Auditor-General's Department South Australia Logo

Return to Work Corporation of South Australia

Functional responsibility

The Return to Work Corporation of South Australia (the Corporation) was established under the Return to Work Corporation of South Australia Act 1994.

The Corporation administers the Return to Work Scheme (the Scheme) under the Return to Work Act 2014. The Scheme compensates injured workers and helps them return to work using monies from the Compensation Fund.

Financial statistics
Result from operating activities: $1.5 billion
Premium revenue: $645 million
Net claims paid: $486 million
Outstanding claims liability: $2.5 billion
Net assets: $370 million
Funding ratio increased from 71% to 114%
The number of workers receiving income support for a year or more decreased by 38%, and for less than a year decreased by 37%
Average premium rate reduced to 1.95% in 2015-16
Number of FTEs: 274

Significant events and transactions
  • On 1 July 2015 the Workers Rehabilitation and Compensation Act 1986 was replaced with the Return to Work Act 2014, significantly reducing future compensation entitlements.
  • On 2 February 2015 the WorkCover Corporation of South Australia was reconstituted as the Return to Work Corporation of South Australia.
  • There was a $1.3 billion reduction in the outstanding claims liability in 2014-15.

Financial statement opinion

An emphasis of matter was included in the financial report opinion relating to inherent uncertainty with the estimate of the outstanding claims liability and the funding ratio.

Financial controls opinion
Key issues:
  • Some areas of financial risk were not audited internally including controls at claim agents that ensure the accuracy and validity of reimbursements of $54 million paid to employers
  • Internal audits detected a high error rate in income support calculations of a claim agent
  • Inaccurate checklists used by claim agents to waive employers’ obligations to pay the first two weeks of income support