, statutory legal and other 12% 12%
Medical and rehabilitation 18% 19%
Discount rate
Discount rates adopted are riskfree rates, set by reference to traded Commonwealth Government securities.
Infation
Shortterm economic infation assumptions are set by reference to current bank and other economic forecasters. Longterm (beyond 12
years) economic infation assumptions are set by assuming a fxed real return.
Risk margin
The overall risk margin was determined allowing for the relative uncertainty of the outstanding claims estimate. Uncertainty was analysed for
each beneft type taking into account potential uncertainties relating to the actuarial models and assumptions, the quality of the underlying
data used in the models, the general insurance environment, and the impact of legislative reform.
The estimate of uncertainty is greater for longtail business when compared to shorttail business due to the longer time until settlement of
outstanding claims.
The assumptions regarding uncertainty were applied to the net central estimates in order to arrive at an overall provision which is intended to
have a 75% probability of adequacy. The risk margin applied at 30 June 2011 is 8.5% (2010: 8.5%).
(c) Sensitivity analysis insurance contracts
Summary
WorkSafe valuation actuary conducts sensitivity analyses to quantify the exposure to risk of changes in the key underlying variables.
The valuations included in the reported results are calculated using certain assumptions about these variables as disclosed above. The
movement in any key variable will impact the fnancial performance and equity of WorkSafe. The table below describes how a change in
each assumption will affect the insurance liabilities and show an analysis of the sensitivity of the net result and equity to changes in these
assumptions.
Variable impact of movement in variable:
Expense rate An estimate for the internal costs of handling claims is included in the outstanding claims liability. An increase or decrease in
the expense rate assumption would have a corresponding impact on claims expense.
Discount rate The outstanding claims liability is calculated by reference to expected future payments. These payments are discounted to
adjust for the time value of money. An increase or decrease in the assumed discount rate will have an opposing impact on claims expense.
Longterm gap Expected future payments are infated to take account of infationary increases. An increase or decrease in the longterm
gap between the assumed rates of discount and infation would have an opposing impact on claims expense, particularly given the longtail
nature of Workplace Injury Insurance business.
Impact of changes in key variables
2011
Net result
2011
Equity
2010
Net result
2010
Equity
$000s $000s $000s $000s
Recognised amounts per the fnancial statements 520,842 1,510,643 175,570 989,801
Variable Movement
Expense rate +1% 462,938 1,452,739 119,105 933,336
1% 578,746 1,568,547 232,035 1,046,266
Shortterm discount rate +0.5% 611,160 1,600,961 263,029 1,077,260
0.5% 426,119 1,415,920 82,894 897,125
Longterm gap +0.5% 587,558 1,577,358 228,966 1,043,197
0.5% 449,721 1,439,522 117,878 932,109
5. INSURANCE CONTRACTS RISk MANAGEMENT POLICIES AND PROCEDURES
The fnancial condition and operation of WorkSafe is affected by a number of key risks including insurance, interest rate, credit, market,
liquidity, fnancial and operational risks. WorkSafes policies and procedures in respect of managing these risks are set out below.
(a) Objectives in managing risks arising from insurance contracts and policies mitigating those risks
WorkSafe has an objective to manage insurance risk thus reducing the volatility of insurance premiums and performance from insurance
operations. In addition to the inherent uncertainty of insurance risk, which can lead to signifcant variability in the loss experience,
performance from insurance operations are signifcantly affected by market factors external to WorkSafe as explained in Note 7.
WorkSafe has developed, implemented and maintained a sound and prudent risk management strategy that encompasses all aspects of
WorkSafes operations.
The strategy sets out WorkSafes policies and procedures, processes and controls in relation to the management of likely fnancial and
nonfnancial risks.
Key aspects of the processes in place to mitigate risks include:
the use of sophisticated management information systems, which provide reliable and uptodate data on the risks to which the business
is exposed at any point in time
the use of detailed internal monitoring tools which link actuarial valuation projections with the management information systems to monitor
claims patterns
adherence to reliable procedures for pricing risk
an investment allocation strategy, established by the Victorian Funds Management Corporation (VFMC), derived from the matching of
assets to the underlying claims liabilities to optimise the returns within the risk management parameters.
(b) Terms and conditions of insurance business
The terms and conditions of the Workplace Injury Insurance scheme administered by WorkSafe are established under the Accident
Compensation Act 1985. Cover is for annual periods ending 30 June each year. The terms and conditions of the scheme are the same for
all insured employers.
(c) Concentration of insurance risk
WorkSafe underwrites Workplace Injury Insurance for Victorian employers. WorkSafes underwriting strategy requires risk premiums to be
differentiated by industry in order to refect the higher loss frequency in particular industries. In addition, where an individual employer is deemed
large enough to be rated on their own claims history, this history is used to differentiate their risk premiums from others in the same industry.
(d) Interest rate risk
Financial assets or liabilities arising from insurance contracts entered into are directly exposed to interest rate risk. Changes in interest rates
affect the valuation of WorkSafes assets and liabilities.
(e) Credit risk
Financial assets and liabilities arising from insurance contracts are stated in the balance sheet at the amounts that best represent the
maximum credit risk exposure at balance date. There are no signifcant concentrations of credit risk.
45
6. UNDERWRITING RESULT 2011 2010
Note $000s $000s
The underwriting result is extracted from the comprehensive operating statement
and is as follows:
Premium revenue 8 1,801,506 1,711,864
Underwriting expenses
Net claims incurred 11(a) 1,647,976 1,978,029
Dispute resolution expenses 11(b) 24,719 23,812
Authorised agent fees 12 205,522 212,521
Total underwriting expenses 1,878,217 2,214,362
Underwriting result (76,711) (502,498)
7. ExPLANATION OF VOLATILITY OF FINANCIAL RESULTS
This note provides additional analysis of the result before income tax of $726.70 million (2010: $245.47 million).
Given the longterm nature of the WorkSafe scheme both from investment and outstanding claims perspectives, the net result for WorkSafe
is signifcantly affected by shortterm market and economic factors external to the organisation. External factors contribute to the difference
between actual returns and the longterm estimated returns established by management, and also include major changes in economic
assumptions and legislative changes. External factors can cause signifcant variations in reported results from year to year as illustrated
below.
Accordingly for internal management reporting purposes, WorkSafe monitors and measures its fnancial performance based on performance
from insurance operations and the WorkHealth and Research Institute initiatives without the impact of external factors. This approach is
considered a more appropriate indicator for measuring fnancial performance and is adopted for reporting to the Victorian State Government.
The impact of external factors on the fnancial result is explained below.
2011 2010
$000s $000s
Impact on result from internal factors:
Performance from insurance operations 293,872 654,122
WorkHealth and Research Institute initiatives 23,654 23,036
Impact on result from external factors:
Difference between actual investment returns and longterm expected returns (i) 410,060 369,878
Changes in infation assumptions and discount rates (ii) 8,497 (531,298)
Impact from legislative changes (iii) (9,383) (270,267)
Notes:
(i) Favourable conditions experienced in the fnancial markets in 2010/11 resulted in the actual return being above the expected longterm
rate of return. The net return on the investment portfolio for the year was 11.79% (2010: 12.36%) compared to the longterm estimated
return established by management of 7.25% (2010: 7.75%) based on its investment strategy.
(ii) There was a reduction in the claims liability at 30 June 2011 of $28.43 million due to increases in shortterm discount rates. This was
offset by a $19.94 million increase in liability due to actual infation in the 12 months to 30 June 2011 being higher
than expected. At 30 June 2010, higher shortterm infation rates and lower shortterm and mediumterm discount rates increased the
liability by $397.93 million. In addition, higher than expected actual infation in the 12 months to 30 June 2010 increased the liability by
$133.37 million.
(iii) In the year ended 30 June 2011, the second round of legislative changes arising from the Hanks Review resulted in an increase in
incurred cost of $9.38 million. The initial legislative changes increased the incurred cost by $270.27 million in the prior year.
8. PREMIUM REVENUE 2011 2010
$000s $000s
Gross premium (i) 1,828,098 1,727,972
Reassessment of prior year's premium 1,006 11,877
Premium discount allowed (25,506) (24,836)
Premium fnes and penalties 8,658 6,943
Increase in provision for impairment of premium debts (1,943) (465)
Premium bad debts writtenoff (ii) (8,807) (9,628)
1,801,506 1,711,864
Notes:
(i) Gross premium revenue includes an estimated increase of $13.1 million (2010: decrease of $15.6 million) in relation to confrmed
premium. Confrmed premium estimate makes allowance for employers who have not yet certifed their remuneration (see Notes 3 (a) and
17). The rateable remuneration estimate on which the confrmed premium estimate is based, is obtained through an independent actuary
PricewaterhouseCoopers Actuarial Limited.
(ii) Bad debts writtenoff during the year include unpaid premium for prior years.
9. INVESTMENT INCOME 2011 2010
$000s $000s
Gross investment income
Changes in fair values of investments at fair value through the comprehensive
operating statement:
Realised gain 457,879 408,676
Unrealised gain 81,127 103,895
Total change in fair values of investments (i) 539,006 512,571
Dividends 243,548 200,351
Interest (ii) 292,974 298,831
Gross investment income 1,075,528 1,011,753
Investment expenses (iii) (31,532) (27,500)
Net investment income (iv) 1,043,996 984,253
Notes:
(i) This is the difference between the fair value of the investments as at 30 June 2010 or the cost of acquisition (for investments purchased
during the year), and sales proceeds (realised) or their fair value as at 30 June 2011 (unrealised).
(ii) Interest represents coupon interest earned and net settlements on swap contracts.
(iii) Fees paid to the VFMC under the Client Funds Management Service Agreement and other sundry professional fees incurred by
WorkSafe in relation to management of the investment portfolio.
(iv) The net return on the investment portfolio for the year was 11.79% (2010: 12.36%).
10. OTHER INCOME 2011 2010
$000s $000s
Self insurer receipts 14,055 12,890
Contribution from DTF Consolidated Fund 925
Occupational Health & Safety licensing income 5,481 6,253
Fines and penalties 3,003 3,353
Distributions from prior insurers under liquidation 364 284
Asset rental income ACCS (i) 432 392
Sundry receipts 874 249
25,134 23,421
Note:
(i) WorkSafe received rental income from Accident Compensation Conciliation Service (ACCS) for the use of its plant and equipment.
47
11. CLAIMS COSTS 2011 2010
Current
Year
Prior
Year

Total
Current
Year
Prior
Year

Total
$000s $000s $000s $000s $000s $000s
(a) Net Claims Incurred
Gross claims incurred
Gross claims paid 152,787 1,392,961 1,545,748 140,763 1,314,835 1,455,598
Movement in outstanding claims 2,281,739 (1,849,908) 431,831 2,056,640 (1,376,401) 680,239
Gross claims incurred undiscounted 2,434,526 (456,947) 1,977,579 2,197,403 (61,566) 2,135,837
Discount and discount movement (580,836) 402,959 (177,877) (511,633) 491,491 (20,142)
Gross claims incurred (Note 11 (b)) 1,853,690 (53,988) 1,799,702 1,685,770 429,925 2,115,695
Recoveries revenue
Recoveries received (55,923) (65,313) (121,236) (47,571) (43,479) (91,050)
Movement in recoveries receivable (49,428) 13,709 (35,719) (40,215) (13,334) (53,549)
Recoveries revenue undiscounted (105,351) (51,604) (156,955) (87,786) (56,813) (144,599)
Discount and discount movement 11,533 (6,304) 5,229 9,468 (2,535) 6,933
Recoveries revenue (93,818) (57,908) (151,726) (78,318) (59,348) (137,666)
Net claims incurred 1,759,872 (111,896) 1,647,976 1,607,452 370,577 1,978,029
Current year claims relate to risks borne in the current fnancial year. Prior year claims relate to a reassessment of the expense for risks
borne in all previous fnancial years.
The net claims incurred of $1,647.98 million (2010: $1,978.03 million) is impacted by both internal and external factors as noted below:

2011 2010
$000s $000s
Claims Incurred Internal (i) 1,647,090 1,176,464
Claims Incurred External (ii) 886 801,565
Net claims incurred 1,647,976 1,978,029
Notes:
(i) The 30 June 2011 Claims incurred internal is $471 million higher (2010: $404 million lower) than the prior year due to the increase in
the cost of claims in the 12 months to 30 June 2011 as a result of:
legislative changes arising from the Hanks Review impacting fully on new claims in the year ended 30 June 2011
increases in claim numbers and durations on weekly compensation; and
a smaller reduction in the cost of previously reported claims.
(ii) The claims incurred external refects the combined impact of changes in assumed rates of infation and discount on the claims liability,
together with improvements to compensation as a result of legislative changes arising from the Hanks Review. For the year ended 30
June 2011, the claims incurred external was $800.68 million lower (2010: $733.50 million higher) than the prior year as a result of:
A reduction in liability of $28.43 million (2010: increase of $397.93 million) due to increases in shortterm discount rates
Actual infation in the 12 months to 30 June 2011 being higher than expected, leading to an increase in the liability of $19.94 million
(2010: $133.37 million); and
The second round of legislative changes arising from the Hanks Review, resulting in an increase in incurred cost of $9.38 million. The
initial legislative changes increased the incurred cost by $270.27 million in the prior year.
The claims payments and movement in outstanding claims liability during the year by payment type are as follows:
2011 2010
Claims
Paid
Liability
Movement

Total
Claims
Paid
Liability
Movement

Total
$000s $000s $000s $000s $000s $000s
Weekly compensation 562,979 25,743 588,722 506,584 163,563 670,147
Medical including medicolegal 343,557 83,850 427,407 330,341 103,281 433,622
Maims and impairment benefts 89,688 (13,275) 76,413 89,382 55,717 145,099
Common law 462,826 80,699 543,525 452,624 173,469 626,093
Other payment types 89,303 24,686 113,989 80,668 53,193 133,861
Claims handling expenses (i) 36,447 36,447 61,396 61,396
Risk margin (ii) 15,804 15,804 49,477 49,477
Selfinsurer (reentry) exit settlements (2,605) (2,605) (4,001) (4,001)
Gross claims incurred 1,545,748 253,954 1,799,702 1,455,598 660,097 2,115,694
Notes:
(i) Claims handling expenses is an allowance made for the direct expenses to be incurred in settling claims.
(ii) The prudential risk margin provides for the inherent uncertainty in the central estimate of the outstanding claims.
(iii) The movement in the claims liability (liability movement) from the prior year by payment type is given in Note 24 (b).
2011 2010
Note $000s $000s
b) Claims Expense
Gross claims incurred 11 (a) 1,799,702 2,115,695
Certifed payments to the ACCS 12,189 11,815
Certifed payments to the Department of Justice 7,422 7,206
Medical Panels costs 2,893 2,622
WorkCover Assist costs 1,310 1,290
Union Assist costs 905 878
Dispute resolution expenses 24,719 23,812
Total claims expense 1,824,421 2,139,507
12. AUTHORISED AGENT FEES 2011 2010
$000s $000s
Authorised agent fees (i) 204,266 211,297
Management agent fees (ii) 1,256 1,224
205,522 212,521
Notes:
(i) Authorised agents operating under an instrument of appointment with WorkSafe issued pursuant to the Accident Compensation Act
1985 are paid fees for acting on behalf of WorkSafe in the issuing of policies, collection of premiums and the administration of claims.
The agent remuneration includes performance based components.
(ii) Under Sections 20A & 20B of the Accident Compensation Act 1985 WorkSafe is empowered to administer the Workers Compensation
Act 1958. Management agent fees represent amounts paid for managing liabilities under the 1958 Act, and the payments made to the
TAC for the management of WorkSafe claims of injured workers with catastrophic injuries.
49
13. OTHER OPERATING COSTS 2011 2010
$000s $000s
Employee and related 136,822 133,622
Information technology 23,958 22,128
Professional services 16,402 15,905
Marketing and communication 23,574 26,607
Occupancy and utilities 18,687 18,714
Research and external funding 19,328 19,226
Bad and doubtful debts 3 (19)
Discount and discount movement in provisions (1,323) (1,478)
Depreciation 6,324 5,783
Amortisation 6,446 3,925
Loss on disposal of plant and equipment 80 215
Writedown of intangibles 369 336
Other expenses 15,049 14,740
265,719 259,705
14. TOTAL ExPENSES 2011 2010
$000s $000s
Total expenses include:
Depreciation on plant and equipment 6,324 5,783
Amortisation on intangibles 6,446 3,925
12,770 9,708
Operating lease rentals
Premises 9,067 8,823
Motor vehicles 4,203 4,234
Offce equipment 265 235
13,535 13,292
Employee beneft expense
Post employment benefts:
Defned contribution plans 12,783 13,463
Defned beneft expense 2,192 2,285
14,975 15,748
Termination benefts 2,002 1,532
Other employee benefts 117,296 113,812
134,273 131,092
15. REMUNERATION OF AUDITORS 2011 2010
$000s $000s
Auditor of the entity:
Audit of the fnancial statements Victorian AuditorGenerals Offce 356 345
356 345
16. INCOME TAx 2011 2010
$000s $000s
(a) Tax Expense
Major components of tax expense for the fnancial years ended 30 June 2011 and 30
June 2010 are:
Current income tax
Current tax expense (income) 56,238 (99,552)
Adjustments in respect of current income tax of prior years 10,069 (1,644)
Deferred income tax
Relating to origination and reversal of temporary differences 139,551 171,097
Tax expense reported in the comprehensive operating statement 205,858 69,901
A reconciliation of tax income applicable to accounting result before income tax at the statutory income tax rate, to tax income calculated at
WorkSafes effective income tax rate for the fnancial years ended 30 June 2011 and 2010 is as follows:
At the statutory income tax rate of 30% (2010: 30%) 218,011 73,641
Adjustments in respect of current income tax of prior years 10,069 (1,644)
Franking credits and withholding tax on dividends received (13,689) (23,485)
Imputation grossup on dividends received 4,267 7,641
Other (12,800) 13,748
At effective income tax rate of 28% (2010: 28%) 205,858 69,901
Tax expense reported in the comprehensive operating statement 205,858 69,901
(b) Tax Recoveries
Balance at beginning of the year (139) (139)
Movements during the year:
Income tax paid
Income tax of prior years
Balance at end of the year (139) (139)
(c) Deferred Tax
Deferred tax at 30 June 2011 and 30 June 2010 relate to the following:
Deferred tax assets
Claims handling expense included in outstanding claims 283,435 271,686
Unrealised loss on investments 59,188 187,548
Provisions not currently deductible 23,997 23,025
Accruals not currently deductible 4,000 6,195
Difference in depreciation of plant and equipment and amortisation of intangibles (6,667) (2,505)
Unutilised tax losses 411,960 495,821
Deferred tax assets 775,913 981,770
Deferred tax liabilities
Net deferred tax assets 775,913 981,770
51
17. RECEIVABLES 2011 2010
$000s $000s
Premium receivable 101,014 100,372
Provision for impairment (45,918) (43,975)
55,096 56,397
Confrmed premium estimate 13,100 (15,600)
Total receivables 68,196 40,797
Notes:
(i) Of the total receivables balance, premium receivable of $55.10 million (2010: $56.40 million) have known counterparties, while the confrmed
premium estimate of $13.1 million (2010: ($15.6 million)) is actuarially assessed. The average credit period for premium receivable is 30 days
Included within premium receivable at the reporting date are $58.32 million (2010: $57.10 million) of past due receivables. WorkSafe
has provided for $45.92 million (2010: $43.98 million) of these debts. WorkSafe does not hold any collateral over these balances. The
average age of those receivables that are past due but not impaired is 72 days (2010: 80 days).

Ageing of past due premium receivable 2011 2010
$000s $000s
30 days past due 4,559 4,764
31 60 days past due 2,256 1,090
61 90 days past due (159) 127
91 180 days past due 7,971 2,779
More than 180 days past due 43,688 48,342
Total 58,315 57,101

(ii) WorkSafe provides fully for uncollected debts of the employers who are in administration, receivership, liquidation or bankruptcy, and
those debts where events have occurred and/or historical experience exists, which indicates that recovery of the debt is considered
unlikely. A provison is also made for other past due debts based on historical loss experience.

Movement in provision for impairment 2011 2010
$000s $000s
Balance at beginning of the year 43,975 43,510
Amounts written off during the year (279) (772)
Increase in allowance recognised in comprehensive operating statement 2,222 1,236
Balance at end of the year 45,918 43,975

18. INVESTMENTS
Summary of investments integral to general insurance activities carried at fair value through the comprehensive operating statement
WorkSafes investment activity is undertaken pursuant to the Accident Compensation Act 1985, the Borrowing and Investment Powers Act 1987 and
the Treasurers Prudential Statement. It is the Victorian Governments policy that all the investment assets of WorkSafe be managed by the VFMC.
Under this arrangement, WorkSafes responsibility is to set investment objectives for the VFMC after considering such matters as
WorkSafes capital needs, pricing and the Governments risk preferences. The WorkSafe Board is not responsible for the management or
prudential supervision of the investments the management responsibility rests with the VFMC and the prudential supervision responsibility
rests with the Department of Treasury and Finance (DTF).
The investment approach that is determined by the VFMC for WorkSafe is documented in a detailed Investment Risk Management Plan
(IRMP) which is approved by the Treasurer. The IRMP is prepared by the VFMC and addresses issues concerning strategy, portfolio
construction, benchmarks and risk management.
Investment performance, including comparisons to market benchmarks, is reported to the WorkSafe Board monthly. The Boards standing
Financial and Investment Strategies Committee also convenes periodically to review the VFMCs investment performance against
WorkSafes investment objectives as well as discusses with the VFMC, on an ongoing basis, the strategic asset allocation and the
implications for achieving the objectives.
The VFMC Board is required to certify to the DTF on a quarterly basis and on an annual basis to WorkSafe, that WorkSafes investment
portfolio has been managed in accordance with the accepted IRMP and with WorkSafes investment objectives.
The investment portfolio consists of a range of assets that broadly resemble: cash and nominal bonds to cover short term risk and liquidity
needs; infation linked assets that more closely match WorkSafes liability characteristics; and equities to provide for long term growth.
2011 2010
$000s $000s
Cash and deposits at call (i) 1,391,400 1,042,891
Debt securities (i) 2,795,120 2,620,840
Australian listed equities 506,528 665,442
International listed equities 1,118,401 1,245,969
Unlisted equities 299,866 105,232
Listed trusts 71,273 83,667
Unlisted trusts 3,382,908 3,028,382
Financial derivatives receivables (ii) 67,470
Financial derivatives payables (ii) (136,612)
Investment settlements outstanding 59,271 183,851
Total investments (iii) 9,692,237 8,839,662
Current 1,730,933 1,370,652
Noncurrent 7,961,304 7,469,010
9,692,237 8,839,662
Notes:
(i) Where fund managers use futures contracts for effcient portfolio management, such positions are backed by holdings in cash and
discount securities. Also included in cash and discount securities is the fund managers aggregate liquid position.
(ii) Derivatives allow investors to change their exposure to the risk of adverse movements in interest rates, exchange rates and share prices
without altering the underlying physical security. They enable WorkSafe to protect the value of its assets against the risk of
market fuctuations.
(iii) The investments, both current and noncurrent, excepting those in the unlisted equities and unlisted trusts, are readily convertible to
cash assets.
(iv) As a part of the VFMCs investment strategy, contracts are entered into which require WorkSafe to contribute additional future capital.
While these future obligations amounted to $230.67 million at 30 June 2011 (2010: $276.90 million), no calls to subscribe were
outstanding at balance date (2010: nil).
19. RECOVERIES RECEIVABLE 2011 2010
$000s $000s
The recoveries receivable contained in the fnancial statements is obtained through
independent actuarial valuation by PricewaterhouseCoopers Actuarial Limited.
Expected future recoveries (undiscounted) 282,527 246,808
Discount to present value (44,888) (39,658)
Recoveries receivable on incurred claims 237,639 207,150
Current 40,938 35,658
Noncurrent 196,701 171,492
237,639 207,150
20. OTHER ASSETS 2011 2010
$000s $000s
Sundry receivables (i) 6,846 4,727
Provision for impairment (ii) (3)
6,843 4,727
Prepayments 4,138 3,879
10,981 8,606
53
Notes:
(i) The average credit period for sundry receivables is 28 days. Included within sundry receivables at the reporting date are $0.06 million
(2010: $0.45 million) of past due receivables. WorkSafe has provided fully for all receivables over 360 days because historical experience
indicates that sundry receivables that are past due beyond 360 days are generally not recoverable. WorkSafe does not charge interest on
overdue receivables nor hold collateral over these balances. The average age of those receivables that are past due but not impaired is
123 days (2010: 129 days).

(ii) Movement in provision for impairment 2011 2010
$000s $000s
Balance at beginning of the year 19
Increase (decrease) in allowance recognised in operating statement 3 (19)
Balance at end of the year 3
21. PLANT AND EQUIPMENT 2011 2010
$000s $000s
Leasehold improvements 36,943 39,086
Accumulated depreciation (17,661) (19,679)
19,282 19,407
Computer equipment 9,395 8,283
1,817 1,858
Furniture and equipment 10,779 12,378
5,152 5,845
Total plant and equipment 57,117 59,748
Balance at end of the year, at fair value 26,251 27,110
30 June 2011
Movements in Carrying Amounts
Leasehold
Improvements
Computer
Equipment
Furniture &
Equipment

Total
$000s $000s $000s $000s
Carrying amount at beginning of the year 19,407 1,858 5,845 27,110
Additions 3,570 1,112 868 5,550
Disposals (77) (8) (85)
Depreciation expense (3,618) (1,153) (1,553) (6,324)
Carrying amount at end of the year 19,282 1,817 5,152 26,251
30 June 2010
Leasehold
Improvements
Computer
Equipment
Furniture &
Equipment

Total
$000s $000s $000s $000s
Carrying amount at beginning of the year 9,462 1,932 1,382 12,776
Additions 13,564 1,020 5,754 20,338
Disposals (102) (118) (220)
Depreciation expense (3,516) (1,094) (1,172) (5,782)
Carrying amount at end of the year 19,407 1,858 5,845 27,110
22. INTANGIBLES 2011 2010
$000s $000s
Computer software
At cost 83,764 61,114
Accumulated amortisation (20,000) (13,555)
30 June 2011
Computer
Software
$000s
Carrying amount at beginning of the year 47,559
Additions 23,020
Write down of intangibles (369)
Amortisation expense (6,446)
Carrying amount at end of the year 63,764
30 June 2010
Computer
Software
$000s
Carrying amount at beginning of the year 35,955
Additions 15,865
Write down of intangibles (336)
Amortisation expense (3,925)
Carrying amount at end of the year 47,559
23. PAYABLES 2011 2010
$000s $000s
Premium creditors 31,566 57,203
Other creditors and accruals 96,263 115,969
127,829 173,171
Note:
(i) Other creditors and accruals represent liabilities for goods and services provided to WorkSafe, prior to the end of the fnancial year, which
are unpaid. Amounts are normally settled within 30 days and are carried at nominal value, which approximates to fair value.
55
24. OUTSTANDING CLAIMS 2011 2010
$000s $000s
(a) Summary of Valuation
The outstanding claims liability contained in the fnancial statements is obtained through
independent actuarial valuation by PricewaterhouseCoopers Actuarial Limited.
Expected future claims payments (undiscounted) 10,886,506 10,509,794
Discount to present value (3,257,289) (3,082,280)
7,629,217 7,427,514
Claims handling expenses 871,266 834,819
8,500,483 8,262,333
Risk margin 728,455 712,651
Liability for outstanding claims 9,228,938 8,974,984
Current 1,752,886 1,710,511
Noncurrent 7,476,052 7,264,473
9,228,938 8,974,984
Liability
2011
Movement
2011
Liability
2010
Movement
2010
Liability
2009
$000s $000s $000s $000s $000s
(b) Movement in Outstanding Claims Liability
Weekly compensation 2,605,206 25,743 2,579,463 163,563 2,415,900
Medical including medicolegal 1,848,131 83,850 1,764,281 103,281 1,661,000
Maims and impairment benefts 493,442 (13,275) 506,717 55,717 451,000
Common law 2,234,568 80,699 2,153,869 173,469 1,980,400
Other payment types 447,870 24,686 423,184 53,193 369,991
Claims handling expenses (i) 871,266 36,447 834,819 61,396 773,423
Risk margin (ii) 728,455 15,804 712,651 49,477 663,174
9,228,938 253,954 8,974,984 660,096 8,314,888
Notes:
(i) Claims handling expenses are an allowance made for the direct expenses to be incurred in settling claims.
(ii) The prudential risk margin provides for the inherent uncertainty in the central estimate of the outstanding claims.
30 June 2011 30 June 2010
GroGross ReRecoveries NeNett GroGross ReRecoveries NeNett
$000s $000s $000s $000s $000s $000s
(c) Reconciliation of Movement
in Discounted Net Outstanding
Claims Liability
Brought forward at beginning of the year 8,974,984 (207,150) 8,767,834 8,314,888 (160,533) 8,154,355
Effect of change in
economic assumptions (29,192) 761 (28,431) 406,469 (8,537) 397,932
Effect of past infation rate different
to assumptions 22,362 (2,428) 19,934 138,470 (5,104) 133,366
Effect of changes in other assumptions (118,567) (35,174) (153,741) (205,750) (41,623) (247,373)
Increase in claims incurred in current
accident year 1,853,989 (93,818) 1,760,171 1,686,053 (78,318) 1,607,735
Release of risk margin and claims
handling expenses (385,883) (385,883) (374,561) (374,561)
Cost of prior year claims moving closer
to payment 448,610 (21,066) 427,544 206,578 (4,085) 202,493
Impact of Amendment Act 258,436 258,436
Impact of Further Amendment Act 8,383 8,383
Incurred claims recognised in the
comprehensive operating statement 1,799,702 (151,725) 1,647,977 2,115,695 (137,666) 1,978,027
Claims (payments) recoveries
during the year (1,545,748) 121,236 (1,424,512) (1,455,598) 91,050 (1,364,548)
Carried forward at end of the year 9,228,938 (237,639) 8,991,299 8,974,984 (207,150) 8,767,834

(d) Claims Development Table
The following tables show the development of gross and net undiscounted outstanding claims relative to the ultimate expected claims for
the ten most recent accident years.
(i) Gross
Accident year
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total
$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s $000s
Estimate of ultimate claims cost:
At end of accident year 1,566,617 1,607,636 1,696,339 1,594,546 1,667,314 1,657,693 1,662,551 1,664,184 1,820,572 2,023,875
One year later 1,540,754 1,574,148 1,507,833 1,582,401 1,592,120 1,594,356 1,624,733 1,720,922 1,882,276
Two years later 1,442,838 1,405,520 1,502,669 1,502,140 1,511,933 1,555,131 1,631,119 1,707,164
Three years later 1,389,215 1,394,100 1,361,029 1,370,703 1,428,761 1,579,787 1,605,039
Four years later 1,424,244 1,338,779 1,298,061 1,325,047 1,417,887 1,555,099
Five years later 1,409,666 1,279,885 1,263,462 1,311,445 1,390,176
Six years later 1,416,361 1,259,307 1,276,412 1,283,733
Seven years later 1,384,168 1,271,120 1,251,169
Eight years later 1,398,076 1,262,459
Nine years later 1,377,153
Current estimate of
cumulative claims cost 1,377,153 1,262,459 1,251,169 1,283,733 1,390,176 1,555,099 1,605,039 1,707,164 1,882,276 2,023,875 15,338,143
Cumulative payments (1,053,895) (943,556) (905,481) (849,807) (833,474) (784,475) (682,022) (520,837) (375,196) (152,773) (7,101,516)
Outstanding claims
undiscounted 323,258 318,903 345,688 433,926 556,702 770,624 923,017 1,186,327 1,507,080 1,871,102 8,236,627
2001 and prior years 2,649,879
Total outstanding claims
undiscounted 10,886,506
Discount (3,257,289)
Claims handling expenses 871,266
Risk margin 728,455
Total gross outstanding claims per balance sheet (Note 24 (c)) 9,228,938
57
(ii) Net
Accident year
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total
$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s $000s
Estimate of ultimate claims cost:
At end of accident year 1,533,391 1,551,444 1,602,327 1,506,709 1,587,194 1,566,845 1,589,516 1,586,157 1,732,804 1,918,524
One year later 1,480,115 1,484,285 1,422,485 1,504,988 1,503,543 1,518,226 1,550,542 1,635,318 1,782,741
Two years later 1,357,318 1,323,384 1,422,647 1,422,906 1,438,408 1,478,738 1,548,512 1,616,939
Three years later 1,314,118 1,317,098 1,290,834 1,301,283 1,357,408 1,493,532 1,517,241
Four years later 1,350,778 1,260,397 1,235,420 1,258,418 1,340,717 1,464,500
Five years later 1,331,585 1,209,302 1,199,516 1,240,655 1,305,352
Six years later 1,346,255 1,188,176 1,208,649 1,212,894
Seven years later 1,314,262 1,197,209 1,182,063
Eight years later 1,327,154 1,188,339
Nine years later 1,306,310
Current estimate of
cumulative claims cost 1,306,310 1,188,339 1,182,063 1,212,894 1,305,352 1,464,500 1,517,241 1,616,939 1,782,741 1,918,524 14,494,903
Cumulative payments (986,906) (876,051) (847,205) (794,130) (769,631) (722,192) (629,817) (470,486) (320,733) (96,850) (6,514,001)
Outstanding claims
undiscounted 319,404 312,288 334,858 418,764 535,721 742,308 887,424 1,146,453 1,462,008 1,821,674 7,980,902
2001 and prior years 2,623,077
Total outstanding claims
undiscounted 10,603,979
Discount (3,212,401)
Claims handling expenses 871,266
Risk margin 728,455
Total outstanding claims net of recoveries per balance sheet (Note 24 (c)) 8,991,299
25. PROVISIONS 2011 2010
Note $000s $000s
Employee benefts 25 (a) 26,854 25,697
Leasehold restoration 834 408
Total current provisions 27,688 26,105
Employee benefts 25 (a) 3,565 3,356
Leasehold restoration 2,811 3,274
Total noncurrent provisions 6,376 6,630
Total provisions 34,064 32,735
2011 2010
$000s $000s
(a) Employee Benefts
Current:
Annual leave entitlements 9,732 9,476
Unconditional long service leave entitlements 17,122 16,221
Total current employee benefts 26,854 25,697
Current employee benefts that:
Are expected to be utilised within 12 months after the end of the fnancial year 14,345 14,100
Are expected to be utilised more than 12 months after the end of the fnancial year 12,509 11,597
26,854 25,697
Noncurrent:
Conditional long service leave entitlements 3,565 3,356
Total noncurrent employee benefts 3,565 3,356
Total employee benefts 30,419 29,053
30 June 2011
Employee
Benefts (i)
Leasehold
Restoration (ii)

Total
$000s $000s $000s
(b) Movements in Provisions
Balance at beginning of the year 29,053 3,682 32,735
Additional provisions recognised 15,660 172 15,832
Reductions arising from payments (12,542) (443) (12,985)
Reductions resulting from remeasurement or settlement without
cost (195) (195)
Unwinding of discount and effect of changes in the discount rate (1,752) 429 (1,323)
Balance at end of the year 30,419 3,645 34,064
Notes:
(i) The provisions for employee benefts consist of annual leave and long service leave entitlements, including oncosts.
(ii) The provision for leasehold restoration represents the fair value of the dismantling, removal or restoration costs estimated to be required
to be paid upon vacating the leased premises, where the obligation under these lease contracts for the premises is to be returned to its
original state existed at the time of entering into the leases.
59
26. RESERVES AND ACCUMULATED SURPLUS Reserves
WorkHealth
Initiative (i)
Research
Initiative (ii)

Total
Accumulated
Surplus
Total
Equity
$000s $000s $000s $000s $000s
Equity at 1 July 2009 514,565 86,435 601,000 213,231 814,231
Transfer to reserves of net result
for the year of initiatives 41,934 8,636 50,570 (50,570)
Equity at 30 June 2010 556,499 95,071 651,570 338,231 989,801
Transfer to reserves of net result
for the year of initiatives 44,204 8,548 52,752 (52,752)
Equity at 30 June 2011 600,703 103,619 704,322 806,321 1,510,643
Notes:
(i) WorkHealth is an initiative to support Victorian workplaces by offering voluntary programs to promote the health and wellbeing of workers
to reduce workplace injury and improve Return to Work.
(ii) The Institute for Safety, Compensation, and Recovery Research is a collaborative initiative with the Transport Accident Commission and
the Monash University to facilitate research and best practice in injury prevention, rehabilitation and compensation practice and to improve
outcomes in those areas.
27. NOTES TO THE CASH FLOW STATEMENT 2011 2010
$000s $000s
(a) Reconciliation of Cash and Cash Equivalents
For the purposes of the cash fow statement, cash and cash equivalents include cash
on hand and highly liquid investments that have short periods to maturity and are readily
convertible to cash at the option of WorkSafe. Cash and cash equivalents at the end of
the fnancial year as shown in the cash fow statement are reconciled to the related items
in the balance sheet as follows:
Cash and cash equivalents 26,354 17,898
Investments Cash and deposits at call 1,402,139 1,108,679
1,428,493 1,126,577
2011 2010
$000s $000s
(b) Reconciliation of Net Result to Net Cash from Operating Activities
Changes in fair values of investments at fair value through
the comprehensive operating statement (539,006) (512,571)
Depreciation on plant and equipment 6,324 5,783
Amortisation on intangibles 6,446 3,925
Loss on disposal of plant and equipment 80 215
Writedown of intangibles 369 336
Finance costs (1,323) (1,478)
Changes in assets and liabilities:
Increase in premiums receivable (27,399) (20,722)
Increase in investment income receivable (21,182) (4,366)
Increase in recoveries receivable (30,489) (46,617)
(Increase) decrease in sundry receivable (2,116) 757
Increase in prepayments (259) (1,714)
Decrease in deferred tax assets 205,857 69,901
(Decrease) increase in premium creditors (25,637) 4,663
(Decrease) increase in other creditors and accruals (19,706) 28,072
Increase in outstanding claims 253,954 660,096
Increase in provisions 2,651 3,376
Total adjustments (191,436) 189,656
Net cash fows from operating activities 329,406 365,225
28. COMMITMENTS 2011 2010
$000s $000s
(a) Operating Leases (i)
Future minimum lease payments under noncancellable operating lease arrangements:
Due within one year 21,330 16,785
Due later than one year and less than fve years 63,810 54,062
Due later than fve years 35,592 52,012
120,732 122,859
(b) Other Operating Commitments
Amounts payable under noncancellable other operational contractual arrangements:
Due within one year 8,732 6,997
Due later than one year and less than fve years 7,400 10,921
16,132 17,918
Note:
(i) Operating leases relate to leasehold premises, vehicles and offce equipment with lease terms between 1 and 10 years. Some operating
lease contracts contain market review clauses in the event that WorkSafe exercises its option to renew. WorkSafe does not have an
option to purchase the leased assets at the expiry of the lease periods.
61
29. RESPONSIBLE PERSONRELATED DISCLOSURES
(a) Responsible Persons
In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the responsible
persons who held offce during the fnancial year were the Hon. Gordon RichPhillips MLC, Assistant Treasurer from 2 December 2010, the
Hon. Tim Holding MP, Minister for Finance, WorkCover and the Transport Accident Commission up to 2 December 2010, and the following
responsible persons:
Ms Elana Rubin (Chair)
Mr Greg Tweedly (Chief Executive)
Mr Paul Barker
Ms Jane Bell
Ms Susan Bitter (term expired on 30 June 2011)
Dr Geoff Brooke
Mr Geoff Hilton
Mr James MacKenzie (term expired on 30 June 2011)
(b) Transactions with Responsible PersonRelated Entities
2011 2010
$000s $000s
Ms Susan Bitter is Chief Operating Offcer of Corrs Chambers Westgarth. The aggregate
amount of legal services provided by the frm to WorkSafe is as follows:
Legal services (682) (755)
Mr Greg Tweedly is a director of the Personal Injury Education Foundation (PIEF). WorkSafe
is a founding member of PIEF and is committed to contributing towards its operating costs. The
aggregate amounts in respect of the above transactions with responsible personrelated entities were:
Contributions (22)
Membership and training (70) (39)
Mr James MacKenzie and Mr Greg Tweedly are Board members of the Institute for Safety, Compensation,
and Recovery Research (ISCRR). WorkSafe is committed to contributing towards funding the research
activities of ISCRR. The aggregate amounts in respect of the above transactions with responsible
personrelated entities were:
Fundings (1,667) (1,905)
Project evaluation services (511)
Ms Elana Rubin, Mr Paul Barker and Mr Geoff Hilton are directors of the TAC. Under the Accident Compensation Act 1985, WorkSafe is
entitled to recover from the TAC, all compensation payable under the WorkSafe scheme for injury in a transport accident during the course
of work. WorkSafe also receives annual Workplace Injury Insurance premium from the TAC.
WorkSafe and the TAC reimbursed each other for the cost of external services acquired jointly, and internal services provided to each other,
in relation to collaborative initiatives between WorkSafe and the TAC. In addition, WorkSafe made payments to the TAC for the management
of WorkSafe claims of injured workers with catastrophic injuries.
The aggregate amounts in respect of the above transactions with responsible personrelated entities were:

2011 2010
$000s $000s
Recovery of compensation paid 61,530 47,300
Workplace Injury Insurance premium 425 363
Cost reimbursement received and receivable 11,987 8,029
Cost reimbursement paid and payable (5,756) (5,313)
Management of catastrophic claims (1,106) (846)

Transactions with responsible personrelated entities are made on normal commercial terms and conditions. Conficts of interest are
overcome where warranted, by directors declaring their interests and abstaining from voting at WorkSafes Board meetings.
30. REMUNERATION OF RESPONSIBLE PERSONS 2011 2010
$000s $000s
Total remuneration of all responsible persons received or receivable in connection with
their employment (i) 846 815

The number of responsible persons of WorkSafe whose remuneration falls within the following bands was:
Income Band
$ 2011 2010
40,001 50,000 4 3
50,001 60,000 1 2
60,001 70,000 1 1
110,001 120,000 1 1
430,001 440,000 1
440,001 450,000 1
(i) Amounts relating to ministers are reported in the fnancial statements of the Department of Premier and Cabinet.
31. REMUNERATION OF ExECUTIVE OFFICERS 2011 2010
$000s $000s
Total remuneration of all executive offcers received or receivable
in connection with their employment 2,871 2,734
The number of executive offcers of WorkSafe, excluding the Chief Executive, whose total remuneration exceeded $100,000 is shown in the
table below. Base remuneration is exclusive of bonus, longservice leave and redundancy payments.
The number of executives varies from year to year due to the timing of appointments, resignations, and the composition of the executives.
Income Band Base Remuneration Total Remuneration
$ 2011 2010 2011 2010
20,001 30,000 1
100,001 110,000 1
130,001 140,000 1
160,001 170,000 1
170,001 180,000 1 2
190,001 200,000 1
200,001 210,000 1
210,001 220,000 1 1
220,001 230,000 1 2 1
230,001 240,000 2 3
240,001 250,000 1 2 2
250,001 260,000 1
260,001 270,000 1 1 1
270,001 280,000 1 1 2
280,001 290,000 1 1
290,001 300,000 1
310,001 320,000 1
320,001 330,000 1
350,001 360,000 1 1
400,001 410,000 1
420,001 430,000 1
63
32. EMPLOYEE SUPERANNUATION (i) 2011 2010
Contribution Contribution
$000s $000s
Superannuation is provided for employees via the following schemes:
Defned contribution schemes
VicSuper Pty Ltd VicSuper Scheme 9,056 9,351
Other (ii) 3,727 4,112
12,783 13,463
Defned beneft schemes
Emergency Services Superannuation Scheme
Revised Scheme 749 793
New Scheme 1,415 1,464
State Employees Retirement Beneft Scheme 16 15
Transport Scheme 12 13
2,192 2,285
14,975 15,748
Notes:
(i) Employer contributions are in accordance with the scales set out in the Superannuation Act 1988, and that determined by the
Hospitals Superannuation Board. By virtue of funding arrangements to the superannuation bodies, WorkSafe has no further liability for
superannuation to those bodies. At 30 June 2011 no contributions were outstanding (2010: nil).
Employee superannuation includes contributions paid under salary sacrifce arrangements.
(ii) Employees have the option of contributing exclusively to private sector complying funds or contributing to a state fund or both.

33. FINANCIAL INSTRUMENTS

WorkSafes fnancial assets and liabilities are exposed to a variety of fnancial risks: credit risk, liquidity risk and market risk. The VFMC uses
different methods to measure different types of risk to which WorkSafes investment portfolio is exposed. These methods include sensitivity
analysis in the case of interest rate, foreign exchange and other price risks, and credit ratings for credit risk.

(a) Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in fnancial loss to WorkSafe.
The VFMC manages credit risk by conducting due diligence on counterparties and will only deal with counterparties of high quality with
substantial balance sheets. Agreements also contain provisions for the agreement to be reviewed or rescinded upon the occurrence of
specifed events relating to counterparty credit and liquidity.
Assessment processes also ensure that welldefned documentation underpins each transaction; that clear rules exist for completing single
transactions with a particular counterparty; and that appropriate credit limits exist to accommodate the transaction. Exposure is measured
according to the individual transaction, counterparty total, credit rating total and other bases, and is monitored by personnel separated
from the dealing function. When conducting overthecounter derivative transactions, bilateral legal contracts must be signed with the
counterparty prior to execution of the transaction.
The establishment of appropriate policies and multitiered limits ensures that WorkSafe maintains a diversifed portfolio without any
signifcant concentration of credit risk on an industry, regional or country basis.
(i) WorkSafes maximum exposure to credit risk at reporting date in relation to each class of fnancial asset is the carrying amount of those
assets as indicated in the balance sheet.
(ii) Concentrations of credit risk
The VFMC manages credit risk by diversifying the exposure among counterparties and operating in liquid markets. WorkSafe does not
have any signifcant concentration of credit risk on an industry, regional or country basis. The investment strategy for WorkSafe is to
ensure a diversifed portfolio.

The table below provides information regarding the credit risk exposure of WorkSafe by classifying assets according to the credit ratings of
counterparties.
30 June 2011
Investment
grade (i)
Noninvestment
grade (ii)
Past due or
impaired

Total
$000s $000s $000s $000s
Financial assets at fair value
through the comprehensive
operating statement
Cash and deposits at call 1,391,400 1,391,400
Receivables 44,361 12,457 56,818
Debt securities 2,713,660 81,460 2,795,120
Financial derivatives receivables 67,470 67,470
4,131,414 193,291 12,457 4,337,162
30 June 2010
Investment
grade (i)
Noninvestment
grade (ii)
Past due or
impaired

Total
$000s $000s $000s $000s
Financial assets at fair value
through the comprehensive
operating statement
Cash and deposits at call 1,042,891 1,042,891
Receivables 44,308 15,767 60,075
Debt securities 2,538,727 82,113 2,620,840
Financial derivatives receivables
3,599,516 126,421 15,767 3,741,704
Notes:
(i) Assets classifed with Standard and Poors credit ratings of AAA to BBB are classifed as investment grade.
(ii) The noninvestment grade assets include assets that fall outside the range of AAA to BBB Standard and Poors credit ratings as well as
nonrated assets that are within the risk parameters outlined in the Investment Risk Management Plan.
(b) Liquidity Risk

Liquidity risk arises from WorkSafe being unable to meet fnancial obligations as they fall due.
The VFMC uses a combination of cash and futures portfolios plus a large proportion of listed securities to ensure suffcient liquidity is
available at all times to meet WorkSafes operating requirements.
The following tables summarise the maturity profle of WorkSafes fnancial liabilities. The tables include the liquidity analysis in relation to
contractual (as opposed to statutory) fnancial liabilities. While the liability for outstanding claims is the most signifcant liability for which
payments will need to be made in the future, they are excluded from the defnition of a fnancial liability under AASB 4 Insurance Contracts.
Details on the average term to settlement for the claims liabilities portfolio are included in Note 4.

65

30 June 2011
Less than
3 months
412
months
15
years
5+
years Total
$000s $000s $000s $000s $000s
Financial liabilities
Other creditors and accruals 87,365 40,457 7 127,829
Derivative fnancial instruments
87,365 40,457 7 127,829

30 June 2010
Less than
3 months
412
months
15
years
5+
years Total
$000s $000s $000s $000s $000s
Financial liabilities
Other creditors and accruals 110,454 62,717 173,171
Derivative fnancial instruments 62,587 74,363 456 (794) 136,612
173,041 137,080 456 (794) 309,783
(c) Market Risk

Market risk is the risk that the fair value of future cash fows of a fnancial instrument will fuctuate because of changes in market prices.
Market risk comprises three types of risk: market interest rates (interest rate risk), foreign exchange (currency risk) and market prices
(equity price risk).
When establishing the investment asset allocation, the VFMC considers input from actuaries to ensure that the investment mix is appropriate
to service future WorkSafe liabilities and that projected outcomes are in line with the overall investment objectives and remain within the risk
parameters approved by the Treasurer.
For the sensitivity analysis of each type of market risk, the percentage change used for each of the variables has been determined by
WorkSafe as at 30 June 2011 and 2010, in consultation with the VFMC.
(i) Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash fows of a fnancial instrument will fuctuate because of changes in market
interest rates.
The signifcant accounting policies (Note 3) describe the policies used to measure and report the assets and liabilities of WorkSafe. Where
the applicable fair value is determined by discounting future cash fows, movements in interest rates will result in a reported unrealised gain
or loss in the comprehensive operating statement.
The VFMC seeks to manage the interest rate risk through an asset allocation strategy for the investment portfolio, which acts as an
economic hedge against the insurance liabilities of WorkSafe. To the extent that these assets and liabilities can be matched, unrealised
gains and losses on the remeasurement of liabilities resulting from interest rate movements will be offset by unrealised losses or gains on
the remeasurement of investment assets.
The VFMC uses derivatives to manage the interest rate risk on the interest rate sensitive assets. Interest rate swap contracts and forward
rate agreements are used to either change the interest rate risk between fxed and foating rates of interest or between different foating
rates of interest.
(a) Interest rate swaps
Interest rate swaps allow the VFMC to swap foating rate investments into fxed rates and vice versa. The settlement dates coincide with
the dates on which interest is payable on the underlying debt.
Contracts normally involve quarterly payment or receipt of the net amount of interest. The unrealised gain on the swaps in the portfolio at
30 June 2011 was $29.14 million (2010: unrealised loss of $84.09 million).
(b) Interest rate options
The VFMC may enter into interest rate options to hedge interest rate exposures. The option contracts have repricing terms up to 3
months. As at 30 June 2011, the outstanding option contracts were $nil (2010: $nil).
(c) Forward rate agreements
The VFMC may enter into forward interest rate agreements with expiration terms ranging out to 12 months to maximise anticipated
investment returns. As at 30 June 2011, outstanding agreements were $nil (2010: nil).
(d) A summary of WorkSafes exposure to interest rate risk on fnancial instruments is as follows:

Variable
Interest
Rate
Fixed Interest Rate Period to maturity or repricing
Non
Interest
Bearing
Total
Carrying
Value 30 June 2011
Less than
3 months
412
months
15
years
Over 5
years
$000s $000s $000s $000s $000s $000s $000s
Financial Assets
Cash and cash equivalents 26,342 12 26,354
Premium receivables 55,096 55,096
Investments
Interest rate swaps 29,141 29,141
Other investments 2,258,175 1,011,190 23,634 506,126 387,630 5,476,341 9,663,096
Other assets 6,843 6,843
2,313,658 1,011,190 23,634 506,126 387,630 5,538,292 9,780,530
Financial Liabilities
Payables 127,829 127,829
Net fnancial assets 2,313,658 1,011,190 23,634 506,126 387,630 5,410,463 9,652,701
Variable
Interest
Rate
Fixed Interest Rate Period to maturity or repricing
Non
Interest
Bearing
Total
Carrying
Value 30 June 2010
Less than
3 months
412
months
15
years
Over 5
years
$000s $000s $000s $000s $000s $000s $000s
Financial Assets
Cash and cash equivalents 17,885 13 17,898
Investments
Interest rate swaps (84,094) (84,094)
Other investments 2,043,324 797,696 52,135 440,001 330,678 5,259,927 8,923,756
1,977,115 797,696 52,135 440,001 330,678 5,321,064 8,918,685
Payables 173,171 173,171
Net fnancial assets 1,977,115 797,696 52,135 440,001 330,678 5,147,893 8,745,513
67
2011 2010
$000s $000s
Reconciliation of Net Financial Assets to Net Assets:
Net fnancial assets as above 9,652,701 8,745,513
Nonfnancial assets and liabilities:
Recoveries receivable 237,639 207,150
Prepayments 4,138 3,879
Confrmed premium estimate 13,100 (15,600)
Plant and equipment 26,251 27,110
Intangibles 63,764 47,559
Deferred tax assets 775,913 981,770
Tax recoveries 139 139
Outstanding claims (9,228,938) (8,974,984)
Provisions (34,064) (32,735)
Net assets per balance sheet 1,510,643 989,801
Interest rate sensitivity
A sensitivity analysis has been determined based on the exposure to interest rates at the reporting date and the stipulated change taking
place at the beginning of the fnancial year and held constant throughout the reporting period. A 0.5% increase or decrease in interest rates
(or discount rates) is used by actuaries to present the sensitivities of the actuarial clams liabilities (Note 4). This percentage has been used
to present the impact on interest bearing investments. These movements are attributable to WorkSafes exposure to interest rates on its
variable rate investments and its fair value movement on its fxed rate investments.
At reporting date, if interest rates had moved 0.5% up or down and all other variables were held constant, WorkSafes net result and equity
would change as follows:

2011 2010
$000s $000s
Impact on net result and equity of a 0.5% increase in interest rates:
before impact of interest rate derivatives (51,080) (45,740)
impact of interest rate derivatives 2,993 1,692
after impact of interest rate derivatives (48,087) (44,048)
Impact on net result and equity of a 0.5% decrease in interest rates:
before impact of interest rate derivatives 51,111 45,768
impact of interest rate derivatives (2,993) (1,692)
after impact of interest rate derivatives 48,118 44,076
(ii) Foreign Currency Risk
Foreign currency risk is the risk that the fair value of future cash fows of a fnancial instrument will fuctuate because of changes in foreign
exchange rates. WorkSafe is exposed to foreign exchange risk through its investments which are denominated in foreign currency, and
anticipated future transactions.

Forward foreign exchange contracts
The VFMC limits foreign exchange risk through the use of forward contracts where it agrees to sell specifed amounts of foreign currencies
in the future at a predetermined exchange rate. The proportion of foreign exchange risk which is hedged is reviewed regularly to ensure that
the net exposure is maintained at a level which is consistent with the overall investment objectives.
The table below summarises WorkSafes exposure to foreign currency risk and the management of that exposure using forward exchange
contracts outstanding at balance date in Australian dollar equivalents.

Investment in Foreign Currency Forward Contract Cover Net exposure
2011 2010 2011 2010 2011 2010
$000s $000s $000s $000s $000s $000s
Australian Dollar 7,542,218 6,822,709 1,669,746 1,790,601 9,211,964 8,613,310
British Pound 107,287 1,485,591 (352,908) (848,724) (245,621) 636,867
Euro Dollar 235,685 188,134 (278,843) (311,045) (43,158) (122,911)
Japanese Yen 76,754 79,834 (151,375) (191,747) (74,621) (111,913)
United States Dollar 1,504,920 89,703 (719,469) (255,957) 785,451 (166,254)
Other 200,544 213,652 (142,322) (223,089) 58,222 (9,437)
Total investments (Note 18) 9,667,408 8,879,623 24,829 (39,961) 9,692,237 8,839,662
Foreign currency sensitivity
The sensitivity analysis below has been determined based on the exposure to foreign exchange rates at the reporting date and the stipulated
change taking place at the beginning of the fnancial year and held constant throughout the fnancial year.
The following table details WorkSafes sensitivity to a 10% increase and decrease in the Australian Dollar against the relevant foreign currencies.
The sensitivity analysis includes foreign currency denominated investment items and adjusts their translation at the year end for a 10%
change in foreign currency rates. A positive number indicates an increase in the net result where the Australian Dollar strengthens against
the respective currency.
2011 2010
$000s $000s
Impact on net result and equity of a 10% increase in foreign exchange rates:
before impact of foreign exchange derivatives (135,240) (130,895)
impact of foreign exchange derivatives 104,676 116,490
after impact of foreign exchange derivatives (30,564) (14,405)
Impact on net result and equity of a 10% decrease in foreign exchange rates:
before impact of foreign exchange derivatives 165,293 159,982
impact of foreign exchange derivatives (127,938) (142,377)
after impact of foreign exchange derivatives 37,355 17,605

(iii) Other Price Risk
WorkSafe is exposed to equity price risk arising from investments in Australia and overseas (Note 18). The equity investments are held
to back general insurance activities and the portfolio is actively managed. The VFMC limits price risk through diversifcation of the equity
investment portfolio.
Equity price sensitivity
The sensitivity analysis below has been determined based on the exposure to equity prices both within Australia and overseas markets at the
reporting date and the stipulated change taking place at the beginning of the fnancial year and held constant throughout the fnancial year.
The following table details WorkSafes sensitivity to a 10% increase and decrease in the Australian equities market and a 10% increase and
decrease in overseas equities markets.
If Australian and overseas equity prices had been 10% higher or lower and all other variables held constant at the year end, WorkSafes net
result and equity would change as follows:

69
2011 2010
$000s $000s
Impact on net result and equity of a 10% increase in:
listed equity prices 150,539 153,557
unlisted Australian equity prices 217,069 206,387
unlisted Overseas equity prices 40,725 9,051
408,333 368,995
Impact on net result and equity of a 10% decrease in:
listed equity prices (150,539) (153,557)
unlisted Australian equity prices (217,069) (206,387)
unlisted Overseas equity prices (40,725) (9,051)
(408,333) (368,995)

(d) Fair Value

WorkSafes fnancial instruments are classifed into a threelevel fair value hierarchy based on the degree to which the fair value is observable:
(i) Level 1 Fair value is calculated based on quoted prices in active markets for identical assets or liabilities. These inputs are readily
available in the market and are normally obtainable from multiple sources.
(ii) Level 2 Fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or the liability,
either directly (as prices) or indirectly (derived from prices).
(iii) Level 3 Fair value is estimated using inputs for the asset or liability that are not based on observable market data.
The fair value of the fnancial instruments as well as the methods used to estimate the fair value are summarised in the table below:
30 June 2011 Level 1 Level 2 Level 3 Total
$000s $000s $000s $000s
Financial assets
Cash and cash equivalents 26,354

26,354
Investments 3,162,891 6,308,703 220,643 9,692,237
3,189,245 6,370,642 220,643 9,780,530
Payables 127,829 127,829
Net fnancial assets 3,189,245 6,242,813 220,643 9,652,701
30 June 2010 Level 1 Level 2 Level 3 Total
$000s $000s $000s $000s
Financial assets
Cash and cash equivalents 17,898

17,898
Investments 3,072,098 5,758,503 9,061 8,839,662
3,089,996 5,819,627 9,061 8,918,685
Payables 173,171 173,171
Net fnancial assets 3,089,996 5,646,456 9,061 8,745,513
The investments managed by VFMC on behalf of WorkSafe include unlisted investments. These unlisted investments are not traded in an
active market, and hence their fair value at reporting date is based on the price advised by external fund managers or valuations determined
by appropriately skilled independent third parties.
Where valuation techniques including discounted cash fows, multiples based analysis, comparison with similar transactions and other
techniques considered appropriate in the circumstances have been employed in pricing or valuing investments, the valuations are inherently
subject to estimation uncertainty. Given this inherent subjectivity, the underlying inputs and assumptions are reviewed on an ongoing
basis to ensure the valuations refect the best estimates of the economic conditions at reporting date. The value of such investments at 30
June 2011 was $1.756 billion (2010: $1.783 billion). A signifcant majority of these investments are held via third party pooled investment
vehicles, and as such WorkSafe is not privy to the detailed assumptions used to value the underlying investment assets. The assumptions
and inputs used in the valuation techniques adopted include:
Infrastructure Investments
The valuations of unlisted infrastructure investments are primarily based on a discounted cash fow methodology. Key inputs which are
subject to estimation uncertainty include the choice of riskfree rate, risk premium, asset utilisation rates, capital expenditure forecasts and
other estimated future cash fows dependent on the longer term general economic forecasts.
Private Equity Investments
The valuation of unlisted private equity investments are primarily based on multiples of earnings, discounted cash fow, market equivalents
and other market accepted methodologies. Key inputs which are subject to estimation uncertainty include the identifcation of appropriate
comparables, estimated future profts, the choice of riskfree rate, risk premium, estimated future cash fows and future economic and
regulatory conditions.
Property Investments
The valuation of unlisted property investments are primarily based on discounted cash fow, capitalisation and direct comparison
methodologies. Key inputs which are subject to estimation uncertainty include the identifcation of appropriate comparables, estimated future
profts, choice of riskfree rate, risk premium, estimated future cash fows and future economic and regulatory conditions.
Insurance Investments
The valuation of insurance investments is primarily based on a discounted cash fow methodology. Key inputs which are subject to estimation
uncertainty include estimates on life expectancy, forecast cash fows, expected future premiums to be paid, investment specifc discount rate
and future economic conditions.
Transfer between categories
An amount of $36.64 million was transferred from Level 1 to Level 2 during the year ended 30 June 2011 (2010: $nil).
An amount of $2.39 million was transferred from Level 2 to Level 1 during the year ended 30 June 2011 (2010: $34.67 million).
Reconciliation of Level 3 fair value movements
The following table presents the changes in Level 3 instruments (fnancial assets) for the year ended 30 June 2011:

Investments 2011 2010
$000s $000s
Balance at beginning of the year 9,061 91,500
Transfers into Level 3 454,083
(Losses) gains recognised in the comprehensive operating statement (110,673) 7,443
Purchases 232,710
Sales (364,538) (88,262)
Transfers out of Level 3 (1,620)
An amount of $454.08 million (2010: $nil) was transferred from Level 2 to Level 3 during the year, based on a reassessment on the
classifcation of the fairvalue hierarchies, as independent valuations of these assets use nonobservable market data.
71
34. EVENTS AFTER REPORTING DATE

As disclosed in Note 7, WorkSafes investments and outstanding claims are impacted by external market and economic factors which result
in shortterm volatility in WorkSafes net result and fnancial position.
Subsequent to the reporting date, a number of global events have led to signifcant uncertainties in both the Australian and international
fnancial markets and adversely impacted on the valuation of WorkSafes investment portfolio and outstanding claims.
Based on the latest valuation reports provided by the VFMC, the unfavourable market conditions prevailing between the reporting date and
the date of signing the fnancial statements have reduced the value of WorkSafes investments at 30 June 2011 by approximately $336
million. In addition, the external actuary has estimated that post reporting date movements in discount rates have increased WorkSafes net
outstanding claims liability at 30 June 2011 by approximately $378 million.
The effects of the above post reporting date events have not been recognised in the fnancial statements for the year ended 30 June 2011.

STATEMENT BY CHAIR, CHIEF ExECUTIVE AND CHIEF FINANCIAL OFFICER
The attached fnancial statements of WorkSafe Victoria have been prepared in accordance with Standing Direction 4.2 of the Financial
Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including Interpretations, and other
mandatory professional reporting requirements.
We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes
in equity, cash fow statement and accompanying notes, presents fairly the fnancial transactions during the year ended 30 June 2011 and
the fnancial position of WorkSafe Victoria as at 30 June 2011.
At the time of signing, we are not aware of any circumstances which would render any particulars included in the fnancial statements to be
misleading or inaccurate.
Elana Rubin Greg Tweedly Ian Sargent
Chair Chief Executive Chief Financial Offcer

Dated at Melbourne this 26th day of August 2011.
Level 24, 35 Collins Street, Melbourne Vic. 3000
Telephone 61 3 8601 7000 Facsimile 61 3 8601 7010 Email comments@audit.vic.gov.au Website www.audit.vic.gov.au
Auditing in the Public Interest
INDEPENDENT AUDITORS REPORT
To the Board Members, Victorian WorkCover Authority
The Financial Report
The accompanying fnancial report for the year ended 30 June 2011 of the Victorian WorkCover Authority which comprises the comprehensive operating
statement, balance sheet, statement of changes in equity, cash fow statement, notes comprising a summary of signifcant accounting policies and other
explanatory information, and the statement by chair, chief executive and chief fnancial offcer has been audited.
The Board Members Responsibility for the Financial Report
The Board Members of the Victorian WorkCover Authority are responsible for the preparation and fair presentation of the fnancial report in accordance with
Australian Accounting Standards, including the Australian Accounting Interpretations, and the fnancial reporting requirements of the Financial Management
Act 1994, and for such internal control as the Board Members determine is necessary to enable the preparation of the fnancial report that is free from
material misstatement, whether due to fraud or error.
Auditors Responsibility
As required by the Audit Act 1994, my responsibility is to express an opinion on the fnancial report based on the audit, which has been conducted in
accordance with Australian Auditing Standards. Those Standards require compliance with relevant ethical requirements relating to audit engagements and
that the audit be planned and performed to obtain reasonable assurance about whether the fnancial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial report. The audit procedures selected
depend on judgement, including the assessment of the risks of material misstatement of the fnancial report, whether due to fraud or error. In making those
risk assessments, consideration is given to the internal control relevant to the entitys preparation and fair presentation of the fnancial report in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal
control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the
Board Members, as well as evaluating the overall presentation of the fnancial report.
I believe that the audit evidence I have obtained is suffcient and appropriate to provide a basis for my audit opinion.
Independence
The AuditorGenerals independence is established by the Constitution Act 1975. The AuditorGeneral is not subject to direction by any person about the
way in which his powers and responsibilities are to be exercised. In conducting the audit, the AuditorGeneral, his staff and delegates complied with all
applicable independence requirements of the Australian accounting profession.
Opinion
In my opinion, the fnancial report presents fairly, in all material respects, the fnancial position of the Victorian WorkCover Authority as at 30 June 2011 and of
its fnancial performance and its cash fows for the year then ended in accordance with applicable Australian Accounting Standards, including the Australian
Accounting Interpretations, and the fnancial reporting requirements of the Financial Management Act 1994.
Matters Relating to the Electronic Publication of the Audited Financial Report
This auditors report relates to the fnancial report of the Victorian WorkCover Authority for the year ended 30 June 2011 included both in the Victorian
WorkCover Authoritys annual report and on the website. The Board Members of the Victorian WorkCover Authority are responsible for the integrity of the
Victorian WorkCover Authoritys website. I have not been engaged to report on the integrity of the Victorian WorkCover Authoritys website. The auditors
report refers only to the subject matter described above. It does not provide an opinion on any other information which may have been hyperlinked to/from
these statements. If users of the fnancial report are concerned with the inherent risks arising from publication on a website, they are advised to refer to the
hard copy of the audited fnancial report to confrm the information contained in the website version of the fnancial report.
MELBOURNE D D R Pearson
29 August 2011 AuditorGeneral
73
094 786 071 ACN Pty Ltd
(formerly known as Black & White
Recruitment Solutions Pty. Ltd.)
Convicted and fned $500,000.00
Abigroup Contractors Pty Ltd Convicted and fned $45,000.00
Akron Roads Pty Ltd Convicted and fned $50,000.00
Asbestos Audits (Australia) Pty Ltd Without conviction, fned $25,000.00
Ashi Hire Pty Ltd Without conviction, fned $15,000.00
Serhat Aslan Convicted and fned on charge 1 and sentenced to 6 months
imprisonment, wholly suspended for a period of 2 years on charge 2
$2,000.00
B & M Carpentry Pty Ltd Without conviction, released on an adjourned undertaking to be of good
behaviour for a period of 6 months with a special condition that the
director of the company, Brett Murray, complete the OHS course and
provide documentation to the court confrming completion

Brockwell Constructions Pty Ltd
& Paul Brockwell
Brothergreen Group Pty Ltd (formerly
S & L Brothers Investments Pty Ltd)
Carter Holt Harvey Woodproducts
Australia Pty Limited
Chevron Glazing (Victoria) Pty Ltd Convicted and released on an undertaking for a period of 12 months
with a special condition that they donate $28,500 to the Victorian Flood
Appeal

Brian Oliver Close t/a AM Close
& BO Close
Without conviction released on an adjourned undertaking for a period of
12 months and ordered to pay $3,000 to the Court Fund

Coates Hire Operations Pty Ltd Convicted and fned $250,000.00
Patrick Cogan Convicted and fned $5,000.00
CSR Building Products Limited
(t/a MySteel Roofng Solutions)
Convicted and placed on an undertaking for a period of 12 months
with a special condition to pay $12,500 to the Institute of Safety,
Compensation and Recovery Research and Monash University

Dandenong Heavy Haulage Pty Ltd Convicted and fned $50,000.00
Reg Durmus Convicted and fned $1,500.00
Reg Durmus Convicted and fned on charge 1 and sentenced to 6 months
imprisonment, wholly suspended for a period of 2 years on charge 2
$2,000.00
Empire Caravans Pty Ltd Without conviction, fned $5,500.00
Express Promotions Pty Ltd Appeal (from 09/10). Convicted and fned $130,000.00
Flashpoint Sports Pty. Ltd. Convicted and fned $20,000.00
Fosterville Gold Mine Pty Ltd Convicted and fned $110,000.00
G.M. Cranes Pty Ltd Convicted and fned $15,000.00
Graham Campbell Ferrum International
Pty. Ltd.
David Gurvich Appeal (from 09/10). Convicted and fned $17,000.00
Hellenic Cheese Pty Ltd as Trustee for
The Konas Family Trust
Convicted and fned and the accused entered into an undertaking with
special conditions
$40,000.00
Hometec Industries Pty Ltd Convicted and fned $30,000.00
Judge Chic Pty Ltd Without conviction, placed on good behaviour for a period of 2 years
Kedison Imports Pty Ltd Without conviction, fned $7,500.00
Matthew Lever Convicted and fned $5,000.00
Guanlong Lin Convicted and fned $10,000.00
Joshua Luke Marshall t/a Affordable
Demolitions and Asbestos Removals
Gunther Mayr Without conviction, fned $20,000.00
Melbourne Bin Hire Convicted and fned $20,000.00
APPENDIX 1 PROSECUTIONS
PROSECUTIONS
Defendant Result Fine
75
MG Mining Services Pty Ltd Convicted and fned $150,000.00
Mt Edisar Pty Ltd Without conviction, fned $65,000.00
Nationwide Towing & Transport Pty Ltd Convicted and fned $450,000.00
Patrick Ports Pty Ltd Convicted and fned $180,000.00
Michael Anthony Ponton, trading as Mick
Ponton Plumbing
Pressfast Industries Pty Ltd Convicted and fned and an adverse publicity order made on charge 4 $163,500.00
Cheryl Reid trading as Advance Cartons Without conviction released on an undertaking for a period of 6 months
with special conditions

Gary Charles Reid trading as Advance
Cartons
Convicted and fned and released on an undertaking for a period of 6
months with special conditions
$60,000.00
S R Murphy Holdings Pty Ltd Without conviction, released on an adjourned undertaking to be of good
behaviour for a period of 12 months and ordered to pay $10,000 to the
court fund. Costs awarded in the amount of $3,854.52

Carmine Salvatore Convicted and fned $20,000.00
Sancell Pty Ltd Without conviction released on an adjourned undertaking to be of good
behaviour for a period of 12 months with a special condition that they make
a donation of $30,000 to Victorian Flood Appeal or its delegates

Silcar Pty. Ltd. Convicted and fned $475,000.00
Sims Group Australia Holdings Limited Convicted and fned $50,000.00
Spaceland Caravans National Pty Ltd Without conviction, fned $8,000.00
Stainless Tube Mills (Aust.) Pty. Ltd. Convicted and fned $90,000.00
Robert Strucell Convicted and released on an adjourned undertaking to be of good
behaviour for a period of 12 months with a special condition that he
complete an approved OHS course and pay $2,000 to the Court fund.

Surdex Steel Pty. Limited Convicted and fned $90,000.00
Swire Cold Storage Pty Ltd Convicted and fned $60,000.00
TAC Metal Industries Pty Ltd Without conviction, placed on an undertaking to be of good behaviour for
a period of 18 months and to pay $10,000 to the court fund

Tasman Chemicals Pty Ltd With conviction, fned $25,000.00
The Crown in the Right of the State
of Victoria, Department of Education
(Kangaroo Flat Secondary College)
The Crown in the Right of the State
of Victoria, Department of Education
(Kyneton Secondary College)
Toro Australia Pty Ltd Convicted and fned $45,000.00
Visy Packaging Pty Ltd Convicted and placed on an adjourned undertaking for a period of 12
months with a special condition that they donate $112,500 to the Marie
Tehan Medical Fund at the University of Melbourne

Wastedrive Pty Limited Convicted and fned $50,000.00
Mark Wayne Watson (trading as Twin
Peaks Roofng)
Wing Cheong Chan trading as Wing Furniture Convicted and fned $30,000.00
Arthurs Seat Scenic Chairlift Pty Ltd Appeal upheld, sentence set aside. Sentenced to pay a fne of $60,000 $60,000.00
Occupational Health and Safety Act
2004/ Occupational Health and Safety
Regulations 2007/ Summary Offences
Act 1966
Joshua Luke Marshall t/a Affordable
Demolitions and Asbestos Removals
Convicted and fned on charge 1, convicted and released on an
undertaking for a period of 18 months with special conditions on
charge 3, and convicted and fned on charge 4
$20,400.00
PROSECUTIONS (CONTINUED)
Accident Compensation Act 1985
Maged Abou-Elnil Without conviction, community based order and to pay restitution
Aldi Foods Pty Limited Without conviction, placed on an adjourned undertaking and to donate
$12,000 to the Salvation Army Bridge Program

Joan Babar Convicted, fned with a suspended sentence of imprisonment and to pay
restitution ($46,227.02)
$6,000.00
Robert Beach Convicted, community based order and to pay restitution
Carl Hugh Bigger Without conviction, community based order
Ronald Burgess Convicted, community based order and to pay restitution
Brendan Cook Convicted, fned and to pay restitution $1,000.00
Andrew Dallariva Without conviction, placed on an adjourned undertaking with a payment
into court

Gary Delrayne Convicted and fned $3,000.00
Antonella Deriu Without conviction, placed on an adjourned undertaking with payment
into court and restitution

Inna Emelianova Without conviction, fned $1,200.00
John Gubeka Convicted and fned $2,500.00
Tanya Hancock Without conviction, placed on an adjourned undertaking and to pay restitution
Peter Jan Jager Convicted, fned and to pay restitution $800.00
Jacqueline Luscombe Convicted, fned and to pay restitution $5,000.00
Ian McFarlane Without conviction, placed on an adjourned undertaking
Andrew Meekings Convicted with a suspended sentence of imprisonment
Hasan Mese Convicted, fned with a suspended sentence of imprisonment and to pay
restitution ($40,660.00)
$1,200.00
Allan Purdue Convicted with a suspended sentence of imprisonment and an Intensive
Corrections Order

Jeanette Marie Shields Convicted with a suspended sentence of imprisonment and to pay restitution
Megan Fitzgerald & Associates Pty Ltd Without conviction, placed on an adjourned undertaking with a payment
into court and restitution

Shane Tatnell Convicted with a suspended sentence of imprisonment and to pay restitution
Volgren Australia Pty Ltd Without conviction, fned $1,000.00
Crimes Act 1958
Bruce Farrell Convicted, imprisoned and to pay restitution ($136,979.60)
Gary Edward Ray Without conviction, fned $2,500.00
Prosecution results do not include matters where the result was a withdrawal of charges, an undertaking or a diversion
Requests to WorkSafe for a prosecution to be brought, pursuant to section 131 of the Occupational Health and Safety Act 2004 (OHS Act)
Where WorkSafe has not brought prosecution proceedings within six months of an alleged offence, a person may request that WorkSafe
bring a prosecution pursuant to section 131(1) of the OHS Act.
In 2010/11, WorkSafe received 12 requests for a prosecution to be brought for an alleged offence.
Pursuant to section 131(2), within three months of the request being made, WorkSafe must advise the person in writing whether
prosecution proceedings will be brought.
For one matter, WorkSafe has proceeded to prosecution.
For seven matters, WorkSafe determined not to prosecute (2 of these were previous WorkSafe investigations).
For two matters, the requests to prosecute were withdrawn by the applicants and WorkSafe determined not to proceed to prosecution.
The remaining two matters are open and currently under investigation.
Pursuant to section 131(3) where WorkSafe advises a person that prosecution will not be brought, the person may request that WorkSafe refer
the matter to the Director of Public Prosecutions (DPP) for advice on whether a prosecution should be brought (section 131(4)).
Two matters were referred to the DPP.
Of the two referrals, the DPP recommended not to prosecute for one matter.
Advice is pending on the remaining one matter.
PROSECUTIONS (CONTINUED)
77
APPENDIX 2 AgENT PERfORmANCE
This appendix includes data on Agent performance which WorkSafe Victoria uses to assess the performance of its Authorised Agents for
remuneration purposes and for general performance management. The information is provided to inform employers and the public on aspects
of the performance of the WorkSafe Authorised Agents.
The information does not purport to be all-inclusive or contain all information which employers may require to make an informed assessment
as to the selection of an Agent. Employers should make their own independent assessment of the capabilities of each Agent and, where
appropriate, seek professional advice.
ClAImS mANAgEmENT AND RETURN TO WORk
Agent
Timeliness of Employer
Notifcation to Agent Return to Work Index Long Term Treatment Costs
% received within
12 days
% RTW within
6 months
% Growth
p/a
Allianz 92.4 79.7 Improved 4.0 Deteriorated
Xchanging 93.4 77.9 Steady -2.4 Improved
CGU 88.7 77.8 Steady 10.2 Deteriorated
GBS 88.0 77.7 Steady 1.8 Deteriorated
GIO 80.2 78.0 Deteriorated -1.7 Improved
QBE 92.0 76.1 Deteriorated -1.1 Steady
Scheme 89.9 77.8 Steady 3.4 Deteriorated

Return to Work Index Trend information
Improved Performance in current year has improved by more than 2% of that in the previous year
Steady Current year performance within +/- 2% of the previous year
Deteriorated Performance in current year has deteriorated by more than 2% of that in the previous year
Long Term Treatment Costs Trend information
Improved Performance in current year has improved by more than 0.5% of that in the previous year
Steady Current year performance within +/- 0.5% of the previous year
Deteriorated Performance in current year has deteriorated by more than 0.5% of that in the previous year

Agent Duration - proportion of workers on weekly payments at
13 weeks 26 weeks 52 weeks 134 weeks
Allianz 46.0% 27.0% 17.6% 3.4%
Xchanging 47.4% 27.8% 18.6% 3.2%
CGU 48.2% 28.6% 18.3% 3.5%
GBS 46.0% 26.6% 16.0% 2.8%
GIO 43.7% 26.0% 12.5% 2.5%
QBE 46.9% 27.7% 17.4% 3.7%
Scheme 46.8% 27.6% 17.4% 3.4%
Note: a lower percentage represents higher performance

SERvICE AND PROCESSINg
Agent Worker Satisfaction Employer Satisfaction Valid Conciliation Non Compliance Complaints
% of workers
satisfed
% of employers
satisfed
Number of valid
complaints
Number of valid
complaints per $10m
billed premium
Allianz 71.8 75.3 18 0.5
Xchanging 72.5 83.0 4 0.2
CGU 74.9 80.1 22 0.4
GBS 73.2 80.2 14 0.7
GIO 74.1 73.3 13 1.0
QBE 70.3 78.3 9 0.2
Scheme 72.8 78.8 80 0.4
Agent Timeliness of Payments Direct to Injured Workers
Timeliness of Processing
Provider Accounts
Data
Integrity
weekly
payments
% paid within
7 days
medical
reimbursements
% paid within
10 days
% paid within
30 days
% of
compliance
with audit
requirements
Allianz 99.5 Steady 94.5 Deteriorated 98.8 Steady 98.6
Xchanging 99.8 Steady 94.2 Deteriorated 98.7 Steady 99.3
CGU 98.0 Steady 91.0 Steady 97.6 Steady 96.8
GBS 99.4 Steady 97.5 Steady 99.4 Steady 98.8
GIO 97.2 Deteriorated 92.9 Steady 96.8 Steady 97.4
QBE 99.7 Steady 96.5 Steady 98.4 Steady 97.9
Scheme 99.0 Steady 94.1 Steady 98.3 Steady 97.9

Timeliness of Processing Trend information
Improved Performance in current year has improved by more than 2% of that in the previous year
Steady Current year performance within +/- 2% of the previous year
Deteriorated Performance in current year has deteriorated by more than 2% of that in the previous year
Authorised Agents operating under an instrument of appointment with the VWA issues pursuant to the Accident Compensation Act 1985
are paid fees for acting on behalf of the VWA in the issuing of policies, collection of premiums and the administration of claims. The Agent
remuneration includes performance based components. It also allows for the reduction of an Agents fees upon the occurrence of an event
such as a failure to meet performance criteria.
Reductions applicable to 2010/11:
CGU incurred a remuneration reduction of $2.8M. This was comprised of the following:
- $891,000 for the failure to meet minimum processing standards in respect of the payment of service provider accounts; and
- $1,912,111 for the failure to maintain effective internal quality controls in relation to accounts management which resulted in the
occurrence of the manipulation of data used to determine performance on remunerated performance measures.
CGU were also required to reimburse WorkSafe $1.5 million in incentive payments paid, or penalties avoided due to the manipulation
of data.
Xchanging incurred a remuneration reduction of $125,000 for the failure to maintain effective internal controls in relation to privacy.
79
DEfINITIONS
Measure Defnition
Timeliness of employer
notifcation to Agent
The proportion of claims, with 20 days duration or more, received by the Agent from the employer with a
remuneration greater than $1 million and within 12 days of the employer receiving the claim from an injured
worker. Measure includes claims received between 1 July 2010 and 30 April 2011.
Return to Work Index The proportion of injured workers recorded as working on the date six months after lodgement of their
claim (Insurer Received date). Measure only includes claims received between 1 December 2009 and 30
November 2010, with greater than 10 days of weekly compensation paid.
Long term treatment Treatment expenditure includes selected long term treatment and associated costs relating to services such
as occupational rehabilitation, physiotherapy, chiropractic and personal household help.
It relates to payments made more than one year after the date of injury and excludes seriously injured workers
(defned as workers hospitalised for two or more nights within three months of injury).
Growth is based on the comparison of payments in 2010/11 relative to 2009/10.
Duration on weekly
payments at 13, 26
and 52 weeks
Duration is measured as the number of workers receiving 13/ 26/ 52 weeks of compensation expressed as
a proportion of workers who have received at least 20 days of compensation. See note (1).
Duration on weekly
payments at 134 weeks
Duration is measured as the number of workers receiving 134 weeks of compensation for claims received
on or after 1 September 2005 expressed as a proportion of workers who have received at least 20 days of
compensation for claims reported between 1 September 2006 and 31 August 2008 inclusive. See note (1).
Injured worker
satisfaction with Agent
The Injured Worker Survey is an aggregate of two measures; overall satisfaction and performance against
service attributes (average performance across nine service dimensions). These fgures are based on an
independent survey of 5008 workers who received weekly benefts within the eleven month period spanning
1 April 2010 to February 2011, inclusive. See note (2). This defnition has been clarifed from 2009, but the
methodology is the same.
with Agent
The percentage of employers who said they were satisfed with the service and its quality from their Agent.
These fgures are based on an independent survey of 1534 employers who had at least one claim that
received any type of payment or where there was an entitlement to weekly compensation three months prior
to the survey (which is conducted on a monthly basis throughout the year). See note (3).
Valid Conciliation
Non Compliance
Complaints
This measure shows the number of valid complaints which were made against the Agent and have been
registered on the WorkSafe Conciliation Compliance Database between 1 July 2010 and 30 June 2011.
The measure is also expressed as the number of complaints per $10 million of billed premium to allow for
Agent market share.
The total number of disputes referred for conciliation between 1 July 2010 and 30 June 2011 as recorded on
the WorkSafe computer system is 12,488.
Data integrity Accuracy of information entered by Agents on the WorkSafe computer system, based on audit of 15 key felds
assessed during three audits across the year. Last year there was a single audit performed at a single point of
time and therefore the audit methodology is not consistent across the two years and the data from past years
is not comparable.
Timeliness of weekly
payments direct to
injured workers
The timeliness of weekly payments direct to injured workers is assessed as the percentage of payments made
within 7 working days from a notifcation of payment requirement being received by the Agent. There may be
instances where the Agent is reliant on further information from third parties to make a payment. The measure
is reliable as a comparison of performance between Agents.
Timeliness of medical
reimbursements direct
to injured workers
The timeliness of payment of medical reimbursements direct to injured workers is assessed as the
percentage of payments made within 10 working days of a request for payment being received by the Agent
from the injured worker.
Timeliness of
processing provider
accounts
The timeliness of payment to providers for treatment provided to injured workers is assessed as the
percentage of accounts paid within 30 days of receipt by the Agent.
See note (4)
Notes:

(1) This assessment takes into account the differing mix of claims that Agents manage.
(2) The survey is accurate to within +/-3.05% at 95% confdence level for each Agent.
(3) The survey is accurate to within +/-4.74% at 95% confdence level for each Agent.
(4) This does not measure the timeliness of wage reimbursements.
Other than surveys, audits and timeliness of employer notifcation to Agent, all assessments were made at 30 June 2011.
In comparing performance of GIO to other Agents, please note that due to its low market share, its results can vary considerably even
assessed over the period of a year. This may make the comparison with other Agents less reliable.
mARkET ShARE AS AT 30 JUNE 2011
Agent % of Policies % of Remuneration % of Premium
Allianz 25 21 20
Xchanging 11 12 13
CGU 30 32 29
GBS 10 9 11
GIO 4 7 7
QBE 19 19 21
Scheme 100% 100% 100%
Note:
Number of policies refers to the employers with policies managed by each Agent.
Remuneration refers to the wages (including superannuation) paid by employers managed by each Agent.
Premium refers to the premium payable for the 2010/11 year for employers managed by the Agent.
Due to rounding, market share may not equate to 100%.
Agent name Full description
Allianz Allianz Australia Workers Compensation (Victoria) Limited
Xchanging Xchanging
CGU CGU Workers Compensation (Vic) Limited
GBS Gallagher Bassett Services Workers Compensation Vic Pty Ltd
GIO GIO Workers Compensation (Victoria) Limited
QBE QBE Workers Compensation (VIC) Limited
Note:
In 2010/11 WorkSafe Victoria undertook a tender for a new Agent Panel to provide claims and premium management services for WorkSafe
Victoria between 4pm 30 June 2011 and 4pm 30 June 2016. This new Agent Panel includes: Allianz, Xchanging, CGU, GBS and QBE.
81
APPENDIX 3 SElf-INSURANCE REPORT
OvERvIEW
Self-insurers are part of the WorkSafe
scheme. Their status is derived from the
Accident Compensation Act 1985.
Employers are eligible to apply if they
satisfy prescribed minimum requirements of
fnancial strength and viability. The applicant
must be a body corporate and not a
subsidiary of another body corporate, other
than a foreign company.
As at 30 June 2011 there were 36
self-insurers operating in Victoria, the
same number as the previous year and
representing 7.53% of total scheme
remuneration.
APPlICATIONS AND APPROvAlS
DURINg 2010/11
Applications for self-insurance are made
to WorkSafe. WorkSafe has the power
to approve or refuse any application.
In determining whether an applicant is
suitable, WorkSafe must be satisfed that
the applicant is ft and proper to be a self-
insurer. In this regard WorkSafe examines
the applicants:
fnancial viability
capacity to administer claims for
compensation
incidence of injuries to workers and the
cost of claims in respect of such injuries;
safety of working conditions
compliance with the Act and Regulations
compliance with any terms and conditions
(where application is for re-approval) and
any other matters that WorkSafe thinks ft.
Approval as a self-insurer is subject to
certain prescribed terms and conditions
specifed in Ministerial Orders as well as
terms and conditions as WorkSafe may
determine from time to time. Initial approval
has effect for a period of three years;
renewal of approval is for a period of four
years unless WorkSafe in its discretion
determines that approval has effect for six
years, intended to reward good performance
in the area of safety, injury management
and return to work.
BSG Holdings Pty Limited (BSG Holdings)
was approved as a self-insurer for a period of
three years effective from 5 November 2010
having acquired Carter Holt Harvey Australia
Pty Limited.
Brambles Industries Limited became a
wholly owned subsidiary of Brambles Limited
following a take over by Brambles Limited.
Brambles Limited were subsequently
approved as a self-insurer effective from 5
November 2010 for a period of three years.
Following the global takeover of Cadbury
by Kraft, a corporate restructure of both
companies operations in Australia took effect
from 1 January 2011. Cadbury Australia Pty
Ltd (Cadbury) remains the body corporate
and now has Kraft Foods (Australia) Limited
(Kraft) as one of its wholly owned subsidiaries.
Cadbury has elected not to assume the
liability and the responsibility for management
of Krafts tail claims.
Toyota Motor Corporation Australia Limited
(Toyota) was approved as a self-insurer
effective from 30 September 2011 and
is subject to Toyota meeting a number of
conditions precedent by 1 September 2011.
Toyota has elected to assume the liability
and the responsibility for management of its
tail claims.
The following corporations were
re-approved during 2010/11:
Myer Holdings Limited
from 30 October 2010*
Qantas Airways Limited
from 1 December 2010
Crown Limited
BP Australia Group Pty Ltd
from 31 December 2010*
Alcoa of Australia Limited
Mars Australia Pty Ltd
Toll Holdings Limited
from 13 February 2011
PaperlinX Limited
from 17 April 2011
Brickworks Limited
from 30 April 2011
Amcor Limited
from 1 July 2011 and
Ford Motor Company of Australia Limited
from 7 July 2011.
* WorkSafe in its discretion determined
that approval has effect for six years.
hIghlIghTS
The sustained return to work rate for injured
workers of self-insurers is stable on the
strong performance in 2010 (82.7%). In
2011, 81.1 per cent of injured workers were
back at work 14 19 months after their
workplace injury or illness.

Use of the Self-insurance Performance
Management System continued in 2010/11
bringing improved performance of Victorian
self-insurers relevant to the industries
for which they operate through targeted
interactions addressing performance.

SERvICE
WorkSafes Injured Worker Survey includes
injured workers covered by self-insurers.
This year the measurement of service was
broadened to allow injured workers to provide
a more comprehensive response by measuring
specifc dimensions of service along with their
overall level of satisfaction. This is consistent
with the way satisfaction of injured workers
covered by Agents is measured. This year
63.3% of injured workers were satisfed with
the service they experienced. This result has
decreased from 72.1% (using the like-with-
like measurement), and is lower than the
satisfaction levels of injured workers from
scheme insured employers (72.8%).
Over Tlme - Scheme
Over Tlme - Scheme*
Average Premlum
Pates 2010/11
Number of In[urles
(C|alms)
1
.
2
0
1
.
3
3
8
1
.
6
6
1
.
3
0
1
.
4
9
7
2
.
7
5
2
.
1
0
C8
C9
C9
1C
C7
C8
1C
11
C3
C4
C4
C5
C5
C6
C6
C7
5
7
.
3
6
0
.
5 6
8
.
7
6
8
.
6
6
9
.
8
6
8
.
9
7
2
.
8
1C
11
7
8
.
8
7
5
.
3
SW OLD SA TAS
l|mo |oss slunouro
vlC WA Comcuro
C.5%
1.C%
1.5%
2.5%
C.C%
3.5%
3.C%
2.C%
25
2C
15
1C
5
C
C4
C5
C5
C6
C6
C7
C7
C8
C8
C9
C9
1C
Year
C8
C9
C9
1C
C7
C8
C3
C4
C4
C5
C5
C6
C6
C7
Year Year
1CC%
8C%
6C%
4C%
2C%
C%
1CC%
8C%
6C%
4C%
2C%
C%
7
1
.
8
7
4
.
7 8
3
.
5
8
2
.
3
8
4
.
4
8
4
.
4
8
1
.
4
1CC%
75%
5C%
25%
C%
Year
6
3
.
3
*
1C
11
6
4
.
5
C5
C6
6
1
.
7
C6
C7
6
1
.
3
C7
C8
6
6
.
7
C8
C9
6
7
.
8
C9
1C
Number of In[ury
and I||ness C|alms
34,CCC
32,CCC
28,CCC
26,CCC
22,CCC
2C,CCC
3C,CCC
24,CCC
Year
08
09
09
10
0?
08
05
06
06
0?
3
0
,
3
2
7
2
8
,
8
5
6
2
9
,
1
0
7
2
8
,
6
8
9
2
8
,
8
5
4
10
11
2
9
,
6
2
8
1CC%
4C%
6C%
2C%
C
8C%
Year
08
09
09
10
0?
08
06
0?
7
5
.
8
%
7
8
.
3
%
7
6
.
1
%
7
4
.
1
%
10
11
7
7
.
2
%
In[ured Worker
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
1
.
8
?
2
.
5
?
4
.
9
?
4
.
1
?
0
.
3
?
3
.
2
?
2
.
8
?
5
.
?
?
2
.
3 ?
?
.
6
8
0
.
5
?
3
.
?
?
3
.
0
?
5
.
3
by Agent
A|||unz
Agent
1C
11
C9
1C
1CC%
8C%
6C%
4C%
2C%
C%
?
5
.
3
8
3
.
0
8
0
.
1
?
3
.
3
?
8
.
3
8
0
.
2
?
8
.
8
8
2
.
4
8
1
.
6
8
3
.
0
8
2
.
9
?
?
.
3
8
2
.
6
8
1
.
4
Average Premlum
1.5C%
2.CC%
1.CC%
2.5C%
Year
1
.
3
3
8
11
12
C4
C5
C5
C6
C6
C7
C7
C8
1
.
9
9
8
1
.
8
0
1
.
6
2
1
.
4
6
1
.
3
3
8
1
.
3
8
7
1
.
3
8
7
C8
C9
1C
11
C9
1C
6
1
8
3
2
1
6
1
8
7
1
8
6
2
2
1
0
1
0
3
7
2
2
1C
11
lIST Of SElf-INSURERS AS AT 30 JUNE 2011
1. Alcoa Australian Holdings Pty Ltd
2. Alcoa of Australia Limited
3. Amcor Limited
4. Australia and New Zealand Banking Group Ltd
5. BHP Billiton Limited
6. BlueScope Steel Limited
7. BP Australia Group Pty Ltd
8. Brambles Industries Limited
9. Brickworks Limited
10. BSG Holdings Pty Limited
11. Coles Group Ltd
12. Crown Limited
13. CSR Limited
14. ExxonMobil Australia Pty Ltd
15. Ford Motor Company of Australia Limited
16. Goodman Fielder Limited
17. Hanson Australia (Holdings) Proprietary Limited
18. Inghams Enterprises Pty Limited
19. Kraft Australia
20. Mars Australia Pty Ltd
21. Melbourne Water Corporation
22. Myer Holdings Ltd
23. OneSteel Limited
24. PaperlinX Limited
25. Philip Morris (Australia) Limited
26. Primary Health Care
27. Qantas Airways Limited
28. Robert Bosch (Australia) Pty Ltd
29. Royal Automobile Club of Victoria (RACV) Limited
30. Shell Australia Ltd
31. The University Of Melbourne
32. Toll Holdings Limited
33. Transfeld Services Limited
34. Unilever Australia (Holdings) Pty Ltd
35. Westpac Banking Corporation
36. Woolworths Limited
Note:
National Australia Bank Limited ceased as a Victorian self-insurer effective 12 April 2007 whilst Burns Philp and Company Limited divested
from Goodman Fielder Limited effective 22 December 2005 and no longer has any active businesses operating in Victoria.
83
fINANCIAl STATEmENT Of SElf-INSURERS 2010/11
Net assets
(1)

Outstanding
Claims Liabilities
(2)

$M $M
Alcoa Australian Holdings Pty Ltd* $5.579.36 $1.91
Alcoa of Australia $2,821.10 $26.82
Amcor Limited $4,123.90 $14.93
Australia and New Zealand Banking Group Ltd $34,155.00 $3.78
BHP Billiton Limited $0.69
BlueScope Steel Limited $5,755.70 $4.52
BP Australia Group Pty Ltd $11,934.40 $0.59
Brambles Industries Limited $1,632.60 $6.34
Brickworks Limited* $1,649.93 $2.96
BSG Holdings Pty Ltd (formerly Carter Holt Harvey Australia Pty Limited)* $344.80 $16.11
Burns, Philp & Company Pty Limited* $6.22
Coles Group Ltd $24,694.00 $74.70
Crown Limited $3,419.31 $14.28
CSR Limited $1,281.30 $9.89
ExxonMobil Australia Pty Ltd* $1,437.00 $4.07
Ford Motor Company of Australia Limited $403.14 $20.89
Goodman Fielder Limited (ACN 116 399 430) $1,668.00 $2.71
Hanson Australia (Holdings) Proprietary Limited*
Inghams Enterprises Pty Limited
Kraft Australia Holdings Pty Ltd (formerly Cadbury Australia Limited)
Mars Australia Pty Ltd (formerly Effem Foods Pty Ltd)
Melbourne Water Corporation $4,018.45 $5.71
Myer Holdings Ltd $857.44 $8.63
National Australia Bank Limited** $38,954.00 $1.60
OneSteel Limited $4,492.70 $4.85
PaperlinX Limited $923.90 $3.44
Philip Morris (Australia) Limited $344.59 $1.56
Primary Health Care $2,470.24 $6.80
Qantas Airways Limited $5,981.00 $28.66
Robert Bosch (Australia) Pty Ltd $197.30 $11.00
Royal Automobile Club of Victoria (RACV) Limited
Shell Australia Ltd
The University Of Melbourne $3,576.42 $5.81
Toll Holdings Limited $2,727.00 $27.60
Transfeld Services Limited $804.04 $4.70
Unilever Australia (Holdings) Pty Ltd $357.55 $3.07
Westpac Banking Corporation $40,118.00 $8.75
Woolworths Limited $7,817.70 $110.48
Notes:
1. Based on latest available information from self-insurers. In some instances only 2009/10 fgures were available.
2. Based on latest information available as assessed by actuaries approved by WorkSafe.
Self-insurers are required to certify they have adequately provided for outstanding claims liabilities in their annual accounts. In some
instances only 2009/10 fgures were available.
3. Net assets are in $US.
* These organisations assumed liabilities by way of acquisition for the following previously self insured Body Corporates:-
Alcoa Australia Rolled Products Pty Ltd., Bristile Limited., Esso Australia Resources Ltd., Goodman Fielder Limited Pty Ltd (ACN 000 003 958),
BPC Foods Pty Ltd., Mobil Oil Australia Ltd., Pioneer International Limited.
** National Australia Bank Limited ceased as a Victorian self-insurer effective 12 April 2007.
$49,329.00
(3)
APPENDIX 4 gOvERNANCE AND COmPlIANCE
CORPORATE gOvERNANCE
WorkSafe Victoria (WorkSafe) is the trading name of the Victorian WorkCover Authority.
The primary corporate governance practices employed by WorkSafe Victoria ensure it is managed so that it:
achieves its objectives;
meets its commitments to stakeholders; and
operates effectively, effciently and economically.
BOARD Of mANAgEmENT
WorkSafes Board of Management is established under section 24 of the Accident Compensation Act 1985. At 30 June 2011, the Board
consisted of eight directors, each of whom is appointed by the Governor in Council. One of the directors is also the Chief Executive.
The Board sets the framework for the achievement of WorkSafes objectives and the execution of its functions. The Board does this by
overseeing strategic planning, policy development, auditing exercises, and reviewing management performance.
Management of the operations and administration of WorkSafe is delegated by the Board to the Chief Executive who manages and controls
the affairs of WorkSafe in accordance with the policies set by the Board.
DIRECTORS
The Directors currently serving on the Board are:
Ms Elana Rubin (Chair)
BA (Hons), MA, FFin, FAICD, FAIM
Mr Paul Barker (Deputy Chair)
BBus, FCA, ACIS
Ms Jane Bell
LLB, BEc, LLM(London), FAICD
Dr Geoff Brooke
MBBS, MBA
Mr Geoff Hilton
BSc (Hons), MSc, FCA, MAPS
Mr Greg Tweedly (Chief Executive)
BComm, CPA
The Directors whose term expired 30 June 2011 are:
Ms Susan Bitter
BEcon (Hons), FCA, FFin
Mr James MacKenzie
BBus, FCA, FAICD
DIRECTORS ACCESS TO INDEPENDENT lEgAl ADvICE
WorkSafe provides a budget for directors to obtain independent legal advice in respect of their individual obligations as directors.
CONflICT Of INTEREST
The directors are required by section 31 of the Accident Compensation Act 1985 to declare any pecuniary interest in any matter being
considered by the Board or in any other matter in which WorkSafe is concerned.
Directors are required to complete a declaration of private interests upon appointment, at each Board meeting and in July of each year
that they are a director.
Conficts of interest are overcome, where warranted, by directors declaring their interests and abstaining from voting at WorkSafe Board meetings.
BOARD COmmITTEES
The Board is supported by fve committees chaired by non-executive Directors.
Audit and Risk Management Committee (ARMCO)

(Members: Susan Bitter (term as Board member and ARMCO Chair expired 30 June 2011), Paul Barker, Jane Bell, Geoff Hilton)
Chaired by Ms Susan Bitter, ARMCO oversees WorkSafe Victorias compliance with its statutory, fnancial and other responsibilities,
assesses and reviews risk management, accounting, fnancial and operating controls, and assesses and reviews internal and external audits.
The primary objectives of the ARMCO include assisting WorkSafe Victorias Board to fulfl its obligations in regard to:
the integrity and quality of interim and annual fnancial reporting and disclosures;
identifcation and management of key business, fnancial and regulatory risks;
compliance with laws, regulations, standards and codes and
the adequacy of WorkSafe Victorias internal control framework.
Financial and Investment Strategies Committee (FISCO)
(Members: Elana Rubin, Greg Tweedly)
Chaired by Elana Rubin, FISCO:
makes recommendations to the Board on investment objectives in the context of overall balance sheet risk management;
monitors compliance and makes recommendations to the Board regarding balance sheet management policies;
monitors the success of the Victorian Funds Management Corporation (VFMC) investment strategy by reviewing fund performance
compared to objectives, long-term targets and peer group; and
reviews the performance of VFMC and other service providers against service level agreements and other appropriate measures.
85
The FISCO will also advise the Board in relation to any other matters relevant to the management and performance reporting of WorkSafes
investment funds and other fnancial strategies as appropriate.
Health Issues Committee (HISCO)
(Members: Geoff Brooke, Greg Tweedly)
HISCO is a joint WorkSafe/TAC Committee. Chaired by Ms Julie Caldecott (TAC Board Member), HISCO:
assists WorkSafe Victoria achieve its health care objectives;
maintains a clear and integrated health care strategy, in the best interests of the agencies clients and stakeholders and
ensures that health service contracts/agreements and relationships are managed and operated in an effcient, economic and effective manner.
Remuneration and People Committee (REPCO)
(Members: Elana Rubin, Paul Barker, James MacKenzie (term as Board and REPCO member expired 30 June 2011), Greg Tweedly)
Chaired by Ms Elana Rubin, REPCO:
establishes, maintains and reviews remuneration policy and ensures that such policies comply with law and government policy;
oversees the application of remuneration policy to senior executives and ensures that the policy is consistent with the Government Senior
Executive Remuneration Panel guidelines and policies and
is responsible for ensuring disclosure of Director and executive remuneration is made in accordance with regulatory requirements and
good governance practices.
Information Technology Shared Systems Committee (ITSSCO)
(Members: Geoff Hilton, Greg Tweedly)
ITSSCO is a joint WorkSafe/TAC Committee. Chaired by Mr Andrew Dyer (TAC Board Member), ITSSCO:
reviews the strategies, architectures and developments of the ITSS, ensuring that these are supported by sound business principles, comply
with WorkSafe and TAC approvals processes and deliver the required technology infrastructure and support to WorkSafe and the TAC;
makes recommendations to the Boards of WorkSafe Victoria and TAC on the ITSS business plans, budgets, and IT workplans and
monitors operational performance and provides IT governance.
RISk mANAgEmENT
Compliance with the Victorian Government Risk Management Framework
Standing Direction 4.5.5 of the Financial Management Act 1994 requires public sector agencies to provide an annual attestation of
compliance with the risk management process requirements set out in the Victorian Government Risk Management Framework.
The Audit and Risk Management Committee of WorkSafe Victoria has considered the Statement by the Chief Executive on compliance with
the Victorian Government Risk Management Framework and the Executive Team internal attestation.
On this basis, I certify on behalf of the Board of WorkSafe Victoria that WorkSafe Victoria:
has risk management processes in place consistent with the Australia/New Zealand Risk Management Standard: AS/NZ 31000:2009;
has an internal control system in place that enables the executive to understand, manage and satisfactorily control risk exposure and
the Audit and Risk Management Committee and the Executive Team have critically reviewed the risk profle of WorkSafe Victoria during the
period 1 July 2010 to 30 June 2011.
Elana Rubin
Chair
WorkSafe Victoria

Date signed: 26 Aug 2011
COmPlIANCE
This section includes disclosures required by the Financial Management Act 1994, the Accident Compensation Act 1985, the Whistleblowers
Protection Act 2001, and the Freedom of Information Act 1982. It also includes voluntary disclosure of additional regulatory compliance
information.
Manner of Establishment and Relevant Minister
WorkSafe is established by section 18 of the Accident Compensation Act 1985 as a body corporate with perpetual succession.
The Hon. Gordon Rich-Phillips MLC was appointed the Assistant Treasurer in December 2010, with responsibility to manage Victorias
workplace health and safety laws, public safety and the accident compensation scheme.
Accountability of WorkSafe
Pursuant to section 20C of the Accident Compensation Act 1985, WorkSafe is required to exercise its powers and perform its functions
under the Accident Compensation Act 1985, the Accident Compensation (WorkCover Insurance) Act 1993, the Occupational Health and
Safety Act 2004, the Equipment (Public Safety) Act 1994, the Dangerous Goods Act 1985 and the Mines Act 1958 subject to the general
direction and control of the Minister and any specifc written directions given by the Minister. The Minister cannot give a direction in relation to
a specifc person.
Ministerial Directions
No Ministerial Directions were given under section 20C during the fnancial year 2010/11.
WorkSafes Objectives, Functions and Powers
WorkSafes primary objectives, functions and powers are found in sections 19, 20, 20A and 20B of the Accident Compensation Act 1985
and sections 7 and 8 of the Occupational Health and Safety Act 2004.
These Acts are available from WorkSafes website located at worksafe.vic.gov.au.
Services Provided and Persons or Sections of the Community Served
WorkSafe provides services to employers, workers and the general community across Victoria by:
providing insurance to employers
paying compensation to injured workers
conducting and defending legal proceedings before courts and tribunals
assisting employers to establish and operate occupational rehabilitation programs
assisting injured workers to re-enter the workforce
assisting employers to identify and reduce risks to health and safety and
promoting public awareness and discussion of occupational health and safety and providing information and services to workers, employers
and the Victorian community.
Access to Information
The Freedom of Information Act 1982 (FOI Act) gives members of the public the right to apply for access to information held by WorkSafe.
The FOI Act applies to documents created by WorkSafe as well as those created by other organisations that are in the possession of
WorkSafe and its authorised Agents.
In 2010/11 WorkSafe received 2,417 requests. During this period it received 31 applications for internal review under section 51 of the FOI
Act and there were 24 appeals made to the Victorian Civil and Administrative Tribunal (VCAT).
The majority of requests were received from or on behalf of injured workers and persons and employers affected by health and safety
incidents at the workplace.
As an alternative to the process under the FOI Act, injured workers may access information in relation to their injury claim held about them by
WorkSafe and/or its authorised Agents under the Accident Compensation Act 1985. In 2010/11, 15,609 requests for information in relation
to workers injury claims were received under that Act.
Categories of Documents
WorkSafe is the regulator of the workplace occupational health and safety system and the rehabilitation and compensation system in
Victoria.
WorkSafe publishes most of its policy, guidance material and related documents on its website.
Health and Safety
WorkSafe is responsible for improving health, safety and welfare in the workplace under the Occupational Health & Safety Act 2004 and
associated legislation.
Information held by WorkSafe is separated into the categories of personal or case fles, operational and policy fles (on legislation or particular
aspects of legislation) and correspondence fles. Current fles are stored at WorkSafes offce in Exhibition Street or at one of its regional
offces.
Categories of documents include:
annual reports
computer records (databases, documents, spreadsheets)
correspondence
fnancial records
general information fles
relevant journals, magazines and newsletters
inspections and investigations fles
legal advice and litigation fles
policies, guidelines and submissions
licensing application forms
statistics and reports
complaint fles
programs and events (e.g. WorkHealth, Work Safe Week), and
other documentary information.
87
Injury Support and Service
WorkSafe is responsible for the compensation and rehabilitation of injured workers under the Accident Compensation Act 1985 as well as
managing employer workplace injury insurance and premiums under the Accident Compensation (WorkCover Insurance) Act 1993.
The rehabilitation and compensation scheme is administered by a number of authorised Agents on behalf of WorkSafe. These Agents are
currently responsible for a range of functions including premium collection, claim lodgement and the delivery of benefts to and rehabilitation
of workers. Therefore, personal or case fles of workers are held by the Agents who manage their claims. Other operational and policy fles
are stored at WorkSafes offces in Exhibition Street, Melbourne.
Examples of the types of documents to which members of the public usually apply for access are:
documents relating to their personal information, for example a particular workers injury claim, or a workplace complaint made against an
individual or company or
documents of a non-personal nature, for example details on WorkSafes processes or decisions, or information on an incident at a
workplace.
Not all documents are automatically made available in response to a request. You may check WorkSafes website or contact the Advisory
Service to enquire as to whether the information you require is available for inspection or whether you should apply for it under the provisions
of the FOI Act.
Making a Request
Workers injury claim fles
If you are a worker who has claimed compensation and wish to access documents in relation to your injury claim fle you can contact the
Agent managing your claim to apply for documents under section 107A of the Accident Compensation Act 1985.
Workplace Injury Insurance Premium Information
Documents relating to employer premiums are held by the Agents. Certain documents can be released by the Agents without the need to
use the FOI Act process. Employers should contact the Agent managing their claims to request access to particular documents.
Other Information
For information not related to a workers injury claim fle or an employers premium, requests must be made in writing and should be
addressed to:
Freedom of Information
WorkSafe Victoria
GPO Box 4306
Melbourne VIC 3001
A statutory fee (of $24.40 from 1 July 2011) is payable for each FOI request and must be enclosed with the letter of request (cheques should
be made payable to WorkSafe Victoria). The fee may be waived if the applicant requests and provides evidence as to why payment of the fee
would cause them fnancial hardship. Additional costs for access to documents may be also incurred, such as for photocopying and search
time.
Decisions are made under the FOI Act by the Principal Offcer or FOI Offcers in accordance with the requirements of sections 26 and 51 of
the FOI Act. If you have a general query, you may contact the FOI team on (03) 9641 1555.
Further Information
To provide assistance to FOI applicants, WorkSafe provides general information about making FOI requests which is available on its website
at www.worksafe.vic.gov.au.
Library
WorkSafes library has an extensive collection of publications. Members of the public are welcome to use the collection, but must frst make
an appointment by telephone.
The library operates from:
Ground Floor
222 Exhibition Street
Melbourne
Telephone: (03) 9641 1548 or 1800 671 004
Whistleblowers Protection
WorkSafe has established procedures under Part 6 of the Whistleblowers Protection Act 2001. These procedures provide for disclosures
to be made to the Protected Disclosure Co-ordinator or to one of a number of protected disclosure offcers within WorkSafe. The Protected
Disclosure Co-ordinator will determine whether it is a public interest disclosure and will be responsible for appointing an investigator
and coordinating and overseeing the investigation. The Co-ordinator is also responsible for appointing a welfare manager to support the
whistleblower and protect them from any reprisals; to maintain a confdential fling system and collate and publish statistics on disclosures
made. The procedures are available on WorkSafes website at www.worksafe.vic.gov.au.
Pursuant to section 104 of the Whistleblowers Protection Act 2001, WorkSafe reports for the period 2010/11 as follows:
Number and type of disclosures made to WorkSafe during the year One protected
disclosure
Number of disclosures referred during the year by WorkSafe to the Ombudsman for determination as to whether
they are public interest disclosures
One
Number and types of disclosed matters referred to the public body during the year by the Ombudsman One public interest
disclosure
Number and types of disclosed matters referred during the year by the public body to the Ombudsman to investigate None
Number and types of investigations of disclosed matters taken over by the Ombudsman from the public body
during the year
None
Number of requests made under section 74 during the year to the Ombudsman to investigate disclosed matters None
Number and types of disclosed matters that the public body has declined to investigate during the year None
Number and types of disclosed matters that were substantiated on investigation and the action taken on
completion of the investigation
None
Any recommendations of the Ombudsman under the Act that relate to WorkSafe None
Application for Internal Review
During 2010/11, there were 2,131 applications received for internal review of decisions, an increase of 22% over the previous year.
2,127 decisions were issued, including a small number of licensing reviews. All decisions were completed within the statutory time frames.
Just over 86% of applications involved requests for additional time to comply with Improvement notices. Outcomes were as follows:
Internal Review Outcomes 2010/11 2009/10
Inspectors decision affrmed (no change) 129 135
Licensing decision affrmed 13 3
Inspectors decision set aside 114 102
Licensing decision set aside 1 3
Inspectors decision varied (other than compliance date) 20 13
Compliance date only changed 1,668 1,369
Application withdrawn 88 52
Licensing decision withdrawn 1 1
Application ineligible/no reviewable decision 35 22
Licensing ineligible/no reviewable decision 2 0
Extension refused 51 34
Application refused 5 0
TOTAL 2,127 1,734
In the year to 30 June 2011, there were 30 decisions lodged for review at VCAT and 4 remained in the list from the previous year. Of the 34
matters, 5 were struck out or dismissed by VCAT, 7 were withdrawn, 1 decision was affrmed, 1 was varied and 2 were set aside. 14 matters
are under negotiation and 4 are listed for hearing.
vICTORIAN INDUSTRy PARTICIPATION POlICy
Contracts commenced to which the VIPP applied:
During 2010/11, WorkSafe commenced two contracts in metropolitan Victoria with a combined value totalling $35.9 million (GST inclusive),
to which the VIPP applied.
The commitments by contractors under VIPP included:
an overall level of local content of 100% of the total value of the contracts; and
56 full time equivalent jobs.
Benefts to the Victorian economy in terms of skills and technology transfer include:
the creation of new apprenticeships/traineeships and
curriculum development and fnancial support to tertiary institutions in developing programs for the development of expertise in health
education, health coaching and call centre competencies.
Contracts completed to which the VIPP applied:
During 2010/11, WorkSafe completed one contract in metropolitan Victoria totalling $4.95 million (GST inclusive) in value to which the VIPP applied.
The outcomes reported by contractors under VIPP included:
an overall level of local content of 100% of the total value of the contracts
18 full time equivalent jobs and
3 full time apprenticeships.
Benefts to the Victorian economy in terms of skills and technology transfer included the development of instructional programs in emerging
IT technologies.
89
NATIONAl COmPETITION POlICy
Review of Legislative Restrictions
In accordance with its National Competition Policy commitments, the Victorian Government commissioned a review of Victorias accident
compensation legislation in 1998. The review identifed three main restrictions on competition; the mandatory nature of the insurance,
monopoly provision and centralised premium setting.
In December 2009 a new provision was introduced into the Accident Compensation Act 1985, to commence on 1 July 2010, which
provides that the Minister must, once every 5 years, cause a review on any matter relating to the setting of premiums. The review is to be
undertaken by an independent expert body. The Minister may also cause a review on any matter relating to self-insurer contributions to be
undertaken by an independent expert body.
Competitive Neutrality
Under the Victorian Governments Competitive Neutrality Policy, WorkSafe is listed as a Public Financial Enterprise. Therefore, in accordance
with the obligations set out in the Competition Principles Agreement, WorkSafe pays the full suite of Commonwealth and State taxes or tax
equivalents where applicable. WorkSafe is not a borrower in its own right and therefore is not subject to the Financial Accommodation Levy.
BUIlDINg ACT
WorkSafes policy with respect to new building works, and alterations to existing buildings, is to comply with the Building Act 1993 as if
WorkSafe is not exempt from compliance as a public authority (as provided in section 217(3) of the Building Act 1993).
Some buildings occupied by WorkSafe may have been constructed or altered under exemptions for public bodies which applied at the time.
WorkSafe is unaware of any material non-compliance with the current building standards for buildings of their nature and age.
ADDITIONAl INfORmATION AvAIlABlE ON REqUEST
To the extent applicable, the information listed in Financial Reporting Direction 22, issued by the Minister for Finance, is available on request
(subject to the provisions of the FOI Act).
mERIT AND EqUITy, AND EmPlOymENT AND CONDUCT PRINCIPlES
WorkSafe is committed to the application of principles of merit and equity in the employment process. These principles ensure applicants are
assessed and evaluated fairly and equitably on the basis of key selection criteria and required competencies. All decision making recognises
WorkSafes Code of Conduct, Organisation Values and relevant policies and processes.
All WorkSafe employees have access and support available to them via the Equal Employment Opportunity (EEO) Contact Offcers.
In 2010/11, the focus for the EEO refresher training was predominantly in the Business Services areas. The training sessions were
conducted divisionally and in mixed division sessions. All employees identifed as required to attend participated in the training.
WORkSAfE WORkfORCE DATA 30 June 2011 30 June 2010
Total number of employees 1,135 1,147
Full time equivalent 1,097 1,105
Males 558 557
Females 577 590
Full time 1,018 1,027
Part time 117 120
Average age 43 43
WORkfORCE By WORkSAfE ClASSIfICATION BAND
Band 1 Band 2 Band 3 Band 4 Band 5 Band 6 Other
30 June 2011 7 75 130 359 371 88 105
30 June 2010 7 73 140 354 366 92 115
CONSUlTANTS
The following table lists the consultants engaged in 2010/11 where the cost of the engagement was $100,000 or above.
Consultant Project Total Approved
Project Fee
2010/11
Expenditure
Future
Expenditure
$000s $000s $000s
Deloitte Touche Tohmatsu Health and Safety Investigations Function Review 207 196
Deloitte Touche Tohmatsu Strategic Programs Division Structural Review 180 180
In addition a further 5 consultancies where the total payable to consultants was less than $100,000 were engaged during the fnancial year
at a total cost of $0.153 million. The total approved project fees and expenditure for 2010/11 excludes GST.
APPENDIX 5 COmPlIANCE INDEX TO DISClOSURE REqUIREmENTS 2010/11
DISClOSURE INDEX
The Annual Report of WorkSafe is prepared in accordance with all relevant Victorian legislations and pronouncements. This index has been
prepared to facilitate identifcation of WorkSafes compliance with statutory disclosure requirements.
Ministerial Directions/Legislation Requirement Page reference
Report of Operations
Charter and purpose
FRD 22B Manner of establishment and the relevant Minister 85
FRD 22B Objectives, functions, powers and duties 86
FRD 22B Nature and range of services provided 86
Management and structure
FRD 22B Organisational structure 7
Financial and other information
FRD 22B Statement of workforce data and merit and equity 89
FRD 22B Summary of the fnancial results for the year 5
FRD 22B Signifcant changes in fnancial position during the year 34
FRD 22B Operational and budgetary objectives and performance against objectives Throughout
FRD 22B Major changes or factors affecting performance Throughout
FRD 22B Subsequent events 71
FRD 22B Details of consultancy expenditure 89
FRD 22B Application and operation of Freedom of Information Act 1982 86
FRD 22B Compliance with building and maintenance provisions of Building Act 1993 89
FRD 22B Application and operation of the Whistleblowers Protection Act 2001 87-88
FRD 22B Statement on National Competition Policy 89
FRD 22B Statement of availability of other information 89
FRD 22B Occupational health and safety policy 28-29
FRD 22B Employment and conduct principles 89
FRD 10 Disclosure index 90
FRD 25 Victorian Industry Participation Policy disclosures 88
SD 4.5.5 Risk management compliance attestation 85
SD 4.2(g) General information requirements Throughout
SD 4.2(j) Sign-off requirements Inside cover
Financial Statements
Financial statements required under Part 7 of the FMA
SD 4.2(a) Statement of changes in equity 35
SD 4.2(b) Operating statement 33
SD 4.2(b) Balance sheet 34
SD 4.2(b) Cash fow statement 36
Other requirements under Standing Directions 4.2
SD 4.2(c) Compliance with Australian Accounting Standards and other authoritative
pronouncements
37
SD 4.2(c) Compliance with Ministerial Directions 37
SD 4.2(c) Accountable offcers declaration 71
SD 4.2(d) Rounding of amounts 42
Other disclosures as required by FRDs in notes to the
fnancial statements
FRD 11 Disclosure of ex-gratia payments N/A
FRD 17A Long service leave wage infation and discount rates 41
FRD 21A Responsible person and executive offcer disclosures 61-62
FRD 103D Non-current physical assets 40
FRD 104 Foreign currency 39
FRD 106 Impairment of assets 40
FRD 109 Intangible assets 40-41
FRD 110 Cash fow statement 36
FRD 112B Defned beneft superannuation obligations 63
FRD 116 Financial instruments Public Finance Corporations 63-70
Legislation
Freedom of Information Act 1982 86
Building Act 1983 89
Whistleblowers Protection Act 2001 87-88
Victorian Industry Participation Policy Act 2003 88
Financial Management Act 1994 37
LOCAL OFFICES
Ballarat 0353384444
Bendigo 0354438866
Dandenong 0387929000
EssendonFields 0392236888
Geelong 0352261200
Mildura 0350214001
Mulgrave 0395659444
Shepparton 0358318260
Traralgon 0351748900
Wangaratta 0357218588
Warrnambool 0355643200
ADVISORY SERVICE
222ExhibitionStreet
MelbourneVIC3000
Phone 0396411444
Toll-free 1800136089
Email info@worksafe.vic.gov.au
HEAD OFFICE
222ExhibitionStreet
MelbourneVIC3000
Phone 0396411555
Toll-free 1800136089
Website worksafe.vic.gov.au

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