South Australian peak industry bodies have joined forces to welcome the news that the Malinauskas Government is urgently introducing legislation to fix the Summerfield decision.
The South Australian Business Chamber Director of Policy and Advocacy Kendall Crowe reminds us that employer premiums solely fund the return to work scheme.
“The Summerfield decision threatens the scheme’s design and has landed South Australian employers with a $1.1 billion liability. It also puts a potential 20,000 jobs at risk if the business community is forced to shoulder significantly increased premiums.
“South Australian businesses need the Government of South Australia to legislate a fix to avoid the significant financial impact of the current interpretation.
“In its current state, the scheme will fail. It will become unaffordable — South Australia will return to the old days when we had the highest work cover premiums in the country. This will significantly reduce South Australia’s business competitiveness. Businesses will move interstate or not set up here at all.”
South Australian Wine Industry Association Chief Executive Brian Smedley says that whilst we have not yet seen the Bill, we welcome the legislation.
“The legislation is aimed at upholding the integrity and viability of the return to work scheme and intent behind the reforms of the scheme by the former State Labor Government, ensuring the premiums paid by individual businesses reflect their claims history.”
Australian Hotels Association General Manager Ian Horne fully supports the Government’s decision to introduce these amendments to the return to work legislation.
“The amendments will restore the original intention of the legislation. It will also help avoid skyrocketing premium costs, higher costs of employing people and making us uncompetitive with other states again.”
MTA Chief Executive Officer Paul Unerkov said that small, medium and family-run businesses in the automotive industry are grappling with inflationary pressures and skill shortages, and the Summerfield decision would threaten their sustainability and ability to employ South Australians.
“We are pleased to see a sensible approach on this issue by the State Government.”
Housing Industry Association South Australia Executive Director Stephen Knight said that any increases in premiums to compensate for the increased ongoing liability would be unsustainable.
“As businesses struggle to recover from the COVID-19 crisis, a hit like this could prove to be the nail in the coffin for many.”
Master Builders SA Chief Executive Officer Will Frogley said that the building and construction industry is dealing with unprecedented cost pressures and cannot afford the significant premium increase created by the Summerfield decision.
“This amendment is a practical approach to restore the legislation to its original intention, ensuring the scheme’s viability.”
National peak employer association Ai Group has welcomed the State Government’s plans to fix major issues with the return to work scheme, which, left unaddressed, would have resulted in soaring premiums and poorer health outcomes.
“We applaud the new State Government for moving quickly on this issue and look forward to a bipartisan approach to ensure that changes can be swiftly implemented.”
