SIRA’s workers compensation fraud crackdown: why it matters for every employer

Workers’ compensation is built on trust. Employers pay premiums, insurers manage risk, and injured workers are meant to receive fair support so they can recover and get back to work.

When people rort the system, everybody pays more – especially the businesses doing the right thing.

In New South Wales, the State Insurance Regulatory Authority (SIRA) has ramped up prosecutions for workers compensation fraud and non‑insurance. One of the most recent cases involved Anita Kaura, who stole over $400,000 from the NSW workers compensation scheme by hiding income and signing false statutory declarations. That’s not a rounding error – that’s a full‑blown hit to a statutory scheme that is already under extreme financial pressure.

This article breaks down what SIRA is doing, why workers compensation fraud is a serious business risk, and what you should take away from the latest “name and shame” list.

Why SIRA is cracking down on workers compensation fraud

Workers compensation deficits are not abstract numbers; they translate directly into higher premiums, tighter benefits and more scrutiny for employers. When individuals commit fraud or employers run without insurance, the cost doesn’t disappear – it is shifted onto every compliant business in the state.

Regulators know this. SIRA has been very clear that fraud and non‑insurance are priority risks across the NSW workers compensation and compulsory third party (CTP) schemes. Prosecutions are being used not just to recover money, but to send a message:

• If you lie about your work capacity or income while receiving workers compensation payments, you are at real risk of criminal charges.
• If you operate without workers compensation insurance, you can be hit with fines, “double avoided premiums” and public judgments that are easy to find online.
• If you assist fraud – for example by issuing fake certificates – you may personally face charges and professional consequences.

The Anita Kaura case: over $400,000 in stolen workers compensation

The standout recent case is Anita Kaura, who defrauded the New South Wales workers compensation scheme of more than $428,000. She did this by signing false statutory declarations while receiving workers compensation benefits and, at the same time, working and earning income that she did not disclose.

Ultimately, Kaura was sentenced to a two‑year term of imprisonment, to be served in the community under an Intensive Correction Order. She repaid more than $400,000 in workers compensation benefits before sentencing, and the court still ordered additional payments to the Workers Compensation Insurance Fund and costs to SIRA.

From an employer’s perspective, the key points are:

• This level of fraud is not theoretical – it is happening inside the same workers compensation system you rely on to protect your employees.
• SIRA is prepared to pursue long periods of offending (several years), complex income histories and substantial restitution orders.
• The dollars involved in just one case are significant enough to distort scheme performance and feed into higher workers compensation premiums.

Importantly, public information on many of these matters is still limited. Media releases and summary articles do not always disclose every detail – and they don’t need to. The message is clear enough: the regulator is prepared to name, shame and prosecute.

One state’s scheme – but not the whole picture

The cases discussed here relate to the New South Wales workers compensation and CTP schemes. Every Australian state and territory has its own legislation, regulators and insurance arrangements. Most of them are facing similar problems:

• escalating psychological injury claims
• pressure on premiums and scheme viability
• under‑insurance and non‑insurance among smaller employers
• a small but damaging number of fraudulent claims and false statements.

Regulators in other jurisdictions are also prosecuting workers compensation fraud and non‑insurance. However, compared to the scale of the problem and the money being lost, enforcement is still patchy. Many schemes are only scratching the surface. That means compliant employers are effectively subsidising both fraudsters and those who fail to take out proper cover.

If your business operates across state borders, this matters. You may be dealing with multiple workers compensation schemes, each with different rules, enforcement approaches and levels of transparency. What is visible in NSW is almost certainly only one part of a national issue.

Why employers and workers should care

For employers, workers compensation fraud is not just a “scheme issue” – it is a direct business risk:

• Higher premiums: When the scheme absorbs fraud losses and non‑insured claims, the cost is spread across the insured pool. Long‑term, that means higher workers compensation premiums for businesses that do the right thing.
• Reputational damage: Being prosecuted for non‑insurance or fraudulent conduct puts your company’s name into a permanent public record. That can impact tenders, client relationships and worker confidence.
• Regulatory attention: Once your business is on the regulator’s radar, you can expect closer scrutiny of your workers compensation, WHS and return‑to‑work practices.

For workers, the risk is just as real:

• Fraud makes it harder for genuinely injured workers to be believed and supported.
• Tightening scheme rules and higher thresholds are often justified by reference to “scheme sustainability” – a phrase that usually hides the impact of fraud, poor management and under‑funding.

The name and shame list

Here is a consolidated list of recent individuals and companies associated with workers compensation and CTP prosecutions discussed above – the cases that show how seriously the NSW regulator is now treating workers compensation fraud and non‑insurance:

• Anita Kaura
• Andrew Leslie
• MOS Insulation Pty Ltd
• Moshin Nabi
• David Stevens
• Tyson Cloos
• Hospicare Pty Ltd
• Archi Glass Pty Ltd
• Kalwars Auto Pty Ltd
• Tina Pour‑Zahrouni
• Issa Abid
• Zheng Liang
• Rajbir Singh

How HSE leaders can respond

If you’re responsible for health, safety and workers compensation in your organisation, there are practical steps you can take:

• Make sure your workers compensation insurance is current, correctly declared and reviewed whenever your business changes.
• Tighten your injury management and RTW processes so that capacity, duties and income are clearly documented and regularly reviewed.
• Educate workers on their legal obligations to disclose any work or income while on workers compensation, and the real‑world consequences of failing to do so.
• Periodically audit your claims data for red flags – unusual work capacity certificates, inconsistent information, or patterns of questionable reporting.

Workers compensation is essential infrastructure for safe, sustainable work. When fraud and non‑insurance are allowed to thrive, everyone else pays the price. NSW’s recent prosecutions are a reminder that regulators are starting to take this seriously. The challenge now is to ensure the same level of accountability and transparency across every state and scheme – and to make sure your own house is in order.