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Page 1: 12/13 Annual Report - WorkSafe Queensland · 3 Continued to develop the Regional network program by visiting more locations and delivering 77 workshops to 3,764 participants across

12/13 Annual Report

Page 2: 12/13 Annual Report - WorkSafe Queensland · 3 Continued to develop the Regional network program by visiting more locations and delivering 77 workshops to 3,764 participants across

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CONTENTSCopyright

© State Government of Queensland (Q-COMP) 2013

Disclaimer

The information provided in this publication is distributed by Q-COMP as an information source only. Q-COMP does not take any responsibility for any reliance upon the information in this publication. The information is provided solely on the basis that readers will be responsible for making their own assessment of the matters discussed herein and are advised to verify all relevant representations, statements and information.

Accessibility

We are committed to providing accessible services to Queenslanders

from all culturally and linguistically diverse backgrounds. If you have difficulty in understanding our Annual Report, please contact us on + 61 7 3020 6064 for assistance.

This annual report is printed on Maine Recycled Silk. FSC Certified.

Sourced from responsible forestry practices.

Q-COMP HIGHLIGHTS ................. 3Highlights from 12/13.

COMMUNICATIONS OBJECTIVE ... 4Who we are, what we stand for, where we’re going.

EXECUTIVE SUMMARY ................. 6Q-COMP at a glance.

LETTER OF COMPLIANCE ............ 8Presenting the report to the Attorney-General and Minister for Justice.

Q-COMP AND THE SCHEME......... 9Q-COMP is the authority regulating the Queensland workers’ compensation scheme.

PERFORMANCE SNAPSHOT ........ 11A snapshot of our progress for the reporting year.

CHAIRPERSON’S REPORT .......... 28A strategic view.

CHIEF EXECUTIVE OFFICER’S REPORT ..................................... 30An operational view.

FINANCE MANAGER’S REPORT ....32A financial view.

RETURN TO WORK ASSIST ......... 34Supporting injured workers facing long-term unemployment.

RETURN TO WORK CONFERENCE, EXPO AND AWARDS .................. 36Showcasing innovation and recognising excellence.

OUR PEOPLE...............................41Making our values part of everything we do.

BOARD OF DIRECTORS .............. 43Ensuring we regulate the scheme fairly and equitably.

Q-COMP LEADERSHIP TEAM ..... 44Providing solid teamwork and leadership.

REVIEW UNIT ............................. 48Offering an independent review process for employers and injured workers.

APPEALS ................................... 50Ensuring integrity in all our decisions and interactions.

FRAUD PROSECUTION ................52Integral to the Queensland workers’ compensation scheme is the honesty of employers and workers.

MEDICAL ASSESSMENT TRIBUNALS .................................53Fair and independent medical decisions.

DATA MANAGEMENT AND ANALYTICS ................................ 56Scheme claim highlights.

SELF-INSURERS ......................... 59Building robust relationships with self-insurers.

STAYING IN TUNE WITH OUR STAKEHOLDERS ......................... 62Supporting our stakeholders across the state.

GOVERNANCE ........................... 65Assuring quality performance through governance.

FINANCIAL OVERVIEW ............... 80Summarising key aspects of our financial performance.

FINANCIAL STATEMENTS ............90

INDEPENDENT AUDITOR’S REPORT ....................................121

APPENDICES.............................123

GLOSSARY & COMMON ACRONYMS..............................126

INDEX.......................................134

INDEX OF FIGURES....................136

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� Continued to develop the Regional network program by visiting more locations and delivering 77 workshops to 3,764 participants across the state from the Gold Coast to Cairns.

� Played an active role in liaising with and providing submissions to the Finance and Administration Committee, including information about opportunities to improve scheme performance and reduce red tape.

� Completed the integration of tablet computers into General Medical Assessment Tribunals, removing the need for hard copy referrals and moving forward in becoming a paperless, e-business focussed organisation.

� Return to work assist delivered an overall return to work rate of 81.8%. Of those referrals finalised with a common law claim, 65.4% returned to work prior to settlement.

� Q-COMP’s operating result for 12/13 is $930K better than the original budget.

� Welcomed Flavia Gobbo as Chair and a new Board of Directors.

Q-COMP HIGHLIGHTS

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COMMUNICATIONS OBJECTIVE

Q-COMP THE WORKERS’ COMPENSATION REGULATORY AUTHORITY ANNUAL REPORT 12/13

12/13 has been a year of change. Externally, we started the year with a new Government and Minister, followed by a change to Board members and Chair and a change of executive at WorkCover Queensland. Internally we have a renewed focus on reducing red tape and improving efficiencies across all areas of our business.

These constructive changes have seen Q-COMP improve the way we deliver our products and services across Queensland. Ensuring we are able to reach and support all of our stakeholders across every corner of the state.

We also undertake regular review and evaluation of our products and services to ensure they are not only accessible but that they truly meet the needs of our many varied stakeholders.

Our Regional network program has expanded its reach and continues to deliver workshops across the state that often book out within hours. We evaluated our Conference and Awards program and made cost-reducing changes that did not impact the end result of a quality conference delivering important messages to our audience.

We have reduced red tape across our operations and seen an increase in efficiency and deliverables to our stakeholders.

Q-COMP also remains committed to growing and supporting our people. We encourage a strong, resilient working culture within our organisation that can adapt to change with willingness and positivity.

We are proud to highlight the positive changes we have made to ensure that as always, our main priority is on delivering exceptional customer service to all our stakeholders, no matter where they are based in the state.

OUR STAKEHOLDERS

Q-COMP has a varied and complex stakeholder base, and each has an essential role in ensuring a healthy workers’ compensation scheme.

These include:

� the Attorney-General and Minister for Justice

� Government departments, in particular the Department of Justice and Attorney-General

� workers’ compensation insurers, including WorkCover Queensland and 25 self-insurers

� employers and their industry associations

� workers and unions

� rehabilitation and return to work coordinators

� medical and allied health professionals and their associations

� legal professionals and their associations

� our staff.

One of our ongoing goals each year is to work closely with all of our stakeholders to educate, engage and increase participation in the scheme in order to achieve better outcomes for both employers and workers.

Our Annual Report provides details on our regional and rural focus, and includes information on how we have worked collaboratively with our stakeholders across the state. We have also highlighted our ongoing priorities and goals for the year ahead.

We have produced this report to:

� inform the Attorney-General and Minister for Justice, scheme stakeholders and interested parties from other jurisdictions

� communicate Q-COMP’s activities and achievements for the 12/13 financial year

� measure our performance against the objectives set in our operational plan.

WHO WE ARE, WHAT WE STAND FOR, WHERE WE’RE GOING

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REPORTING Q-COMP’S PROGRESS

Q-COMP’s Annual Report to the Attorney-General and Minister for Justice accurately reflects Q-COMP’s financial and non-financial performance from 1 July 2012 to 30 June 2013. We have summarised our achievements and activities against the goals developed in the strategic and operational planning processes.

Our annual scheme-wide Statistics Report 12/13 has been produced as a separate publication and can be made available upon request in hard copy or electronically. Our Annual Report satisfies the legislative requirements of the Workers’ Compensation and Rehabilitation Act 2003, Financial Administration and Audit Act 1977, Statutory Bodies Financial Arrangements Act 1982 and other relevant legislation and Government standards.

TELL US WHAT YOU THINK!

Q-COMP is committed to continual improvement and open and accountable governance. We hope you find our report informative and engaging and we invite and welcome your feedback on this publication. A feedback form is available on our website at qcomp.com.au or you can send your comments via email or post (see the contact details provided below).

FINDING THE INFORMATION YOU NEED

Throughout the report, we refer readers to our dedicated Annual Report website as a source of additional information.

The Annual Report and companion statistics publication are both available on qcompannualreport.com.au or you can request a hard copy through the avenues listed below.

Marketing Communications Q-COMP 347 Ann Street Brisbane Queensland PO Box 10119 Brisbane Adelaide Street Q 4000 Telephone: + 61 7 3020 6399 Facsimile: + 61 7 3020 6426 Email: [email protected]

COMMUNICATIONS OBJECTIVE (CONT’D)WHO WE ARE, WHAT WE STAND FOR, WHERE WE’RE GOING

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EXECUTIVE SUMMARYQ-COMP AT A GLANCE

OUR VISION

To provide an enduring Queensland workers’ compensation and rehabilitation scheme that balances the needs of workers and employers.

STATEMENT OF Q-COMP INTENT

Q-COMP is uniquely placed in the Queensland workers’ compensation scheme. We play a diverse range of roles including regulator, facilitator of legal and medical resolution, educator and promoter of our scheme.

We work closely with our scheme partners and stakeholders to effectively balance the needs of workers and employers, ensuring a fair and efficient scheme for all. Q-COMP is committed to acting as the voice of the workers’ compensation industry, and working across the whole of Queensland to deliver a high quality service, while ensuring we remain accessible to all of our customers and stakeholders in regional, rural and metropolitan areas.

We are passionate about continuing to innovate and develop services and initiatives that better serve the industry, and ultimately ensure that injured workers are able to safely return to the workplace after a work related injury.

Q-COMP continues to offer a high quality customer experience to all of our stakeholders, and the Q-COMP team prides itself on providing highly professional services at all times.

Vibrant, professional, committed to exceeding expectations

Inspired, empowered, valued

Courage to do the right thing

Challenge what is, research what could be, deliver solutions

1. OUR VALUES

WE PLAY A DIVERSE RANGE OF ROLES INCLUDING REGULATOR, FACILITATOR OF LEGAL AND MEDICAL RESOLUTION, EDUCATOR AND PROMOTER OF OUR SCHEME.

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EXECUTIVE SUMMARY (CONT’D)Q-COMP AT A GLANCE

WHO WE ARE

Q-COMP is the Queensland workers’ compensation regulatory authority. We are established under The Workers’ Compensation and Rehabilitation Act 2003 (the Act).

Our Leadership Team is formed of eight senior managers including our CEO, Elizabeth Woods. Within the Leadership Team we have four female managers and four male managers, spanning both Generation X and the Baby Boomer generation. Our Leadership Team’s skills and knowledge are broad – more information on the team can be found on pages 44 and 45. Please see below for information on our organisational structure.

During the term of employment from 1 July 2012 – 30 June 2013, the Q-COMP Board consisted of our Chairperson, Ms Flavia Gobbo, and five individuals with a wealth of knowledge and experience. For more information on our Board, please see page 43.

OUR KEY PERFORMANCE INDICATORS

We report core function results to our Board each month, which measure both qualitative and quantitative outcomes, and find opportunities to reduce our operating costs through efficient and innovative work practices.

We aim to continue to achieve our 98% financial performance against budget to ensure ongoing service viability.

To view a full copy of our Operational Plan 2011-2015 visit our website at qcomp.com.au

Chief Executive

Officer

Executive Services and

Corporate Governance

Review and Appeals, Central

Administration

Finance and Procurement

Marketing Communication

Data Management Analytics and Information Technology

Education Promotion

and Tribunal Services

Insurer Services and Return to

work assist

2. ORGANISATIONAL CHART

Board

Human Resources

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LETTER OF COMPLIANCEPRESENTING THE REPORT TO THE ATTORNEY-GENERAL AND MINISTER FOR JUSTICE

28 August 2013

The Honourable Jarrod Bleijie MPAttorney-General and Minister for JusticeLevel 18, State Law Building 50 Ann StreetBRISBANE Q 4000

Dear Minister

I am pleased to present Q-COMP’s 2012-2013 Annual Report. This report represents Q-COMP’s achievements for the period 1 July 2012 to 30 June 2013.

The theme of this year’s Annual Report highlights our ongoing commitment to supporting a transparent and efficient workers’ compensation scheme for Queensland.

We stand behind our commitment to ensure a robust and fair scheme for employers and workers across Queensland and continue to make changes to reduce red tape and improve efficiencies while maintaining our high level of customer service.

We’ve continued to expand our provision for educational opportunities in metropolitan and regional Queensland over the past 12 months, reinforcing our role as a promoter of education about the workers’ compensation scheme.

I commend this Annual Report to you, as a record of our achievements and activities in our tenth year of operation.

Yours sincerely

Flavia Gobbo Chairperson

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Q-COMP AND THE SCHEMEQ-COMP IS THE AUTHORITY REGULATING THE QUEENSLAND WORKERS’ COMPENSATION SCHEME

Q-COMP is an independent statutory authority whose prime function is to regulate Queensland’s workers’ compensation scheme. We work closely with our scheme partners to balance the needs of workers and employers to ensure a fair and efficient scheme for all. We do this by:

Regulating

� monitoring the compliance of insurers with the Act

� monitoring the performance of insurers under the Act, including the consistent application of the Act

� deciding self-insurance applications

� approving amounts payable under an industrial instrument

� collecting fees and administering grants pursuant to the Act

� administering scheme-wide rehabilitation and return to work programs

� undertaking workplace rehabilitation accreditation and compliance activities.

Rehabilitation

� providing rehabilitation advisory services

� administering return to work programs.

Dispute resolution

� reviewing insurers’ decisions

� managing appeals against Q-COMP review decisions

� supporting and overseeing the efficient administration of medical assessment tribunals.

Education and information

� promoting education about the Queensland workers’ compensation scheme

� administering grants pursuant to the Act.

Data management

� maintaining a database for scheme-wide reporting.

Q-COMP receives no funding from the Government’s consolidated revenue and is funded through levies collected from self-insurers and a contribution from WorkCover Queensland. WORKCOVER QUEENSLAND In Queensland, every employer, unless licensed as a self-insurer, must have a workers’ compensation policy with WorkCover Queensland. This policy provides financial protection to employers by covering the costs associated with workers’ compensation statutory claims and common law claims. WorkCover Queensland is Q-COMP’s major insurer stakeholder, and we continue to work closely with them to ensure we have a strong working relationship that supports the employers and employees of Queensland. We meet regularly to discuss and progress issues of mutual concern and work together to develop solutions and ways forward. This commitment to a strong relationship is endorsed and supported at the executive level of both Q-COMP and WorkCover Queensland. 3. CLAIM RATES (PER 1,000 EMPLOYEES COVERED BY THE SCHEME) AND LODGEMENTS 08/09 TO 12/13

103,667 100,422 104,744 105,40499,298

48.3 46.5 46.8 46.3 43.4

08/09 09/10 10/11 11/12 12/13

Financial year

Lodgements (excluding cancelled claims) Claim Rates

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Queensland workers’ compensation scheme

Q-COMP regulates

Claims made to WorkCover Qld (90%) and self-insured employers (10%)

Government legislates

Q-COMP’s role in the scheme includes regulation,

legal and medical dispute resolution, stakeholder

education and promotion to improve return to

work outcomes for employers and injured workers.

4. THE WORKERS’ COMPENSATION SCHEME IN ACTION

Q-COMP AND THE SCHEME (CONT’D)Q-COMP IS THE AUTHORITY REGULATING THE QUEENSLAND WORKERS’ COMPENSATION SCHEME

SELF-INSURERS At 30 June 2013, there were 25 self-insurers (see Appendix 1) in the Queensland scheme covering 263 employers and their employees. Q-COMP may approve a self-insurance licence for an employer if they meet legislative criterion that considers size, assets, bank guarantees, and health and safety performance. * Note: the full list of individual companies under each self-insurance licence is available on Q-COMP’s website at qcomp.com.au. Q-COMP continues to have a good working relationship and open lines of communication with the scheme’s self-insurers via our dedicated Self-Insurer Team. Our Insurer Advisors meet regularly with self-insurer representatives to discuss advisory, performance and licensing matters. We very much encourage insurers to raise and discuss their issues and scheme issues, both individually and through the Association of Self-Insured Employers of Queensland (ASIEQ). WORKERS’ COMPENSATION POLICY AND SCHEME DESIGN Q-COMP maintains strong relationships with the Department of Justice and Attorney-General and Industrial Relations, WorkCover Queensland, self-insurers and other key stakeholders, and is committed to working with these industry partners to build a modern workers’ compensation scheme for the whole of Queensland.

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PERFORMANCE SNAPSHOTA SNAPSHOT OF OUR PROGRESS FOR THE REPORTING YEAR

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BUSINESS AREA OUTCOME WHAT WE PROMISED

PERFORMANCE SNAPSHOTA SNAPSHOT OF OUR PROGRESS FOR THE REPORTING YEARDELIVERED ONGOING NOT COMPLETED

Q-COMP and the scheme

Page 9

Return to work assist

Page 34

Continue to participate in working groups for workers’ compensation issues.

Continue to raise awareness of Q-COMP services and initiatives across regional Queensland.

Participate in the legislated workers’ compensation scheme review to be commenced 30 June 2012.

Provide career development and return to work services consistent with the Professional Standards for Australian Career Development Practitioners.

Provided information and education to our regional stakeholders through Regional network program workshops and at trade events.

Visited more regional locations across Queensland than in 11/12.

Provided clear and informative submissions to the Finance and Administration Committee under its terms of reference.

Developed and conducted our first job seeking and interview skills workshop for injured workers to empower them to return to work.

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WHAT WE DELIVERED TARGET 13/14

Q-COMP participated in advisory group activities until the recommendations were completed.

77 Regional network program workshops, educating 3,764 stakeholders.

Speaking directly with our stakeholders at seven trade events.

Increased our regional reach by visiting a wider range of locations across the state.

Played an active role in liaising with and providing submissions to the Finance and Administration Committee.

Q-COMP delivered information about opportunities to improve scheme performance and reduce red tape.

Maintained membership with the Career Development Association of Australia.

Updated all internal and external written material to align with the expectations of the Professional Standards.

Return to work assist Advisors have commenced the attainment of the required career development qualifications.

Continue to be involved with the Heads of Workers’ Compensation Authorities activities where appropriate.

Support changes that the Government may legislate.

Implement improvements identified in the Bond University Evaluation Report (April 2013).

Continue to develop the Regional network program to respond to stakeholder needs.

Increase our involvement in peak body education and trade events.

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BUSINESS AREA OUTCOME WHAT WE PROMISED

PERFORMANCE SNAPSHOTA SNAPSHOT OF OUR PROGRESS FOR THE REPORTING YEARDELIVERED ONGOING NOT COMPLETED

Return to work assist cont.

Page 34

Return to work Conference, Expo and Awards

Page 36

Our people

Page 41

Maintain current return to work rates. Positively influence the scheme through better return to work outcomes on open common law claims.

To grow attendance for the regional event and to expand promotion of the Conference and Awards program into more varied industries across the state.

Responded to stakeholder feedback and implemented improvements to internal management processes for participants with pending common law claims.

The on-Boarding process is a positive experience for our new starters, engaging them from day one and providing relevant information to be successful in their careers at Q-COMP. Team Leaders stepping up to leadership and coaching challenges.

Our people work flexibly across teams to cover peak workloads and provide uninterrupted service.

Two highly successful events in both metropolitan and regional locations.

Continue to improve the on-Boarding process by reviewing the feedback from new starters and ensuring a consistent approach across all teams including:

� introductory session about the workers’ compensation scheme and the function of Q-COMP

� introductory session about Q-COMP’s cultural history.

Continue to enhance coaching and mentoring skills linking achievement planning with the learning and development framework.

Continue to involve the Leadership Team members in ongoing development and talent management of our people.

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WHAT WE DELIVERED TARGET 13/14

An overall return to work rate of 81.8% (compared to 84.6% last year).

65.4% of participants with an open common law claim returned to work prior to the settlement of their common law claim (compared to 67.0% last year).

Funded an independent evaluation of the program by Bond University.

The delivery of another sell-out Return to work Conference, Expo and Awards event in Brisbane in October 2012. The expansion of our regional presence to Cairns by hosting a highly successful event in March 2013.

Our objective to expand the Conference and Awards program into more varied industries has not been met in 12/13 due to budget and resource constraints, however this remains a priority for 13/14.

Conducted three cultural history sessions led by the Leadership Team.

All new starters are provided access to the self-study module and quiz which is followed up by HR and the respective manager.

Increase the total number of program participants and maintain current return to work rates.

Continue to develop our Awards program with the inclusion of an innovation award that is open to all stakeholder groups. Continue to expand the Conference and Awards program into more varied industries and attract a wider audience.

Continue the engagement through culture and introductory sessions and monitor through six monthly feedback forums.

Clarity of expectations and continued feedback through the probation period.

Deliver the next culture survey and conduct leadership workshops to action recommendations.

Continue to involve the Leadership Team members in maintaining a flexible and responsive Workplace of Choice.

Continue to review the way we work, connect and communicate in every aspect of our business and deliver on Q-COMP’s strategy to reduce red-tape.

Managers worked with teams and created on-the-job opportunities to encourage the coaching and mentoring of members.

Leadership Team worked together to identify opportunities to build the capability of staff across Q-COMP.

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BUSINESS AREA OUTCOME WHAT WE PROMISED

PERFORMANCE SNAPSHOTA SNAPSHOT OF OUR PROGRESS FOR THE REPORTING YEARDELIVERED ONGOING NOT COMPLETED

Our people cont.

Page 41

Review Unit

Page 48

Appeals

Page 50

Review decisions are timely, transparent and professional.

Legal and medical expertise.

A paperless office.

Appeals Team performance.

Build on the momentum of the current strategy in ensuring all staff are kept abreast of business news while encouraging two-way communication across the organisation.

Achieve 55% of review decisions being determined within 25 business days.

Achieve an appeal rate of finalised review applications of less than 15.5%.

Ongoing Queensland-wide education.

To deliver and enhance professional development modules for the Review and Appeals Case Managers.

Continue to work with electronic files where possible.

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WHAT WE DELIVERED TARGET 13/14

Succinct and timely messages through internal and social media kept staff informed of topical issues such as the Inquiry and EBA.

70.6% of review decisions were determined within 25 business days.

14.8% appeal rate of finalised review applications.

The Review Unit assisted the Education Promotion Team’s support for the mining industry forum by providing information on relevant topics and trends within the industry.

The Barrister Panel delivered a structured training program on a variety of legal topics over a six month period.

A number of paper based procedures were eliminated while others have been made electronic.

Resourcing issues have prevented us from fully achieving this objective in 12/13.

Achieve 58.0% of review decisions being determined within 25 business days.

Continue to manage the high case load of appeals that has resulted from the backlog being heard by the QIRC.

Develop and roll-out a structured training program focussing upon specialist legal and medical knowledge.

Dedicate specific resources towards increasing the use of electronic files within the area.

Review the activities of the Appeals Team and determine possible improvements in the areas of policies, procedures, strategic alignment and general operations.

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BUSINESS AREA OUTCOME WHAT WE PROMISED

PERFORMANCE SNAPSHOTA SNAPSHOT OF OUR PROGRESS FOR THE REPORTING YEARDELIVERED ONGOING NOT COMPLETED

Medical Assessment Tribunals

Page 53

Complete integration of tablet computers into General Medical Assessment Tribunals.

Permanent impairment assessment methodology not introduced as awaiting outcome of decision to implement.

Refresher training for tribunal members completed.

Provide access to tablet computers and training for the General Medical Assessment Tribunals.

Make training available to tribunal members in the proposed new permanent impairment assessment methodology if it is introduced.

Provide refresher training to all tribunal members in writing sound reasons for decisions.

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WHAT WE DELIVERED TARGET 13/14

All members of the General Medical Assessment Tribunal (Psychiatric) were issued with and trained in the use of tablet computers to facilitate a more efficient dissemination of reference materials and other relevant information.

Professional discipline-specific applications were loaded onto the devices to enable timely access to information to support technical aspects of the decision making process.

All tribunal members are now proficient in the use of electronic file management, assisting the transition from paper to electronic files.

Not applicable.

Provided workshops for all tribunal members in writing reasons for decisions and natural justice.

For the Medical Assessment Tribunals to be paperless, including supporting the transition from hard copy to electronic referrals.

Make training available to tribunal members in the proposed new permanent impairment assessment methodology and assist with communication to all stakeholders if introduced.

Provide training to all tribunal members on the use of AMA5 if implemented in Queensland.

If the proposed new methodology is introduced into Queensland, Q-COMP will:

� assist with the communication of the new methodology to insurers and medical assessors

� assist in the establishment and maintenance of associated accreditation systems

� organise training opportunities for tribunal doctors and the broader medical community.

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BUSINESS AREA OUTCOME WHAT WE PROMISED

PERFORMANCE SNAPSHOTA SNAPSHOT OF OUR PROGRESS FOR THE REPORTING YEARDELIVERED ONGOING NOT COMPLETED

Health Services/Education Promotion Data Management and Analytics

Page 56

Not commenced.

Quality education across Queensland to an increased number of stakeholders.

Quality information capture, meaningful analysis of data and intelligence on scheme trends and issues while meeting national reporting responsibilities.

Complete an independent review of all allied health Tables of Costs.

Continue to support stakeholders by facilitating access to specialist presenters. Increase attendance at educational workshops.

Continue to develop the scholarship program by providing further scholarships in 12/13 and publishing/presenting research outcomes.

Support the research committee’s decision to review Clinical Guidelines.

Collaborate with and continue to support professional development opportunities for all health providers that are aligned with scheme objectives.

Continue to investigate and implement innovative reporting to internal units. Including the utilisation of data cubes, dashBoards and regional mapping.

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WHAT WE DELIVERED TARGET 13/14

Allied Health Tables of Costs independent review delayed until the completion of the parliamentary inquiry into the Queensland workers’ compensation scheme.

Utilised the expertise of specialist doctors and allied health providers to present at 70 regional forums across Queensland.

A 71.1% increase in attendance at Regional network program workshops.

Scholarship awarded in January 2013 after recruitment/selection process. Research has commenced with an expected publishing date of December 2014.

As a member of the Inter-Jurisdictional and Clinical Framework Advisory Committee, Q-COMP endorsed the Clinical Framework for the Delivery of Health Services.

Appointed an Education and Engagement Consultant to work directly with peak bodies.

Attended and supported forums facilitated by peak bodies.

Provided education to post-graduate medical students.

Regular scheme reporting methodologies are continually reviewed and enhanced where appropriate.

Complete an independent review in 2014. Medical Table of Costs schedules review 14/15.

Develop a suite of workshops to suit the varying ability and experience of attendees.

Provide an alternate forum to access specialist information regardless of the geographical location of our stakeholders.

Continue to build and develop the Regional network program.

No funds have been allocated to our scholarship program for 13/14.

Review Better Practice in Return to Work Guide.

Review the Clinical Guidelines for the Queensland workers’ compensation scheme by injury type.

Develop and implement education programs to support general practitioners working within the scheme.

Provide ongoing insight and projections for internal units to enable effective budgeting and resource allocation.

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BUSINESS AREA OUTCOME WHAT WE PROMISED

PERFORMANCE SNAPSHOTA SNAPSHOT OF OUR PROGRESS FOR THE REPORTING YEARDELIVERED ONGOING NOT COMPLETED

Data Management and Analytics cont.

Page 56 Staying in tune with our stakeholders Page 62

Explore opportunities to make statistics and reports easily accessible to external stakeholders through online website facilities.

Continue to explore opportunities to improve self-insurer and annual statistics reporting, incorporating scheme, demographic and industry trends.

Monitor and examine scheme trends - investigate and research key drivers of these trends. Use actual versus forecast reporting to monitor key scheme measures. Continue to regularly gather feedback and complete formal needs analysis to inform strategies for stakeholder engagement.

Ongoing analysis and review to ensure strategies meet stakeholder needs; continue to develop and strengthen collaborative relationships with peak professional bodies to support joint education initiatives.

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WHAT WE DELIVERED TARGET 13/14

Conduct an Allied Health Table of Costs review to ensure fees are appropriate and in line with market value.

Continue to improve self-insurer reporting, with focus on statistics by member and industry.

Continue to update the Claims monitoring report and provide relevant analysis and commentary on emerging trends.

GP and employer education has been identified as an area of need and this will form part of our 13/14 forums.

An Industry Comparative Calculator has been added to the Q-COMP website. This tool helps employers to compare themselves against similar organisations within their industry across key measures. A new ‘Claims monitoring’ report has been added to the Q-COMP website. This report comments on emerging trends and key statistics. Bi-annual actuarial scheme updates to stakeholders have been continued.

Gathered written feedback at every forum (77) from participants and developed workshops based directly on this feedback.

Held focus group with Regional network program (RNP) participants from across Queensland to inform the strategic direction of the program.

Attendance at RNP forums increased by 71.1%. Continued to monitor participant’s satisfaction through feedback and developed educational topics directly from this feedback. Appointed Education and Stakeholder Consultant to work with peak professional bodies.

Attended professional body workshops, meetings and training.

Presented at various forums at the request of peak bodies.

Self-insurer monthly reporting has been revised and includes industry comparisons and more common law information. A ‘fast facts’ page has been added to the Annual Statistics Report to improve navigation.

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BUSINESS AREA OUTCOME WHAT WE PROMISED

PERFORMANCE SNAPSHOTA SNAPSHOT OF OUR PROGRESS FOR THE REPORTING YEARDELIVERED ONGOING NOT COMPLETED

Staying in tune with our stakeholders cont. Page 62

Governance Page 65

To provide a minimum of five educational workshops in each of the ten regions across Queensland.

Continue to develop health strategies and partnerships to deliver initiatives that achieve better rehabilitation and return to work outcomes.

Foster effective working relationships between key stakeholders across Queensland.

To promote innovative projects which support scheme functions and achieve better rehabilitation and return to work outcomes.

To enhance our capacity and capability to respond to our continuously changing environment and contribute effectively and constructively to the review of the workers’ compensation scheme.

Taking an open, flexible and consultative approach to establish a new Board and to support the business to inform and respond proactively to the workers’ compensation scheme inquiry.

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WHAT WE DELIVERED TARGET 13/14

Continue to provide workshops in regional areas with an extension into new areas to increase our stakeholder reach. Continue to develop and provide industry specific workshops/forums that are relevant for our stakeholders.

Collaborate with key stakeholders in providing quality educational forums.

Continue to support both internal and external research that furthers the scheme objectives. To continuously improve our governance practice and provide comprehensive support to management and the Board.

Review and develop our strategic objectives in line with the Queensland Government’s priorities for the community and the workers’ compensation scheme.

Provided 77 workshops, 27 more than promised, covering a variety of topics based on stakeholder needs.

Appointed Education and Engagement consultant to nurture partnerships.

Provided forums with WCQ, DJAG and other peak bodies.

Provided industry specific information/workshops to ensure our educational resources were targeted and highly relevant.

Continued to support evidence based research in best practice injury management and return to work.

A comprehensive Board induction process.

Improvements to Board processes and implementation of e-business initiatives.

Administrative and research support to develop submissions to the scheme inquiry, and liaison with the Finance and Administration Committee.

Administrative and advisory support provided for Q-COMP’s response to the inquiry’s terms of reference, additional questions from the Committee and the report of the Committee’s recommendations.

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BUSINESS AREA OUTCOME WHAT WE PROMISED

PERFORMANCE SNAPSHOTA SNAPSHOT OF OUR PROGRESS FOR THE REPORTING YEARDELIVERED ONGOING NOT COMPLETED

Financial overview Page 80

To assist in reducing the cost of doing business in Queensland, the (then) Q-COMP Board resolved to return $3.4m of accumulated retained surplus back to insurers in 12/13. This action will be primarily funded by dissolving the Research and Education special purpose fund with the balance to be taken from the general reserve. The Return to work assist fund will be maintained with its purpose broadened to incorporate research and education initiatives of benefit to the scheme. The capital base of the special purpose fund will be maintained at $1.8m.

For 12/13 we aim to maintain our risk mitigation reserve (general reserves) at $3.2m to off-set the impact of known risks.

Prudent financial management

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WHAT WE DELIVERED TARGET 13/14

The Q-COMP 13/14 budget aims to minimise any increase in operational expenditure whilst expanding our commitment to stakeholder education and operational efficiencies. The goal is to operate within budget and fulfil the aforementioned objectives.

For 13/14 we have again identified potential risks outside of operational expenditure. The aim is to maintain general reserves at a level which will cover the identified risks.

$3.4m was returned to insurers thereby reducing their funding contributions for 12/13. Both special purpose funds were dissolved, leaving Q-COMP with one general reserve fund of $5.9m.

Risk mitigation reserve was maintained during 12/13 with no event resulting in a reduction to reserves.

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CHAIRPERSON’S REPORTA STRATEGIC VIEW

I am pleased to present the Q-COMP Annual Report for 2012/2013. This has been a year of change for Q-COMP, with a new Board and Chair, a new Government and Minister, a scheme review and a renewed focus on improving efficiencies across all of our products and services.

During my first year as Chair of Q-COMP, the new Board has been committed to understanding and fulfilling our important duties under the Workers’ Compensation and Rehabilitation Act 2003.

SCHEME PERFORMANCE Q-COMP has continued to monitor the performance of the Queensland workers’ compensation scheme and we are happy to report that there are continuing strong indications that the legislative amendments of 2012 have contained the growth in common law claims and payments. SCHEME RELATIONSHIPS During the past year the workers’ compensation scheme has also seen a new Board and Chair at WorkCover Queensland and a change to senior staff at Workplace Health and Safety Queensland.

The Q-COMP Board has been proactive in developing effective working relationships with these key scheme partners and stakeholders, including a recent productive meeting with the peak body for Queensland’s self-insurers, ASIEQ, and I’m pleased to say we have very much enjoyed working together and forming solid relationships for the year ahead.

Our aim is to work with all our scheme partners with transparency and accountability, including the promotion of shared initiatives, for the benefit of the scheme. Our jointly run Actuarial Presentation with WorkCover continues to be a valuable and well attended forum to update our stakeholders on scheme performance.

Relationships with our stakeholders are at the core of maintaining a strong workers’ compensation scheme and achieving our overarching goals of:

� ensuring a commercially viable environment in which employers in Queensland can carry out business

� supporting safe work environments

� maximising outcomes for injured workers. PARLIAMENTARY INQUIRY In June 2012, the Attorney-General and Minister for Justice announced that the state workers’ compensation scheme would be reviewed by the Queensland Parliament’s Finance and Administration Committee. An extensive round of submissions occurred with the original date of completion of 28 February 2013 deferred to 23 May 2013 to allow further work to be completed.

Q-COMP has played an active role in providing submissions and further information to the Committee including a submission on ‘Reducing red tape for employers’.

On 23 May 2013 the Committee delivered their 32 recommendations including, but not limited to, changes to the definition of worker and injury, the retention of journey provisions and a recommendation for further investigation into Q-COMP’s ‘Reducing red tape for employers’ proposal.

Q-COMP is awaiting the Government’s response and will support any changes.

Q-COMP PERFORMANCE I would personally like to thank CEO, Elizabeth Woods and the team at Q-COMP for their ongoing dedication and commitment to the organisation, and their hard work and resilience during this time of change, which included a number of changes to our senior leadership team.

I am also pleased to note that Q-COMP has once again delivered a sound financial position and has introduced measures to improve services while removing unnecessary red tape.

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THE YEAR AHEAD As you will read in the pages of this report the past year has seen Q-COMP achieve some great successes. We have introduced changes to improve efficiencies internally. As part of our Regional network program we have provided valuable education in a series of regional forums to 3,497 stakeholders. We have hosted successful return to work conferences in Brisbane and Cairns. We have maintained timely reviews of insurer decisions and a stable appeal rate despite increasing numbers of applications.

I would like to acknowledge the work of the previous Q-COMP Board and Chair, Rachel Hunter, particularly the work they did in setting a sound strategic direction for the organisation. Recognition should also be given to the dedication of the Chairs, and members of the Medical Assessment Tribunals, who perform a vital role in our scheme.

I would also like to extend my thanks to the Q-COMP Board who completed their first year on 1 July 2013. It has been a pleasure to get to know the new Board members and work closely with them to ensure that we, as a group, played a proactive role in guiding the organisation through this year of change.

The year ahead will undoubtedly bring new challenges for Q-COMP and I look forward to working closely with the Board, Elizabeth Woods and her Leadership Team to further expand our initiatives and services across Queensland, and deliver on our objectives of truly meeting the needs of all our stakeholders, thereby ensuring a robust and fair scheme for Queensland workers and employers.

Flavia GobboChairperson

CHAIRPERSON’S REPORT (CONT’D)A STRATEGIC VIEW

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CHIEF EXECUTIVE OFFICER’S REPORTAN OPERATIONAL VIEW

12/13 has been both an interesting, exciting and challenging year for Q-COMP and I would like to once again start by expressing my gratitude to the staff at Q-COMP who have achieved outstanding successes and made real progress towards ensuring our scheme is one of the most effective in the country.

Each year, as I begin to write this report, I take the time to reflect on that past 12 months and I am proud to note that Q-COMP has continued to expand its reach across every corner of Queensland.

Our Regional network program has just seen its 6000th participant (3764 in this financial year). Read more on page 62.

I am also extremely proud of the improved efficiencies that you will read about in this report that have seen us work smarter.

CHANGE THAT COUNTS

This year has been one of constructive change to how we work internally and externally with our stakeholders.

We are an innovative organisation and have embraced the new Government’s commitment to reducing red tape by launching our own red tape reduction project which I personally led. I’m pleased to report that as a direct result of this project we saw some great initiatives across our business that improved efficiencies. Read more about the work we did in our Medical Assessment Tribunals and in our Insurer Services Units on pages 54 and 59.

In addition, we undertook a thorough evaluation of our annual conference and awards program to ensure a cost neutral event that delivered the same quality education to our stakeholders and I’m pleased to report that once again the event was a sell-out success with over 600 stakeholders attending on the day. More information can be found on page 36.

As you go through the pages of this report you will notice a familiar theme across all of our units and teams and that is of constant improvement to the way we work to ensure we continue to deliver high quality products and services that really do meet and exceed the expectations of our stakeholders across Queensland.

A FAIR AND TRANSPARENT SCHEME FOR ALL

In June 2012 the Honorable Jarrod Bleijie, Attorney-General and Minister for Justice announced a parliamentary inquiry into the Queensland workers’ compensation scheme. Over the past 12 months my leadership team and I have played an active part in providing submissions, attending the inquiry hearings and being open and available to answer questions and provide additional information as needed.

The Queensland Parliament’s Finance and Administration Committee’s findings, delivered on 23 May 2013, recommended relatively minor changes for the scheme.

Q-COMP will support any amendments that the Government ultimately introduces while we continue to be involved in guiding the direction of workers’ compensation in Queensland.

A RESILIENT AND FLEXIBLE CULTURE

Our culture remains resilient enabling Q-COMP to respond to this time of change with agility and strength. The leadership team prioritises communicating with their people to ensure that they are across any issues on the horizon. I’m very proud of our people at Q-COMP who have shown their ability to be ready, willing and able to respond to whatever changes in our environment.

We are very much looking forward to conducting an internal culture survey in 13/14, two years after our last independent survey, and this will provide us with further feedback and information on how we support and grow our people which in turn ensures we offer our stakeholders the very best in customer service.

OUR CULTURE REMAINS RESILIENT, ENABLING Q-COMP TO RESPOND TO THIS TIME OF CHANGE WITH AGILITY AND STRENGTH.

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A COMMITTED LEADERSHIP TEAM AND BOARD

As always I’d like to thank my leadership team who continue to deliver exceptional results and work together to ensure we remain proactive and outcome driven.

This year we said goodbye to two of our longest serving managers Rob Cordiner and Michael Francis who left Q-COMP to take up positions with our interstate counterpart WorkCover South Australia. Michael and Rob are excellent managers and continue to be greatly missed. I would like to officially extend my thanks and best wishes for their new roles down south.

12/13 also saw a new Q-COMP Board and Chair and you can meet our new executive on page 43. I would like to personally thank the Board and Flavia Gobbo, our Chair, for their passion and commitment, ensuring Q-COMP has a clear, strategic vision that supports all of our stakeholders from employers to injured workers.

LOOKING FORWARD TO EXTENDING OUR REACH

12/13 has been a year of constructive change and new initiatives for Q-COMP and I am very proud of our people and our work. I am very much looking forward to the coming year where we will continue to focus on delivering our products and services to every corner of Queensland.

Elizabeth WoodsChief Executive Officer

CHIEF EXECUTIVE OFFICER’S REPORT (CONT’D)AN OPERATIONAL VIEW

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FINANCE MANAGER’S REPORTA FINANCIAL VIEW

Q-COMP has delivered increased customer service and education to Queenslanders across the state through our ongoing commitment to innovation and process improvement. This has been achieved while keeping expenditure well within budget.

Q-COMP’s operating result for 12/13 is $930K better than the original budget which was set with a focus on prudent spending. The previous Q-COMP Board made a decision to use reserves to subsidise the insurers’ contribution to Q-COMP through approving a budget deficit of $3.271M for 12/13 (please refer to the Financial overview on page 80 for more details). The subsidy to insurers resulted in them paying a combined $1.680M less than the prior year.

Q-COMP was able to keep expenditure at a significantly reduced level during 12/13 whilst delivering on our core service commitments, continuing education of stakeholders through our Regional network program and the production of two Return to work Conferences and Awards events. Q-COMP achieved favourable results particularly in the areas of staff costs and employee related expenses ($1.027M saving) and service providers ($472K saving).

In addition we were able to manage some unforeseen costs including:

� an increase in referrals to the Medical Assessment Tribunals

� back pay of an increase in remuneration for doctors sitting on Medical Assessment Tribunals ($630K)

� increased legal fees and additional Appeals staff due to a backlog of QIRC hearings being brought on

� staff redundancies as a result of process efficiencies.

The result for 12/13 was a deficit of $2.331M. The better than expected return on investment has also contributed to our end result.

In 13/14 we will expand our commitment to stakeholder education and operational efficiencies, as well as our core operations, including assisting unemployed injured workers return to work following their workers’ compensation claim.

Given the decreased spending in 12/13 operational expenditure will necessarily increase for 13/14. We have been conscious of the impact on insurer funding and have kept the increase to a minimum.

Q-COMP’s budget expenditure will increase by 6.9% resulting in an increase in both WorkCover and self-insurer funding of 5.9% and 4.7% respectively. This is based on the contribution WorkCover and self-insurers would have made before the subsidy of $3.3M in 12/13.

We have once again identified potential risks outside of operational expenditure. The aim is to maintain general reserves at a level which will cover these identified risks and continue to ensure Q-COMP’s sound financial position.

Warren HawkinsExecutive Manager

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PRIDEVIBRANT, PROFESSIONAL, COMMITTED TO EXCEEDING EXPECTATIONS

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RETURN TO WORK ASSISTSUPPORTING INJURED WORKERS FACING LONG-TERM UNEMPLOYMENT

Return to work assist is a free career development and return to work service achieving positive outcomes for employers and workers within the Queensland workers’ compensation scheme.

The program is client centred, meaning the assistance provided is specific to the individual’s needs. Services provided to our clients include preparing resumes, job application letters, identifying new career and retraining opportunities, utilising effective job seeking strategies and helping them prepare for job interviews.

It was a busy year for the team with total referral numbers of 3,278 received, which is a 27.3% increase from the previous year (2,576). Despite the significant increase in workload, the resiliency of the team enabled the return to work rate for the injured workers who participated in the program to decrease slightly at 81.8%, compared to 84.6% for the 11/12 year.

JOB SEEKING AND INTERVIEW SKILLS WORKSHOP

A key achievement this year was the development of an in-house one day workshop for injured workers. The inaugural workshop was conducted at our offices in April and injured workers were taught skills to assist them with interviews, job seeking and injury disclosure. Feedback was overwhelmingly positive and the workshop will be a regular event in 13/14.

BOND UNIVERSITY EVALUATION

One of our main goals is to continuously evolve our products and services to ensure we maintain momentum and provide real support to our stakeholders across Queensland.

As such, in April, Bond University completed their 12 month evaluation of the Return to work assist program. The evaluation methodology consisted of an analysis of our database, phone and written client interview surveys, injured worker focus groups, staff interviews and observations of their interactions with injured workers and a comprehensive literature review.

A number of strengths identified by Bond University include - our client centred model, the supportive communication style of the Return to work assist Advisors and our ability to work collaboratively with other external providers. Their findings also highlighted that, although injured workers referred to the program typically suffer with severe and chronic medical issues, the majority of participants do return to work. Furthermore, they found that increased face-to-face meetings and more frequent contact and assistance correlated with a higher likelihood of a successful return to work.

A number of viable options for enhancing the program will be evaluated in 13/14 including providing post-employment support for injured workers.

RETURN TO WORK ASSIST 12/13 AT A GLANCE

OBJECTIVE: Assist even more injured workers who are facing long-term unemployment to find their way back into the workforce, positively impacting their lives, their communities and Queensland employers.

OUTCOMES: There was an overall return to work rate of 81.8%. Of those referrals finalised with a common law claim, 65.4% returned to work prior to settlement.

13/14 FOCUS: Increase the number of injured workers who actively participate in the program and return to work. Implement viable opportunities recommended in the Bond University Final Report (April 2013) evaluation of Return to work assist.

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RETURN TO WORK ASSIST (CONT’D)SUPPORTING INJURED WORKERS FACING LONG-TERM UNEMPLOYMENT

COMMON LAW

Assisting injured workers back to work continues to be the primary focus of our program. These successful employment outcomes benefit the injured worker first and foremost but there are also many positives for employers, insurers and the scheme in general. This year 336 finalised referrals (32.1% of finalised referrals able to participate) had an open common law claim and were able to participate in the program. Of these, 219 (65.4%) successfully returned to work prior to the settlement of their common law claim.

In September 2012 we hosted a Return to work assist common law workshop with representatives from plaintiff and defendant solicitors, WorkCover Queensland and the Association of Self Insured Employers of Queensland. Agreed principles from the workshop have been implemented including mandatory contact with the plaintiff solicitor prior to the closure of a Return to work assist file, better education of the program by insurers and more informative case noting by the Return to work assist team. These improvements add real value to the common law claims process.

HIGHLIGHTS AND CHALLENGES

Overall it was a very successful year for the program, both for the team and our injured workers. A highlight was Return to work assist participant Aaron Moxham winning a Q-COMP Return to work Award for his achievements. One of our challenges remains our increasing referral rate of injured workers to the program. Projections are for a further increase in referrals again in 13/14 therefore we will keep innovating to streamline our internal processes while maintaining our high quality customer service and return to work outcomes.

INJURED WORKER SUCCESS STORY

Kelvin was 68 when he suffered physical injuries while working as a bus driver. After being off work for four months, and unable to physically work again as a bus driver, Kelvin referred himself through to Return to work assist following the closure of his workers’ compensation claim.

When first contacted by his Return to work assist Advisor at the end of June 2012, Kelvin had an idea of what he wanted to do but needed assistance putting a plan into action. At the initial assessment it was identified that the security industry was a field Kelvin was interested in.

Although Kelvin had completed his training to become a security guard he did not have the necessary licence and was financially unable to pay the licence fee. His Return to work assist Advisor organised funding to pay for his licence so that Kelvin would be able to get his licence sooner rather than later. In the interim, while his licence application was being completed, Return to work assist helped Kelvin to update his resume to reflect his new skills. Kelvin was also assisted with his job search for a suitable security role in Central Queensland where he resides.

Return to work assist maintained regular contact with Kelvin to support and encourage him throughout his job search. Once his security licence came through, Kelvin received a job offer as a security guard, and started work in September, three months after his initial contact with Return to work assist. When Kelvin was last contacted in May this year he advised that work was going great.

Now 69, Kelvin is enjoying his new career in security and is also doing some volunteer work for a local Central Queensland radio station.

BOND UNIVERSITY PROFILED A TYPICAL PARTICIPANT AS BEING:

• MALE

• BLUE-COLLAR BACKGROUND

• OFF WORK FOR NEARLY A YEAR

• SUFFERING WITH SEVERE AND CHRONIC MEDICAL ISSUES.

ON AVERAGE, RETURN TO WORK ASSIST SUCCESSFULLY RETURNS THIS GROUP TO WORK WITHIN THREE MONTHS.

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RETURN TO WORK CONFERENCE EXPO AND AWARDS SHOWCASING INNOVATION AND RECOGNISING EXCELLENCE

Q-COMP’s Return to work Conference, Expo and Awards event has gone from strength to strength since its introduction in 2010. Building on this success, Q-COMP launched our first regional event in Townsville in March 2012.

REGIONAL EVENT

Following the success of our first regional Return to work Conference and Expo in Townsville, we again brought the event to North Queensland for a day of networking, learning and inspiration in Cairns on 22 March 2013.

Q-COMP was very pleased to welcome over 200 enthusiastic delegates to the Conference and Expo from Cairns and surrounds. Delegate satisfaction with all aspects of the event was overwhelmingly positive, with particular endorsement of the quality of topics, presentations, venue and exhibitors. We also received positive reinforcement that hosting a regional conference ensures our regional stakeholders feel that we are making an effort to understand and meet their needs.

BRISBANE EVENT

The annual Return to work Conference, Expo and Awards 2012 was held on 30 October 2012 at the Brisbane Convention and Exhibition Centre. It was the third Conference, fourth Awards and fifth Expo in the series.

We’re proud to say industry excitement for this event hasn’t lessened since 2010 and the Conference venue was again at capacity. The Expo was also bustling with 19 external exhibitors educating and networking with delegates between sessions.

Due to a focus on reducing expenditure in 2012, Q-COMP amalgamated the Return to work Awards with the Conference and Expo, rather than host a separate ceremony as we’ve done in previous years. This also allowed for our Conference guests to take part in the celebration and show support for their peers’ achievements at a single event.

The Awards received 356 completed nominations from across the state and led to industry recognition of individuals and organisations across the five categories. Each winner demonstrated excellence and a commitment to return to work – each positively influencing the direction of the workers’ compensation industry.

RETURN TO WORK CONFERENCE, EXPO AND AWARDS 12/13 AT A GLANCE

OBJECTIVE: To grow attendance for the regional event and to expand promotion of the Conference and Awards program into more varied industries across the state.

OUTCOMES: The delivery of another sell-out Return to work Conference, Expo and Awards event in Brisbane in October 2012. The expansion of our regional presence to Cairns by hosting a highly successful event in March 2013 in spite of the challenging economic position faced by many of our stakeholders. Our objective to expand the Conference and Awards program into more varied industries has not been met in 12/13 due to budget and resource constraints, however this remains a priority for 13/14.

13/14 FOCUS: Continue to develop our Awards program with the inclusion of an innovation award that is open to all stakeholder groups. Continue to expand the Conference and Awards program into more varied industries to attract a more diverse audience.

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RETURN TO WORK CONFERENCE EXPO AND AWARDS

INJURED WORKER ACHIEVEMENT AWARD - NEW CAREER Aaron Moxham

‘Life can throw you some challenges and when you feel you are at the bottom of the mountain, look up, take a deep breath and take a step forward. It can be a long slow path but if you want to make a change, the only barrier to that is yourself. The journey of rehabilitation is one you don’t take alone and there are people out there who are willing to help you on your journey.’

INJURED WORKER ACHIEVEMENT AWARD - RETURN TO WORK Hilaree Bradwell

‘Recovery is a long process and it takes hours of dedication, but you should push through the hurt and pain. It causes emotional stress and hurt but there is a light at the end of the tunnel. You will find joy and be able to get back to what you love.’

INJURED WORKER ACHIEVEMENT AWARD - SERIOUS INJURY Gus Wilson

‘Getting through it all was tough - really, really hard work, and I found it helpful to try to have a good mental outlook, having good support from family, remembering what’s really important to you (family), and exercising to strengthen body and mind. I am a good example of what an injured person with a good attitude can do, and I’m bloody proud of that.’

CASE MANAGEMENT ACHIEVEMENT AWARD Andrea Dale

‘I find it rewarding to work in a role that is engaging and complex and where I have opportunities to help people every day. Every day I discuss the health benefits of work with workers, employers and health professionals, tailoring my message to the audience and weaving it appropriately into the conversation. I have made influencing stakeholders a part of my day to day job.’

REHABILITATION AND RETURN TO WORK COORDINATOR ACHIEVEMENT AWARD Barbara Norman (Unity Water)

‘Keeping the manager informed is vital. They’re on the journey with the injured worker and I encourage them to remain in contact. Through this the employees know they’re being looked after, the stigma of reporting injuries is eased and we’re having more success with people coming back to work and not re-injuring.’

EMPLOYER ACHIEVEMENT AWARD - SMALL/MEDIUM EMPLOYER Golden Cockerel

‘Go above and beyond what the worker expects - provide transport to and from work if required, visit the injured worker at home, stay in touch with the injured worker - if the employer shows commitment the worker will more likely be encouraged to return to work sooner.’

EMPLOYER ACHIEVEMENT AWARD - LARGE EMPLOYER Xstrata

‘We try to focus people towards better life outcomes and early resolution with a view to getting people back to sustainable employment as soon as possible. Often it is as simple as asking where you see yourself in the future and then asking how we can help to get them there.’

RETURN TO WORK CONFERENCE EXPO AND AWARDS (CONT’D) THE 2012 WINNERS

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THE 2012 WINNERS

HEALTH PROVIDER ACHIEVEMENT AWARD - ORGANISATION Mount Isa Physiotherapy Centre ‘Foremost amongst our strategies to improve outcomes for injured workers was the development of an onsite Work Hardening Centre. Rehabilitation of an injured mining worker at our practice is likely to include real work activities using real mining equipment and tools. This functional training integrated with physiotherapy achieves optimal rehabilitation outcomes.’

HEALTH PROVIDER ACHIEVEMENT AWARD - INDIVIDUAL David Morris ‘As well as considering the client as an injured worker I bear in mind that they have many other roles which could include mother/father, husband/wife, carer, and to acknowledge their need to participate in both home maintenance and recreational activities. I believe it is essential to treat the client holistically in order to gain a full understanding of how their injury is affecting them.’

RETURN TO WORK AWARDS CASE STUDY PEOPLE’S CHOICE AWARD WINNER, KRU GREGORY

Gold Coast local, Kru Gregory was named as a finalist in Q-COMP’s Return to work Awards 2012 for his inspirational journey back to work after sustaining severe brain injuries in a motorcycle accident. Whilst he missed out on winning his category, Kru’s story touched others and earned him the People’s Choice Award for 2012.

In September 2010, Kru, then 20, was riding his motorcycle to work when he hit the back of a car on the motorway causing the bike to flip and cross four lanes of traffic. Kru was in a coma for over a month, with doctors saying that he may never wake up.

‘I know I’m one of the lucky ones. I wasn’t given good odds in the hospital. But they just kept trying “one last thing” and luckily for me it worked. I’m the first person to survive this kind of injury out of three worldwide.” Kru said as he described his ordeal.

Miraculously, Kru did wake up, but suffered significant permanent brain damage, mostly affecting his memory, as well as accident induced epilepsy. He was in hospital for a further two months for rehabilitation in the Brain Injury Rehabilitation Unit at the Princess Alexandria Hospital in Brisbane.

Despite his limitations, Kru was determined to get his life back on track and return to work in his previous position as a Games Advisor at JB-HiFi.

‘Initially, I was very lethargic, sleeping for 18 hours a day. When I first went back to work, I was only allowed to work two hours a day, three days a week. This frustrated me because I wanted to get back to normal, but even those two hours would exhaust me.’

Although work was exhausting for Kru, over time he built up his hours until he was back to normal – albeit with a new focus and drive.

‘I had to regain everyone’s respect just by proving I was the same, carrying out the same duties, having the same sense of humour. The only difference is that I am just a little bit more mature.’

RETURN TO WORK CONFERENCE EXPO AND AWARDS (CONT’D)

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RETURN TO WORK CONFERENCE EXPO AND AWARDS (CONT’D)

‘Before the crash I was living in a way no one should, the accident made me look at what I was doing to myself and to the people around me. I was lucky this time, next time I might not be, so I have to make some changes to my life.’

‘No one else was hurt in the accident, and I always try to find the silver lining in the situation. I got to a point where I could identify so many silver linings that I feel like one of the luckiest people alive, and I wouldn’t take it away now. If I had my time over again, I don’t know that I would change what happened because it’s made me a better person.’

Kru continues to work in his role as a Games Advisor at JB-HiFi and maintains his positive outlook on life.

RETURN TO WORK AWARDS CASE STUDY INJURED WORKERS ACHIEVEMENT AWARD - RETURN TO WORK WINNER, HILAREE BRADWELL

Hilaree Bradwell, then Police recruit, was recognised for her inspiring return to work journey, taking out the Injured Worker Achievement Award – Return to work category 2012.

Hilaree was engaged in a training scenario when her knee twisted awkwardly just as she was cuffing the ‘offender’. Pain shot through her from then until the ambulance arrived, but this wasn’t the end of her ordeal as the morphine that was administered to ease the pain caused an allergic reaction – resulting in an additional eight hours in the emergency department.

An MRI confirmed that she had a ruptured ACL requiring a full knee reconstruction and six to nine months out of action, which at the time was a hard blow as it would push her training back significantly.

‘I really struggled with a diagnosis of six to nine months recovery, and prior to surgery having no family or close friends around (they live in NSW) was difficult as I was living at the academy.’ Hilaree said.

With the fear of never being able to become a Police Officer or being able to participate in the sports and social activities she’d always enjoyed, Hilaree pushed herself to keep going and beat down the physical barriers that lay ahead of her. This is exactly what she did.

‘I didn’t know how strong I was but if I wanted to beat a deadline and gain control of my life – I could do it! I learnt that I have the strength and determination to achieve my goals. In the past I never had a physical obstacle that challenged me as this had.’ She said.

Not only did Hilaree recover from her injury, she did it in only five months! Hilaree was sworn in as a Police Constable in May 2012 and hasn’t looked back.

RETURN TO WORK CONFERENCE EXPO AND AWARDS (CONT’D) THE 2012 WINNERS

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PEOPLEINSPIRED, EMPOWERED, VALUED

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OUR PEOPLEMAKING OUR VALUES PART OF EVERYTHING WE DO

OUR PEOPLE 12/13 AT A GLANCE

OBJECTIVE: Continue to engage our people as an employer of choice by promoting a positive working environment for all employees that inspires excellence and aligns our people strategy with business priorities. OUTCOMES: • Coaching our people to further build their capabilities and work flexibly across teams where appropriate.• A new induction process has seen our new starters feel engaged from day one by having the tools and information to perform their roles.• A solid HR and internal communication plan that assisted leaders to engage with and support staff in a time of change.• Succinct and timely messages keeping our people informed and connected to reduce silos and connect with one another across the business.

13/14 FOCUS: The 13/14 focus will be to return to our grass roots and reflect on the journey our culture has taken. This will include completing our third culture survey and working with the Leadership Team to action recommendations to continue to further build on our culture. This year, in growing and reinforcing our positive culture to encourage a workplace of choice, our people have been focussed on building capabilities across Q-COMP.

A BUSY YEAR FOR THE HUMAN RESOURCES TEAM

Our people took on the challenge of looking at the way we work to improve on service delivery, customer experience, reducing red tape and implementing changes that really make a positive difference to the way we work.

Together they came up with some creative solutions and outcomes which also provided the added advantage of reducing resourcing needs and broadening the skillsets of our people.

The start of 12/13 saw the planning and negotiation for a new certified agreement for Q-COMP. Unfortunately we were not able to reach an agreement before the expiration of the current agreement and the negotiation went into a conciliation process with the Queensland Industrial Relations Commission. After recommendations were considered by all parties a new proposed offer was put to ballot for staff to vote on. A valid majority of employees (96.0%) voted in support of the proposed agreement and on 1 May 2013 the Agreement was certified.

COMMUNICATING DURING A TIME OF CHANGE

In June 2012, the parliamentary inquiry into the workers’ compensation scheme was announced, and as part of our commitment to transparency we launched an internal communication strategy to ensure our people were kept informed at every stage of the process.

Q-COMP’s Leadership Team was pleased to contribute constructively to the process through their responses to customers and by providing information and statistics for the Finance and Administration Committee.

Staff were kept informed of the review process in an open, timely, consistent and transparent way via staff meetings, e-bulletins, our intranet and LCD screen messages displayed throughout the building.

Communications reinforced the values of our organisation with a focus on maintaining our strong, constructive culture, positive and motivational working environment and commitment to excellence in customer service during this time.

Q-COMP HEALTH AND SAFETY GROUP

As part of our commitment to continuous improvement and providing ongoing awareness about work health and safety, Q-COMP saw the introduction of the Health and Safety Group. The group ensures the identification, prevention and management of all hazards, incidents or near misses that may impact upon the health and safety of our staff, visitors or premises.

In 12/13, Q-COMP had eight work health and safety incidents (down from 12 in 11/12) and three workers’ compensation claims (down from four in 11/12).

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OUR PEOPLE (CONT’D)

12/13 11/12 10/11 09/10 08/09

Full-time equivalent 99.9 115.3 107.8 100.1 95.2

Average full-time equivalent 107.6 109.8 108.4 104.9 89.8

Permanent retention % 88.1 82.4 91.1 89.5 88.0

Permanent attrition % 12.2 13.7 6.3 7.3 11.1

Temporary attrition % 2.9 1.8 6.2 5.0 7.8

Voluntary early retirement, redundancy and retrenchment

4 5 4.6 1.8 3.0

5. RETENTION AND ATTRITION OF EMPLOYEES

A program of redundancies was implemented during 12/13. During the period, four employees received redundancy packages at a cost of $155,507. Employees who did not accept an offer of a redundancy were offered case management for a set period of time, where reasonable attempts were made to find alternative employment placements. At the conclusion of this period, and where it is deemed that continued attempts of ongoing placement were no longer appropriate, employees yet to be placed were terminated and paid a retrenchment package. During the period, nil employees received retrenchment packages.

GRADE 12/13 11/12 10/11 09/10 08/09

Female Male Female Male Female Male Female Male Female Male

1 0 0 0 0 0 0 0.5 0.8 0 0

2 16 2 17 2 14.8 1 17.9 1 12 1

3 16 2 21 0 18.5 1 10 1 12 0

4 31 11 33 13 31.9 13 33 11 32 10

5 9 7 10 7 8.8 5 8.2 6 13 5

6 N/A N/A 1 1 2 2 1 1 1 2

Contract 8 4 7 4 5.8 4 5 4 5 6

Subtotal 80 26 89 27 81 26 75.6 24.8 75 24

Total 106 116 107.8 100.4 99

The gender ratio remains consistent across each grade indicating equal opportunity through transparent processes in recruitment and internal career opportunities.

6. OUR WORKFORCE PROFILE

12/13 11/12 10/11 09/10 08/09

Permanent part-time Male 0 0 0 0 1

Female 9 10 7 10 8

Temporary part-time Male 0 0 1 1 0

Female 2 0 0 2 2

7. OUR DEMOGRAPHIC - PART-TIME EMPLOYMENT STATUS

Although Q-COMP continues to offer flexible work-life balance options for our employees, this option is mainly taken up by staff wishing to balance the needs of work with new family, lifestyle activities and personal changes.

MAKING OUR VALUES PART OF EVERYTHING WE DO

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BOARD OF DIRECTORSENSURING WE REGULATE THE SCHEME FAIRLY AND EQUITABLY

Flavia Gobbo Chairperson BA/LLB, GAICD

Flavia has extensive experience as a senior corporate lawyer with one of Australia’s top publicly listed companies. Flavia has had a wide range of both legal and management experience. She has been involved in the areas of product management and marketing, corporate governance and the company secretariat, treasury and dispute resolution, particularly in insurance and recoverable damages. She is currently a Board member of Rowing Australia and also of SecondBite, a national food rescue organisation.

Peter Dowling Deputy Chairperson AM, BA(Acc), FCPA, FAICD

Peter is an accountant and company director. He is a Fellow of CPA Australia and the Institute of Chartered Accountants in Australia and a Fellow of the Australian Institute of Company Directors. He was formally a Partner with international accounting firm Ernst & Young. He is a Centenary of Federation Medal recipient and was made a Member of the Order of Australia in 2007. Peter has a number of other Board and Audit and Risk Committee appointments and is also the Queensland Honorary Consul for Botswana.

Paul Goldsbrough Director

Paul is the Senior Director for Policy and Business Engagement at the Office of Fair and Safe Work Queensland, Department of Justice and Attorney General. Paul has worked in the fields of occupational health and safety, workers’ compensation and rehabilitation for over 25 years for both the Federal and State Governments. His current role involves development of workplace health and safety, electrical and workers’ compensation policy and legislation and includes involvement in a number of national working groups addressing specific aspects of the model WHS laws, chemicals security and workers’ compensation arrangements.

David Harrison Director FAICD

David, a company director since 1987 and chairman of QMI Solutions, has 30 years experience in industrial relations. David’s directorships included Powerlink, Port of Brisbane, QIC, Brisbane Airport and Sunsuper. David also served as Secretary of the AMWU and President QCU. In 2003 David was awarded the Centenary Medal for distinguished service to industrial relations.

Stephen Tait Director

Stephen joined the Chamber of Commerce and Industry Queensland in January 2012 as Chief Executive Officer. Stephen is a commercially focussed business leader with a proven track record of developing organisations through periods of change in competitive business environments. Stephen has extensive media experience across multiple markets, encompassing business strategy, leadership, sales management, marketing, change management and full P&L responsibility across international, national and local media organisations.

Dr Beres Wenck Director MB.BS, FRACGP (Hon), FAMA

Beres is a past President of the Australian Medical Association (Queensland) and is past Chair of the AMAQ Workers’ Compensation Advisory Committee. She is also Vice President of MDA National, a leading medical defence organisation. She is the Principal Medical Director of Family Care Medical Services, Australia’s largest and leading provider of afterhours primary medical services. She is the Medical Consultant for Adoption Services Queensland and chairs the National Standing Committee for GP Advocacy and Support for the RACGP. Beres has previously been appointed by the Minister for Industrial Relations to the Selection Panels for the General and Specialty Medical Assessment Tribunals. She is a General Practitioner in Milton.

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Q-COMP LEADERSHIP TEAMPROVIDING SOLID TEAMWORK AND LEADERSHIP

Elizabeth WoodsChief Executive OfficerBPhty, LLB, FAICD

Elizabeth was appointed CEO of Q-COMP in 2007 and has been the driving force behind building the organisation’s profile as a dynamic, customer-focussed and professional organisation.

Before joining Q-COMP, she was a physiotherapist in private practice and then retrained as a lawyer. She is a Fellow on the Australian Institute of Company Directors and has been appointed to several Boards and Audit and Risk Committees.

Elizabeth is passionate about innovation and achieving cutting edge business practice. She is committed to ensuring Q-COMP’s education, support and dispute resolution services reach the whole of Queensland.

Tony Cacciola Executive Manager – Return to work assist and Insurer Services MBA (Industrial Relations and Human Resources)

With over 20 years experience in the workers’ compensation industry, Tony fully understands the importance of assisting and empowering injured workers to achieve a successful return to work. He has held numerous leadership roles but has found none more rewarding than his current role with Q-COMP.

Tony has enjoyed leading Return to work assist from a pilot program to an integral part of the workers’ compensation landscape in Queensland. Over the past 12 months Tony has transformed Return to work assist from a linking service to a program that provides specialist career development and transition services.

Tony has recently completed further studies in career development and employment services and is committed to enhancing the performance and profile of Return to work assist. In the coming year Tony and his team will continue to find innovative ways to assist Queensland’s employers and workers to achieve high quality return to work outcomes.

Julie Fox Executive Manager – Tribunal Services and Education Promotion Unit BA (Psych),Grad.Dip.App.Sci., M(Public Health)

Julie has been a member of the Q-COMP Leadership Team for the past two and a half years. During that time, Julie has led the Education Promotion and Tribunal Services Units. Julie’s background in both public health and psychology has been of great advantage in understanding the technical aspects of both units.

Over the past year, Julie’s focus has been on supporting her teams in providing quality education, information, services and resources to all of our stakeholders, no matter where they are located in Queensland. This has been successfully achieved through the implementation of the Regional network program and regional tribunals.

The Regional network program has allowed Q-COMP to reach stakeholders state wide by delivering over 70 workshops, some with the assistance of guest presenters from our experienced tribunal members.

Over the next 12 months, Julie will continue to oversee the expansion of the Regional network program and ensuring the continuation of our regional tribunals.

Warren Hawkins Executive Manager – Finance, Information Technology, Data Analytics Teams B.App.Sc

Warren has been a member of the Q-COMP Leadership Team since 2008. In April 2013 Finance was added to Warren’s areas of responsibility.

Over the past 12 months Warren played an active role in the parliamentary inquiry into Queensland workers’ compensation scheme as the inquiry required considerable input by the Data Analytics Team in providing data and information to the committee.

In Warren’s role as manager of the IT Team, a big focus has been ensuring the smooth upgrade to Q-COMP’s operational system, and implementing internal operational efficiencies through joint IT and business projects. The focus will remain on this during 13/14.

Over the coming year, Warren will work with the Finance Team to manage and report our finances prudently and in line with relevant Government policy and reporting requirements.

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Q-COMP LEADERSHIP TEAMPROVIDING SOLID TEAMWORK AND LEADERSHIP

Keren Cooksey Manager – Marketing Communications BA Hons

Keren has been part of the Q-COMP Leadership Team for just over three years and during that time she has been responsible for developing and growing the marketing and communications function within Q-COMP to ensure we successfully position ourselves and our role with our stakeholders in Queensland and nationally.

The Marketing Communications Team works closely with each of the units within Q-COMP to ensure that we are honouring our commitment under the Act to educate and promote the workers’ compensation scheme and the products and services available to the employers and workers of Queensland.

This year Keren has led the team to deliver two sell-out conferences, an award-winning internal communication campaign and in increasing both the awareness and understanding of Q-COMP among our stakeholder groups across the state.

Jonathan Shield Manager, Corporate Governance and Executive Services BA(Hons I)/LLB, Grad.Dip. Applied.Corp.Gov., ACSA

Jonathan has been a member of the Q-COMP Leadership Team since 2012 and has been responsible for administering Q-COMP’s corporate governance framework as well as providing secretariat support to the Q-COMP Board since 2010.

The Executive Services team provides secretariat services for the Q-COMP Board, manages the corporate governance framework and provides administrative support and advice to the CEO and executive team. The team also provides legal services business-wide, including management of self-insurer fraud referrals and other litigation, legal advice and projects, recovery of litigation costs and information management.

Jonathan enjoys harnessing his breadth of experience in a number of legal and technical roles within Q-COMP to provide leadership and advice in corporate governance and executive services.

During 12/13, Jonathan and the Executive Services team have focussed on continuously improving governance practices to facilitate the establishment of a new Board from 1 July, introducing e-business initiatives into Board processes, and providing support and assistance to management and the Board to monitor, inform and respond proactively to the workers’ compensation scheme inquiry.

The team has also strengthened self-insurer fraud referral processes and promoted successful prosecution outcomes to stakeholders.

In 13/14 Jonathan’s priorities for his team include providing comprehensive support to management and the Board to review and develop our strategic objectives to further align with the Queensland Government’s priorities for the community, stakeholders and the workers’ compensation scheme.

Michelle Brooker Human Resources Manager Bachelor of Education (Adult Ed) and HR Management

Michelle has been manager of the HR unit and part of the Q-COMP Leadership Team for six and a half years.

In a year of change with a new Government focus on minimising expenditure and resources, and a parliamentary review of our industry, Michelle and her team have navigated the change process to leverage off internal capabilities within Q-COMP and maintain a positive culture.

As a Workplace of Choice, Q-COMP continues to build the capability of our people to provide flexibility and diversity with their skills. This in turn has provided our people with opportunities for personal development and growth.

Michelle sees the role of HR as integral to successful leadership and works closely with her peers to address business needs effectively and ensure transparent communication, regular feedback and coaching to staff.

13/14 is a time to ‘get back to basics’ and reflect on the journey our culture has taken so we can prepare for the future. The focus for HR in this coming year will be to complete our third culture survey and work with the Leadership Team to action recommendations that continue to build on our great culture.

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Q-COMP LEADERSHIP TEAM (CONT’D)

John McDiarmid Executive Manager – Review and Appeals Group and Central Administration Team BSc Hons (Applied Economics)

John joined Q-COMP in 2013 to oversee the Review and Appeals Group. The Review and Appeals Group manages the dispute resolution process for workers and employers who are aggrieved by an insurer’s decision. John brings with him experience gained in strategic and operational roles, having managed change programs and business improvement activities within the insurance, superannuation, human services and health sectors.

This year the Review Team has successfully implemented a software system called ‘QI’, which has been pivotal in improving service delivery. Next year, John will work with the Appeals Team to replace their current system with ‘QI’, undertaking a significant IT project in the process.

Looking forward, John will also focus on ensuring the high levels of service already being delivered are maintained while seeking to streamline existing processes and improve operational efficiency. Another goal will be to build upon the existing expertise within the organisation and to develop a training program featuring Q-COMP’s legal and medical specialists.

PROVIDING SOLID TEAMWORK AND LEADERSHIP

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Q-COMP LEADERSHIP TEAM (CONT’D)

INTEGRITYCOURAGE TO DO THE RIGHT THING

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REVIEW UNITOFFERING AN INDEPENDENT REVIEW PROCESS FOR EMPLOYERS AND INJURED WORKERS

The Review Unit offers an independent review process for employers or injured workers who are dissatisfied with a decision of an insurer. The review process is timely, transparent and non-adversarial. The outcomes of the review process can be that the insurer’s decision is confirmed, set aside or the matter can sometimes be returned to the insurer for further investigation. We are committed to doing the best we can to balance the need for independence and providing a personal service to people seeking and responding to a review application.

TAKING A CLOSER LOOK AT OUR REVIEWS

80.6% of applications for review are lodged by the employee, 17.1% by the employers and the remaining 2.3% relate to policy/premium matters. These proportions have remained consistent over the last five years.

9. REVIEW APPLICATIONS BY INSURER DECISION

REVIEW 12/13 AT A GLANCE

OBJECTIVE: The 12/13 year had a dual focus to:

• improve the overall promptness of making review decisions – specifically to achieve a full year average of 55.0% of review decisions being made within 25 business days of valid lodgment • achieve a 20% reduction in the costs of legal advice from the 11/12 year.

OUTCOMES: Improvements to our internal processes have enabled:

• 70.6% of review decisions are made within 25 business days (an increase from 47.0% in 11/12) • costs associated with legal panel advice are 18.0% under budget.

13/14 FOCUS: Next year the focus will be on achieving the following key performance indicators:

• to achieve a full year average of 58.0% of review decisions being made within 25 business days of valid lodgement

• to ensure costs associated with legal panel advice are lower than 12/13 levels • within the Red Tape initiative, the Review Team will investigate and implement reportable business improvements

designed to improve customer service and operational efficiency.

8. NUMBER OF NEW APPLICATIONS BY YEAR

08/09 09/10 10/11 11/12 12/13

Financial year

2,651

2,954

3,333 3,237 3,269

2.3%

17.1%

80.6%

Policy/Premium

Employer

Worker

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TAKING A CLOSER LOOK AT OUR REVIEWS

80.6% of applications for review are lodged by the employee, 17.1% by the employers and the remaining 2.3% relate to policy/premium matters. These proportions have remained consistent over the last five years.

9. REVIEW APPLICATIONS BY INSURER DECISION

More than half (56.5%) of the applications for review relate to an original decision by the insurer to reject a claim. A further 16.4% of review applications relate to ceased claims and 16.7% to accepted claims.

Following the review of the insurer’s decision, 55.4% of Q-COMP decisions confirm the decision made by the insurer, 25.2% are set aside and 19.4% result in the file being returned to the insurer for further investigation.

We receive frequent requests for time extensions to enable the parties at review to provide additional information. In 12/13, 55.8% of reviews were granted an extension of time to allow a party to submit further information. We recognise Q-COMP has a responsibility to all parties to provide a prompt and non-adversarial process and accordingly all extension requests are closely considered and those that are granted are generally for a short time frame.

CONSTANTLY IMPROVING EFFICIENCIES

To achieve our strategic goal of improving the promptness of review decisions, the Review Unit examined the internal practices relating to managing the key milestones within the review decision making process. After a period of discussion and consultation, new key performance indicators (KPIs) and targets were set. In contrast to the earlier KPIs, which focussed upon incremental stages within the process, the new KPIs took a holistic approach and focussed upon the end result – timely decision making.

The result following the better defined and clearer KPIs was significant – the percentage of decisions made within 25 business days consequently increased from 47.0% to 70.6%.

The Review Unit also focussed on reducing legal costs associated with the review process. The internal management involved specific and accountable ownership of the legal advice/assistance process and all referrals were evaluated prior to submission. Consequently, the Review Unit’s operational expenses were $663,763 under budget (16.8%).

FORWARD FOCUS

In 13/14 the Review Unit will focus on designing and implementing meaningful change initiatives. We will examine our current activities, engage our internal and external stakeholders and aim to roll-out business improvements to our core activities. A particular focus will be on the reduction of red tape and paper based files.

Although our core activity is relatively stable, the Review Unit will always have at least one aggrieved party in all of the issues we investigate.This presents a unique blend of challenges for the unit as a whole and effectively managing these often interrelated issues will remain a key strategic focus.

We always strive to improve our level of customer service and empathy when dealing with distressed clients, as well as ensuring our staff are fully trained and supported to deal with sensitive circumstances. As a result we will implement a skills development initiative focussing on the effective management of highly emotional and stressful situations.

The Review Unit will also develop and roll-out a structured training program focussed on developing the team’s knowledge in specialist areas. By utilising the services of our medical providers, barrister panel and other industry qualified providers, the team will be able to access tailored ‘higher level’ training in a cost effective manner.

REVIEW UNIT (CONT’D)OFFERING AN INDEPENDENT REVIEW PROCESS FOR EMPLOYERS AND INJURED WORKERS

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APPEALSENSURING INTEGRITY IN ALL OUR DECISIONS AND INTERACTIONS

If an injured worker or an employer is dissatisfied with a decision of the Review Unit they may appeal this decision to the Queensland Industrial Relations Commission (QIRC). The Appeals Unit focuses on managing this process, working with Barristers through the legal process and acting as a ‘Model Litigant’ in all matters.

APPEALS LODGED

There were 402 appeals served for 12/13 with an average of 33.5 appeals per month (398 in the QIRC and four in the Industrial Magistrates Court for premium matters). Appeals served have decreased by 17.5% compared to the previous 12 months.

10. APPEALS LODGED

APPEALS RATE

The appeals rate has decreased from 15.9% in 11/12 to 14.8% in 12/13.

KPI’S AND TIMEFRAMES

The average cost of an appeal for 12/13 was $3,521 which was significantly below the target of $6,000. The reduction in the average cost has been driven by internal efficiencies and the higher number of appeals that were withdrawn prior to hearing. The average cost of an ‘in court appeal’ also reduced from $11,412 in 11/12 to $9,682 in 12/13.

Overall, appeal finalisation timeframes increased, with only 60.0% of appeals finalised within nine months of lodgement compared to 67.2% for 11/12. Non-judicial resolution timeframes increased by 20.2% (average of 197.4 days in 11/12 compared to 237.3 days in 12/13).

APPEALS 12/13 AT A GLANCE

OBJECTIVE: To deliver and enhance professional development modules for the Review and Appeals Officers and continue to work with electronic files to improve our environmental impact.

OUTCOMES: Members of Q-COMP’s barrister’s panel conducted training sessions on a range of topics, including the principles of evidence, disclosure requirements, the ‘Notice To Admit Facts’ and principles of model litigants.

The desire to implement electronic files was tempered by the increase in the number of matters which were managed by the Appeals Team in 12/13. Dedicated resources will be available in the next financial year and this should see significant progress in this area. 13/14 FOCUS: Implement meaningful change to improve the performance of the Appeals Team, streamline processes and reduce the volume of paper/printed material.

08/09 09/10 10/11 11/12 12/13

Financial year

Appeals served Appeal rate

337 347 368

487

402

14.4% 13.1% 13.1% 15.9% 14.8%

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APPEALS (CONT’D)ENSURING INTEGRITY IN ALL OUR DECISIONS AND INTERACTIONS

11. APPEALS OUTCOMES

Outcome

Appeals finalised 492 348

Before court 81.7% 85.6%

Conceded by Q-COMP 12.0% 14.1%

In Court - Dismissed 46 out of 90 30 out of 50

In Court - Upheld 18 out of 90 11 out of 50

In Court - Appeals withdrawn

68.3% 68.4%

INDUSTRIAL COURT APPEALS

The Industrial Court hears, on limited appeal grounds, appeals of a decision by a Commissioner or Industrial Magistrate. There were eight appeals lodged this year compared to nine lodged in 11/12.

12. INDUSTRIAL COURT OUTCOMES

There were 10 appeals finalised in the Industrial Court in 12/13.

Industrial Court Outcomes

12/13 11/12

Dismissed 80% (eight workers)

80% (eight workers

Upheld 20% (two workers)

20% (two workers)

AN EVOLVING APPEALS TEAM

As a result of the increased workloads experienced this year, additional resources have been reallocated internally to the Appeals Team, including additional Appeals Officers and administrative support.

In line with our objective to deliver and enhance professional development for the Review and Appeals Officers, members of the Barrister Panel provided training sessions to the team on a range of topics relating to court protocols and procedures.

Q-COMP’s Legal Officer also continued to develop professional tools, delivered internal training and provided expert advice to the team on relevant matters.

In January 2013, as part of Q-COMP’s commitment to reducing red tape and implementing meaningful change, the Appeals Team identified and implemented a number of internal process improvements. These included replacing some paper notifications with electronic alternatives, improving the handling of insurer files and evaluating usage of the Barrister Panel.

With the increase in the number of appeals, the team focussed on core activities and did not have the resources to undertake the large-scale process improvements originally envisaged. With dedicated resources available in the next financial year it is expected the Red Tape initiative will continue and provide further benefits to the Appeals Team.

Q-COMP AND THE QUEENSLAND INDUSTRIAL RELATIONS COMMISSION (QIRC)

Following changes to the Industrial Relations Act 1999, in September 2012 the Vice President was delegated responsibility for administration of the Commission and Registry. This includes allocating hearings and the wider management of Commission business.

The legislation change, which made the Commission the forum for appeals of Q-COMP review decisions, has resulted in a backlog of hearings. The Queensland Industrial Relations Commission (QIRC) is now focussed on clearing this backlog and has appointed an additional Deputy President and two Commissioners to handle the increased workload.

The number of hearing days in 12/13 was 414 days (up from 232 days in 11/12) – an increase of 78.4%.

Following appointment of the additional members to the QIRC, the Vice President, Deputy Presidents, Commissioners and Registrar visited Q-COMP and were provided with an overview of our responsibilities under the Act as well as discussing the possibility of working together to move to a more electronic process in the future.

12/13 11/12

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FRAUD PROSECUTION

The prosecution of offences committed against the Workers’ Compensation and Rehabilitation Act 2003 are important in appropriate situations to maintain public confidence in the administration of the law and the scheme itself.

Section 536 of our Act establishes a duty for self-insured employers to report to Q-COMP any workers that they believe have committed a fraud related offence in relation to their claim for compensation.

The Act refers to the following fraud offences:

� Section 533 - a person must not in any way defraud or attempt to defraud an insurer;

� Section 534 - a person must not state anything to a self-insurer, or give a self-insurer a document containing information, the person knows is false or misleading in a material particular; and

� Section 535 - failing, without reasonable excuse, to inform the insurer of engagement in a calling after lodgment of application for compensation.

Self-insurer Charge/s Outcome

Arnott’s Biscuits Limited

1 charge of engaging in a calling. Worker found guilty at trial. Placed on 12 months probation order and ordered to pay $30,029.87 in restitution.

Coles Group Limited 1 charge of engaging in a calling.1 charge of attempting to defraud.

Worker pleaded guilty. Fined $1,000 and ordered to pay court costs of $1,220 and restitution of $256.

Gold Coast City Council

1 charge of fraud. 6 charges of providing false and misleading information to a self-insurer.

Worker found guilty at trial. Sentenced to six months imprisonment and ordered to pay $60,000 in restitution.

Toll Holdings Limited 4 charges of providing false and misleading information to a self-insurer.

Worker pleaded guilty. Fined $1,000 and ordered to pay $8,428 in restitution.

Our legal services team reviews all fraud referrals and will commence prosecution in situations where:

� there is sufficient evidence of an offence being committed; and

� prosecution is in the public interest.

INTEGRAL TO THE QUEENSLAND WORKERS’ COMPENSATION SCHEME IS THE HONESTY OF EMPLOYERS AND WORKERS.

13. SUCCESSFUL PROSECUTIONS AND THEIR OUTCOMES

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MEDICAL ASSESSMENT TRIBUNALS 12/13 AT A GLANCE

OBJECTIVE: To remain on the path of continuous improvement by implementing additional technological initiatives that ensures efficient communication with all stakeholders and to actively manage our business in an environmentally sustainable manner.

OUTCOMES: Improved applications, specifically designed for the Medical Assessment Tribunals, were developed and installed on all tablet computers used by tribunal members. Additionally, the tribunal services secretariat transitioned to electronic management of all files significantly reducing the cost and time related to managing paper files.

13/14 FOCUS: To continue our commitment to deliver exemplary services to stakeholders by providing training opportunities for tribunal members that will support the introduction of new legislation. Additionally, we will ensure our values form the framework for the facilitation of all Medical Assessment Tribunals.

MEDICAL ASSESSMENT TRIBUNALSFAIR AND INDEPENDENT MEDICAL DECISIONS

We remain committed to our legislated role of supporting and overseeing the efficient administration of the Medical Assessment Tribunal process. Our professionalism is evidenced through supporting the tribunal panel members in such a way as to allow for robust, clear decision making and providing a comprehensive service that meets the needs of workers and insurers.

INDEPENDENT MEDICAL REVIEW AND ASSESSMENT

Our Medical Assessment Tribunals (MAT) typically comprise of three members, selected from a panel of specialists who are appointed by Governor in Council.

Only a Queensland workers’ compensation insurer can refer a worker to MAT, with most matters referred about:

� a claim previously accepted by the insurer, but with uncertainty about whether there is any ongoing incapacity from the work-related injury

� assessing the degree of permanent impairment resulting from a work-related injury

� conflicting medical opinions about whether the injury is work-related.

Tribunal members make a collective decision about the worker’s injury, based on a clinical examination and information from the worker’s claim file, and any additional information provided by the worker or their representative.

The Medical Assessment Tribunal findings are final and cannot be appealed.

PERFORMANCE

Over the past year, there was an 11.8% increase in referrals received by the Tribunal Services Unit. This resulted in 1,041 tribunals and 2,153 workers attending from around Queensland. This also included attendance of workers at one of the three regional tribunals. Despite the increase in referrals, staff resources and key performance indicators remained stable with efficiencies realised from the transition to electronic file management.

Over the past 12 months only one successful Judicial Review application was received by the Tribunal. This consistently low number demonstrates both the efficient and equitable process the Medical Assessment Tribunals continue to be for stakeholders.

79.6% OF HEARINGS WITHIN EIGHT WEEKS OF REFERRAL FOR PRE-BOOKED TRIBUNALS. 79.6% OF HEARINGS WITHIN TEN WEEKS OF REFERRAL FOR SPECIALITY TRIBUNALS THAT ARE NOT PRE-BOOKED. 93.6% OF DECISIONS SENT TO INSURERS AND WORKERS WITHIN 10 DAYS OF HEARING.

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REGIONAL TRIBUNALS

Building on the popularity of the 11/12 regional tribunals and in an effort to provide further support to our regional stakeholders across Queensland, we have held General Medical Assessment Tribunals (Psychiatric) in Kingaroy, Cairns and Bundaberg in 12/13.

The aim of holding regional tribunals is to assist injured workers who might otherwise not be able to travel or require significant time off from employment in order to attend a tribunal in Brisbane. We will continue to hold regional tribunals each quarter with the aim of reducing costs for insurers and injured workers as well as the time required for injured workers to travel.

PROFESSIONAL DEVELOPMENT FOR TRIBUNAL DOCTORS

During this period all tribunal members attended professional development sessions which focussed on ensuring the provision of natural justice during the Tribunal process. In addition, the preparation of reasons for decision was also reviewed. Q-COMP will continue to hold these sessions for tribunal members to ensure that we continue to deliver quality resolution to complex medical matters as well as an exemplary level of customer service.

MEDICAL ASSESSMENT TRIBUNAL APPOINTMENTS

The appointment/reappointment process for the General Medical Assessment Tribunal (GMAT) was finalised in November 2012. The GMAT now comprises of 85 members including 16 new doctors.

The appointment/reappointment process for Speciality Medical Assessment Tribunals (SMAT) has also been completed with appointments effective as of 1 July 2013.

We welcomed 17 new members and the total of the SMAT is now 93 members of varying speciality. A full list of the SMAT members can be found on the Queensland Government Publications website publications.qld.gov.au.

The following members retired from their service to the Tribunal and Q-COMP would like to acknowledge and thank them for their contribution to the Tribunal and the scheme:

� Dr David Eaton, Occupational Physician

� Dr Michael Hogg, Physician

� Dr Andrew Leggett, Psychiatrist

� Dr Michael O’Rourke, General Surgeon

� Dr Nicholas Palmer, General Surgeon

� Dr Jill Reddan, Psychiatrist

� Dr Glenn Rice-McDonald, Thoracic Physician

� Dr Mark Tadros, Rehabilitation Medicine

� Dr Ross Cartmill, Urologist

INNOVATION - ELECTRONIC FILES FOR THE TRIBUNAL SERVICES UNIT

The transition for tribunal members to electronic files has continued during this period. In addition to members of the Orthopaedic and Neurosurgical Assessment Tribunals using iPads to receive their referrals, the General Medical Assessment Tribunal members also completed the transition to iPads.

Tribunal members with infrequent appointments, due to the nature of the referrals related to their speciality, have also become part of an iPad library. These members receive their referrals via an iPad which is available for their use for the duration of the referral. The transition has provided process efficiencies for Q-COMP in the preparation of referrals for tribunal members.

The Tribunal Services secretariat has also completed transition to the electronic management of all tribunal referrals. This has included scanning and batching incoming mail, electronic signing of tribunal decisions and electronic record keeping. The final stage of this transition will include the launch of an online tribunal referral system for insurers. The number of steps involved has been dramatically reduced as shown in the diagram on page 55.

MEDICAL ASSESSMENT TRIBUNALS (CONT’D)FAIR AND INDEPENDENT MEDICAL DECISIONS

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GREATER EFFICIENCIES TRANSITIONING FROM PAPER TO ELECTRONIC FILES

14. FLOW CHART FOR A PAPER FILE

15. FLOW CHART FOR AN ELECTRONIC FILE

MEDICAL ASSESSMENT TRIBUNALS (CONT’D)

Electronic process

Manual task

Automated task

Received Saved to TRIM

File printed for

sorting

File sorted

Copied (x 3) for

Dr’s

Copied for worker and

legal rep

File posted to Dr’s

FIle posted to worker

Additional document received

from insurer

File posted to Dr’s

File posted to legal rep

File placed in divider for Dr’s

File posted to Dr’s

Printed for file

Added to file

Document copied for Dr’s (x3)

Document copied for

worker and legal rep

Document posted to Dr

Document posted to Dr

Document posted to Dr

Document posted to

worker

Document posted to legal rep

Decision prepared

Quality check

Decision signed by

Dr’s

Decision photocopied for worker

and legal rep

Decision posted to

worker

Document posted to legal rep

Decision posted to

Insurer

Referral filed

Received Saved to TRIM

File sorted

File bookmarked

File emailed to worker and legal

rep

Additional document

received from insurer

Added to file

Decision prepared

Referral filed

Document emailed to worker and

legal rep

Quality check

Decision signed by

Dr’s

Decision scanned

to file

Decision emailed to worker and

legal rep

Decision emailed to

insurer

File placed in divider for Dr’s

File placed in divider for Dr’s

File sent to iPad for

Dr’s

Document sent to iPad

for Dr’s

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DATA MANAGEMENT AND ANALYTICS

DATA MANAGEMENT AND ANALYTICS 12/13 AT A GLANCE

OBJECTIVE: Monitor, analyse and report scheme claims measures to relevant stakeholders. Maintain robust scheme monitoring. Continue to investigate and implement innovative reporting solutions.

OUTCOMES: This year we have seen the addition of the Industry Comparative Calculator to our website. This tool helps employers to compare themselves against similar organisations within their industry across key measures. Measures include claim incidence rate, average cost and the return to work rate.

13/14 FOCUS: In 13/14 we will continue to support our internal business units through innovative reporting solutions that will help monitor workloads and identify areas for operational efficiency. We will also continue to build upon the information and analysis we provide to our external stakeholders.

SCHEME CLAIM HIGHLIGHTS

The Data Management and Analytics Team (DMA) strives to provide meaningful reporting and analysis of scheme claims measures. Our data is used to inform internal business decisions, provide monitoring for insurers and for national comparative performance monitoring.

We are responsible for the quality of the data captured and endeavour to provide clear and insightful business intelligence to reveal patterns, anomalies, key variables and relationships. We meet regularly with insurers, publish statistical reports annually and hold actuarial updates bi-annually to ensure our stakeholders are kept up-to-date with key trends.

THIS YEAR’S HIGHLIGHTS

This year DMA was heavily involved ‘behind the scenes’ in respect to the Queensland workers’ compensation scheme inquiry. The team conducted numerous impact analyses to help steer and generate conversation regarding whether the scheme could be improved or streamlined.

Data modelling was used to investigate the potential impact of changing access to common law, changing the criteria for self-insurance and reducing red tape for employers.

In 12/13 we have also been working closely with Q-COMP’s Regional network program to bring interesting and relevant statistics to educational forums across Queensland.

SCHEME TRENDS

A brief overview of key scheme trends and headline measures for the Queensland workers’ compensation scheme is provided on page 58. Further information can be found in our Annual Statistics Report.

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16. QUEENSLAND WORKERS’ COMPENSATION SCHEME PROFILE

DATA MANAGEMENT AND ANALYTICS (CONT’D)SCHEME CLAIM HIGHLIGHTS

Approximately  4%  of  lodgements  are  rejected  

15%  of  lodgements    do  not  progress  

⇒ Less than 10% of claims do not seek compensation and are report only.

⇒ Approximately 4% of claims are withdrawn by the worker.

⇒ Less than 1% of claims are entered in error and are cancelled.  

 

Approximately  100,000  claims  per  year  are  lodged  in  the  Queensland  workers’  compensation  scheme  

Less  than  5%  of  claims  progress  to  common  law  

 

 

Less  than  4%  of  decisions  are  disputed  and  reviewed      

⇒ Approximately 60% of decisions confirm the insurers decision.

 

Less  than  0.4%  of  all  lodgements  are  appealed  

 

⇒ 0.1% of claims are in relation to fatal injuries.

⇒ Approximately 45% of claims result in time off work. 96% of time lost claims return to work.

⇒ Over 35% of claims do not result in time off work

 

Over  80%  of  lodgements    are  accepted    

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STATUTORY NEW CLAIMS 8.1% BELOW FORECAST AND 5.8% BELOW LAST YEAR

New statutory claims are 5.8% lower than 11/12 due to a lower frequency of statutory claims per employee (claim rate). The claim rate for 12/13 has reduced by 6.3% to 43.4 claims per 1,000 employees. Statutory new claims of 99,298 for 12/13 have reduced to levels similar to 06/07 of 98,677.

STATUTORY PAYMENTS IN LINE WITH FORECAST AND INFLATIONARY FIGURES

Statutory payments for 12/13 increased in line with inflationary figures. Weekly compensation payments, which represent almost 45% of statutory payments, have stabilised over the previous six months and are now in line with expected levels.

17. STATUTORY CLAIM PAYMENTS STABLE RETURN TO WORK RATE

In 12/13 the return to work rate has remained stable at 96.7% since increasing from 94.3% in 10/11 to 97.2% in 11/12. The Q-COMP Return to work assist program contributed an additional 1.7% to the return to work rate resulting in a combined rate of just over 98.3% for 12/13.

COMMON LAW NEW CLAIMS BELOW FORECAST AND IN LINE WITH LAST YEAR

The legislative amendments of 2010 initially reduced the number of common law new claims and have stabilised at this new level - numbers for 12/13 are similar to 11/12. The result of 4,292 new claims for 12/13 is 14.0% below 09/10 (pre-reform) total of 4,988.

18. COMMON LAW LODGEMENTS

AVERAGE COST OF DAMAGES IS 8.1% BELOW FORECAST AND 9.2% BELOW LAST YEAR

The average cost of common law damages for 12/13 is $124,940. This is below the expected level of $136,000 due to a lower than expected average for post-reform claims (actual $105K; expected $125K). The result for 12/13 is 9.2% below 11/12 average of $137,599 and 13.3% below the 09/10 (pre-reform) average of $144,147.

19. COMMON LAW AVERAGE DAMAGES (EXCLUDING NIL SETTLEMENTS) AND PERCENTAGE OF NIL SETTLEMENTS

LOOKING FORWARD TO 13/14

In 13/14 we will continue to evolve and streamline our processes to further support both our internal and external customers with robust and relevant reporting solutions.

SCHEME CLAIM HIGHLIGHTS

DATA MANAGEMENT AND ANALYTICS (CONT’D)

08/09 09/10 10/11 11/12 12/13

Financial year

$669.9M $657.3M $677.4M$755.4M

$797.3M

08/09 09/10 10/11 11/12 12/13

Financial year

4,196

4,988

4,508

4,311 4,292

130,072144,147 148,057

137,599124,940

12.1% 12.4%

15.7% 15.7% 16.2%

08/09 09/10 10/11 11/12 12/13

Financial year

Common law average damages Percentage of nil settlements

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SELF-INSURERSBUILDING ROBUST RELATIONSHIPS WITH SELF-INSURERS

SELF-INSURED EMPLOYERS 12/13 AT A GLANCE

OBJECTIVE: Maintain robust relationships with self-insured employers and the Association of Self-Insured Employers of Queensland (ASIEQ) to provide the best possible platform for working together to achieve the scheme objectives.

OUTCOMES: Maintained healthy relationships with self-insured employers and the Association of Self-Insured Employers of Queensland (ASIEQ). The performance and compliance of self-insured employers in the scheme continues to be of an exceptionally high standard.

13/14 FOCUS: Respond to changes resulting from the Parliamentary inquiry to support self-insured employers by keeping them informed of their legislative obligations.

The Workers’ Compensation and Rehabilitation Act 2003 (the Act) makes Q-COMP responsible for monitoring the performance and compliance of insurers (Section 330 (2)(a)).

There are 25 self-insurance licences in Queensland covering 263 employers and their employees across the state. Q-COMP undertakes a performance management program to promote standards of excellence in insurer performance and ensure compliance with the legislation. The performance management program covers rehabilitation case management, claims management, complaints management and statistical analysis of performance. While our focus is on maintaining strong relationships with employers that are self-insured, our Act requires us to make judgements about whether these employers are exercising their powers reasonably and that they are fit and proper to hold a self-insurance licence.

PERFORMANCE

The self-insurer team have had a successful year maintaining good relationships and monitoring the performance of the self-insured employers. All self-insured employers continue to meet their obligations under the Act.

Performance monitoring activity this year included:

� seven comprehensive compliance audits

� eight insurer self-assessments reviewed by Q-COMP

� monthly analysis of key data for each insurer

� assessment of six licence renewal applications.

The financial security of the self-insurance sector is assured by the requirement of all self-insured employers to lodge a bank guarantee with Q-COMP for the greater of 150% of the actuarially-assessed estimated claims liability or $5m. In addition, all self-insured employers are required to maintain adequate reinsurance. As at 30 June 2013 Q-COMP holds guarantees for155% of the total estimated claims liability of self-insurers.

REDUCING RED TAPE

This year we reviewed all of our processes as part of our commitment to respond to customer needs and provide high levels of service. We identified and then implemented a number of opportunities for constructive change and improvement. Benefits to the self-insurers are in time savings and enhanced access to information about their licence activity.

Some of these initiatives include:

� providing self-insurers with real time online access to view the status of their injured worker’s referrals to the Medical Assessment Tribunals, Review and Appeals Units

� a reduction in the number of questions (from 36 to six), which are required to be completed by self- insurers when applying for renewal of their licence

� streamlining the process for change of membership applications

� tailoring new license application schedules to suit different license types

� a single confidentiality agreement to cover multiple users under a self-insurance licence to allow them access to online claims history searches.

DATA MANAGEMENT AND ANALYTICS (CONT’D)

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Self-insured employers have embraced the improvements and the committee conducting the inquiry into workers’ compensation gave the team a commendation for being proactive in streamlining self-insurance renewal arrangements.

RELATIONSHIPS

We pride ourselves on the great working relationships we have with the individual self-insurers and their association. This year this was demonstrated by:

� 59 visits to self-insured employers

� attending quarterly meetings with ASIEQ Executive

� attending and presenting at the quarterly ASIEQ member forums

� sponsoring, attending and participating in the 2013 ASIEQ conference.

Q-COMP will continue to engage self-insurers to ensure their needs are met and the viability of the scheme is maintained.

SELF-INSURERS (CONT’D)BUILDING ROBUST RELATIONSHIPS WITH SELF-INSURERS

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INNOVATIONCHALLENGE WHAT IS, RESEARCH WHAT COULD BE, DELIVER SOLUTIONS

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STAYING IN TUNE WITH OUR STAKEHOLDERS 12/13 AT A GLANCE

OBJECTIVE: To continue to find new initiatives and innovative approaches ensuring Q-COMP’s support and services are available for all Queensland employers and workers.

OUTCOMES: The continued roll out of the Regional network program has been highly successful and has resulted in consistently booked out forums across the state. A second well attended regional conference in Cairns, attendance at key trade shows and an increasing online presence has also ensured we are engaging with all stakeholders no matter where in Queensland they are based.

13/14 FOCUS: To expand our Regional network program to incorporate educational activities specifically aimed at supporting employers and educating General Practitioners particularly in more remote locations in Queensland.

SUPPORTING OUR STAKEHOLDERS ACROSS THE STATE

REDUCED COSTS AND INCREASED RESULTS

Over the past 12 months, Q-COMP has embarked on a vigorous campaign to continue to build upon the momentum achieved from our stakeholder engagement efforts whilst also reducing expenditure.

Our two stakeholder focussed teams, Education Promotion and Marketing Communications, worked closely together to ensure our resources were maximised resulting in the delivery of valued support to Queensland employers and workers and constrained operational expenses within the allocated budget for their teams.

As an initiative to reduce costs, the 2012 Brisbane Return to work Conference took on a new structure with the inclusion of the Return to work Awards ceremony into the conference schedule which ensured the integrity and importance of the Awards program was retained. You can read more about the event on page 36.

In addition, our second annual regional conference was an amazing success. Whilst cost savings in the promotion of the event were made in advertising and marketing materials the quality of branding and attendance on the day was still extremely high. 12/13 saw the continued development of our Regional network program (RNP) with 77 forums delivered across Queensland educating 3,764 stakeholders including rehabilitation and return to work coordinators, employers, allied health professionals and general practitioners.

We appointed ten Regional Representatives who are established health professionals in their local areas. These representatives act as Q-COMP’s regional spokespersons and brand ambassadors promoting our programs and initiatives to their region whilst also collating research for us on the needs and views of their area.

Our Education Promotion Team works closely with the representatives to deliver educational forums to stakeholders ensuring these forums are delivered in an engaging and consistent manner across the state.

The 3,764 attendees have benefited from a range of topics around rehabilitation and return to work including: ‘How to communicate effectively with GPs and allied health professionals’, ‘How to develop successful return to work plans’, ‘What is mental resiliency’, ‘Anatomy of the spine and back injuries’, and ‘Unmasking psychological injuries’.

12/13 saw a reduction in the operational budget for the RNP and as a result we utilised our Regional Representatives and specialised Q-COMP staff to present at our forums as opposed to paid guest speakers. Feedback gathered at workshops has indicated increased satisfaction with 98% of attendees responding that the sessions are of an excellent standard. In addition to this, attendance has increased by 71.1% over the past year.

STAYING IN TUNE WITH OUR STAKEHOLDERS

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SPEAKING DIRECTLY TO OUR STAKEHOLDERS

Our trade event schedule was reduced in 12/13 to focus on the key events that provide us with the most return on our investment. We decided to communicate directly with some of our key stakeholders in the medical, resources and allied health industries. Key events included:

� Queensland Law Society Personal Injuries Law Conference

� Queensland Mining Industry Health and Safety Conference

� Personal Injury Management Conference

� ASIEQ The Evolution of Injury Management

� Mackay Bowen Mining Show

� Occupational Therapy Work Symposium

� Queensland Safety Show

As a direct result of speaking to more than 2,000 of our stakeholders via these trade events, we saw a flow on effect for our other initiatives and services.

LEARNING AND SUPPORTING ONE ANOTHER

During 12/13 research supported by a Q-COMP scholarship commenced. The purpose of the study is to determine the effectiveness of an onsite early triage service on musculoskeletal workplace injuries in a meat processing plant. It is expected that this study will be completed and published in December 2014.

Over the past year we have also commenced an internal study involving Medical Assessment Tribunal members and injured workers. As studies are completed results will be both published and presented at various forums. Continuing research into treatment outcomes that assist in influencing management of injured workers is of key importance to ensuring workers receive the best care possible.

STAKEHOLDER CONSULTATION – UPDATE ON SCHEME TRENDS

As reported last year, Q-COMP and WorkCover Queensland have collaboratively established a regular reporting regime with actuaries and key stakeholders within Queensland’s workers’ compensation scheme.

These biannual forums facilitate discussions between stakeholder groups about developing scheme trends and hot topics and foster the strengthening of industry relationships. The sixth of these sessions was held in June 2013 and continue to secure strong attendance and positive feedback from stakeholders.

REPORTING TO THE MINISTER

The Minister is kept informed of scheme claims trends and significant issues via a regular quarterly report.

LOOKING FORWARD

Once again we are very proud of the work we have done this year as it has enabled us to reach more stakeholders and deliver quality educational messages at reduced expenditure to Q-COMP. Feedback to date has been extremely positive and we are committed to evaluating all of our major initiatives to ensure we continue to work effectively with all our stakeholders across the state, not just in the South East corner.

SUPPORTING OUR STAKEHOLDERS ACROSS THE STATE

STAYING IN TUNE WITH OUR STAKEHOLDERS (CONT’D)

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REGIONAL NETWORK PROGRAM INSPIRING ACTION Q-COMP’s Regional network program has brought a range of educational opportunities to stakeholders across the state, covering topics such as mental resilience, unmasking psychiatric/psychological conditions and most recently, managing back injuries at their Back to back workshops.

Back to back was the first workshop of 2013 and focussed on back injuries within the Queensland workers’ compensation scheme. One of the key messages of the workshop was the health benefits of alternating between sitting and standing positions for workers returning to work after a back injury.

After attending Back to back, several representatives from the Department of Education, Training and Employment (DETE) were inspired to take this message back to the office to develop their own workplace wellbeing program, Move.More.2013. We spoke to the Department to understand more about their initiative. CASE STUDY - MOVE. MORE. 2013

Move.More.2013 encouraged a more active workplace, through toolbox talks for managers, research sharing, and a few simple office strategies like calendar reminders, stair climbs and employee checklists.

Move.More.2013 focuses on supporting employees to incrementally increase how much they move each day at work. Unsurprisingly, office workers have been identified as one of the most sedentary of the occupational groups and represent over 12% of the workforce. It stands to reason that office based staff are a key target group for workplace sitting reduction initiatives.

The initiatives which support the Move.More.2013 wellbeing program include:

� launching a Manager’s Toolkit which outlines specific strategies managers can adopt to support their staff to stand up and move more during the working day

� launching an Employee’s Checklist and Stretching Guide to be displayed at each work station to provide employees with a list of strategies to get staff to stand up and move about each day

� lunchtime information sessions from subject experts to present the latest research into the risk factors associated with a sedentary lifestyle and provide employees with strategies to stand up more and sit less during the working day

� various initiatives focussed on providing information to support both women’s and men’s health topics.

The challenge DETE gave their staff was simple - move more! This means different things to different workers however the goal for all workers is the same - to get moving at work.

We were so pleased to see the flow on effect of our Back to back workshop and to see that it had inspired a new initiative to help people stay healthy at the workplace.

REGIONAL NETWORK PROGRAM CASE STUDY

STAYING IN TUNE WITH OUR STAKEHOLDERS (CONT’D)

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GOVERNANCEASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

Our commitment to achieving high standards of governance, accountability, compliance, ethical behaviour and service delivery is clearly demonstrated in our performance.

Our performance management and governance framework aims to encourage and maintain quality results reflecting our vision, statement of intent, objectives, goals and strategies. The framework supports how we deliver value and outcomes that are aligned with our regulatory services to stakeholders across Queensland.

OUR PERFORMANCE MANAGEMENT FRAMEWORK

We implement a performance management framework that establishes clear linkages between our stakeholders’ needs and expectations, our key strategies and actions, measuring and monitoring performance and reporting on our results to ensure we deliver value and outcomes.

In doing so, we focus on aligning our strategic goals with whole of Government direction and priorities, and always acting in the best interests of Queensland’s workers’ compensation scheme.

GOVERNANCE 12/13 AT A GLANCE

OBJECTIVE: To enhance our capacity and capability to respond to our continuously changing environment and strengthen resilience in our people, service delivery and within the workers’ compensation scheme.

OUTCOMES: Taking an open, flexible and consultative approach to facilitate establishing a new Board and to support the business to inform and respond proactively to the workers’ compensation scheme inquiry.

13/14 FOCUS: To continuously improve our governance practice and provide comprehensive support to management and the Board to review and develop our strategic objectives in line with the Queensland Government’s priorities for the community and the workers’ compensation scheme.

WE FOCUS ON ALIGNING OUR STRATEGIC GOALS WITH WHOLE OF GOVERNMENT DIRECTION AND PRIORITIES.

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SETTING THE STRATEGIC VISION

Our comprehensive strategic and business planning process reflects the Board and Leadership Team’s long-term strategic vision. The process provides an opportunity to review our performance during the year against targets and outcomes to guide decision making for the coming year.

Q-COMP’s statement of intent, values and goals are reviewed each year to ensure we are moving towards our vision of an enduring Queensland workers’ compensation and rehabilitation scheme that balances the needs of workers and employers. The planning process also identifies emerging issues and helps to formulate Q-COMP’s four year strategic plan and business plan.

Our statement of intent underlines our commitment to acting as the voice of the workers’ compensation industry. We work across the whole of Queensland to deliver high quality and innovative services that balance the needs of workers and employers and ultimately ensure that injured workers are able to return safely to work. This commitment is underpinned by our values of pride, people, integrity and innovation – always.

Our current strategic and operational plans focus on delivering an excellent customer experience and expanding our promotion and education activities across Queensland. We aim to achieve all this in an environment of collaboration with WorkCover Queensland and Workplace Health and Safety Queensland.

GOVERNANCE (CONT’D)

20. PERFORMANCE MANAGEMENT FRAMEWORK DIAGRAM

2.STRATEGIC PLANNING AND

SET PERFORMANCE MEASURES

3.DELIVER SERVICES AND STRATEGIC ACTIONS

4.MONITOR AND REVIEW PERFORMANCE

5.REPORT ON PERFORMANCE

1.IDENTIFY STAKEHOLDER NEEDS AND

EXPECTATIONS

STAKEHOLDER VALUE AND OUTCOMES

FINANCIAL AND PERFORMANCE MANAGEMENT AND GOVERNANCE

ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

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Our strategic plan also reinforces our focus on developing innovative strategies to ensure an effectively regulated workers’ compensation scheme, while ensuring that our funding levels are efficiently utilised to achieve our outcomes. In developing our plans, we have also designed performance measures to reinforce our accountability and transparency in relation to achieving results. These measures include regular surveys of our external stakeholders and internal staff to obtain feedback on our performance and workplace culture, and key performance indicators relating to our regulatory functions, scheme stability and financial performance against budget.

A number of additional documents support our strategic plan including:

� operational plan

� internal audit strategic and annual plans

� information communications technology (ICT) resources strategic plan

� business unit plans. The strategic plan ensures organisational plans and activities are developed to support our strategic and operational goals. Organisational plans are reviewed on an ongoing basis to monitor progress and performance. Issues are reported to the Leadership Team as they arise.

EFFECTIVE GOVERNANCE AND COMPLIANCE

Our governance framework reinforces accountability and transparency to ensure we deliver results for stakeholders. It does this by guiding and supporting our planning and performance management activities, as well as the efficient management and control of financial and other resources. The way we operate is bound by the provisions of the Workers’ Compensation and Rehabilitation Act 2003 (the Act), the Financial Accountability Act 2009, the Statutory Bodies Financial Arrangements Act 1982 and other relevant legislation and Government standards relating to statutory authorities. Encouraging quality results allows us to ensure we comply with the applicable State Government legislation.

Our governance framework ensures a thorough and effective format for:

� compliance with relevant legislation and Government standards and guidelines

� establishing clear roles, responsibilities and powers of the Board, Audit and Risk Management Committee and the Leadership Team through relevant charters and appropriate delegation of authority

� documenting, communicating and implementing clear and concise policies and procedures for effective internal controls and compliance

� ensuring rational, accountable and transparent decision making by complying with processes for managing actual and potential conflicts of interest, and relevant codes of conduct and standards of ethical professional behaviour

� implementing thorough risk management and internal audit programs to reinforce strategic and operational objectives and quality service delivery

� concise and accurate performance reporting to the Leadership Team, Board and Attorney-General and Minister for Justice

� reinforcing a commitment to continuous improvement.

REPORTING REQUIREMENTS

We report quarterly to the Attorney-General and Minister for Justice on our organisational functions and operations, our progress in achieving our strategic and operational goals, our performance against predetermined targets, and scheme performance, including scheme-wide trends and issues. This information is also reported to the Board at each meeting.

ACCOMPLISHING EXCELLENCE IN REPORTING

Accountability and transparency are fundamental when reporting. We endeavour to meet State Government annual reporting requirements and reflect best practice industry standards in reporting.

GOVERNANCE (CONT’D)ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

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GOVERNANCE (CONT’D)

September

Strategic Plan progress review

October to February

Mid-year budget review, Q-COMP strategic

and operational planning

March to April

Budget for coming year

May to June

Strategic plan approved by Board and business plans

completed

July

Employee achievement

review and career planning

July to August

Drafting and tabling of Annual Report, financial statements and statistics report

Regular monthly review of

employees’ achievements,

business KPIs and budget

21. Q-COMP BUSINESS PLANNING AND GOVERNANCE CYCLE

ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

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Q-COMP’s business unit structure supports good governance and ensures our people’s outputs and outcomes are focussed on performing our regulatory functions and delivering on strategic initiatives.

BUSINESS UNIT STRATEGIC INITIATIVES

REGULATORY AND LEGISLATIVE FUNCTIONS

BUSINESS AND GOVERNANCE SERVICES

Delivering service to our external and internal customers

External customers: workers, dependents, employers, rehabilitation and return to work coordinators, insurers, unions, industry groups, medical and allied health providers, other providers, Government, and other stakeholders and customers

Internal customers: Q-COMP employees

Insurer Services Design and deliver innovative regulatory processes

Monitor insurers’ compliance with and performance under the Act

Manage corporate complaints, including Ministerial requests

Manage self-insurer licensing

Inform, educate and advise insurers

Review and Appeals Continue to listen carefully to our stakeholders and engage them in two-way conversations to better meet their needs

Review insurers’ decisions

Manage appeals of Q-COMP review decisions

Tribunal Secretariat Administer and support medical assessment tribunals

Education Promotion Team

Workplace rehabilitation accreditation of employers and monitoring compliance

Administer medical and allied health tables of costs and fee schedules

Administer grants

Inform, educate and advise employers and rehabilitation and return to work coordinators

Engage and educate medical and allied health professionals

Research and education Promote education about the workers’ compensation scheme

Stakeholder relationship forums

Regional network program

GOVERNANCE (CONT’D)

22. OUR BUSINESS UNIT STRUCTURE – ENHANCING SERVICE DELIVERY

ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

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Marketing Communications

Market research to understand stakeholder needs

Inform, educate and engage our employees via innovative communication channels

Return to work Conference, Expo and Awards

Return to work assist Assist workers to get back into the workforce after a work-related injury

Data Management and Analytics

Develop consistent data and definitions across agencies

Collect and manage quality scheme-wide data

Collect and manage quality data

Establish accurate and cohesive reporting on the scheme

Inform decision making through scheme-wide statistical reporting and analysis

Inform decision making through statistical reporting and analysis

Information Technology E-business technical advice, support and implementation

Maintain and develop information systems and telecommunications

Provide helpdesk support

Finance Align funding to organisational priorities

Manage our finances and internal controls

Procurement Advise on and monitor purchasing and procurement

BUSINESS UNIT STRATEGIC INITIATIVES

REGULATORY AND LEGISLATIVE FUNCTIONS

BUSINESS AND GOVERNANCE SERVICES

Delivering service to our external and internal customers

External customers: workers, dependents, employers, rehabilitation and return to work coordinators, insurers, unions, industry groups, medical and allied health providers, other providers, Government, and other stakeholders and customers

Internal customers: Q-COMP employees

GOVERNANCE (CONT’D)ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

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ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

Human Resources Live and promote our code of conduct and values

Advise the Leadership Team and employees on people-related matters, including recruitment, recognition and reward, coaching and development, wellness and work health and safety, change management

Executive Services Provide information requested via Right to Information legislation, administrative release and injury profiles, manage information privacy

Administer corporate governance and legislative compliance framework and risk management program

Manage self-insurer fraud referrals Board and Audit and Risk Management Committee secretariat

Provide broad legal support and advice

Recover costs from litigation owed to Q-COMP

Executive Services to the CEO and Leadership Team

Medical Advisor Advise employees about medical issues

BUSINESS UNIT STRATEGIC INITIATIVES

REGULATORY AND LEGISLATIVE FUNCTIONS

BUSINESS AND GOVERNANCE SERVICES

Delivering service to our external and internal customers

External customers: workers, dependents, employers, rehabilitation and return to work coordinators, insurers, unions, industry groups, medical and allied health providers, other providers, Government, and other stakeholders and customers

Internal customers: Q-COMP employees

GOVERNANCE (CONT’D)ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

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INDEPENDENT, NON-EXECUTIVE BOARD

Our Board is established under section 335 of the Act and is formed by a Chairperson and five directors. The Governor-in-Council appoints the Chairperson, deputy Chairperson and directors, on recommendation of the Minister, for a term of up to five years. The Queensland Government Insurance Fund provides cover for directors equivalent to directors’ and officers’ liability insurance.

A new Board was appointed by the Governor-in-Council from 1 July 2012 for a term of two years. Membership of the Board as at 1 July 2012 was as follows:

� Flavia Gobbo – Chairperson

� Peter Dowling – Deputy Chairperson

� Dr Simon Blackwood

� David Harrison

� Stephen Tait

� Dr Beres Wenck.

In March 2013, Dr Simon Blackwood resigned from the Q-COMP Board and was appointed to the WorkCover Board. At the same time, the Governor-in-Council appointed Paul Goldsbrough to the Q-COMP Board to replace Dr Blackwood.

Upon appointment, the Board was provided with a comprehensive induction which included information about:

� Q-COMP’s corporate governance framework, the Board and Audit and Risk Management Committee charters, the directors’ code of conduct and procedures for managing potential conflicts of interest

� Board and Audit and Risk Management Committee meeting processes

� Q-COMP’s role, legislative obligations and regulatory functions

� Q-COMP’s current strategic and operational plans

� a Q-COMP corporate and cultural induction

� the Queensland Government’s ‘Welcome ABoard’ handbook.

FUNCTIONS PERFORMED PROFESSIONALLY

Our Board’s role is to govern Q-COMP to fulfill its function to regulate the Queensland workers’ compensation scheme fairly and equitably. The Board decides our objectives, strategies and policies and ensures that we perform our legislative functions properly, effectively and efficiently and achieve our objectives. The Board is accountable to keep the Minister informed about our performance.

The Board is guided by a formal charter that outlines its roles and responsibilities, including:

� deciding objectives, strategies and high level policies for Q-COMP to follow when fulfilling its functions under the Act. These objectives and strategies are embodied in Q-COMP’s strategic, operational and business plans

� monitoring and reviewing performance against objectives in line with Q-COMP’s strategic plan and regulatory functions

� ensuring appropriate policies and procedures are in place, are effectively communicated to stakeholders and employees and are regularly reviewed

� delegating certain Board oversight functions to the Audit and Risk Management Committee

� delegating authority for operational functions to the Chief Executive Officer (CEO)

� reporting to the Attorney-General and Minister for Justice on Q-COMP’s performance and activities.

REMAINING ACCOUNTABLE

The CEO manages our day-to-day operations and is supported by the Q-COMP Leadership Team in overseeing our organisation’s functions. The CEO and Chairperson meet regularly to discuss emerging and strategic issues.

The relationship between the Board and the CEO ensures the Board is kept informed of our operations, and decisions and directives of the Board are disseminated and actioned. At each Board meeting, the Board is presented with a range of reports, including a finance report, CEO report outlining operational activities, and quarterly overviews of key statistical trends and emerging issues within the scheme.

GOVERNANCE (CONT’D)ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

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POWERS OF DELEGATION

Our Board and the CEO may delegate certain powers to appropriately qualified Q-COMP employees under sections 339 and 358 of the Act. We maintain a Legislative delegations manual and a Financial Administration and Human Resources manual. The Legislative delegations manual outlines delegations relating to our Act and other relevant legislation relating to our functions as a statutory authority. The Financial Administration and Human Resources manual specifies financial and human resource-related delegations influenced by changes in other legislation with which we must comply. The standing delegation that was created for any CEO-related unplanned absences has worked well throughout 12/13.

ATTENDANCE AT BOARD AND COMMITTEE MEETINGS There were seven Board meetings and four Audit and Risk Management Committee meetings held in 12/13. Chairperson and director remuneration is paid in accordance with procedures for the remuneration of part-time Chairs and members of Government Boards, committees and statutory authorities issued by the Department of Justice and Attorney-General.

In 2012, a comprehensive review of Board remuneration was undertaken by management and internal audit in consultation with the Department of Justice and Attorney-General, to provide assurance that director payments for meeting attendance and special assignments continue to be in line with the Public Service Commission’s procedure for the remuneration of part time Chairs and members of Government Boards, committees and statutory authorities.

EFFECTIVE MEETINGS MATTER During 12/13, our Executive Services Team, which provides secretarial functions to the Board and Audit and Risk Management Committee, has focussed strongly on continuous improvement of Board and committee processes in order to facilitate the Board’s performance management and governance roles. In line with e-business initiatives across the business, iPads were introduced to Board and Audit and Risk Management Committee meetings from August 2012. Board and committee agendas and papers are distributed electronically to directors’ iPads using a custom-made secure application. Use of iPads has also been introduced to Q-COMP Leadership Team QLT weekly meetings. This new process has significantly reduced use and storage of paper copies of Board, committee and management documentation.

BOARD (A) AUDIT AND RISK MANAGEMENT COMMITTEE (B)

Flavia Gobbo 7 (Chairperson) 3

Peter Dowling 5 4 (Chairperson)

Simon Blackwood (Dr) (C) 4

Paul Goldsbrough (C) 3

David Harrison 6 4

Steven Tait 6

Beres Wenck (Dr) 7

A – SEVEN BOARD MEETINGS WERE HELD IN 12/13B – FOUR AUDIT AND RISK MANAGEMENT COMMITTEE MEETINGS WERE HELD IN 12/13C – IN MID-MARCH 2013, DR SIMON BLACKWOOD RESIGNED FROM THE Q-COMP BOARD (APPOINTED ON 1 JULY 2012) AND PAUL GOLDSBROUGH WAS APPOINTED TO THE Q-COMP BOARD.

23. ATTENDANCE AT BOARD/COMMITTEE MEETINGS

GOVERNANCE (CONT’D)ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

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KEY ACHIEVEMENTS

Throughout the year, and commensurate with its role to set the organisation’s strategic direction and monitor performance against objectives, the Board met to consider, determine or note the relevant matters below.

STRATEGIC PLANNING AND PERFORMANCE MEASUREMENT

The Board:

� endorsed Q-COMP’s 11/12 annual report including the annual statistics publication

� reviewed outcomes of 11/12 activities in comparison with Q-COMP’s 2011-15 strategic plan and operational plan

� considered stakeholder research recommendations about prioritising areas to meet or exceed stakeholders’ performance, needs and expectations

� reviewed the currency and appropriateness of Q-COMP’s strategic plan and approved the realignment of strategic objectives and performance measures to respond to emerging issues.

RESPONSIBLE FINANCIAL MANAGEMENT

The Board:

� endorsed the 11/12 financial statements, noted the satisfactory external audit report for 11/12, approved the 12/13 mid-year budget review, and approved the 13/14 budget with a focus on aligning funding to organisational priorities and maintaining adequate funds to cover contingencies

� recommended to the Minister a responsible levy rate acceptable to stakeholders.

EFFECTIVE AND ACCOUNTABLE DECISION MAKING AND OVERSIGHT

The Board:

� reviewed policy and arrangements for the workers’ compensation information grants for 13/14

� approved payment of a research scholarship to support research beneficial to the workers’ compensation scheme

� reviewed a comprehensive evaluation of the outcomes of the 2012 Return to work Conference, Expo and Awards

� considered the findings of Bond University’s evaluation of the Return to work assist program

� monitored Q-COMP activities to respond to the Finance and Administration Committee’s inquiry into the operation of Queensland’s workers’ compensation scheme and considered the committee’s recommendations.

RELATIONSHIPS AND COLLABORATIVE PARTNERSHIPS

The Board:

� met with the Chairperson, Deputy Chairperson and Chief Executive Officer of WorkCover Queensland to enhance opportunities for information sharing and operational efficiencies

� met periodically with stakeholder groups including Chairs of the Medical Assessment Tribunals and the Association of Self-Insured Employers of Queensland (ASIEQ).

PERFORMANCE MONITORING AND REPORTING

The Board:

� monitored Q-COMP’s performance of its core regulatory functions against its performance targets (CEO report)

� monitored the CEO’s performance.

FULFILLING OUR REGULATORY FUNCTIONS – INSURER MANAGEMENT AND SUPPORT

The Board:

� reviewed the policy guidelines for renewing self- insurance licences

� approved the renewal of six self-insurer licences

� monitored and evaluated insurer performance and compliance

� monitored the performance and prudential risk profiles of self insurers.

GOVERNANCE (CONT’D)ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

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MONITORING SCHEME STABILITY

The Board:

� monitored workers’ compensation scheme claims performance including emerging trends and key issues within the scheme.

GOVERNANCE AND OPERATIONAL PERFORMANCE

The Board:

� participated in a self-assessment of its performance

� reviewed existing delegations and policies

� reviewed Q-COMP’s organisation-wide risk register and risk management program

� reviewed arrangements for CEO succession planning

� evaluated the CEO’s performance and approved key performance indicators.

GOVERNANCE DEDICATION

In meeting its commitment to governance, the Board evaluates its performance and that of the Chairperson through an annual self-assessment. In May 2013 the Board completed a self-assessment of its overall performance, the performance of individual directors and that of the Chairperson.

Performance areas reviewed include:

� role clarity

� strategy and performance monitoring

� CEO performance monitoring

� monitoring financial and non-financial indicators

� risk management

� compliance

� policy framework

� stakeholder communication

� decision making

� effective governance

� Board dynamics

� meeting processes

� committee structure.

AUDIT AND RISK MANAGEMENT COMMITTEE – STANDING COMMITTEE

There is currently one standing Board committee, the Audit and Risk Management Committee (the committee). The committee consists of Chairperson, Mr Peter Dowling and members Ms Flavia Gobbo and Mr David Harrison.

The committee’s key duty is to provide reasonable assurance to the Board that our core business goals and objectives are being achieved in an efficient and economical manner within an appropriate framework of internal control and risk management.

The committee operates in accordance with its own charter, which is developed with reference to Queensland Treasury audit committee guidelines, and which outlines the committee’s delegated authority, role and responsibilities and interaction with the Board, executive management and internal and external audit.

During 12/13, the Executive Services Team has focussed on continuous improvement of committee processes, which has contributed to improved monitoring of financial management, risk, audit, internal controls and compliance matters to support the organisation to achieve quality results.

GOVERNANCE (CONT’D)ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

THE BOARD EVALUATES ITS PERFORMANCE AND THAT OF THE CHAIRPERSON THROUGH AN ANNUAL SELF-ASSESSMENT.

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The committee met four times during 12/13 to consider, determine or note relevant matters scheduled in our corporate calendar, including:

� the risk register summary reports

� continued compliance with our business continuity plan

� internal audit findings and updates on implementation of audit recommendations by executive management

� financial statements for 11/12

� external audit findings for 11/12 presented by the Queensland Audit Office external audit contractors Johnston Rorke/Pitcher Partners in August 2012

� the external audit plan for the year ending 30 June 2013 to the committee in February 2013

� review of our financial, human resources and legislative delegations and organisational policies and procedures

� providing advice and recommendations to management for the draft 13/14 budget.

RISK MANAGEMENT – EVERYONE’S RESPONSIBILITY

We are committed to establishing an organisational philosophy and culture that ensures effective business risk management. The function of risk management is to support the achievement of our corporate objectives and strategic direction. The scope of our risk management program includes financial, legal, compliance, operational, political, social, public perception/image, client and cultural aspects. Risk management is an integral part of our activities, and while primarily managed by Executive Services and the Leadership Team, it is the responsibility of all of our employees.

We maintain risks through an online database system (Risk Shield). Risks are defined as the probability of an event occurring and its impact on our obligations as a regulator. Risks are reviewed on a continual basis and reported to the committee quarterly.

Q-COMP’s risk management program continuously follows the key principles and guidelines including the AS/NZS ISO 31000:2009 – Risk management, Queensland Treasury Guidelines – Strategic risk management and the Financial and Performance Management Standard 2009. The program is actively followed ensuring there is a process for identifying, assessing and prioritising risks.

The Leadership Team has integrated risk identification and awareness into everyday business operations. There is a clear link between the risk management function and reviewing our business continuity plan. This ensures the capacity and capability to maintain and restore key business functions in the event that risks with catastrophic impacts are realised.

During 12/13, the Executive Services Team streamlined reporting on organisational and work health and safety risks, and revised the risk analysis matrix in Q-COMP’s risk register to further align with the nature of risks facing the organisation.

An example of our risk management process is the continuous improvement in managing work health and safety risks to ensure a more coordinated approach between work health and safety management, facilities and building management and risk management functions within the business.

The Q-COMP health and safety group has developed a number of processes to clarify responsibility for and ensure better coordination of activities relating to identification, prevention and management of hazards, incidents and near misses that may impact on the health and safety of staff, visitors and Q-COMP’s premises. There are also processes for communicating with staff and regularly reporting on work health and safety issues to management and the Audit and Risk Management Committee.

Another key risk management focus during 12/13 was the monitoring of potential financial, business and reputational risks relating to the Finance and Administration Committee’s inquiry into the operation of Queensland’s workers’ compensation scheme.

INTERNAL AUDIT – SUPPORTING INTERNAL COMPLIANCE

The Corporate Administration Agency (CAA) provides an internal auditor who operates under the internal audit charter, developed in line with the Queensland Treasury audit committee guidelines. The internal auditor is responsible to the CEO for the performance of internal audit functions and provides independent and professional advice to our Board and Leadership Team. They do this by examining and evaluating the adequacy, effectiveness and efficiency of internal control systems. The internal auditor also provides analysis, appraisals and recommendations on the operations reviewed, reporting directly to the Audit and Risk Management Committee on matters arising from internal audits.

GOVERNANCE (CONT’D)ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

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Audits in 12/13 focussed on areas of significant operational risk including:

� travel management

� performance management/achievement planning procedures

� grants and scholarship management

� work health and safety procedures

� the implementation and use of iPads.

The audit findings were satisfactory. The committee considered and supported the recommendations from the internal auditor. Following implementation of the recommendations, the risks were re-assessed through the risk management program.

EXTERNAL AUDIT

We are audited by QAO (Queensland Audit Office) in accordance with the Auditor-General Act 2009 and other applicable legislation. The QAO has outsourced the external audit of Q-COMP’s operations to Pitcher Partners for a three-year period that commenced in 11/12. Representatives from Pitcher Partners reported to the Audit and Risk Management Committee in August 2013 on the external audit findings and an unqualified audit report was provided.

The committee has also extended the invitation for representatives of the QAO to attend meetings where external audit matters are discussed.

PROMOTING ETHICS AND A CULTURE OF PRIDE AND INTEGRITY

The Board has adopted a directors’ Code of Conduct, incorporating principles prescribed by the Public Sector Ethics Act 1994. Each director and Leadership Team member submits a declaration of personal interests which is maintained to identify potential conflicts of interest. A standing item at Board meetings is the declaration of any real or potential conflict of interest with any agenda matter. Our CEO has provided a declaration of interests to the Minister and the Integrity Commissioner in accordance with the Integrity Act 2009.

STRENGTHENING GOVERNANCE THROUGH OUR CODE OF CONDUCT

We adopt and promote the Queensland public service code of conduct, which is based on the ethics principles contained within the Public Sector Ethics Act 1994. By upholding this code we aim to embody the highest ethical standards and deliver our services with integrity and accountability while promoting the public good.

As part of living our values Q-COMP has in place a conduct statement which complements and is consistent with the Queensland public service code of conduct. This statement was developed with our employees and representative organisations. It is intended to provide a further guide for our employees and stakeholders about how we go about our business.

As part of our commitment to ensure continued awareness and behaviours expected in the code of conduct and ethical decision making, we conduct training sessions for all new starters and run annual refreshers for all staff. Our HR policies and procedures are reviewed annually and are used as part of the refresher programs.

INFORMATION PRIVACY

We must manage personal information according to the information privacy principles within the Information Privacy Act 2009 (IPA). Individuals also have the right to access and amend documents held by us which contain their personal information and may lodge a privacy complaint in relation to how we manage their personal information. Requests to access and amend personal information, and privacy complaints, are managed by legal services within the Executive Services Team.

INFORMATION RELEASE

We ensure a consistent approach to the release of documents that may be accessed through a number of legislative systems.

Subject to certain limitations, section 572 of the Workers’ Compensation and Rehabilitation Act 2003 (the Act) provides administrative access for workers and claimants to request copies of relevant documents within 20 business days, and without charge.

GOVERNANCE (CONT’D)ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

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Section 573(3A) of the Act additionally provides insurers with access to information we hold which is relevant to a claim against an insurer. The insurer’s access is provided free of charge and is subject to limitations in the IPA.

The Right to Information Act 2009 (RTI) gives a right of access to information in the possession or under the control of the Government unless it is contrary to the public interest to give the access or the information is exempt from release. Access and processing charges may apply although certain administrative charges may be waived in some instances. Applicants have certain internal and external review rights in respect of our decision on an RTI application. Internal reviews are conducted by a Q-COMP staff member of a grade equal or senior to the original decision-maker, and external reviews are conducted by the Office of the Information Commissioner, an independent external review authority.

Under the Evidence Act 1977, a party to a civil proceeding may obtain access to documents we hold that are relevant to an issue in that proceeding. Fees apply and are charged in accordance with the Evidence Regulation 2007.

We are also obliged to release information in accordance with subpoenas and summons to produce received under the Uniform Civil Procedure Rules 1999 or Justices Act 1886. We must comply with a subpoena or summons unless it is irrelevant, oppressive, relates to documents protected by legal, professional privilege or is non-compliant.

During 12/13, Executive Services responded to recommendations made by the Office of the Information Commissioner (OIC) following a desktop audit of Q-COMP’s website, and completed a self-assessment audit tool at the request of the OIC. These audits addressed Q-COMP’s compliance with its obligations under the Right to Information Act 2009 and Information Privacy Act 2009.

RECORDS MANAGEMENT

During 12/13, Q-COMP’s electronic document and records management system HP TRIM was upgraded to the latest version and released to all business units. This has enabled staff to continue maintaining high industry standards and procedural integrity to meet performance indicators.

A project was commenced during 12/13 to revise the Business Classification Scheme (BCS), which enables staff to appropriately store their records. The revised BCS will include new functions that Q-COMP currently performs and will ensure correct preservation of information as outlined in standard IS31: Retention and Disposal of Public Records. Liaison with business units and Queensland State Archives is currently underway and we aim to implement the revised BCS in 13/14.

Q-COMP is currently investigating the digitisation of physical records held at secondary storage in accordance with Queensland Government legislative requirements. The outcomes expected from this process are cost reductions, reduced timeframes for searching for information and conservation of true and complete records for future retrieval and reference.

REQUESTS FOR INJURY PROFILES

We process requests from workers and authorised third parties for injury profiles (the history of a workers’ compensation claim). Effective from 1 April 2005, an amendment to the Act made it an offence for an employer to obtain and use a workers’ compensation document for a purpose relating to the employment of a worker, unless the document is necessary to secure the worker’s rehabilitation or early return to work. Our procedures enable us to effectively manage the appropriate release of injury profiles in accordance with the Act.

GOVERNANCE (CONT’D)

24. REQUESTS FOR INJURY PROFILES

NUMBER

Type 12/13 11/12 10/11 09/10 08/09

Worker 25 47 105 61 27

Workers’ legal representatives and insurers

23,537 23,477 17,257 14,587 13,095

Total 23,562 23,524 17,362 14,648 13,122

ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

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In recent years, Q-COMP has provided over 20,000 injury profiles a year to plaintiff lawyers and CTP insurers. In 12/13, a system was created to enable external parties to have direct access to injury profiles, creating efficiencies for lawyers, insurers and Q-COMP.

MANAGING FEEDBACK

We coordinate responses to all workers’ compensation issues, either complaints or praise, received from the Minister’s office or made directly to us.

In 12/13, 239 complaints were received by our organisation. We are committed to best practice complaints management in accordance with the Public Service Commissioner’s Directive 13/06 – Complaints Management Systems and in conjunction with the Office of the Queensland Ombudsman. Our comprehensive complaints management system provides easy access for stakeholders and the public to comment on any aspect of the workers’ compensation scheme under our jurisdiction.

The Leadership Team reviews the complaint reports monthly to identify and proactively manage issues and new trends. The total number of complaints received (239), in comparison with 99,298 new workers’ compensation claims in the year, with 3,269 disputed claims, indicates that our organisation, WorkCover Queensland and self-insurers are servicing their customers well.

ANSWERING CONCERNS

In 12/13, 140 of the 239 complaints received were Ministerial issues (a 3.4% decrease on the 145 received in 11/12). The following graph illustrates the number of Ministerial issues received by us about the workers’ compensation scheme over the last five years.

RECEIVING SCHEME-WIDE ISSUES (OTHER THAN MINISTERIALS)

In 12/13, 99 issues were received by Q-COMP (an 8.3% decrease on the 108 received in 11/12). The following graph illustrates the number of complaints about the scheme received by Q-COMP over a five year period.

WORKERS’ COMPENSATION QUERIES

In 12/13, WorkCover Queensland was the respondent to 61.5% of complaints, with our organisation as the respondent to a further 23.4%, a self-insurer as the respondent to 14.6%, and 0.5% being other respondents. The relative share of complaints between WorkCover Queensland, self-insurers and Q-COMP reflects the relative size of each organisation in the scheme and the nature of their roles.

FUTURE PRIORITIES

Our objective for 13/14 is to continuously improve our governance practice and provide comprehensive support to management and the Board to review and develop our strategic objectives in line with the Queensland Government’s priorities for the community, stakeholders and the workers’ compensation scheme.

GOVERNANCE (CONT’D)

25. MINISTERIAL ISSUES RECEIVED

26. SCHEME-WIDE COMPLAINTS RECEIVED BY Q-COMP

ASSURING QUALITY PERFORMANCE THROUGH ROBUST GOVERNANCE

08/09 09/10 10/11 11/12 12/13

Financial year

119

90

113

145 140

08/09 09/10 10/11 11/12 12/13

Financial year

177

147

92 108

99

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FINANCIAL OVERVIEW

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Q-COMP’S FINANCIAL OVERVIEW For the year ended 30 June 2013

TABLE 1 | RELATIONSHIPS BETWEEN THE FOUR FINANCIAL STATEMENTS$’000

INCOME STATEMENT

Revenue 33,257

Less: expenses 35,588

Operating result: Profit/(loss) (2,331)

STATEMENT OF CHANGES IN EQUITY

Opening balance of equity 9,202

Add: operating result (2,331)

Closing balance of equity 6,871

CASH FLOW STATEMENT

Operating activities (2,551)

Investing activities 0

Net increase in cash held (2,551)

Cash at beginning of year 11,749

Cash at end of year 9,198

BALANCE SHEET

Assets (Including cash of $9.20M) 10,793

Liabilities 3,922

Net assets 6,871

Retained earnings 5,177

Contributed equity 1,694

Total equity 6,871

The financial overview illustrates key aspects of Q-COMP’s financial performance during the 2012/13 year. Its purpose is to assist our readers

understand and interpret the details of the financial statements.

OUTCOME

�� As at 30 June net assets were $6.9M which consisted $5.2M of retained earnings and $1.7M of contributed equity. This is 25.3% down

from 2011/12 ($9.2M).

�� Levy income decreased by $1.7M or 6.9% because of a decision by the Q-COMP Board in May 2012 to return accumulated surpluses to

WorkCover Queensland (WCQ) and the self-insurers by reducing the 2012/13 levy contributions; and

�� Grants expenditure increased by $0.3M or 4%.

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TABLE 2 | PERFORMANCE SUMMARY FOR THE YEAR ENDED 30 JUNE 2013

2012/13 2011/12 Increase /

(Decrease)

$’000

Increase /

(Decrease)

%$’000 $’000

INCOME STATEMENT

Levies and other revenue

WorkCover Queensland levy 23,667 25,318 (1,651) (6.5)

Self-insurer levy 8,225 8,254 (29) (0.4)

Investment earnings 1,025 1,371 (346) (25.2)

Other revenue 340 413 (73) (17.6)

Levies and other revenue 33,257 35,356 (2,099) (5.9)

Expenses

Scheme expenses 9,059 8,745 (314) (3.5)

Employee expenses 11,744 12,346 602 5.1

Supplies and services 10,567 10,216 (351) (3.3)

Depreciation 424 382 (42) (9.9)

Other 3,794 3,741 (53) (1.4)

Expenditure 35,588 35,430 (158) (0.4)

Operating result (2,331) (74) (2,257) (3,170.8)

BALANCE SHEET

Total assets 10,793 13,848 (3,055) (22.1)

Total liabilities 3,922 4,646 724 18.5

Total equity 6,871 9,202 (2,331) (25.3)

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REVENUE COMPOSITION

Figure 1 provides a breakdown of our revenue for the past five years. Our primary source of income is the self-insurer levy and WorkCover

Queensland’s contribution.

FIGURE 1 | REVENUE COMPOSITION ($’000)

* The revenue from Workcover Queensland (WCQ) dropped in 2011/12 due to a Government decision that WCQ pays their proportion of

the Workplace Health and Safety Grant directly to Workplace Health and Safety Queensland (WHSQ). Interest is earned from the WCQ

contribution and self-insurer levies. Other revenue is made up of sponsorships and registrations for our annual return to work conferences

and awards program.

As part of the budgeting process the Q-COMP Board approved the decision in May 2012 to return accumulated surpluses to WCQ and the

self-insurers by reducing the 2012/13 levy contributions. The total of the amount contributions were reduced by $3,370,394 for the financial

year. This resulted in a budgeted deficit of $3,260,046. The reader should consider the effect of the return of earlier years’ accumulated

surpluses that has resulted in the total comprehensive loss for 2012/13 financial year.

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Workcover Queensland* Self-Insurer levies Investment earnings Other revenue

2013

2009

2010

2011

2012

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EXPENSE COMPOSITION

Figure 2 provides a breakdown of our expenses for the past five years. This is broken down into our scheme expenses (figure 3) and operating

expenses (figure 4).

FIGURE 2 | EXPENSE COMPOSITION ($’000)

SCHEME EXPENSES COMPOSITION

Figure 3 provides a breakdown of our scheme expenses for the past five years.

FIGURE 3 | SCHEME EXPENSES COMPOSITION ($’000)

The WHSQ Grant is considered a scheme expense. The changed arrangement for the collection of these funds explains the significant

reduction in 2011/12 and 2012/13.2.

* The reduction to the WHSQ Grant in 2011/12, as a result of WCQ paying the grant directly to WHSQ is the primary driver to the significant

decrease in Q-COMP’s scheme expenses. Q-COMP continues to pay the self-insurers contribution to the WHSQ Grant on behalf of the

self-insurers.

Q-COMP expenses Scheme expenses

2013

2009

2010

2011

2012

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Workplace Health & Safety* Queensland Ambulance Service Other Scheme Expenses

2013

2009

2010

2011

2012

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OPERATING EXPENSES COMPOSITION

Figure 4 provides a breakdown of our operating expenses for the past five years. This includes; employee expenses; supplies and services;

depreciation and other expenses.

FIGURE 4 | OPERATING EXPENSES COMPOSITION ($’000)

OPERATING RESULT (FIVE-YEAR COMPARISON)

Figure 5 shows the comparison between our actual and budgeted operating results for the past five years.

FIGURE 5 | OPERATING RESULT ($’000)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Employee Expenses Supplies and Services Depreciation Other

2013

2009

2010

2011

2012

-3,000

-3,500

-2,500

-2,000

-1,500

-1,000

-500

0

500

2009 2010 2011 2012 2013

Actual

Budget

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REVENUE

Where our money comes from

We are a self-funded statutory authority with responsibility for overseeing the Queensland worker’s compensation scheme. We do not receive

any funding from the Queensland Government’s consolidated revenue. We are primarily funded by a contribution from WorkCover Queensland

and a levy for self-insurers.

FIGURE 6 | WHERE OUR MONEY CAME FROM

EXPENSES

How we spend our money

Standing behind our commitment to Queensland, Q-COMP has maintained its prudent financial management and sought to maximise value for

Queensland workers and employers.

The key drivers of our operating expenditure are based on the changing requirements of our customers, these are:

�� Six applications for renewal of self-insurance licences were considered and no new applications were received.

�� Review referrals have stabilised over the last 2 years at 3,269 for 2012/13.

�� 402 appeals were served in 2012/13, a 17.5% decrease from 487 in 2011/12. However while there is a decrease in numbers there is a

significant increase in workload as the Queensland Industrial Relations Commission attempts to clear the backlog.

�� Referrals to the Medical Assessment Tribunals have risen 11.8% compared with 2011/12.

�� 856 injured workers referred to Return to work assist successfully returned to work in 2012/13. This represents an 82% return to work rate,

for those who participated in the program. 379 of these return to work outcomes were for injured workers with an open common law claim.

Our operating expenditure decreased by 0.6% to $26.5M in 2012/13. The decrease in operating expenditure is attributable to a number of

positions within Q-COMP being placed on hold and the achievement of capability and efficiency increases. Savings were also achieved due to

expenditure restraint in staff travel and training.

Scheme Expenses

In 2012/13 we paid out $9.1M in grants including $5.3M (exclusive of GST) to Workplace health and Safety Queensland for injury prevention

programs. A grant was paid to Queensland Ambulance Service for $3.5M for services provided to injured workers in 2012/13. An advisory

services grant was also paid to Queensland Council of Unions totalling $220K (See Note 7 for details).

71%

25%

3% 1%

WorkCover Queensland

Self-insurer levies

Interest earnings

Other revenue

Income from levies charged to self-insurers remain in-line with the prior year levies. Of the $8.2M from the self-insurer levies, $5.3M is paid

directly to WHSQ via a grant that we were directed to pay to the Department of Justice and Attorney General for injury prevention activities.

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ASSETS

What we own

We lease our premises at 347 Ann Street Brisbane and do not have a significant investment in fixed assets. Our major asset is cash.

FIGURE 8 | WHAT WE OWN ($’000)

FIGURE 7 | HOW WE SPENT OUR MONEY

Scheme expenses

Employee expenses

Supplies and services

Depreciation, amortisation & impairment

Other

25%

33%

30%

1%

11%

0

2009 2010 2011 2012 2013

Property and equipment

Other current assets

Receivables

Cash

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

At mid-year review Q-COMP forecasted our original budget deficit position to remain unchanged at $3.2M. The result came in better than

expected at a deficit of $2.3M. This better than expected result was due to a combination of cost constraints in operational expenditure and

a number of vacant positions not being filled.

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LIABILITIES

What we owe

As at 30 June 2013 our liabilities totalled $3.9M and primarily represented accrued entitlements for our employees.

FIGURE 9 | WHAT WE OWE ($’000)

EQUITY

What we are worth = Assets less Liabilities

Our equity comprises

�� Retained surpluses $5.2M

�� Contributed equity $1.7M

Total Equity is $6.9M.

GOING CONCERN

There is no foreseeable reason why Q-COMP would not be able to meet its financial obligations in terms of payments to employees and creditors

at the time of finalising the annual financial statements for 2012/13. This statement is made based on the governance processes in place and the

state of Q-COMP’s retained earnings, relative to our assessed risks at the time of writing the report.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Lease incentives

Provisions

Unearned revenue

Accrued employee benefits

Payables

2009 2010 2011 2012 2013

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TABLE 3 | TREND 2013 2012 2011 2010 2009

$’000 $’000 $’000 $’000 $’000

Operating result (2,331) (74) 96 (173) (697)

Levy income 8,225 8,254 7,659 7,918 7,396

Workcover Queensland contribution 23,667 25,318 62,254 57,825 51,118

Interest income 1,025 1,371 2,227 1,631 2,162

Scheme expenses 9,059 8,745 47,169 45,315 41,431

QCOMP operating expenses 26,529 26,686 25,288 22,718 20,111

Employee expenses 11,744 12,346 11,565 10,298 9,498

Supplies and services 10,567 10,216 9,566 8,270 6,757

Q-COMP operating expenses as % of scheme and Q-COMP expenses 74.54% 75.32% 34.90% 33.39% 32.68%

Training & Development as % of salary costs 1% 1.7% 2.0% 3.4% 3.4%

TABLE 4 | RATIO2013 2012 2011 2010 2009

% % % % %

Ratio formula Description

Working Capital ratio

Current Assets/ Current Liabilities

Measures Q-COMP’s ability to meet current commitments

4.0 4.5 5.1 6.0 7.9

Labour ratioEmployee Expenses/ Q-COMP Operating Expenses

Measures Q-COMP’s utilisation of staff

44.3 46.3 45.7 45.3 47.2

Net worth movement ratio

Total EquityMeasures the growth in net assets within Q-COMP

0.75 0.99 1.01 0.95 0.93

The financial statements have been prepared by our Finance Team to meet requirements of Section 62 of the Financial Accountability Act 2009

and Australian Accounting Standards.

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FINANCIAL STATEMENTS

TABLE OF CONTENTS

ANNUAL FINANCIAL STATEMENTS

PURPOSE AND SCOPE OF THE FINANCIAL STATEMENTS ................................................... 91

STATEMENT OF COMPREHENSIVE INCOME ........................................................................... 92

STATEMENT OF FINANCIAL POSITION...................................................................................... 93

STATEMENT OF CASH FLOWS .................................................................................................... 94

STATEMENT OF CHANGES IN EQUITY ...................................................................................... 95

CERTIFICATE OF THE WORKERS’ COMPENSATION REGULATORY AUTHORITY (TRADING AS Q-COMP) ............................................................................................................120

INDEPENDENT AUDITOR’S REPORT ........................................................................................121

NOTES TO THE FINANCIAL STATEMENTS ................................................................................. 96

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ...................................... 97

NOTE 2 REDUCTION OF LEVY ...............................................................................................102

NOTE 3 REVENUE FROM FINANCIAL ASSETS ...................................................................103

NOTE 4 OTHER REVENUE .......................................................................................................103

NOTE 5 EMPLOYEE EXPENSES ..............................................................................................103

NOTE 6 SUPPLIES AND SERVICES ........................................................................................104

NOTE 7 SCHEME EXPENSES ..................................................................................................104

NOTE 8 DEPRECIATION AND AMORTISATION ..................................................................105

NOTE 9 OTHER EXPENSES......................................................................................................105

NOTE 10 CASH AND CASH EQUIVALENTS ...........................................................................105

NOTE 11 RECEIVABLES ..............................................................................................................106

NOTE 12 OTHER CURRENT ASSETS .......................................................................................106

NOTE 13 PROPERTY, PLANT AND EQUIPMENT .................................................................107

NOTE 14 PAYABLES .....................................................................................................................107

NOTE 15 ACCRUED EMPLOYEE BENEFITS ...........................................................................108

NOTE 16 PROVISIONS ................................................................................................................108

NOTE 17 OTHER LIABILITIES ....................................................................................................108

NOTE 18 RESERVES ....................................................................................................................109

NOTE 19 RECONCILIATION OF OPERATING SURPLUS/(DEFICIT) TO NET CASH FLOW FROM OPERATING ACTIVITIES ......................................109

NOTE 20 COMMITMENTS FOR EXPENDITURE ...................................................................110

NOTE 21 FINANCIAL INSTRUMENTS......................................................................................111

NOTE 22 CONTINGENT LIABILITIES .......................................................................................115

NOTE 23 SELF-INSURER LICENSING ......................................................................................115

NOTE 24 KEY EXECUTIVE MANAGEMENT PERSONNEL AND REMUNERATION ........116

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PURPOSE AND SCOPE OF THE FINANCIAL STATEMENTS

These financial statements cover The Workers’ Compensation Regulatory Authority trading as Q-COMP. Q-COMP was established as a

Statutory Authority on 1 July 2003 under The Workers’ Compensation and Rehabilitation Act 2003 (“the Act”). Q-COMP’s principal place

of business is situated at:

347 Ann Street

BRISBANE QLD 4000

Under Section 330 of the Act, Q-COMP’s primary function is to regulate the workers’ compensation scheme.

In enforcing this Act as the regulator, Q-COMP’s functions include:

�� monitoring the compliance and performance of insurers;

�� deciding applications to self-insure;

�� undertaking the review of decisions and managing appeals;

�� supporting and overseeing the efficient administration of medical assessment tribunals;

�� undertaking workplace rehabilitation accreditation and compliance activities;

�� providing rehabilitation advisory services;

�� maintaining a database for scheme-wide reporting;

�� promoting education about the workers’ compensation scheme; and

�� collection of levies.

The financial statements have been prepared by Q-COMP to meet the requirements of Section 62 of the Financial Accountability Act 2009

and Australian Accounting Standards. The Queensland Treasury and Trade’s model of financial statements are used to assist with

standardised financial reporting.

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STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 30 June 2013

2013 2012

Note $’000 $’000

INCOME FROM CONTINUING OPERATIONS

Revenue

WorkCover Queensland levy 2 23,667 25,318

Self-insurer levy 2 8,225 8,254

Revenue from financial assets 3 1,025 1,371

Other revenue 4 340 413

Total income from continuing operations 33,257 35,356

EXPENSES FROM CONTINUING OPERATIONS

Employee expenses 5 11,744 12,346

Supplies and services 6 10,567 10,216

Scheme expenses 7 9,059 8,745

Depreciation 8 424 382

Other expenses 9 3,794 3,741

Total expenses from continuing operations 35,588 35,430

Operating result from continuing operations (2,331) (74)

Other comprehensive income - -

Total comprehensive income/(loss) 2 (2,331) (74)

The accompanying notes form part of these statements

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2013 2012

Note $’000 $’000

CURRENT ASSETS

Cash and cash equivalents 10 9,198 11,749

Receivables 11 272 332

Other current assets 12 331 375

Total current assets 9,801 12,456

NON-CURRENT ASSETS

Property, plant and equipment 13 992 1,392

Total non-current assets 992 1,392

Total assets 10,793 13,848

CURRENT LIABILITIES

Payables 14 956 1,620

Accrued employee benefits 15 1,250 974

Other 17 218 152

Total current liabilities 2,424 2,746

NON-CURRENT LIABILITIES

Accrued employee benefits 15 892 1,221

Provisions 16 426 402

Other 17 180 277

Total non-current liabilities 1,498 1,900

Total liabilities 3,922 4,646

Net assets 6,871 9,202

EQUITY

Contributed equity 1,694 1,694

Retained surpluses 5,177 2,302

Reserves 18 - 5,206

Total equity 6,871 9,202

The accompanying notes form part of these statements

STATEMENT OF FINANCIAL POSITIONAs at 30 June 2013

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2013 2012

Note $’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES

Inflows

Insurer receipts 31,892 33,572

Interest 1,025 1,371

Sundry income received 399 350

GST collected from customer 2,443 2,568

GST input tax credits from ATO 2,412 2,627

38,171 40,488

Outflows

Employee expenses (11,799) (12,042)

Supplies and services (15,111) (13,700)

Scheme expenses (8,989) (8,710)

GST paid to suppliers (2,384) (2,299)

GST remitted to ATO (2,439) (2,569)

(40,722) (39,320)

Net cash flows from operating activities 19 (2,551) 1,168

CASH FLOWS FROM INVESTING ACTIVITIES

Outflows

Payments for property, plant and equipment - (313)

Net cash flows from investing activities - (313)

Net increase/decrease in cash and cash equivalents (2,551) 855

Cash and cash equivalents at beginning of financial year 11,749 10,894

Cash and cash equivalents at end of financial year 10 9,198 11,749

The accompanying notes form part of these statements

STATEMENT OF CASH FLOWS For the year ended 30 June 2013

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Retained surpluses

Contributed equity Reserves Total

Note $’000 $’000 $’000 $’000

Balance as at 1 July 2011 4,110 1,694 3,472 9,276

Operating result from continuing operations (74) - - (74)

Other comprehensive income - - - -

Transfer between general reserves 18 (1,734) - 1,734 -

Balance as at 30 June 2012 2,302 1,694 5,206 9,202

Balance as at 1 July 2012 2,302 1,694 5,206 9,202

Operating result from continuing operations (2,331) - - (2,331)

Other comprehensive income - - - -

Transfer between general reserves 18 5,206 - (5,206) -

Balance as at 30 June 2013 5,177 1,694 - 6,871

The accompanying notes form part of these statements

STATEMENT OF CHANGES IN EQUITYFor the year ended 30 June 2013

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OBJECTIVES AND PRINCIPAL ACTIVITIES OF Q-COMP

Under Section 330 of the Act, Q-COMP’s primary function is to regulate the workers’ compensation scheme.

In enforcing this Act as the regulator, Q-COMP’s functions include:

�� monitoring the compliance and performance of insurers;

�� deciding applications to self-insure;

�� undertaking the review of decisions and managing appeals;

�� supporting and overseeing the efficient administration of medical assessment tribunals;

�� undertaking workplace rehabilitation accreditation and compliance activities;

�� providing rehabilitation advisory services;

�� maintaining a database for scheme-wide reporting;

�� promoting education about the workers’ compensation scheme; and

�� collection of levies.

Q-COMP is primarily funded from levies it receives from WorkCover and other registered self-insurers.

NOTE 1 Summary of significant accounting policies

(a) Basis of accounting

The financial statements have been prepared in accordance with Section 43 of the Financial and Performance Management Standard 2009.

The financial statements are general purpose financial statements and cover Q-COMP as an individual entity.

The general purpose financial statements, which have been prepared on the accrual basis, comply with all accounting standards and interpretations

issued by the Australian Accounting Standards Board (AASB) that are relevant to Q-COMP’s operations and effective for the current reporting

period. In addition, the financial statements comply with the Treasurer’s minimum reporting requirements for the year ended 30 June 2013 and

other authoritative pronouncements.

Except where specifically stated, the financial statements have been prepared under the historical cost convention.

(b) Rounding and comparatives

Amounts included in the financial statements are in Australian dollars and have been rounded to the nearest $1,000 or, where that amount is

$500 or less, to zero, unless disclosure of the full amount is specifically required. Comparative information has been restated where necessary

to be consistent with disclosures in the current reporting period.

(c) Revenue recognition

Income from insurers is recognised as unearned income when insurer levy invoices are raised and is not recognised as revenue until the time the

services are provided. At 30 June 2013 all insurer income is recognised as revenue.

Interest is recognised as revenue when earned. Other revenues are recognised at the time of service delivery or sale.

(d) Cash and cash equivalents

For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash assets include all cash and cheques receipted but

not banked at 30 June as well as deposits at call with financial institutions.

NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

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NOTE 1 Summary of significant accounting policies (continued)

(e) ReceivablesTrade debtors are recognised at the time of sale or service delivery. Settlement of insurer accounts is required within 31 days from invoice date.

With other invoices settlement is generally required within 28 days from the invoice date, no interest is charged and no security is obtained.

The collectability of receivables is assessed periodically with provision being made for impairment. All known bad debts were written off as at

30 June. Increases/decreases in the allowance for impairment are based on loss events as discussed in Note 21(c).

(f) Acquisition of assetsActual cost is used for the initial recording of all non-current physical and intangible asset acquisitions. Cost is determined as the value given

as consideration, plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use. Training fees are

expensed as incurred.

Where assets are received free of charge from another Queensland Government entity the acquisition cost is recognised as the carrying amount

in the books of the transferor immediately prior to the transfer together with any accumulated depreciation.

Assets acquired at no cost or for nominal consideration, other than an involuntary transfer from another Queensland Government entity, are

recognised at their fair value at the date of acquisition in accordance with AASB 116 Property, Plant and Equipment.

(g) Property, plant and equipmentItems of property, plant and equipment with a cost or other value equal to or in excess of the following thresholds are recognised for financial

reporting purposes in the year of acquisition:

Plant and Equipment $5,000

Work-in-progress $1

Items with a lesser value are expensed in the year of acquisition; all assets are measured at cost.

(h) IntangiblesIntangible assets with a cost or other value greater than $100,000 are recognised in the financial statements, items with a lesser value are

expensed. Each intangible asset is amortised over its useful life to Q-COMP, less any anticipated residual value.

It has been determined that there is not an active market for any of Q-COMP intangible assets. As such, the assets are recognised and carried

at cost less accumulated amortisation and accumulated impairment losses.

Internally generated software

Expenditure on research activities relating to internally generated intangible assets is recognised as an expense in the period in which it is incurred.

Costs associated with the development of QCS (computer software internally developed) were capitalised at a cost of $1,137,000 and have

been amortised on a straight-line basis over its estimated useful life to Q-COMP. The system has since been written down to zero value but is

still being used in the provision of services.

(i) Amortisation and depreciation of intangibles and property, plant and equipmentAll intangible assets of Q-COMP have finite useful lives and are amortised on a straight-line basis.

Property, plant and equipment is depreciated on a straight-line basis so as to write off the values of each depreciable asset, less its estimated

residual value, progressively over its estimated useful life to Q-COMP. Depreciation rates are reviewed annually to ensure the carrying amounts

reflect the remaining useful lives of the respective assets.

Assets under construction (work-in-progress) are not depreciated until they reach service delivery capacity. Service delivery capacity relates to

when construction is complete and the asset is first put to use or is installed ready for use in accordance with its intended application. These assets

are then reclassified to the relevant classes within property, plant and equipment.

NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

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NOTE 1Summary of significant accounting policies (continued)

(i) Amortisation and depreciation of intangibles and property, plant and equipment (continued)

The depreciation and amortisation rates for each class of depreciable asset are as follows:

Class Rate %

Plant and equipment Motor vehicles 33.3%

Computer equipment 10 to 33.3%

Leasehold improvements 10 to 20%

Other equipment 10 to 20%

Intangible assets Software internally generated 10 to 20%

(j) Impairment of non-current assets

All non-current physical and intangible assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment

exists, Q-COMP determines the asset’s recoverable amount. Any amount by which the asset’s carrying amount exceeds the recoverable amount is

recorded as an impairment loss.

The asset’s recoverable amount is determined as the higher of the asset’s fair value less costs to sell and depreciated replacement cost.

An impairment loss is recognised immediately in the statement of comprehensive income, unless the asset is carried at a revalued amount.

When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation reserve of the relevant class

to the extent available.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount,

but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been

recognised for the asset in prior years. A reversal of an impairment loss is recognised as income, unless the asset is carried at a revalued amount,

in which case the reversal of the impairment loss is treated as a revaluation increase.

(k) Leases

Operating lease payments held by Q-COMP for motor vehicles are representative of the pattern or benefits derived from the leased assets and

are expensed in the periods in which they are incurred.

Operating lease payments held by Q-COMP for buildings are recognised as an expense in the income statement on a straight-line basis over the

lease term.

Incentives received on entering into operating leases are recognised as liabilities. Lease payments are allocated between rental expense and

reduction of the liability.

(l) Payables

Trade creditors are recognised for amounts payable in the future upon receipt of the goods or services ordered, whether or not billed to Q-COMP

and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured, not

subject to interest charges and are normally settled within 30 days of invoice receipt.

(m) Financial instruments

Recognition

Financial assets and liabilities are recognised in the Statement of Financial Position when Q-COMP is party to the contractual provisions of the

financial instrument.

NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

NOTE 1 Summary of significant accounting policies (continued)

(m) Financial instruments (continued)Classification

Financial instruments are classified and measured as follows:

- Cash and cash equivalents – held at fair value through profit and loss

- Receivables – held at amortised cost

- Payables – held at amortised cost

Q-COMP does not enter into transactions for speculative purposes or for hedging. Apart from cash and cash equivalents, Q-COMP holds no

financial assets at fair value through profit and loss.

All disclosures relating to the measurement basis and financial risk management of financial instruments held by Q-COMP are included in Note 21.

(n) Employee benefitsEmployer superannuation contributions, annual leave levies and long service leave levies are regarded as employee benefits.

Payroll tax and workers’ compensation insurance are a consequence of employment, but are not counted in an employee’s total remuneration

package. They are not employee benefits and are recognised separately as employee related expenses.

Wages, salaries and recreation leave

Wages, salaries and recreation leave due and unpaid at reporting date are recognised in the Statement of Financial Position at the remuneration

rates expected to apply at the time of payment.

For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values.

For those entitlements not expected to be paid within 12 months, the liabilities are classified as non-current liabilities and recognised at their

present values, calculated using yields on fixed rate Commonwealth Government bonds of similar maturity.

Recognition of liability – former WorkCover employees

Under the Workers’ Compensation and Rehabilitation Act 2003 a person who immediately before 30 June 2003 was employed in the Q-COMP

Division of WorkCover became an employee of Q-COMP and ceased being an employee of WorkCover. Q-COMP assumed the long service leave

and annual leave entitlements from 1 July 2003 with each entitlement being paid to Q-COMP as part of the machinery of Government changes.

These entitlements are calculated as if service with WorkCover were continuous service.

Long service leave

Long service leave entitlements payable are assessed at balance date having regard to current employee remuneration rates, employment related

on-costs and other factors including accumulated years of employment, future remuneration levels, and Q-COMP’s past experience of employee

departure per year of service.

It should be noted that there was a change in the methodology to derive the long service leave liability in the 2012-13 year. From historical

Q-COMP data a calculation of the probability of people attaining long service was performed. The probability and a discount factor was applied to

each of these years to arrive at the long service leave balance. This resulted in a reduction to the leave liability for the year ended 30 June 2013.

Entitlements for employees who have completed 7 years or more continuous service is recorded as a current liability in the Statement of Financial

Position at its nominal value. Long service leave expected to be paid later than one year has been measured at the present value of the estimated

future cash outflows to be made for these entitlements accrued to balance date and recorded as a non-current liability. Commonwealth bond

rates are used for discounting future cash flows.

Sick leave

Sick leave entitlements are non-vesting and are only paid upon valid claims for sick leave by employees. Sick leave expense is accounted for in the

reporting period in which the leave is taken by the employee.

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

NOTE 1Summary of significant accounting policies (continued)

(n) Employee benefits (continued)

Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue

in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave

entitlement is recognised.

Superannuation

Employer superannuation contributions are paid to QSuper, the superannuation plan for Queensland Government employees, at rates determined

by the Treasurer on the advice of the State Actuary. Contributions are expensed in the period in which they are paid or payable. The Q-COMP

obligation is limited to its contribution to QSuper.

Executive Remuneration

Key executive management personnel and remuneration disclosures are made in accordance with section 5 of the Financial Reporting

Requirements for Queensland Government Agencies issued by Queensland Treasury. Refer to Note 24 for the disclosures on key executive

management personnel and remuneration.

(o) Unearned revenue

All income received in advance of the supply of services are brought to account in the year in which the services are provided.

(p) Provisions

Provisions are recorded when Q-COMP has a present obligation, either legal or constructive as a result of a past event. They are recognised at the

amount expected at reporting date at which the obligation will be settled in a future period. Where the settlement of the obligation is expected

after 12 or more months, the obligation is discounted at the present value using the pre-tax discount rate. The amounts recognised as provisions

in relation to the dismantling and removal of assets and the restoration of land on which the assets have been located, have been included in the

cost of the assets.

(q) Insurance

Q-COMP’s non-current physical assets and other risks are insured through the Queensland Government Insurance Fund, premiums being paid on

a risk assessment basis. In addition, Q-COMP pays premiums to WorkCover Queensland in respect of its obligations for employee compensation.

(r) Contributed equity

Non-reciprocal transfers of assets and liabilities between wholly-owned Queensland State public sector entities as a result of machinery of

Government changes are adjusted to ‘Contributed equity’ in accordance with Interpretation 1038 Contribution by owners made to wholly-owned

public sector entities. Appropriations for equity adjustments are similarly designated.

Prior to 1 July 2003, Q-COMP was a part of WorkCover Queensland. Subsequent to 1 July 2003 when Q-COMP became an independent

statutory body, the transfer of assets at no cost from WorkCover Queensland was treated as a machinery of Government change.

(s) Self-insurer licensing

Q-COMP holds bank guarantees in favour of WorkCover on behalf of self-insurers as a condition of self-insurer licensing.

Under Section 84 of the Workers’ Compensation and Rehabilitation Act 2003, a self-insurer must lodge an unconditional bank guarantee in favour

of WorkCover or a cash deposit with Q-COMP before the issue or renewal of a licence. The security will be held by Q-COMP until such time as it

is required to be held under the Act or paid out in relation to a debt or claim against the self-insurer from WorkCover Queensland.

Q-COMP may invest a cash deposit in an authorised investment. Interest earned on the deposit must be paid to the self-insurer at the end of

each financial year. Q-COMP may deduct from the interest the reasonable costs of administering the investment.

As Q-COMP acts only in a custodial role in respect of these transactions and balances, they are not recognised in the financial statements, but are

disclosed in Note 23.

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

NOTE 1Summary of significant accounting policies (continued)

(t) Taxation

Q-COMP is a State body as defined under the Income Tax Assessment Act 1936 and is exempt from Commonwealth taxation except for Fringe

Benefit Tax and Goods and Services Tax (“GST”). GST credits receivable from / payable to the ATO are recognised and accrued (refer Note 11).

(u) Issuance of financial statements

The financial statements are authorised for issue by the Deputy Chairman and Chief Executive Officer as at the date of signing the management

certificate.

(v) Judgements and assumptions

The preparation of financial statements requires the determination and use of certain critical accounting estimates, assumptions and management

judgement that have the potential to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

In the 2011-12 year Q-COMP relied on advice from the State Actuary at Queensland Treasury to calculate the current proportion of the long

service leave balance. Q-COMP has performed these calculations internally for the balance at at 30 June 2013 (refer Note 15).

Employees who complete 7 years continuous service are entitled to pro-rata long service leave. As such, long service leave entitlements of

employees who have completed 7 or more years of continuous service have been recognised as current liabilities. Historically the estimation of

the current portion of long service leave has been calculated as 10% of the discounted liability on the advice of the State Actuary. This change in

estimation methodology has resulted in approximately $226,000 additional long service leave liability being classified as current in the 2012-13

financial year.

Q-COMP has made no other judgements or assessments which may cause a material adjustment to the carrying amounts of assets and liabilities

within the next reporting period.

(w) New and revised accounting standards

Q-COMP is not permitted to early adopt a new or amended accounting standard ahead of the specified commencement date unless approval

is obtained from the Treasury Department. Consequently, Q-COMP has not applied any Australian Accounting Standards and interpretations

that have been issued but are not yet effective. Q-COMP will apply these standards and interpretations in accordance with their respective

commencement dates.

At the date of authorisation of this financial report the following accounting standards with future commencement dates will impact on Q-COMP:

(a) AASB 9 Financial Instruments, AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 and AASB 2010-7

Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) and AASB 2012-6 Amendments to Australian

Accounting Standards – Mandatory Effective Date of AASB 9 and Transition Disclosures (effective for reporting periods beginning on or after

1 January 2015).

AASB 9 Financial Instruments and the associated standards listed above improve and simplify the approach for classification and measurement

of financial assets compared with the requirements of AASB 139. The standards will change the requirements for the classification,

measurement and disclosures associated with financial assets. Under the new requirements, financial assets will be more simply classified

according to whether they are measured at amortised cost or fair value. Pursuant to AASB 9, financial assets can only be measured at

amortised cost if two conditions are met. One of these conditions is that the asset must be held within a business model whose objective

is to hold assets in order to collect contractual cash flows. The other condition is that the contractual terms of the asset give rise on specified

dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Q-COMP has assessed that the impact of the above standards on its financial statements will be minimal, as Q-COMP does not hold any

financial assets other than cash and receivables, for which the classification and measurement will not change on initial application.

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

NOTE 1Summary of significant accounting policies (continued)

(w) New and revised accounting standards (continued)

(b) AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 (effective

for reporting periods beginning on or after 1 January 2013).

AASB 13 sets out a new definition of “fair value”, as well as new principles to be applied when determining the fair value of assets and

liabilities. The new requirements will apply to all of Q-COMP’s assets and liabilities (excluding leases) that are measured and/or disclosed at

fair value or another measurement based on fair value. The potential impacts of AASB 13 relate to the fair value measurement methodologies

used, and the financial statement disclosures made in respect of, such assets and liabilities.

AASB 13 will require an increased amount of information to be disclosed in relation to fair value measurements for both assets and liabilities.

To the extent that any fair value measurement for an asset or liability uses data that is not “observable” outside the authority, the amount of

information to be disclosed will be relatively greater.

As Q-COMP does not presently carry nor disclose any assets or liabilities at fair value (other than cash & cash equivalents), this standard is not

expected to have a significant impact on the authority’s financial statements in the period of initial application.

(c) AASB 1053 Application of Tiers of Australian Accounting Standards (effective for reporting periods beginning on or after 1 January 2013).

AASB 1053 establishes a differential reporting framework for those entities that prepare general purpose financial statements, consisting of

two tiers of reporting requirements – Australian Accounting Standards (commonly referred to as “tier 1”), and Australian Accounting Standards

– Reduced Disclosure Requirements (commonly referred to as “tier 2”). Tier 1 requirements comprise the full range of AASB recognition,

measurement, presentation and disclosure requirements that are currently applicable to reporting entities in Australia. The only difference

between the tier 1 and tier 2 requirements is that tier 2 requires fewer disclosures than tier 1.

Pursuant to AASB 1053, public sector entities like Q-COMP may adopt tier 2 requirements for their general purpose financial statements.

However, AASB 1053 acknowledges the power of a regulator to require application of the tier 1 requirements. In the case of Q-COMP, Treasury

Department is the regulator. Treasury Department has advised that its policy decision is to require adoption of tier 1 reporting by all Queensland

Government departments and statutory bodies (including Q-COMP) that are consolidated into the whole-of-Government financial statements.

Therefore, the release of AASB 1053 and associated amending standards will have no impact on Q-COMP.

All other Australian accounting standards and interpretations with future commencement dates are either not applicable to Q-COMP’s activities,

or have no material impact on the authority.

NOTE 2Reduction of levy

On 29 May 2012 the Q-COMP Board approved the decision to return $3,370,394 in accumulated surpluses to WorkCover Queensland and the

self-insurers by reducing the 2012-13 levy contributions relative to original budgeted requirements by the following amounts:

�� WorkCover Queensland levy reduced by $3,000,000; and

�� Self-insurer levies reduced by $370,394.

This decision resulted in Q-COMP budgeting for a deficit of $3,260,046 in the 2012-13 financial year.

In understanding the financial performance for the year ended June 2013 the reader should consider the financial effect of the return of earlier

years’ accumulated surpluses on total comprehensive loss.

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

2013 2012

$’000 $’000

NOTE 3Revenue from financial assets

Bank Interest 1,025 1,371

1,025 1,371

NOTE 4Other revenue

Sundry revenue 340 413

340 413

NOTE 5Employee expenses

Employee Benefits

Wages and salaries 9,860 9,917

* Employer superannuation contributions 1,081 1,071

* Long service leave 16 378

10,957 11,366

Employee Related Expenses

* Workers’ compensation 39 31

* Payroll tax and fringe benefits 549 570

Staff training and development 67 170

Other staff costs 132 209

787 980

Total 11,744 12,346

* See Note 1(n)

The number of employees as at 30 June, including both full-time employees and part-time employees measured on a full-time equivalent basis is:

Number of employees 99.9 112.4

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

2013 2012

$’000 $’000

NOTE 6Supplies and services

*Contractors' fees 7,720 6,763

Other supplies and services 803 1,339

Rent and associated cost 1,286 1,250

Travel expenses - other 207 198

**Corporate services charges paid to CAA 162 164

Travel expenses - Solicitors/Barristers/Doctors 122 104

Professional fees 105 89

Printing costs 96 214

Postal charges 56 73

Bank fees and charges 10 22

10,567 10,216

* The main component of contractors’ fees are payments made to doctors appointed to the medical assessment tribunals by Governor in Council.

** Q-COMP has a service level agreement with the Corporate Administration Agency (CAA) to undertake a number of finance functions and payroll services.

NOTE 7Scheme expenses

*1 Workplace Health and Safety grant 5,286 5,107

*2 Queensland Ambulance Services 3,484 3,222

*3 Advisory services grants 220 353

Ministerial Liaison Officer sponsorship 69 63

9,059 8,745

Scheme expenses are collected by Q-COMP through insurer levies and contributions under the workers’ compensation scheme and are passed

on to the various agencies.

*1. The Attorney-General and Minister for Justice instructed Q-COMP (pursuant to s479 of the Workers’ Compensation and Rehabilitation Act

2003) on 29 June 2012 to contribute $5,814,358 (including GST) in 2012-13 to the Department of Justice and Attorney-General for the

prevention of injury to workers.

*2. Payments for discharging liability for pre-hospital patient care and ambulance transfer service for injured workers within the Queensland

workers’ compensation scheme.

*3. Q-COMP pays various advisory services grants under information services funding agreements. Payments during 2012-13 (excluding GST)

include:

Queensland Council of Unions 220 212

The Australian Workers' Union of Employees, QLD - 71

Australian Business Lawyers & Advisors - 35

The Australian Industry Group - 35

220 353

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

2013 2012

$’000 $’000

NOTE 8Depreciation and amortisation

Plant and equipment 424 382

424 382

NOTE 9Other expenses

Legal fees 3,049 2,857

* External auditors remuneration 42 44

Computer services provided by CITEC 311 327

Software licence fees & other computer charges 380 504

Insurance premiums - QGIF 12 9

3,794 3,741

* Total external audit fees relating to 2012-13 financial year are estimated to be $42,000 (excluding GST)

(2011-12 $44,000 excluding GST). There are no non-audit services included in this amount.

NOTE 10Cash and cash equivalents

Cash at bank and on hand 155 665

Short-term deposits 9,043 11,084

9,198 11,749

The effective interest rates on Q-COMP’s bank account and short term deposits at 30 June 2013 range between 2.70% - 4.71%

(2012: 2.75% - 4.12%).

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

2013 2012

$’000 $’000

NOTE 11Receivables

Trade debtors 99 108

Less: Allowance for impairment (42) (23)

57 85

GST receivable 214 245

214 245

Other receivable 1 2

Total 272 332

Movements in allowance of provision for impairment

Balance at beginning of the year (23) (20)

(Increase) / decrease in allowance recognised in operating result (19) (3)

Balance at the end of the year (42) (23)

NOTE 12Other current assets

Prepayments 331 375

331 375

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

2013 2012

$’000 $’000

NOTE 13Property, plant and equipment

Plant and equipment

At cost 3,208 3,185

Less: accumulated depreciation (2,216) (1,793)

992 1,392

Total property, plant and equipment 992 1,392

Property, plant and equipment reconciliation

Plant and equipment Work in progress Total

2013 2012 2013 2012 2013 2012

$’000 $’000 $’000 $’000 $’000 $’000

Carrying amount at 1 July 1,392 1,352 - 2 1,392 1,354

Additions 24 420 - - 24 420

Disposals - - - - - -

Transfer between classes - 2 - (2) - -

Depreciation (424) (382) - - (424) (382)

Carrying amount at 30 June 992 1,392 - - 992 1,392

Q-COMP has plant and equipment with an original cost of $292,193 and a written down value of zero still being used in the provision of services.

NOTE 14Payables

Trade creditors 680 1,284

Accrued expenses 215 284

Other 61 52

956 1,620

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

2013 2012

$’000 $’000

NOTE 15Accrued employee benefits

Current

Recreation leave 823 837

Long service leave 361 135

Outstanding salaries & wages 61 -

Other employee benefits 5 2

1,250 974

Non-current

Long service leave 892 1,221

892 1,221

NOTE 16Provisions

Non-current

Restoration costs 426 402

426 402

Movements in provision

Restoration costs

Balance at beginning of the year 402 296

Additional provision recognised 24 106

Balance at end of the year 426 402

Q-COMP has an obligation under its lease for 347 Ann Street Brisbane to restore the office to its original state. The estimate of the cost has

been provided by Q-COMP’s Property Advisors.

NOTE 17Other Liabilities

Current

Unearned Revenue 121 89

Lease incentives 97 63

218 152

Non-Current

Lease incentives 180 277

180 277

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

2013 2012

$’000 $’000

NOTE 18Reserves

Research & Education Fund Reserve - 3,332

Special Purpose Fund Reserve - 1,874

- 5,206

Movements in reserves

Research & Education Fund Reserve

Balance at beginning of the year 3,332 3,472

Transfer from retained surpluses (3,332) (140)

Balance at end of the year - 3,332

Movements in reserves

Special Purpose Fund Reserve

Balance at beginning of the year 1,874 -

Transfer from retained surpluses (1,874) 1,874

Balance at end of the year - 1,874

At the beginning of the year the RTW Assist fund was redefined and named the Special Purpose Fund. Q-COMP has made the decision to

transfer the balance of the Research & Education Fund and the Special Purpose Fund into retained earnings consistent with the Government

framework (APG 15) issued in March 2013 which outlines the view that the recognition of general reserve to demonstrate an internal allocation

of funds does not provide useful information to users of financial statements.

Q-COMP will continue the functions of promoting education about the workers’ compensation scheme as prescribed under Section 330(2)(j)

of the Act and return to work programs for workers under Section 364 of the Act as part of Q-COMP’s operational activities.

NOTE 19Reconciliation of operating surplus /(deficit) to net cash flow from operating activities

Operating surplus / (deficit) (2,331) (74)

Adjustment for non-cash items

Depreciation and amortisation 424 382

Changes in assets & liabilities

Decrease in receivables 60 388

Decrease in other current assets 44 (114)

Decrease in payables (664) 350

Decrease in accrued employee benefits (52) 273

Decrease in other liabilities (32) (37)

Net cash flow from operating activities (2,551) 1,168

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

2013 2012

$’000 $’000

NOTE 20Commitments for expenditure

(a) Operating lease commitments

As at 30 June 2013 Q-COMP had the following non-cancellable operating lease commitments exclusive of GST, contracted for at reporting

date but not recognised in the accounts as payable:

Within one year 941 906

One to five years 1,292 2,233

Later than five years - -

Total 2,233 3,139

A new lease for ten years for premises in Ann Street, Brisbane commenced on 1 November 2005, this lease has two further 5 year extension options.

Operating lease commitments above include 2 motor vehicle operating leases, each with a term of 3 years. Expiry dates for these leases are

September 2014 and January 2015.

(b) Capital commitments

As at 30 June 2013 Q-COMP had the no capital commitments.

(c) Grant commitments

As at 30 June 2013 Q-COMP had the following grant commitments exclusive of GST, committed to at reporting date but not recognised in the

accounts as payable:

Within one year 137 366

Total 137 366

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

2013 2012

$’000 $’000

NOTE 21Financial instruments

(a) Categorisation

Q-COMP has the following categories of financial assets and financial liabilities.

Category Note

Financial assets

Cash and cash equivalents 10 9,198 11,749

Receivables 11 272 332

Total 9,470 12,081

Financial liabilities

Financial liabilities measured at amortised cost:

Payables 14 956 1,620

Total 956 1,620

(b) Financial risk management

Q-COMP’s activities expose it to a variety of financial risks - interest rate risk, credit risk, liquidity risk and market risk. Financial risk

management is implemented pursuant to Q-COMP and Government policy. These policies focus on the unpredictability of financial markets

and seek to minimise potential adverse effects on the financial performance of Q-COMP.

All financial risk is managed by the Finance Division under policies approved by Q-COMP. Q-COMP provides written principles for overall risk

management, as well as policies covering specific areas. Q-COMP measures risk exposure using a variety of methods:

Risk Exposure Measurement Method

Credit risk Ageing analysis

Liquidity risk Sensitivity analysis

Market risk Interest rate sensitivity analysis

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

NOTE 21 Financial instruments (continued)

(c) Credit risk exposure

Credit risk exposure refers to the situation where Q-COMP may incur financial loss as a result of another party to a financial instrument failing to

discharge their obligation.

The maximum exposure to credit risk at balance date in relation to each class of financial assets is the gross carrying amount of those assets

inclusive of any provision for impairment.

The following table represents Q-COMP’s maximum exposure to credit risk based on contractual amounts net of any allowances:

2013 2012

Category Note $’000 $’000

Financial Assets

Cash and Cash Equivalents 10 9,198 11,749

Receivables 11 272 332

Total 9,470 12,081

No collateral is held as security and no credit enhancements relate to financial assets held by Q-COMP. Q-COMP manages credit risk through

the use of a credit management strategy. This strategy aims to reduce the exposure to credit default by ensuring that Q-COMP invests in secure

assets and monitors all funds owned on a timely basis. Exposure to credit risk is monitored on an ongoing basis.

No financial assets and financial liabilities have been offset and presented net in the Statement of Financial Position.

The method of calculating any provisional impairment for risk is based on past experience, current and expected future changes in economic

conditions and changes in client credit ratings. The main factors affecting the current calculation for provisions are disclosed below as loss events.

These economic and geographic changes form part of Q-COMP’s documented risk analysis assessments in conjunction with historic experience

and associated industry data.

The recognised impairment loss is $42,446 (2012: $22,671) for the current year. No financial assets have had their terms renegotiated so as

to prevent them from being past due or impaired, and are stated at the carrying amounts as indicated.

Aging of past due but not impaired as well as impaired financial assets are disclosed in the following tables:

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

NOTE 21 Financial instruments (continued)

(c) Credit risk exposure (continued)

2013 financial assets not past due and past due but not impaired

Overdue

not past due less than 30 days

$’000

30-60 days

$’000

61-90 days

$’000

more than 90 days

$’000

Total

$’000

Financial assets

Receivables 215 - - 57 272

Total 215 - - 57 272

2012 financial assets not past due and past due but not impaired

Overdue

not past due less than 30 days

$’000

30-60 days

$’000

61-90 days

$’000

more than 90 days

$’000

Total

$’000

Financial assets

Receivables 249 10 - 73 332

Total 249 10 - 73 332

2013 impaired financial assets

Overdue

not past due less than 30 days

$’000

30-60 days

$’000

61-90 days

$’000

more than 90 days

$’000

Total

$’000

Financial assets

Receivables - - - 42 42

Total - - - 42 42

2012 impaired financial assets

Overdue

not past due less than 30 days

$’000

30-60 days

$’000

61-90 days

$’000

more than 90 days

$’000

Total

$’000

Financial assets

Receivables - - - 23 23

Total - - - 23 23

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

NOTE 21 Financial instruments (continued)

(d) Liquidity risk

Liquidity risk refers to the situation where Q-COMP may encounter difficulty in meeting obligations associated with financial liabilities that are

settled by delivering cash or another financial asset. Q-COMP is exposed to liquidity risk in respect of its payables.

Q-COMP manages liquidity risk through the use of a liquidity management strategy. The strategy aims to reduce the exposure to liquidity risk by

ensuring Q-COMP has sufficient funds available to meet employee and any supplier obligations as they fall due. This is achieved by ensuring that

minimum levels of cash are held within the various bank accounts to match the expected duration of the various employee and supplier liabilities.

All financial liabilities disclosed in the financial statements for 2012-13 or 2011-12 are due within one year.

(e) Market risk

Q-COMP does not trade in foreign currency and is not materially exposed to commodity price changes. Q-COMP is exposed to interest rate risk

through cash deposited in interest bearing accounts. Q-COMP does not undertake hedging in relation to interest risk and manages its risk as per

the liquidity risk management strategy.

(f) Interest rate sensitivity analysis

The following interest rate sensitivity analysis is based on a report similar to that which would be provided to management, depicting the outcome

to profit and loss if interest rates would change by + / - 1% from the year end rate applicable to Q-COMP’s financial assets and liabilities. With all

other variables held constant, Q-COMP would have a surplus and equity increase / (decrease) of $92,000 (2011-12: $117,000). This is mainly

due to Q-COMP’s exposure to variable interest rates on deposits with Queensland Treasury Corporation and Commonwealth Banking Corporation.

Financial Instrument Carrying

Amount

$’000

2013 Interest rate risk

- 1% + 1%

$’000 $’000

Profit Equity Profit Equity

Cash and cash equivalents 9,198 (92) (92) 92 92

Overall effect on profit and equity 9,198 (92) (92) 92 92

Financial Instrument Carrying

Amount

$’000

2012 Interest rate risk

- 1% + 1%

$’000 $’000

Profit Equity Profit Equity

Cash and cash equivalents 11,749 (117) (117) 117 117

Overall effect on profit and equity 11,749 (117) (117) 117 117

(g) Fair value

Q-COMP does not recognise any financial assets or liabilities at fair value.

The fair value of trade receivables and payables is assumed to approximate the value of the original transaction less any allowance for impairment.

Held-to-maturity financial assets are measured at cost, as fair value cannot be reliably measured; therefore no fair value is disclosed.

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

NOTE 21 Financial instruments (continued)

(h) Capital management

The Board’s policy is to maintain reserves that ensure Q-COMP is able to meet future obligations and to perform its functions under the Act.

Policies in respect of capital management are governed by the Statutory Bodies Financial Arrangements Act 1982. As a result, funds are invested

in highly secure, interest-bearing assets. Investments are reviewed regularly with a view to achieving a balance of maximum rate of return while

maintaining adequate liquidity.

There has been no change in the capital management policy for the year.

NOTE 22Contingent liabilities

At 30 June 2013 there were 25 reserved appeal decisions waiting to be handed down by the Queensland Industrial Relations Commission. If the

appeal is upheld in one or more cases costs could be awarded against Q-COMP. As there is no way to reliably estimate the outcome of these

cases or the quantum of costs, no provision has been made in these financial statements.

Other than above to the Board’s knowledge no matter or circumstance has arisen since the end of the year that has significantly affected or may

significantly affect the operations of the entity, the results of those operations, or the state of affairs of the entity in future years.

NOTE 23Self-insurer licensing

Q-COMP holds bank guarantees in favour of WorkCover on behalf of the self-insurers as a condition of self-insurer licensing. Q-COMP currently

holds a total of $587,855,310 in bank guarantees.

Under Section 84 of the Workers’ Compensation and Rehabilitation Act 2003, a self-insurer must lodge an unconditional bank guarantee in favour

of WorkCover or a cash deposit with the Q-COMP before the issue or renewal of a licence. The security will be held by Q-COMP until such time

as it is required to be under the Act or paid out in relation to a debt or claim against the self-insurer from WorkCover Queensland.

Q-COMP may invest a cash deposit in an authorised investment. Interest earned on the deposit must be paid to the self-insurer at the end of

each financial year. Q-COMP may deduct from the interest the reasonable costs of administering the investment.

As Q-COMP performs only a custodial role in respect of these transactions and balances, they are not recognised in the financial statements,

but are disclosed in the notes for the information of users.

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NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

NOTE 24Key executive management personnel and remuneration

(a) Key executive management personnel and remuneration

The key executive management positions include those positions that had authority and responsibility for planning, directing and controlling the

activities of the agency during 2012-13. They are as follows:

Position Responsibilities

Board of Directors The Board of Directors is responsible for the operational and strategic direction of the authority.

Chief Executive Officer

The Chief Executive Officer is responsible for the efficient, effective and economic management

of Q-COMP.

The following persons held key executive management positions during 2012-13:

Name Position Current Incumbents

Contract classification /

appointment authority

Appointment /

Resignation Date

Board of Directors

Ms Flavia Gobbo Director - Chairperson# Governor in Council^ 1 July 2012

Mr Peter Dowling Director - Deputy Chair# Governor in Council^ 1 July 2012

Mr Stephen Tait Director Governor in Council^ 1 July 2012

Dr Beres Wenck Director Governor in Council^ 1 July 2012

Mr David Harrison Director# Governor in Council^ 1 July 2012

Dr Simon Blackwood Director Governor in Council^ 1 July 2012/14 March 2013

Mr Paul Goldsbrough Director Governor in Council^ 15 March 2013

Other Key Executive Management Personnel

Ms Elizabeth Woods Chief Executive Officer

Chief Executive Service

Contract; Governor in Council 26 May 2007

# Member of the Board’s Audit & Risk Management Committee.

^ The board are remunerated in accordance with the whole of Government policy Remuneration of Part-time Chairs and Members of

Government Boards, Committees and Statutory Authorities

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NOTE 24Key executive management personnel and remuneration (continued)

(a) Key executive management personnel and remuneration (continued)

The key executive management personnel remuneration included in salaries are as follows:

1 July 2012 - 30 June 2013

Position Short term benefitLong-term

benefits

Post employment

benefits Total

Base $’000

Non-Monetary

$’000 $’000 $’000 $’000

Director – Chairperson 42 - - 4 46

Director – Deputy Chair 8 - - - 8

Director** 4 - - - 4

Director 4 - - - 4

Director 5 - - - 5

Director* - - - - -

Director* - - - - -

Chief Executive Officer 285 - 5 24 314

Total 348 - 5 28 381

* As a public servant no payment was paid or is payable to Dr Blackwood or Mr Goldsbrough.

** Payment was waived by member in favour of payment to their respective employer organisations as a fee for service basis for the

same amount. Payments on this basis amount to $3,904 for the 2012-13 year.

The following persons held key executive management positions during 2011-12:

Name Position Past Incumbents

Contract classification and

appointment authority

Appointment /

Resignation Date

Board of Directors

Ms Rachel Hunter Director – Chairperson Governor in Council^ 1 July 2010/30 June 2012

Mr Barry Leahy Director – Deputy Chair Governor in Council^ 30 June 2009/30 June 2012

Ms Amanda Richards Director Governor in Council^ 1 July 2009/30 June 2012

Dr Beres Wenck Director Governor in Council^ 1 July 2009/30 June 2012

Ms Cecily Tucker Director Governor in Council^ 1 July 2010/30 June 2012

Mr Patrick McKendry Director# Governor in Council^ 1 July 2009/30 June 2012

Mr Tom Jeffers Director# Governor in Council^ 1 July 2009/30 June 2012

Other Key Executive Management Personnel

Ms Elizabeth Woods Chief Executive Officer

Chief Executive Service

Contract; Governor in Council 26 May 2007

# Member of the Board’s Audit & Risk Management Committee.

^ The board are remunerated in accordance with the whole of Government policy Remuneration of Part-time Chairs and Members of

Government Boards, Committees and Statutory Authorities

NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

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NOTE 24Key executive management personnel and remuneration (continued)

(a) Key executive management personnel and remuneration (continued)

The key executive management personnel remuneration included in salaries are as follows:

1 July 2011 - 30 June 2012

Position Short term benefitLong-term

benefits

Post employment

benefits Total

Base $’000

Non-Monetary

$’000 $’000 $’000 $’000

Director – Chairperson 42 - - 5 47

Director – Deputy Chair* - - - - -

Director ** - - - - -

Director 2 - - - 2

Director ** - - - - -

Director** - - - - -

Director** - - - - -

Chief Executive Officer 274 3 8 24 309

Total 318 3 8 29 358

* As a public servant no payment was made to Mr Leahy.

** Payment was waived by member in favour of payment to their respective employer organisations as a fee for service basis for the same

amount. Payments on this basis amount to $6,332 for the 2011-12 year.

Remuneration policy for the agency’s key executive management personnel is set in line with the Queensland Public Service Commission as

provided for under the Public Service Act 2008. The remuneration and other terms of employment for the key executive management personnel

are specified in employment contracts. The contracts provide for the provision other benefits including motor vehicles.

For the 2012-13 year, remuneration of key executive management personnel increased by 2.2% in accordance with Government policy.

Remuneration packages for key executive management personnel comprise the following components:-

�� Short term employee benefits which include:

- Base - consisting of base salary, allowances and leave entitlements paid and provided for the entire year or for that part of the year

during which the employee occupied the specified position. Amounts disclosed equal the amount expensed in the Statement of

Comprehensive Income.

- Non-monetary benefits – consisting of provision of vehicle together with fringe benefits tax applicable to the benefit.

�� Long term employee benefits include long service leave accrued.

�� Post employment benefits include superannuation contributions.

�� Redundancy payments are not provided for within individual contracts of employment. Contracts of employment provide only for notice

periods or payment in lieu of notice on termination, regardless of the reason for termination.

Total fixed remuneration is calculated on a ‘total cost’ basis and includes the base and non-monetary benefits, long term employee benefits and

post employment benefits.

NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

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NOTE 24Key executive management personnel and remuneration (continued)

(b) Performance payments

Performance bonuses are not paid to key executive management personnel.

(c) Loans and transactions

Some directors of Q-COMP hold senior positions with peak bodies that have received grants and other fees.

2013 2012

Note $’000 $’000

Associated Entity receiving Grants/Fees:

Queensland Council of Unions

Assistant Secretary – Ms Amanda Richards - 212

The Australian Workers’ Union of Employees (QLD)

Vice President – Mr Tom Jeffers - 71

The Australian Industry Group

Principal Advisor and Legal Practitioner Director

(Ai Group Legal Pty Ltd) – Ms Cecily Tucker - 35

- 318

In 2012-13 financial year, no directors held such positions.

These payments are made for the provision of advisory information and other workers’ compensation related services. The terms and conditions

of any transactions with directors and their related entities were on an arm’s length basis and were no more favourable than those available, or

which might reasonably be expected to be available, on similar transactions to non-director related entities. Relevant directors have been present

for discussion when matters were raised for noting or for decision on Government issues in relation to these transactions. While the board was not

formally requested to decide on allocation of funding during 2012-13, directors with a conflict of interest would declare such interest and would

absent themselves from any such discussion or decision.

No loans were issued to key executive management personnel in 2012-13.

NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2013

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These general purpose financial statements have been prepared pursuant to the provisions of section 62(1) of the Financial Accountability Act 2009 (the Act), and other prescribed requirements. In accordance with Section 62(1) (b) of the Act we certify that in our opinion:

(a) the prescribed requirements for the establishment and keeping the accounts have been complied with in all material respects; and

(b) the statements have been drawn up to present a true and fair view, in accordance with prescribed accounting standards, of the transactions of Q-COMP for the financial year ended 30 June 2013 and of the financial position of Q-COMP at the end of that year.

E Woods P Dowling Chief Executive Officer Deputy Chairman Date: 15 August 2013 Date: 15 August 2013

CERTIFICATE OF THE WORKERS’ COMPENSATION REGULATORY AUTHORITY (TRADING AS Q-COMP)

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REPORT ON THE FINANCIAL REPORT

I have audited the accompanying financial report of the Workers’ Compensation Regulatory Authority, which comprises the statement of financial position as at 30 June 2013, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and certificates given by the Chairman and Chief Executive Officer.

The Board’s Responsibility for the Financial Report

The Board is responsible for the preparation of the financial report that gives a true and fair view in accordance with prescribed accounting requirements identified in the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, including compliance with Australian Accounting Standards. The Board’s responsibility also includes such internal control as the Board determines is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating the overall presentation of the financial report including any mandatory financial reporting requirements approved by the Treasurer for application in Queensland.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.

Independence

The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can be removed only by Parliament.

The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant.

INDEPENDENT AUDITOR’S REPORTTO THE BOARD OF THE WORKERS’ COMPENSATION REGULATORY AUTHORITY (TRADING AS Q-COMP)

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Opinion

In accordance with s.40 of the Auditor-General Act 2009 –

(a) I have received all the information and explanations which I have required; and

(b) in my opinion –

(i) the prescribed requirements in relation to the establishment and keeping of accounts have been complied with in all material respects; and

(ii) the financial report presents a true and fair view, in accordance with the prescribed accounting standards, of the transactions of the Workers’ Compensation Regulatory Authority for the financial year 1 July 2012 to 30 June 2013 and of the financial position as at the end of that year.

OTHER MATTERS – ELECTRONIC PRESENTATION OF THE AUDITED FINANCIAL REPORT

Those viewing an electronic presentation of these financial statements should note that audit does not provide assurance on the integrity of the information presented electronically and does not provide an opinion on any information which may be hyperlinked to or from the financial statements. If users of the financial statements are concerned with the inherent risks arising from electronic presentation of information, they are advised to refer to the printed copy of the audited financial statements to confirm the accuracy of this electronically presented information.

K Johnson FCA (as Delegate of the Auditor-General of Queensland)Queensland Audit OfficeBrisbane

INDEPENDENT AUDITOR’S REPORT (CONT’D)

TO THE BOARD OF THE WORKERS’ COMPENSATION REGULATORY AUTHORITY (TRADING AS Q-COMP)

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APPENDICES

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APPENDIX 1 - SELF-INSURER LICENCES

12/13 11/12 10/11 09/10 08/09

Continuing licences 19 25 13 11 20

Licences renewed

Four year duration 3 0 8 12 3

Two year duration 3 0 4 0 0

One year duration 0 0 0 0 0

Licences not renewed 0 0 0 0 0

New licence applications 0 0 0 2 0

Total licences as at 30 June 25 25 25 23 23

Licences cancelled (effective 1 July)

nil nil nil nil nil

Employers covered as at 30 June 263 259 256 240 227

27. SELF-INSURER LICENCES

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APPENDIX 2 - OUR PERFORMANCE MEASURES28. SCHEME STABILITY INDICATORS

Scheme measures are presented in the one-page scheme stability indicator report. The results represent the current 12 months figures with a variance that measures the movement between the current 12 months and the previous 12 month results. Further commentary is provided to the Board on measures that are deemed unstable.

INDICATORS 12 MONTHS 12 MONTH VARIANCE

CL

AIM

LO

DG

EMEN

TS

Claims per 1,000 employees 43.4 -6.3%

Physical injury claims 94,690 -6.1%

Psychological / psychiatric claims 4,608 1.8%

Fatalities 82 -16.3%

CL

AIM

D

ECIS

ION

S Determined within 20 days (%) 95.7% 0.8%

Rejection rate – physical (%) 4.1% 0.8%

Rejection rate – psychological / psychiatric (%) 62.2% 2.2%

OU

TCO

MES Average work days lost (timelost claims) 42.6 13.9%

Return to work rate (%) 96.7 0.5%

CL

AIM

CO

ST

S Timelost claim average cost 13,933 18.1%

Medical expense claim average cost 1,513 21.1%

Statutory total payments ($m) 797.3 5.5%

PI Notice of assessments (for PI offer) 8,780 9.1%

CO

MM

ON

LA

W Common law new claims 4,292 -0.4%

Average damages cost ($) (excludes nil settlements)

124,940 -9.2%

Common law total payments ($m) 526.9 -11.2%

Q-C

OM

P

Review applications 3,269 1.0%

Appeals served 402 -17.5%

MAT referrals 3,098 11.8%

Return to work assist referrals (includes re-openings) 3,278 27.3%

APPENDIX 1 - SELF-INSURER LICENCES

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Accredited workplace – ‘a workplace that has workplace rehabilitation policies and procedures’ (section 45, The Workers’ Compensation and Rehabilitation Act 2003). Gaining accreditation formalises the process for rehabilitation in the workplace. This requires:

� a workplace rehabilitation policy and procedures approved by Q-COMP

� a registered rehabilitation and return to work coordinator in Queensland who is an employee or contracted to provide this service.

Admitted claims – the insurer allows the application for compensation and liability continues to be accepted by the insurer (this is considered to be an initial decision on the claim).

Adverse information – information that may impact on any party in the review. For example, information that supports a worker’s claim may affect the employer’s premium should the review decision overturn the insurer’s original decision to reject the claim. The information is therefore adverse to the employer.

Aggravation – an injury that occurs when a pre-existing injury, disease or medical condition is made worse and or symptomatic. An aggravation may be covered by workers’ compensation if the aggravation arises out of, or in the course of, employment and the employment is a significant contributing factor to the aggravation.

American Medical Association (AMA) Guides to the Evaluation of Permanent Impairment – the 4th edition is currently used by tribunal members when assessing permanent impairment. There is an interagency working group looking at implementing the use of the 5th Edition of these guides. Work on this is scheduled to continue into 2013.

Allied health providers – examples include physiotherapists, occupational therapists, psychologists (see also Registered persons).

Appeals – workers or employers aggrieved by the outcome of a Q-COMP review can further appeal to the Queensland Industrial Relations Commission within 20 days of receiving Q-COMP’s decision. WorkCover Queensland can also appeal premium related review decisions.

Approved form – forms approved under The Workers’ Compensation and Rehabilitation Act 2003 by Q-COMP’s Chief Executive Officer for regulatory purposes or WorkCover Queensland Chief Executive Officer for WorkCover Queensland insurance policies.

Average defendant’s cost – the average defendant’s cost, regardless of when payments were made, of finalised common law claims.

Average finalised time lost claim cost – the average statutory cost of finalised time lost claims, including any excess amount paid for by the employer. Claims with compensation together with lump sum payments are included as time lost claims.

Average finalised time lost claim durations – work days lost due to an injury on finalised time lost claims, including any work days lost paid for by the employer. Including claims with compensation payments and excluding fatal payments.

Average finalised claim cost – the average statutory cost of finalised claims.

Average plaintiff’s cost – the average plaintiff’s cost, regardless of when payments were made, of finalised common law claims.

Average settlement cost – the average settlement cost, regardless of when payments were made, of finalised common law claims (this does not include claims with a nil settlement amount).

Average time from injury to lodgement – the average time, in years, from injury date to common law lodgement. These are based on the lodgement year of the common law claim.

Average time from lodgement to finalisation – the average time, in years, from the common law claim lodgement to common law finalisation. These are based on the finalisation year of the common law claim.

Cases determined (MAT) – all cases heard and determined by the MAT.

Claim – common name for an application for compensation.

Claim file – held by an insurer and containing the application for compensation form, medical certificates, any documents provided by the claimant as well as other documents received or generated by the insurer when managing the claim.

Claimant – a ‘person who lodges an application for compensation’ (The Workers’ Compensation and Rehabilitation Act 2003).

Classification group employer – two or more employers with the same WorkCover Queensland industry classification that are in a pre-existing stable business relationship of at least two years. Examples of classification group employer licences issued by Q-COMP are local government authorities through Local Government WorkCare and the Aged Care Employers Self-Insurance Group (ACES).

GLOSSARY

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Common law claim – made by an injured worker who commences common law action through the courts against their employer for negligence (they are ‘suing’ their employer). The courts award common law damages payments for economic loss, pain and suffering, legal costs, and medical and hospital costs.

Common law claim lodgements – all common law claims lodged with insurers, regardless of the outcome. If a common law claim is associated with more than one statutory claim, it will be counted for each statutory claim it is associated with (i.e. if one common law claim is associated with three statutory claims, the common law lodgement has been counted three times).

Common law claim payments – all common law payments made within the financial year.

Compensation – amounts for a worker’s injury payable under The Workers’ Compensation and Rehabilitation Act 2003 – chapters 3 (weekly wages and permanent impairment payments) and 4 (medical and rehabilitation payments) – by an insurer to a worker, a dependant of a deceased worker or anyone else, and includes compensation paid or payable under a former Act.

Conceded – Q-COMP indicates to the parties and the Commission that it will not be defending the review decision.

Confidentiality – rehabilitation information must be treated with sensitivity and confidentiality by all parties, section 110, the Regulation.

Confirmed – insurer’s decision is confirmed by the Review Unit.

Decided at court – appeals that have been dismissed, struck out or upheld at the Queensland Industrial Relations Commission.

Department of Justice and Attorney-General – matters of workers’ compensation policy and scheme design are centralised within this state government agency.

Disclosure of information – important information, including personal information, referred to others for their response. The disclosure could be to the worker, the insurer, the employer and any other person whose interests might be affected by the Q-COMP review decision.

Dismissed – after hearing evidence, the Magistrate or Commissioner has dismissed the appeal and confirmed Q-COMP’s review decision.

Doctor’s approval – approval of a worker’s treating doctor must be obtained and documented for a rehabilitation and return to work plan if the doctor does not give sufficient information in the doctor’s medical certificate or report on which to base the development of the plan. In addition, a suitable duties program and any amendments to the program must be consistent with the current medical certificate or report for the worker’s injury (the Regulation).

Early worker contact – early intervention is one of the key principles of successful rehabilitation. The Regulation specifies that a worker who sustains an injury and who requires rehabilitation must be contacted about rehabilitation and return to work as soon as practicable after the injury is sustained or is reported.

Employees covered – Employees covered for Queensland is obtained from the Australian Bureau of Statistics labour force survey. This definition includes employees and ‘own account’ workers (6291.0.55.003 - Labour Force Australia, detailed Quarterly, May 2013).

Employer – an employer employs a worker or workers in Queensland. The Workers’ Compensation and Rehabilitation Act 2003 (section 30) provides a full description of an employer under the Queensland workers’ compensation scheme.

Employer’s obligation for rehabilitation – under The Workers’ Compensation and Rehabilitation Act 2003, employers are obliged to participate in rehabilitation. This obligation includes offering suitable duties and graduated return to work programs as appropriate. These rehabilitation programs must be approved by the treating medical practitioner.

Fatal claims – all claims where an injury or disease caused the death of an injured worker, excluding cancelled and rejected claims. A claim is a fatality if it is indicated by the insurer as a fatality under the Act, on the individual application, taking into account the definition of a worker, event and injury under the Act (s11, s31, s32).

Finalised claims – the statutory finalisation of a claim during a financial year; identified by the date of the closure status.

GMAT (Other) – General Medical Assessment Tribunals including the Medical, Vascular, Surgical, Urology, Gynaecology, Thoracic and Rheumatology specialties (excludes General Medical Assessment Tribunal – Psychiatric).

GMAT (Psych) – General Medical Assessment Tribunal – Psychiatric.

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Heads of Workers’ Compensation Authorities (HWCA) – chief executives of the peak bodies responsible for regulating workers’ compensation in Australia and New Zealand.

High risk industries – certain industries have been specifically designated under schedule 5A of the Regulation as high risk industries for the purposes of employers’ obligations for rehabilitation.

Impairment – the Act describes impairment from injury as being ‘a loss of, or loss of efficient use of, any part of a worker’s body’. This includes psychological injuries.

Industry – all industry codes are based on the insurers’ coding of industry to the divisions from the ‘Australian and New Zealand Standard Industry Classification’ (ANZSIC, 2006), ABS.

Industrial instrument – an award or a workplace agreement that governs the conditions of a worker’s employment. The Workers’ Compensation and Rehabilitation Act 2003 describes an industrial instrument as any of the following under the Industrial Relations Act 1999:

� an award

� a certified agreement

� an industrial agreement

� an EFA

� a QWA

� an order under certain parts

� of that Act; or

� an award or agreement under the Workplace Relations Act 1996 (Cwlth).

Industrial Court – the last court of appeal of Q-COMP review decisions.

Injury – a ‘personal injury arising out of, or in the course of, employment if the employment is a significant contributing factor to the injury’, section 32, The Workers’ Compensation and Rehabilitation Act 2003. The Act also describes other situations or circumstances where an injury may or may not be covered within the Queensland workers’ compensation scheme.

Insurer performance management program (IPMP) – assists insurers to meet their obligations under the Act by measuring performance against key elements.

Insurer risk profile – quarterly assessment by Q-COMP of individual insurers on performance and compliance, with a six-monthly update to the Board.

Injury nature – injury nature groupings are based on the insurers’ coding of injury to the nature and location. The nature of injury and location coding by the insurer is provided using the Type of Occurrence Classification System as published by Safe Work Australia.

Interlocutory appeals – these are questions of law raised by the Industrial Magistrate or Commission to the Industrial Court during a substantive appeal. Once the Industrial Court has decided the interlocutory appeal, this decision goes back to the Industrial Magistrate or Commissioner to continue with the original appeal hearing.

Issues management database (within QI) – captures complete and accurate data about issues raised by stakeholders about Q-COMP and the scheme, and resolutions achieved. The data captured is reported to insurers (as part of the insurer performance

monitoring framework), to the Q-COMP Board and government.

Lodgements – all claims lodged with insurers, regardless of the outcome (i.e. excludes cancelled claims, includes withdrawn and report only claims).

Medical Assessment Tribunals Quarterly Report – a Q-COMP newsletter that updates tribunal members about important matters for running medical assessment tribunals.

Medical certificate (Q-COMP medical certificate) – an approved form completed by a worker’s treating medical practitioner or dentist (dental injuries) for the worker’s injury. The Workers’ Compensation and Rehabilitation Act 2003 states that an application for compensation must be accompanied by a certificate in the approved form from a doctor who attended the claimant.

Medical expense only claim – all accepted claims which have had medical treatment and rehabilitation payments, excluding those that also had weekly compensation or fatality payments.

Medical treatment – The Workers’ Compensation and Rehabilitation Act 2003 describes medical treatment as being:

� treatment by a doctor, dentist, physiotherapist, occupational therapist, psychologist, chiropractor, osteopath, podiatrist or speech pathologist; or

� assessment for industrial deafness by an audiologist; or

� the provision of diagnostic procedures or skiagrams; or

� the provision of nursing, medicines, medical or surgical supplies, curative apparatus, crutches or other assistive devices.

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Mesothelioma/asbestosis – the injury nature codes ‘783’, ‘861’ from the ‘Type of Occurrence Classification System’, Third Edition, Revision 1 Safe Work Australia, have been renamed mesothelioma or asbestosis injury in the statistics publication.

Mitigate loss – The Workers’ Compensation and Rehabilitation Act 2003 advises that the common law duty of mitigation of loss applies to the worker and that the worker’s duty may be discharged by participating in rehabilitation.

Normal weekly earnings – earnings of a worker from employment (continuous or intermittent) in the 12 months immediately before the day the worker sustained an injury.

Ongoing capacity for work – the insurer is asking whether the worker’s ongoing incapacity for work is related to the accepted work related injury.

Permanent impairment (PI) – A permanent impairment from injury is an impairment that is stable and stationary and not likely to improve with further medical or surgical treatment (s38). Personal representation (right of appearance) – an opportunity for applicants to provide the Review Officer with any additional information or point out particular issues or knowledge they have regarding their case. It is an informal meeting (either face-to-face or by telephone), conducted in a non-threatening and non-legal way. In face-to-face meetings, applicants can attend with their representatives, either legal or non-legal. They can also bring a relative or friend for support if they wish.

Principles of workplace rehabilitation – that workplace rehabilitation be industry based; function oriented; involve early intervention, a multidisciplinary team approach and shared responsibility to ensure success.

Prior approval – commitment by the insurer to pay for the costs of the service when it is completed. Some services require prior approval from insurers before payment. The services requiring prior approval are set out in the relevant supplementary schedules.

Prudential risk factor – the risk that an entity such as a self-insurer will not be able to meet its financial obligations.

Psychiatric and psychological injuries – the injury nature codes ‘702, 703, 407, 705, 706, 707, 718, and 709’ from the ‘Type of Occurrence Classification System’, Third Edition, Revision 1, Safe Work Australia, has been renamed psychiatric and psychological injuries in the statistics publication.

Q-COMP – Q-COMP’s primary function under The Workers’ Compensation and Rehabilitation Act 2003 is to regulate the workers’ compensation scheme. The Act sets out very clearly the specific functions and powers that enable Q-COMP to enforce the Act as the regulator.

Q-COMP Core System database (QI) – maintains information about individuals, employers and insurers and their interaction with Q-COMP, e.g. injured workers attending medical assessment tribunals, employers or workers applying for a review, insurer licensing.

Queensland Industrial Relations Commission (QIRC) – the jurisdiction where appeals of Q-COMP review decisions are heard.

QOTE – The Workers’ Compensation and Rehabilitation Act 2003 describes QOTE for a financial year as being ‘the seasonally adjusted amount of Queensland full time adult persons ordinary time earnings as declared by the Australian Statistician in the statistician’s report about average weekly earnings published immediately before the start of the financial year’ (6302.0 - Average weekly earnings, Australia, Australian Bureau of Statistics).

Queensland Scheme-wide Analysis database (QSA) – maintains and manages all insurers’ claims data, including basic claim information, payment information, details about the injured worker, compensation periods and common law information.

QWCDec – Q-COMP’s online database of the Queensland Industrial Commissioners’ workers’ compensation statutory claims decisions.

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Referral reasons – MAT – the specific questions which can be asked of a medical assessment tribunal are defined in The Workers’ Compensation and Rehabilitation Act 2003 as:

� ongoing capacity for work – the insurer is asking whether the worker’s ongoing incapacity for work is related to the accepted work injury

� permanent impairment (PI) assessment – the insurer is asking the tribunal to determine whether the worker has sustained a permanent impairment. Under the legislation for psychiatric or psychological injuries the MAT must determine the degree of PI

� disputed PI – this reference would be used if the worker does not agree with the permanent impairment which has been independently assessed by the insurer.

� access to damages – this is for instances where an application for statutory compensation has not been lodged and the insurer has not admitted that the worker sustained an injury. The worker is seeking common law damages

� application for compensation – this reference is used when a worker has made an application for compensation (liability has not been accepted for the injury for which the worker is claiming). The insurer is unable to determine liability for the claim due to matters of a medical nature

� prescribed disfigurement – the insurer requests the tribunal to assess, by physical examination, whether the disfigurement is severe enough to be considered prescribed disfigurement

� other reasons for referral – includes level of dependency, further material deterioration, etc.

Regional network program - A Q-COMP initiative designed to provide on the ground support for our regional stakeholders by appointing local representatives from across the state.

Registered person – the Act refers to registered persons as a doctor, dentist, physiotherapist, occupational therapist, psychologist, chiropractor, osteopath, podiatrist, speech pathologist, and audiologist. The professionals listed need to be registered by the relevant professional body to practice their profession in Queensland.

Regulation – the most recent version of the subordinate legislation governing workers’ compensation in Queensland. This subordinate legislation is titled Workers’ Compensation and Rehabilitation Regulation 2003 and is used in conjunction with The Workers’ Compensation and Rehabilitation Act 2003.

Rehabilitation – a strategy to maximise an individual’s potential for return to their pre-injury physical, psychological, educational and vocational level. Workplace rehabilitation focuses on returning the worker to safe, suitable work at the earliest possible time, ensuring valuable work skills are not lost, and minimising the human and financial costs of work injury.

Rehabilitation coordinator – former name given to the role of the rehabilitation and return to work coordinator.

Rehabilitation and return to work coordinator (RRTWC) – the employer’s rehabilitation and return to work coordinator is responsible for assisting in the return to work of injured workers and coordinating return to work activities at the workplace. Under The Workers’ Compensation and Rehabilitation Act 2003, an employer must have workplace rehabilitation policy and procedures and employ a rehabilitation and return to work coordinator under a contract (regardless of whether the contract is a contract of service) if the employer has wages in Queensland of $7.049 million for the preceding financial year or operates in a high risk industry with wages in Queensland for the preceding financial year of $2.146 million.

Rehabilitation and return to work plan – a written plan outlining the rehabilitation objectives and the steps required to achieve those objectives. The Regulation provides guidance regarding rehabilitation and return to work plans.

Rehabilitation provider – registered health professionals or providers otherwise approved by an insurer. Rehabilitation providers give active support to workers and employers to design and implement rehabilitation and return to work plans. Some examples of rehabilitation providers are occupational physicians, occupational therapists and physiotherapists.

Rejected claims – the application for compensation is rejected the initial decision on the claim (s134).

Return to work – the worker’s timely, safe and medically structured return to pre-injury duties, or other employment, following workplace injury.

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Return to work assist - A Q-COMP return to work initiative for injured workers who don’t return to work when their workers’ compensation claim closes.

Review – workers and employers can apply to Q-COMP if they disagree with certain decisions made by their workers’ compensation insurer (WorkCover Queensland or a self-insurer). Q-COMP impartially reviews claims and premium decisions. A review is an administrative review designed to provide an efficient, timely and cost-effective system for workers and employers to have insurer decisions reviewed. It is a non-adversarial and non-judicial process. The review process is not a reinvestigation of the matter.

Review decision – decision made by Q-COMP after reviewing the insurer’s decision. The review applicant will receive a written notice of the review decision and the reasons for the decision after it is made. A duplicate copy of this will also be given to the other party (e.g. to the employer if a worker has applied for a review).

Right of appearance – an opportunity offered to review applicants to discuss their application for review with their Q-COMP Review Officer. This can be in person or over the telephone. Self-insurance/self-insurers – Queensland employers who provide workers’ compensation insurance for their employees, taking on all liabilities for any work-related injuries. Self-insurers manage and pay their own statutory and damages claims and pay an annual levy to Q-COMP to cover regulatory and administrative costs.

Set aside – insurer’s decision is set aside by the Review Unit and a new decision is substituted.

Settled – the parties to the appeal have negotiated a settlement out of court.

Settlement payments – settlement payments are calculated as the gross settlement amount less contributory negligence less contribution from third party less statutory claim payments.

Specialty (Other) – medical assessment tribunals including the Cardiac, Dermatology, Ear, Nose & Throat, Ophthalmology and Disfigurement specialties.

Stable and stationary – a condition is referred to as stable and stationary when the condition is not likely to improve with further medical or surgical treatment.

Standard for rehabilitation – the standard for rehabilitation within Queensland’s workers’ compensation scheme is set out in the Regulation and regulates processes and procedures for doctor’s approval, the worker’s file, the rehabilitation and return to work plan, the suitable duties program, case notes, early worker contact, rehabilitation and confidentiality.

Statutory claim/s – claims for compensation regulated by the statute – i.e. The Workers’ Compensation and Rehabilitation Act 2003. Circumstances for claim acceptance, validity, payments and benefits are outlined in The Workers’ Compensation and Rehabilitation Act 2003.

Statutory claim decisions – The decision about an application for compensation to either allow or reject the application. Statutory decisions exclude cancelled, withdrawn, report only and common law only (s134).

Statutory claim payments – all statutory payments made in the relevant year, including any payments for time lost made by the employer as part of the compensation period (excess) as reported by WorkCover Queensland.

Suitable duties – The Workers’ Compensation and Rehabilitation Act 2003 (section 42) defines suitable duties as:

� work duties for which the worker is suited having regard to the following matters:

� the nature of the worker’s incapacity and pre-injury employment

� relevant medical information

� the rehabilitation plan for the worker

� the provisions of the employer’s workplace rehabilitation policy and procedures

� the worker’s age, education, skills and work experience

� if duties are available at a location (the ‘other location’) other than the location in which the worker was injured – whether it is reasonable to expect the worker to attend the other location any other relevant matters.

Struck out – appeals struck out by the Magistrate or Commissioner because of failure of the appellant to comply with legislative, Court or Commission requirements.

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Suitable duties program – a graduated plan of short duration incorporating selected duties that form part of the rehabilitation and return to work plan. The suitable duties program must be approved by the worker’s treating medical practitioner. The treating medical practitioner indicates their approval of a suitable duties program on the Q-COMP medical certificate or documented suitable duties program.

Time lost claims – all accepted claims which have resulted in time lost from work excluding fatalities.

TRIM – stands for Total Records and Information Management and is Q-COMP’s electronic data and records management system.

Upheld – after hearing evidence, the Magistrate or Commissioner has upheld the appeal and set aside or varied the Q-COMP review decision.

Varied – insurer’s decision is varied by the Review Unit.

Withdrawn – appeals withdrawn by the appellant prior to hearing.

Work capacity – work capacity is decided by the worker’s treating medical practitioner, based upon the worker’s medical status and is documented on the medical certificate. Total incapacity for work means that the worker is unable to work in any capacity (not simply their pre-injury duties) due to the severity of their injury or disease. Partial work capacity means that the worker is able to participate in some work tasks that are within their functional capacity.

WorkCover Queensland – manages workers’ compensation policies and claims for all employers in Queensland that are not licensed as a self-insurer (approximately 90% of workers’ claims are managed by WorkCover Queensland).

Worker – an individual employed under a contract of service, section 11, The Workers’ Compensation and Rehabilitation Act 2003. Schedule 2 details those people specifically included or specifically excluded from being considered a ‘worker’.

Workers’ Compensation and Rehabilitation Act 2003 (the Act) – refers to the most recent version of the legislation governing workers’ compensation in Queensland. It is accompanied by The Workers’ Compensation and Rehabilitation Act 2003 which provides additional clarification on specific matters.

Workers’ compensation insurer – refers to WorkCover Queensland or a self-insurer. A self-insured employer is licensed by Q-COMP to take on all liabilities for any work-related injuries and diseases.

Worker’s obligation for rehabilitation – the Act specifies that unless the worker has a reasonable excuse, they must satisfactorily participate in rehabilitation as soon as practicable after the injury is sustained and for the period for which the worker is entitled to compensation. Penalties can be imposed on employers or workers who do not meet their obligations.

Workplace – a workplace is a place where work is, is to be, or is likely to be, performed by a worker or employer and is a place that is for the time being occupied by the employer or under the control or direction of the worker’s employer; or where the worker is under the control or direction of the worker’s employer (schedule 6, The Workers’ Compensation and Rehabilitation Act 2003).

Workplace rehabilitation – ‘a system of rehabilitation accredited by the Authority (Q-COMP) that is initiated or managed by an employer’, section 43, The Workers’ Compensation and Rehabilitation Act 2003. The purpose of workplace rehabilitation is to ensure the worker’s earliest possible return to work or if not possible, to maximise the worker’s independent functioning. Workplace rehabilitation focuses on returning the worker to safe, suitable work at the earliest possible time, ensuring valuable work skills are not lost, and minimising the human and financial costs of work injury.

Workplace rehabilitation accreditation – gaining accreditation formalises the process for rehabilitation in the workplace. This requires:

� a workplace rehabilitation policy and procedures approved by Q-COMP

� a registered rehabilitation and return to work coordinator in Queensland who is an employee or contracted to provide this service.

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Workplace rehabilitation policy and procedures – formal documentation accredited by Q-COMP of an employer’s systems and processes for rehabilitation in the workplace, including:

� the actions to be taken from the time of injury through to a full return to work

� the roles and responsibilities of the rehabilitation and return to work coordinator, the injured worker, line managers, supervisors and co-workers.

Under Queensland legislation, an employer must have workplace rehabilitation policy and procedures and employ a rehabilitation and return to work coordinator under a contract (regardless of whether the contract is a contract of service) if:

� the employer has wages in Queensland of $7.049 million for the preceding financial year or operates in a high risk industry with wages in Queensland for the preceding financial year of $2.146 million.

Work related impairment (WRI) – the worker’s entitlement to lump sum compensation expressed as a percentage of the maximum statutory compensation (section 39, The Workers’ Compensation and Rehabilitation Act 2003).

COMMON ACRONYMS

Association of Self Insured Employer Queensland - ASIEQ

Australian Industry Group - AIG

Chamber of Commerce and Industry Queensland - CCIQ

Data Management and Analytics - DMA

Information Technology - IT

Information Privacy Act - IPA

Medical Assessment Tribunals - MAT

Queensland Audit Office - QAO

Queensland Council of Unions - QCU

Regional network program - RNP

Return to work - RTW

Rehabilitation and return to work coordinator - RRTWC

Right to Information Act - RTI

WorkCover Queensland - WCQ

Workplace Health and Safety Queensland - WHSQ

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INDEXA

Association of Self-Insured Employers of Queensland 10, 59, 74

Audit 5, 43, 44, 59, 67, 71, 72, 73, 74, 75, 76, 77, 78 Audit and Risk Management Committee (the committee) 67, 71, 72, 73, 75, 76, 77

B

Board 3, 4, 7, 28, 29, 31, 43, 45, 65, 66, 67, 68, 71, 72, 73, 74, 76, 77, 79, 82

C Chairperson 3, 4, 7, 8, 28, 43, 72, 73, 74, 75 Chief Executive Officer (CEO) 7, 30, 31, 43, 44, 72, 74, 83

Code of conduct 71, 72, 77

Complaints 59, 69, 77, 79

D

Data management 7, 9, 20, 22, 56, 58, 70, 90

Department of Justice and Attorney-General 4, 10, 73, 84 Director 43, 44, 72,73, 75, 77

F Fees 9, 23, 32, 78

Fraud 45, 52, 71

G

Grants 9, 69, 74, 77

H

Heads of Workers’ Compensation Authorities 13, 85

Health 4, 10, 20, 21, 23, 24, 28, 38, 43, 44, 46, 59, 62, 63, 64, 66, 69, 70, 71, 76, 77, 83, 85

Highlights 3, 8, 35, 56, 57, 58

Human resources 7, 41, 44, 45, 74, 73, 76

I

Industrial Relations Commission 41, 50, 51, 83

Information privacy 71, 77, 78

Injured worker 6,12, 28, 31, 32, 34, 35, 38, 39, 44, 48, 49, 63, 66

Internal communication 41, 45

L

Legislation 5, 43, 51, 53, 59, 67, 71, 73, 77

Levy 74, 88

Licences 59, 74, 81, 84

M

Medical Assessment Tribunal 3, 9, 18, 19, 29, 30, 32, 43, 53, 54, 55, 59, 69, 74, 85, 86, 87, 88

Medical certificate 84, 86, 89

Minister 4, 8, 28, 30, 43, 63, 67, 69, 72, 69, 72, 74, 77, 79

P

Performance 3, 4, 7, 9, 10, 12, 27, 28, 44, 48, 49, 50, 53, 56, 59, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 82, 85, 86

Permanent impairment 18, 19, 53, 83, 84, 86, 87

Q

Q-COMP Leadership Team 7, 14, 15, 28, 29, 30, 31, 41, 44, 45, 46, 66, 67, 71, 72, 76, 77, 79

R

Records management (TRIM) 78, 89

Regional 3, 4, 6, 8, 12, 13, 14, 15, 20, 21, 23, 25, 29, 30, 32, 36, 44, 53, 54, 56, 62, 64, 69, 87

Rehabilitation and return to work coordinator 90, 4, 37, 62, 69, 70, 71, 83, 87

Research 20, 21, 22, 25, 26, 62, 63, 64, 69, 70, 74

Return to work 3, 4, 7, 9, 12, 13, 14, 15, 21, 24, 25, 26, 29, 32, 34, 35, 39, 44, 56, 58, 62, 54, 70, 71, 74, 78, 82, 83, 84, 85, 87, 88, 89

- Awards 4, 14, 15, 30, 32, 36, 37, 38, 39, 62, 70, 74

- Conference 4, 14, 15, 30, 32, 36, 38, 38, 39, 45, 60, 63

Right to information 71,78

Risk management 67, 71, 72, 73, 75, 76, 77 Role 3, 4, 6, 8, 13, 28, 29, 31, 35, 37, 41, 43, 44, 45, 46, 53, 67, 72, 73, 74, 75, 79, 87, 90

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S

Scheme stability 67, 75, 82

Strategic plan 53, 54, 69, 71

T

Training 17, 18, 19, 23, 34, 35, 39, 46, 49, 50, 51, 53, 64, 77

Tribunal Secretariat 53, 54, 69, 71

V

Values 6, 41, 42, 53, 66, 71, 77

W

WorkCover Queensland 4, 9, 10, 28, 31, 32, 35, 63, 66, 72, 74, 79, 83, 84, 88, 89

Workers’ Compensation and Rehabilitation Act 2003 5, 7, 28, 52, 59, 67, 77, 83, 84, 85, 86, 87, 88, 89

Workers’ compensation policy 9, 10, 43, 84

Work health and safety 71, 76, 77

Workplace Health and Safety Queensland 28, 66

Workplace rehabilitation 9, 69, 83, 86, 87, 89, 90

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INDEX OF FIGURES

1. Our values.................................................................................6

2. Organisational chart...............................................................6

3. Claim rates (per 1,000 employees covered by the scheme) and lodgements 08/09 to 12/13....................9

4. The workers’ compensation scheme in action.............10

5. Retention and attrition of employees.............................42

6. Our workforce profile..........................................................42

7. Our demographic - part-time employment status....42

8. Number of new applications by year..............................48

9. Review application by insurer decision...........................48

10. Appeals lodged......................................................................50

11. Appeals outcomes................................................................51

12. Industrial Court outcomes..................................................51

13. Successful prosecutions and their outcomes................52

14. Flow chart for a paper file..................................................55

15. Flow chart for an electronic file.......................................55

16. Queensland workers’ compensation scheme profile..57

17. Statutory claim payments..................................................58

18. Common law lodgements...................................................58

19. Common law average damages (excluding nil settlements) and percentage of nil settlements..........58

20. Performance management framework..........................66

21. Q-COMP business planning cycle....................................68

22. Our business unit structure...............................................69

23. Attendance at Board/Committee meetings..................75

24. Requests for injury profiles................................................78

25. Ministerial issues received.................................................79

26. Scheme-wide complaints received by Q-COMP.........79

27. Self-insurer licences..........................................................124

28. Scheme stability indicators..............................................125

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Q-COMP 12/13 ANNUAL REPORT

347 Ann Street Brisbane QueenslandPO Box 10119 Brisbane Adelaide Street Q 4000Telephone: +61 7 3020 6364Facsimilie: + 61 7 3020 6426Email: [email protected]