The supplementation fund covers employers’ liability for claims under the Workers’ Compensation and Injury Management Act 1981 in the event that an approved insurer proceeds into liquidation, and for waterfront workers suffering from asbestos-related diseases under the Waterfront Workers’ (Compensation for Asbestos Related Diseases) Act 1986.

The WorkCover WA Board recently considered actuarial advice on the funding position of the supplementation fund. Based on actuarial advice, the WorkCover WA Board felt that the fund’s reserves were sufficient to pay all known and anticipated outstanding liabilities associated with HIH and recommended to the Minister for Employment Protection that the supplementation fund levy be discontinued in 2008-09.

The Minister endorsed WorkCover WA’s recommendation and subsequently the Employers’ Indemnity Supplementation Fund Amendment and Repeal Regulations 2008 (the Amendment Regulations) were approved by Executive Council on 20 May 2008 and published in the Government Gazette on 27 May 2008.

The Amendment Regulations remove the 1 per cent cost impost on employers’ workers’ compensation premiums reintroduced in 2001 in response to the collapse of HIH Insurance Ltd. The supplementation fund levy will be discontinued from 4pm on 25 June 2008 and the inoperative supplementation fund regulations will be repealed on 26 June 2008.

Further information on the supplementation fund levy can be obtained by contacting Paul Brookes, Principal Policy Officer, on 9388 5569 or by emailing paul.brookes@workcover.wa.gov.au.