The National Insurance Brokers Association (NIBA) has urged changes to settlement, assessment, and income compensation processes in its submission to WorkCover WA, backing most of the regulator’s proposed technical amendments to Western Australia’s workers’ compensation law while seeking safeguards against procedural barriers to early resolution and highlighting four additional gaps identified by brokers.
WorkCover WA is consulting on amendments to the Workers Compensation and Injury Management Act 2023, which has applied to Western Australian employers and injured workers since July 1, 2024. The regulator’s February 2026 consultation paper focuses on technical matters that have arisen during implementation, rather than broader scheme redesign or changes to benefit entitlements. Written submissions closed on April 10, 2026, and WorkCover WA has said non-confidential responses will be published on its website. The paper outlines 13 proposed changes based on issues observed since the legislation took effect. These relate to settlement processes, income replacement provisions, and mechanisms for resolving disputes under the current framework.
In a submission informed by Western Australia-based brokers and claims specialists, NIBA stated that it supports the consultation’s aim of addressing “technical implementation issues that have emerged since the Act commenced on 1 July 2024.” NIBA said that “efficient settlement processes, clear entitlement rules, and timely dispute resolution serve both employers who purchase workers’ compensation insurance and injured workers who depend on the scheme.” The association indicated full support for 10 of the 13 proposals in the paper. For Proposals 2, 4, and 6, NIBA expressed conditional support. It has asked WorkCover WA to adjust these items so that additional procedural steps do not prevent or delay settlements where both parties have reached agreement and are legally represented.
A central issue in NIBA’s response concerns the use of formal permanent impairment assessments in the settlement process. Under aspects of the consultation package, settlements may depend on an Assessment of Permanent Impairment for Arbitration (APIA). NIBA has argued that making a formal APIA report a precondition for registering a settlement adds cost and time in cases where, in its view, there is already sufficient medical evidence and agreement between the worker and employer.
NIBA has recommended that settlements be capable of registration in defined circumstances without a formal APIA report, provided there is adequate medical material and both parties have agreed to the outcome. The association said that “a worker is not compelled to obtain a formal APIA assessment as a precondition to settlement, with appropriate safeguards for acknowledgement.” It has also called for Proposals 4 and 6 to be drafted in a consistent way so that any APIA-related requirement does not prevent settlement where liability remains disputed but the parties wish to finalise the matter.
NIBA’s submission includes several recommendations on standard forms and income compensation processes that it says are based on day-to-day experience under the Act. The association has proposed amendments to the SF1 Settlement Agreement form so that it records remaining balances to statutory limits for each compensation type. According to NIBA, this would help avoid calculation errors and assist WorkCover WA with settlement registration. On income compensation, NIBA has recommended allowing parties to agree on additional income compensation without an arbitrator’s order when both sides are legally represented and the WorkCover WA director is satisfied that each party understands its legal rights. NIBA says this approach would allow claims to be resolved through agreement in more situations while retaining oversight by the regulator.
Outside the 13 proposals in the consultation paper, NIBA has raised four further issues that its Western Australian members report encountering. First, the association has questioned the operation of the 12‑month employment obligation where it applies to casual and fixed-term workers. Brokers report that this obligation can be difficult to apply in arrangements that are short term or intermittent. Second, NIBA has identified an open-ended income compensation exposure when an injured worker moves overseas. The submission calls for clearer rules on ongoing income benefits in these circumstances to clarify obligations for employers and insurers.
Third, NIBA has pointed to the absence of a specific liability reassessment process for cases where a worker’s capacity changes after returning to pre-injury duties. In such situations, parties may need to rely on existing pathways that are not tailored to changes arising after a return to work. Fourth, the association has described the current approach to managing overpayments when a worker starts new employment as inefficient. It has suggested that more defined rules could support more consistent treatment of overpayments and benefit adjustments across the scheme.
The outcome of the technical review will influence how claims are documented, negotiated, and finalised under the 2023 Act. NIBA’s submission sets out brokers’ concerns that settlement and process requirements should not create barriers once workers and employers have reached agreement and obtained legal advice. The association’s suggested changes, if adopted, would affect how intermediaries advise clients, structure settlements, and manage compliance with WorkCover WA’s requirements. WorkCover WA is expected to consider all submissions before finalising its position on the proposed amendments. Once responses are published, industry participants will be able to compare stakeholder views and assess how any legislative changes may affect policy wording, claims strategies, and internal procedures for workers’ compensation in Western Australia.
