Skip to main content
Log in

Work Disability in Australia: An Overview of Prevalence, Expenditure, Support Systems and Services

  • Published:
Journal of Occupational Rehabilitation Aims and scope Submit manuscript

Abstract

Purpose This study sought to describe Australian systems of income support for people with work disability. Specific aims were to summarise and compare the features of the income support systems, including the rehabilitation and employment services funded or provided by those systems, and factors affecting transition between systems. Further objectives were to estimate the prevalence of work disability in Australia and the national expenditure on work disability income support. Methods A mixed methods project involving collation and analysis of existing publicly available documentation and data, and interviews with 25 experts across ten major systems of income support. The prevalence of work disability and expenditure in each system, and in total, was estimated using publicly accessible data sources. System features and service models were synthesised from data sources, tabulated and compared qualitatively. Results In Australia during the 2015/2016 financial year an estimated 786,000 people with work disability received income support from a Commonwealth, state, territory or private source. An additional 6.5 million people accessed employer provided leave entitlements for short periods of work incapacity. A total of $37.2 billion Australian dollars was spent on income support for these people during the year. This support was provided through a complex array of government authorities, private sector insurers and employers. Service models vary substantially between systems, with case management the only service provided across all systems. Healthcare and return to work services were provided in some systems, although models differed markedly between systems. Income support ranged from 19 to 100% of earnings for a person earning the average weekly Australian wage pre-disability. There is a paucity of information relating to movement between systems of support, however it is likely that many thousands of people with long periods of work disability transition between systems annually. Conclusions This study demonstrates the substantial financial and human impact of work disability on Australian society. Findings indicate multiple opportunities for reducing the burden of work disability, including aligning case management and healthcare service models, and engaging employers in prevention and rehabilitation. The findings suggest a need for greater interrogation and evaluation of Australian work disability support systems.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  1. Loisel P, Anema JR, MacEachen E, Feuerstein M, Pransky G, Costa-Black K. Handbook of work disability: prevention and management. New York: Springer; 2013.

    Book  Google Scholar 

  2. Hartvigsen J, Hancock MJ, Kongsted A, Louw Q, Ferreira ML, Genevay S, et al. What low back pain is and why we need to pay attention. Lancet 2018;391(10137):2356–2367.

    Article  PubMed  Google Scholar 

  3. Vos T. Global, regional, and national incidence, prevalence, and years lived with disability for 310 diseases and injuries, 1990–2015: a systematic analysis for the Global Burden of Disease Study 2015. Lancet 2016;388(10053):1545–1602.

    Article  Google Scholar 

  4. Australian Institute of Health and Welfare. Australian Burden of Disease Study: impact and causes of illness and death in Australia 2011. Canberra: AIHW; 2016.

    Google Scholar 

  5. Asfaw A, Pana-Cryan R, Bushnell PT. Incidence and costs of family member hospitalization following injuries of workers’ compensation claimants. Am J Ind Med. 2012;55(11):1028–1036.

    Article  PubMed  PubMed Central  Google Scholar 

  6. Lyons RA, Finch CF, McClure R, van Beeck E, Macey S. The injury list of all deficits (LOAD) framework–conceptualizing the full range of deficits and adverse outcomes following injury and violence. Int J Inj Contr Saf Promot. 2010;17(3):145–159.

    Article  PubMed  Google Scholar 

  7. Newnam S, Collie A, Vogel AP, Keleher H. The impacts of injury at the individual, community and societal levels: a systematic meta-review. Public Health. 2014;128(7):587–618.

    Article  CAS  PubMed  Google Scholar 

  8. Collie A, Lane TJ, Hassani-Mahmooei B, Thompson J, McLeod C. Does time off work after injury vary by jurisdiction? A comparative study of eight Australian workers’ compensation systems. BMJ Open. 2016;6(5):e010910.

    Article  PubMed  PubMed Central  Google Scholar 

  9. Lippel K, Lotters F. Public insurance systems: a comparison of cause-based and disability-based income support systems. In: Loisel P, Anema JR, editors. The role and influence of care providers on work disability; 2013. New York: Springer. p. 183–202.

    Google Scholar 

  10. International Labour Organisation. World Social Protection Report 2017–2019: universal social protection to achieve sustainable development goals. Geneva: International Labour Office; 2017.

    Google Scholar 

  11. Collie A. Australian workers’ compensation systems. In: Willis E, Reynolds L, Keleher H, editors. Understanding the Australian Healthcare System. 3rd ed. Melbourne: Elsevier Health; 2016.

    Google Scholar 

  12. Bartys S, Frederiksen P, Bendix T, Burton K. System influences on work disability due to low back pain: an international evidence synthesis. Health Policy. 2017;121(8):903–912.

    Article  PubMed  Google Scholar 

  13. Kilgour E, Kosny A, McKenzie D, Collie A. Interactions between injured workers and insurers in workers’ compensation systems: a systematic review of qualitative research literature. J Occup Rehabil. 2015;25(1):160–181.

    Article  PubMed  Google Scholar 

  14. Grant GM, O’Donnell ML, Spittal MJ, Creamer M, Studdert DM. Relationship between stressfulness of claiming for injury compensation and long-term recovery: a prospective cohort study. JAMA Psychiatry. 2014;71(4):446–453.

    Article  PubMed  Google Scholar 

  15. Kilgour E, Kosny A, McKenzie D, Collie A. Healing or harming? Healthcare provider interactions with injured workers and insurers in workers’ compensation systems. J Occup Rehabil. 2015;25(1):220–239.

    Article  PubMed  Google Scholar 

  16. Brijnath B, Mazza D, Kosny A, Bunzli S, Singh N, Ruseckaite R, et al. Is clinician refusal to treat an emerging problem in injury compensation systems? BMJ Open. 2016;6(1):e009423. https://doi.org/10.1136/bmjopen-2015-009423.

    Article  PubMed  PubMed Central  Google Scholar 

  17. Elbers NA, Collie A, Hogg-Johnson S, Lippel K, Lockwood K, Cameron ID. Differences in perceived fairness and health outcomes in two injury compensation systems: a comparative study. BMC Public Health. 2016;16(1):658.

    Article  PubMed  PubMed Central  Google Scholar 

  18. Reville RT, Schoeni RF. The fraction of disability caused at work. Soc Secur Bull. 2003;65(4):31–37.

    PubMed  Google Scholar 

  19. O’Leary P, Boden LI, Seabury SA, Ozonoff A, Scherer E. Workplace injuries and the take-up of social security disability benefits. Soc Secur Bull. 2012;72(3):1–17.

    PubMed  Google Scholar 

  20. Hutlin H, Lindholm C, Moller J. Is there an association between long-term sick leave and disability pension and unemployment beyond the effect of health status?—A cohort study. PLoS ONE. 2012;7(4):e35614. https://doi.org/10.1371/journal.pone.0035614.

    Article  CAS  Google Scholar 

  21. Mather L, Blom V, Bergstrom G, Svedberg P. Adverse outcomes of sick leave due to mental disorders: a prospective study of discordant twin pairs. Scand J Public Health. 2017. https://doi.org/10.1177/1403494817735755.

    Article  PubMed  Google Scholar 

  22. Australian Bureau of Statistics. 6202.0—Labour Force, Australia. Canberra: Australian Bureau of Statistics; 2018.

    Google Scholar 

  23. Braun V, Clarke V. Using thematic analysis in psychology. Qualitative Res Psychol. 2006;3(2):77–101.

    Article  Google Scholar 

  24. AIA Australia. Making a billion dollar difference to people’s lives. Melbourne: AIA Australia; 2016.

    Google Scholar 

  25. iCare. Insurance and care NSW annual report 2015–16. Sydney: iCare; 2016.

    Google Scholar 

  26. Office of Industrial Relations. Queensland Workers’ compensation scheme statistics 2015–16. Brisbane: OoIR; 2016.

    Google Scholar 

  27. Department of Social Services (DSS). DSS demographic data June 2016. Canberra: DSS; 2016.

    Google Scholar 

  28. National Occupational Health and Safety Commission (NOHSC). Type of occurrence classification system. Canberra: NOHSC; 2004.

    Google Scholar 

  29. Australian Prudential Regulation Authority (APRA). Life Insurance and Friendly Societies Reporting Requirements Sydney, Australia: APRA. 2017. http://www.apra.gov.au/lifs/ReportingFramework/Pages/life-companies-reporting-requirements.aspx.

  30. Australian Prudential Regulation Authority (APRA). Superannuation Reporting Framework Sydney, Australia: APRA. 2017 http://www.apra.gov.au/Super/Pages/Superannuation-reporting-framework.aspx.

  31. Department of Social Services. Valuation Report 30 June 2015: baseline valuation. Canberra: Commonwealth of Australia; 2016.

    Google Scholar 

  32. Lane TJ, Gray S, Hassani-Mahmooei B, Collie A. Effectiveness of employer financial incentives in reducing time to report worker injury: an interrupted time series study of two Australian workers’ compensation jurisdictions. BMC Public Health. 2018;18(1):100. https://doi.org/10.1186/s12889-017-4998-9.

    Article  PubMed  PubMed Central  Google Scholar 

  33. Vines P, Butt M, Grant G. When lump sum compensation runs out: personal responsibility or legal system failure? Sydney Law Rev. 2017;39(3):365–397.

    Google Scholar 

  34. Safe Work Australia. National Dataset of compensation based statistics. 3rd ed. Canberra: Commonwealth of Australia; 2004.

    Google Scholar 

  35. Australian Securities and Investments Commission (ASIC). Report 498: Life insurance claims: an industry review. Canberra: ASIC; 2016.

    Google Scholar 

  36. Mazza D, Brijnath B, Singh N, Kosny A, Ruseckaite R, Collie A. General practitioners and sickness certification for injury in Australia. BMC Fam Pract. 2015;16(1):100. https://doi.org/10.1186/s12875-015-0307-9.

    Article  PubMed  PubMed Central  Google Scholar 

  37. Kosny A, Allen A, Collie A. Understanding independent medical assessments—a multi-jurisdictional analysis. Melbourne: Institute for Safety, Compensation and Recovery Research (ISCRR); 2013.

    Google Scholar 

  38. Guide to Social Security Law [Internet]. Commonwealth of Australia. 2018. http://guides.dss.gov.au/guide-social-security-law/1/1/i/10.

  39. Kilgour E, Kosny A, Akkermans AJ, Collie A. Procedural justice and the use of independent medical evaluations in workers’ compensation. Psychol Inj Law. 2015;8(2):153–168.

    Article  Google Scholar 

  40. Cullen KL, Irvin E, Collie A, Clay F, Gensby U, Jennings PA, et al. Effectiveness of workplace interventions in return-to-work for musculoskeletal, pain-related and mental health conditions: an update of the evidence and messages for practitioners. J Occup Rehabil. 2017;28(1):1–15.

    Article  PubMed Central  Google Scholar 

  41. Pescud M, Teal R, Shilton T, Slevin T, Ledger M, Waterworth P, et al. Employers’ views on the promotion of workplace health and wellbeing: a qualitative study. BMC Public Health. 2015;15(1):642. https://doi.org/10.1186/s12889-015-2029-2.

    Article  PubMed  PubMed Central  Google Scholar 

  42. AIA Australia. Australia’s Healthiest Workplace Sydney, Australia: AIA. 2017. http://healthiestworkplace.aia.com/australia/eng/.

  43. SuperFriend. Who is SuperFriend Sydney, Australia: SuperFriend. 2017. https://www.superfriend.com.au/.

  44. O’Campo P, Molnar A, Ng E, Renahy E, Mitchell C, Shankardass K, et al. Social welfare matters: a realist review of when, how, and why unemployment insurance impacts poverty and health. Soc Sci Med. 2015;132:88–94.

    Article  PubMed  Google Scholar 

  45. Garcia-Gomez P, Gielen AC. Mortality effects of containing moral hazard: Evidence from disability insurance reform. Health Econ. 2018;27(3):606–621.

    Article  PubMed  Google Scholar 

Download references

Acknowledgements

Some of the findings reported arise from a study commissioned by the Collaborative Partnership for Improving Work Participation. The Collaborative Partnership is a national effort bringing together public, private and not-for-profit organisations to improve work participation for people with temporary or permanent physical or mental health conditions which may impact their ability to work. The authors gratefully acknowledge the input of Dr Bronwyn Morkham and Professor Natasha Lannin throughout the project. The views and opinions expressed in this report are those of the authors and do not necessarily reflect the views of the project funders or the Collaborative Partnership for Improving Work Participation.

Funding

This study was funded by the Collaborative Partnership for Improving Work Participation via the Department of Social Services, Australian Government.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Alex Collie.

Ethics declarations

Conflict of interest

Alex Collie, Michael Di Donato, and Ross Iles declares that they have no conflict of interest.

Disclosures

The views and opinions expressed in this report are those of the authors and do not necessarily reflect the views of the project funders or the Collaborative Partnership for Improving Work Participation.

Ethical approval

All procedures performed in studies involving human participants were in accordance with the ethical standards of the Australian National Statement on the Ethical Conduct in Human Research and with the 1964 Helsinki declaration and its later amendments.

Informed consent

Informed consent was obtained from all individual participants included in the study.

Electronic supplementary material

Below is the link to the electronic supplementary material.

Supplementary material 1 (DOCX 14 KB)

Supplementary material 2 (DOCX 15 KB)

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Collie, A., Di Donato, M. & Iles, R. Work Disability in Australia: An Overview of Prevalence, Expenditure, Support Systems and Services. J Occup Rehabil 29, 526–539 (2019). https://doi.org/10.1007/s10926-018-9816-4

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10926-018-9816-4

Keywords

Navigation