WE ARE YOUR VOICE!

The following is an overview of some of the things NIBA has been examining on behalf of members.

2023 is off to a flying start. With the New South Wales state election scheduled to be held late next month, NIBA has been engaging with both the current government and opposition to put the issue of ESL reform back on the agenda. With the Tasmanian Government set to announce details of their new fire and emergency services funding model, New South Wales will soon be the only state to have not abandoned the inequitable insurance-based funding model.

Western Australia Workers Compensation Reform

Over the holiday break, NIBA provided feedback to Workcover WA on the Workers Compensation and Injury Management Bill 2022. The Bill, which is expected to be introduced to Parliament early this year will see significant changes to the existing Workers Compensation legislation, including:

• removing the exclusion that prevented working directors of public companies from obtaining coverage

• allowing for regulations to be made which establish a presumption of work-related injury for prescribed diseases contracted by workers in prescribed employment

• introducing a new provision for reducing or discontinuing income compensation payments to a worker based on the worker returning to work and deriving earnings

• allowing for the Catastrophic Injuries Support Scheme (CISS) to be extended to cover catastrophically injured workers

• extending the point at which income compensation payments step down from 13 to 26 weeks

• introducing a new requirement for insurers and self-insurers to respond to a worker’s claim for compensation within 14 days of receiving the worker’s claim • requiring insurers and self-insurers to make provisional payments if after a deferred decision notice is given, the insurer has not provided a liability decision notice before the date prescribed in the regulations.

NIBA will provide further information to members on the new legislation and the impact on brokers once the final Bill has passed Parliament.

Senate Review Of Asic Investigation And Enforcement

Earlier this month, NIBA provided a submission to the Senate Review of ASIC investigation and enforcement. The Review, which was referred to the Parliamentary Joint Committee on Corporations and Financial Services in October 2022, considered the capacity and capability of ASIC to undertake proportionate investigation and enforcement action arising from reports of alleged misconduct.

In particular, the Review focused on whether ASIC is meeting the expectations of government, business, and the community with respect to regulatory action and enforcement and the range and use of the regulatory tools available to ASIC and their effectiveness in contributing to good market outcomes.

Tasmanian Home Warranty Insurance

Last year, the Tasmanian Government announced its intention to reintroduce home warranty insurance following the high-profile collapse of several builders in the state. The government sought to consult with industry on the development of a new model for the home warranty scheme. As part of the consultation process, a number of proposals were put forward aiming to balance consumer protection with the long-term economic viability of the scheme and building costs. The scheme will use a ‘last resort’ model consistent with most Australian jurisdictions and provide cover for incomplete or defective building work in the event that a builder dies, disappears or become insolvent.

To enable the reintroduction of the scheme, the Tasmanian Government has prepared a draft Residential Building (Home Warranty Insurance Amendments) Bill 2022 NIBA will be providing feedback on the draft Bill on behalf of members ahead of the due date on 31 March 2023.

Contact Niba

As always, brokers who have questions about these or any other government or regulatory matters should feel free to contact NIBA CEO Philip Kewin at: pkewin@niba.com.au