Myth 1: Cuts are needed because the workers compensation scheme has a $4 billion deficit
- The workers compensation system has enough money to meet its current liabilities.
- The size of the deficit is in large part due to poor investment returns during the Global Financial Crisis. Therefore the deficit will reduce as the economy improves.
- The size of the deficit is based on an estimate of future potential claims, which is something no-one can predict.
- If the Government focuses on preventing injuries in the first place, helping injured workers back to work and reducing the costs paid to insurers for administration huge savings can be made.