Union calls on Federal government to reform outdated workers' compensation system
The Australian government is being urged to immediately legislate the recommended reforms to the federal workers' compensation system, which has been criticised as outdated after remaining unchanged for more than three decades.
The compensation system, called Comcare, operates under the Safety Rehabilitation and Compensation Act 1988 (SRC Act), and covers more than 470,000 employees employed by the Commonwealth and ACT governments.
It also covers employees of major national companies, including Commonwealth Bank, NAB, Telstra, John Holland, and Australia Post.
A review of the legislation, which was released in December 2025, found that the Comcare scheme is "increasingly out of step with the realities of contemporary work," with the system not undergoing holistic reform since it was passed nearly 40 years ago.
"We have seen the rise of work-from-home arrangements, the emergence of new industries, the ageing of our workforce, a greater focus on work health and safety, and shifts in the types and causes of workers' compensation claims. The legislation needs to reflect and be able to respond to these developments," the review read.
The review made a total of 124 recommendations for the SRC Act, including ensuring injured workers can access early treatment without financial stress.
It also recommended a mandate for employers to provide safe, supported return-to-work plans, as well as reforms to the practice of employers managing their own workers' claims. It also called for the restoration of legal rights for seriously injured workers to take action against negligent employers.
'Legislate these reforms now'
The Australian Council of Trade Unions (ACTU) said the independent review already provided a clear blueprint on what is wrong with the system and how to fix it.
"Injured workers cannot wait – they need the government to legislate these reforms now," said Liam O'Brien, Assistant Secretary at ACTU, in a statement.
According to the union, the current system enables reckless and negligent employers to avoid accountability, and does not enforce obligations on employers to support an employee's return to work.
"Getting hurt at work should not cost you your income, your recovery, or your rights. Under the current Comcare scheme, it can cost you all three," O'Brien said.
"Unions hear directly from workers across the federal system on a weekly basis. They face long delays, lost income, barriers to medical treatment, and little support to stay connected to their job – all because our national laws are decades behind."
Employment and Workplace Relations Minister Amanda Rishworth said in December that it[the government] will consider the recommendations outlined in the SRC review.
"Our Government is committed to the effective operation and sustainability of the Comcare scheme, so it can continue to fulfil its critical function as the world of work undergoes significant shifts," the minister previously said.
"The Government will carefully consider the review recommendations with a view to progressing necessary reforms."
