A woman with headphones is looking at a computer screen.

ReturnToWorkSA Labour Supply Model Review Update

ReturnToWorkSA is committed to making it easier for employers to do business with us.

To help achieve this we are reviewing the Labour Supply Model which determines the way in which premium is calculated for labour supply employers and how claims are allocated across locations/South Australian Industry Codes (SAICs).

The current model has been in place since July 2014 and was developed to overcome employers' dissatisfaction with all SAICs being allocated to one of three labour hire categories.

Due to increased growth in the number of labour hire businesses operating in South Australia, and feedback provided by employers, it has become clear that aspects of our current Labour Supply Model have led to a significant increase in administration costs (time and money) for both ReturnToWorkSA and employers.

Feedback from employers

Labour supply employers were invited to provide feedback on their experience with the current model, and their ideas for how we can create a model that better suits their needs.

We received feedback from employers via email and during a workshop we held on Friday 20th July. At the workshop we presented three alternative models to help to understand if employers want changes to the way in which their premium is calculated or how they record remuneration and claims.

Following discussion of the current and alternative models, employers indicated that they would prefer to retain the current model, with improvements to reduce their administration workload rather than to pursue an alternative model.

Employers would like us to investigate improvements which will:

  • reduce their administrative burden, both throughout the year and at the end of the financial year
  • recognise the impost for labour supply employers in reconciling EOY (remuneration for each SAIC/location)
  • reduce unnecessary interactions with ReturnToWorkSA
  • streamline reporting so that only SAIC codes are used to report remuneration and claims (not location codes)
  • provide labour hire employers with all SAICs to improve reporting efficiencies
  • remove the need for employers to provide actual remuneration rather than estimated remuneration.

Some of the feedback provided relates to issues that cause additional complexities for labour supply employers with workers working across other states. As this is outside our realm of control, we will pass this feedback onto the relevant National Agencies for their consideration.

Next steps

We are working through all of the feedback provided to identify how we can improve the current model to make it easier for employers to do business with us.

By the end of November, we will provide employers with more information on the steps we’re taking to do this and expected timeframe for implementation.

Do you have feedback?

If you have feedback you would like us to consider please email us at laboursupply@rtwsa.com