Workers' Compensation and Age Discrimination in Australia

Abstract

In 2005 the Australian Government created the Australian Safety and Compensation Council. The Council's agenda includes examination of the issues concerning Australia's ageing workforce. Of particular relevance are the age-based limitations on the continuation of workers' compensation payments, which apply in almost all Australian States and Territories. Provisions in most States and Territories require that payments either cease or be reduced at 65 years of age or a notional retirement age. These provisions either directly or indirectly conflict with State, Territory and Federal anti-discrimination laws, which operate to prevent employers from discriminating against workers on the grounds of age. The workers' compensation laws, however, are quarantined from the effects of the age discrimination provisions. This represents an asymmetry between different government policies: one that works to discourage older people from staying in the workforce; another that attempts to encourage workers to remain longer in the workforce on account of the ageing workforce. This article explores the policy implications of this asymmetry and signposts areas for future research and proposed changes to policy.