Myth 1: Cuts are needed because the workers compensation scheme has a $4 billion deficit

1. The workers compensation system has enough money to meet its current liabilities.
2. 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.
3. The size of the deficit is based on an estimate of future potential claims, which is something no-one can predict.
4. 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.