KZBX and Comcare (Compensation)

This matter concerned an application for review of Comcare's decision to deny compensation under section 14 of the Safety, Rehabilitation and Compensation Act 1988 (SRC Act) for injuries sustained by the applicant while working from home during a COVID-19 lockdown. The applicant claimed a range of physical injuries, including fractures to her wrist, patella, and ribs, as well as a head injury, seizures, neuropathic pain, neurological paralysis, and loss of smell and taste, following an incident where she was found injured on a footpath near her home while undertaking a work-related learning and development activity. Comcare had initially denied liability for these injuries, and subsequently denied a further claim for aggravation of pre-existing major depressive disorder with anxious distress and post-traumatic stress disorder, on the basis that the injuries did not arise out of or in the course of employment, and that her psychological condition was not significantly contributed to by her employment.

The court was required to determine whether the applicant's claimed physical and psychological injuries arose out of, or in the course of, her employment with Services Australia, and whether her employment had significantly contributed to the aggravation of her pre-existing psychological conditions. Specifically, the court had to consider the definition of "injury" under section 5A of the SRC Act, which includes physical or mental injuries arising out of, or in the course of, employment, or an aggravation of such an injury that arose out of, or in the course of, employment. The court also had to consider whether the incident, which occurred while the applicant was undertaking a designated learning and development activity away from her home, fell within the scope of her employment.

The court found that the applicant was engaged in a work-related learning and development activity at the time of the incident, which was scheduled during her work hours and recorded in the online system. The court accepted that the applicant sustained fractures to her left wrist, left patella, and ribs as a result of the incident. Furthermore, the court considered the medical evidence regarding the applicant's psychological condition, including reports from her treating general practitioner, psychiatrist, and psychologist, which indicated an aggravation of pre-existing PTSD, major depressive disorder, and anxious distress. The court noted that the applicant's perception of a breach of her medical privacy by her employer was identified as a significant cause of her mental health condition.

Ultimately, the court set aside Comcare's decisions and remitted the matters for reconsideration. The court determined that the applicant's physical injuries, including the fractures, arose out of and in the course of her employment, as she was undertaking a work-related activity at the time of the incident. The court also found that the applicant's employment had significantly contributed to the aggravation of her psychological conditions, particularly in light of the circumstances surrounding the incident and the subsequent handling of her injury by her employer.