dr tim adair - national seniors australia - seniors and workers compensation
TRANSCRIPT
Seniors and Workers Compensation
Tim AdairDirector
National Seniors Productive Ageing Centre
National Workers Compensation Summit 2015
Background• Successive Federal Governments have sought to
increase mature age labour force participation to ensure the skills and experience of this cohort are fully utilised and cope with the economic consequences of an ageing population.
• Australia’s 65+ population
– 2014: 3.5 million
– 2035: 6.2 million
– 77% increase over 21 years (ABS 3101.0, 3222.0, Series B)
Recent Government policies• Age Pension eligibility age increasing from 65 to 67 over
2017-2023. Further increase to 70 in 2035 announced in 2014 Federal Budget
• Incentives for superannuation, e.g. allowing people to receive income from their super while also receiving paid income, Superannuation Guarantee for people age 70+
• Incentives to employers, including Restart. $10,000 over 2 years for employing a person aged 50+, and who has been unemployed and on income support for six months or more.
Background• There is now a greater reliance on individuals
to save for their retirement
• Economic benefits for individuals and Government for people staying in the labourforce if they are willing and able to
Workforce participation trends% of people 60-64 in employment (ABS LFS)
0%
10%
20%
30%
40%
50%
60%
70%
19
78
19
79
19
81
19
83
19
85
19
86
19
88
19
90
19
92
19
93
19
95
19
97
19
99
20
00
20
02
20
04
20
06
20
07
20
09
20
11
20
13
20
14
Male
Female
Workforce participation trends% of people 65+ in employment (ABS LFS)
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
19
78
19
80
19
81
19
83
19
85
19
87
19
89
19
91
19
93
19
95
19
97
19
99
20
01
20
03
20
04
20
06
20
08
20
10
20
12
20
14
Male
Female
Workforce participation trends• 32% of males and 19% of females aged 65-69
are in paid work (2011 Census)
• Strong increases in this cohort’s labour force participation rates are required as the Age Pension eligibility age increases
Barriers to mature age employment
• Injury, illness and disability
• Workplace barriers for people with health condition
• Inflexibility of work arrangements
• Care-giving responsibilities
• Age discrimination
• Mismatch of skills and demand
• Re-training barriers
• Tax-transfer system
Illness, injury and disability
%
Sickness, injury or disability 30
Reached retirement age 23
Retrenched, dismissed, or no work available 12
Caring responsibilities 8
Other 27
Total 100
Reason ceased last job (% of people aged 50-69 years and not employed for at least 12 months), 2008/09 ABS MPHS
Re-entry to the workforceAverage weeks unemployed by age, ABS LFS
40 weeks
73 weeks
0
20
40
60
80
15-54 years 55+ years
Seniors and workers compensation• Age restrictions on workers compensation are
a disincentive to workforce participation
• Age-based thresholds on incapacity payments exist in all Commonwealth, state and territory schemes, except for WA and Queensland
• The age at which income replacement is limited is generally around age 65
Seniors and workers compensation
Source: AHRC (2012) Working Past our 60s: Reforming Laws and Policies for the Older Worker
Seniors and workers compensation• National Seniors Australia (and other groups
including the Australian Human Rights Commission) argues that all age-based restrictions to accessing workers compensation should be abolished
Ensure consistency across age
Fairness – leaves older workers vulnerable
Lack of coverage is a significant disincentive to remaining in work
Seniors and workers compensation• Age Pension age is increasing to 67 from 2017
• The number of workers aged 65+ is increasing
• Age restrictions on workers compensation do not reflect current labour market environment
• Contrary to the broader policy objective of promoting longer working lives
Evidence on seniors and injuriesRate of work-related injuries is lowest at ages 60+
64
46
5347
5449
42
61
50
3428
0
10
20
30
40
50
60
70
15–19 20–24 25–29 30–34 35–39 40–44 45–49 50–54 55–59 60–64 65 andover
Rat
e p
er
1,0
00
Work-Related Injuries 2013-14, ABS 6324.0
Evidence on seniors and injuries• A range of research reveals why older workers
have lower injury rates:
– Awareness of safety
– Develop own coping strategies to reduce injury risk
– Work in lower risk occupations
– Duration of injury not necessarily longer
(Summary of research in AHRC 2012, Working Past our 60s: Reforming Laws and Policies for the Older Worker)
Return-to-work prgrams• Workers compensation can also help workforce
engagement by there being sufficient financial support and retain links with rehabilitation services and return-to-work programs
• 64% of mature age people who are not working say that a changed working condition (e.g. less physically demanding role) would help them return to work (NSPAC 2012)
Benefits of mature age workers• Soon to be released Productive Ageing Centre
research reveals the benefits of employing mature age workers due to their lower labour mobility:
– Training benefit: $1979 per worker per annum
– Recruitment benefit: $4438 per worker per annum
Brooke (2015) Appreciating value: Measuring the economic and social contributions of mature age Australians
Conclusion• Abolishment of all age-based restrictions to
accessing workers compensation will ensure consistency and fairness in the system and remove disincentives to older workers to continue working.