A major review of work disability by the Productivity Commission found that the cost of work injuries is borne equally by the employee, employer and the community. That is, one third the cost is borne by the employer, one third the cost is borne by the employee, and one third the cost is borne by the community.
The employee loses out when:
| • | Wages are reduced through loss of overtime and shift allowances, as well as through the reduced rates of pay offered by compensation systems; and |
| • | They become part of the small but significant proportion of people who do not return to work but remain on a lower income such as a disability pension. |
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The community pays:
| • | When employers pass on the costs associated with injury and illness. A company making widgets pays ‘x’ proportion of the costs of the widget in work injuries. The customer pays the extra cost for the widget. |
| • | Through taxes spent on government services. A government organisation requires more of the tax payer dollar to cover the costs of work injuries, or is able to provide less services because funds are used to pay for work injury costs. |
| • | Through taxes spent on disability pensions. A small but significant proportion of the community with a work injury will end up on a disability pension. |
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 The cost of work injuries is borne one third by the employer, one third by the employee, and one third by the community.
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