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workers' compensation system failure

How Shattered Started

Shattered began as a self-funded project created and directed by Kathie Melocco — not as an established filmmaker, but as a former injured worker determined to document the harm she witnessed inside Australia’s workers’ compensation system. The initial funding came from an outcome related to her own case, not from privilege or favour, but from circumstance — just enough to begin the project independently and focus attention on the human impact being ignored.

Outraged by the treatment she and others experienced, Kathie picked up a camera, enrolled in film school, and learned documentary filmmaking in real time — driven by necessity rather than ambition. Through the process, she learned how to scale a story for wider audiences, international documentary platforms, and contemporary streaming services. Shattered is captured in 4K on Sony cinema bodies using Sigma Art primes, a 25–70mm and 70–200mm lens kit, with aerial coverage captured by drone — a fully streamer-compliant acquisition package.

Since September 2023, she has put in countless unpaid hours researching and filming as the story continued to unfold — creating a historical record of the moment when Australia’s workers’ compensation crisis finally entered the public narrative and shifted from the financial pages into the lounge rooms of everyday Australians.

As the investigation widened, new evidence emerged about systemic failure, automation and algorithms, and the political and financial forces shaping the system. What began as a gender story arc grew into a broader exploration of the structures governing harm in Australia.

For the first time, someone stepped outside the meeting rooms, reports, and inquiry transcripts and travelled across Australia — camera in hand — to speak directly with the people living inside this crisis. Kathie visited families, GPs, psychologists, lawyers, employers, injured workers and whole communities affected by the system.


No one had ever documented these stories at scale or with this level of direct, on-the-ground engagement. What emerged from those conversations was unmistakable: a system built not to heal, but to harm.

Shattered was created because people have been speaking for so long — employers, injured workers, families, providers, and inquiry after inquiry — yet real change has remained out of reach. And when you step back, the pattern becomes unmistakable: you cannot change what you do not understand, and while we have not unravelled the entire system — no one can, and that is part of the problem — we have uncovered fractures that continue to compound harm year after year.

In mid-2024, Ballina Gee — an injured worker who expressed interest in gaining experience in documentary filmmaking — contributed many hours in a voluntary capacity, offering lived-experience and advocacy insight. Her contribution is acknowledged with appreciation, as are the voluntary contributions of others who supported the project during its development.

In 2025, additional professional support was brought in as required to complete production.

Like many real-world documentaries, Shattered has moved through multiple phases of research, filming, pausing, reshaping, and reflection — influenced by trauma, funding limitations, and a rapidly shifting political landscape.

Along the way, both the filmmaking process and the industry itself revealed more than expected. The realities of documentary production — its intensity, emotional weight, and financial burden — required raising additional capital just to complete the project.

To help raise the capital needed to keep filming and complete the project, Kathie and Ballina created a small moral injury training film in late 2024. The moral injury training film was separate work created by Kathie and Ballina — a standalone project drawn from Kathie’s lived experience. Although entirely distinct from Shattered in content and purpose, the small amount of income it generated helped support the continuation of Shattered’s production. Like many independent filmmakers, we did what we had to do to keep the project moving. It did not make a profit.


Kathie reinvested her portion directly into progressing Shattered’s production, while Ballina used her portion to meet day-to-day living needs.

 

By late June, Ballina travelled overseas, and her practical involvement with Shattered came to a close.

Despite many obstacles and heartaches, the documentary eventually moved forward with clarity and purpose.

 

Not a single insurer, despite their significant profits, offered assistance — which, in retrospect, may have preserved the film’s independence.

The film’s direction and final content remained entirely in the hands of the production team.


Everyone will be impacted by what they see and learn.

 

Shattered is being positioned for release to major documentary platforms following festival screenings.

The Making Of Shattered - Continued

A pre-screening was held in September 2024 to test the storyline and gauge audience understanding. Feedback from that session highlighted areas that needed further clarity and depth, requiring additional and unanticipated work before the film could move toward completion.

The process also revealed how emotionally charged this territory can be. At times, tensions and misunderstandings around the project added to the strain, and the experience was deeply confronting. Yet those challenges only reinforced the importance of finishing the film with as much care as we could humanly muster.

As the story continued to evolve, we even needed to reshoot scenes to ensure the film reflected what was unfolding around us. The journey has been demanding and, at times, deeply stressful — there were moments when the process nearly broke Kathie — but independence allowed the project to move forward in the way the story required.

The documentary’s narrative concluded on 14 November 2025, with a final cut scheduled for release before the end of the year.


Kathie remains grateful to all who contributed their voice, expertise, or lived experience along the way.

WHAT COMES NEXT

Following Shattered, Kathie will take a short period of rest and reflection after what has been an intense and demanding journey. Having spent years immersed in stories of trauma, she will not return to that space. Once recharged, she plans to step away from the workers’ compensation arena while retaining the insight it has given her, and focus on documentary projects where her creative skill and professional labour are clearly recognised — beginning with a major investigation into Australia’s mental health crisis and the systems making society unwell.

Shattered is not just a record of what happened to a few people injured at work — it is a reminder that when public systems fail, anyone can find themselves on the wrong side of them. This could be you or someone you love. Footage will eventually be gifted to the National Film and Sound Archive (NFSA) as a historical record of the workers' compensation scheme in Australia. 

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It Stops With Me

Episode 1

Launching

The Punishment of Money

Episode 2

The Punishment of

Money

Coming Soon

Doctor Doctor

Episode 3

Doctor

Doctor

In Review

Addressing the Court

Episode 4

 Royal Commissions Examined

In Planning

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Is It Fit For Purpose?

For decades, the Workers' Compensation Schemes around Australia, funded by compulsory employer premiums collected by Government, has neglected injured workers and their families all while perpetrating mental, physical, and economic abuse rooted in outdated principles of colonialism and sexism. Join us in exploring their journey calling for restorative justice, healing and the demand for a safer system for all.

This could be you, or someone you love.

Elevating Voices

Updates on Systemic Issues in Workers' Compensation:

 

A claimant successfully highlighted the intersectionality of financial systems by exposing how individuals on workers' compensation face discrimination when attempting to access loans and other financial products. This particularly impacts those experiencing financial hardship while unable to work.

 

Another case brought attention to statutory harm caused by government policies that don't require insurers to act in good faith when handling workers' compensation claims.

 

Evidence has emerged showing that Independent Medical Examinations (IMEs) function primarily as medico-legal reports rather than patient care assessments. These reports frequently contradict treatment plans and health priorities for injured workers.

 

Multiple complaints have revealed inadequate investigation procedures by regulatory bodies, highlighting gaps in oversight and accountability.

 

Workers' compensation cases have demonstrated how the system routinely overlooks the crucial role of families in recovery and return-to-work processes, despite their essential support function.

 

System-wide technology issues have been documented across both Workers' Compensation and General Insurance, showing how fragmented computer systems create catastrophic impacts for claimants during critical life moments when they most need support.

 

Note: This film exists because many others have been doing the hard work long before the camera was ever switched on. We acknowledge the advocates, campaigners, lived-experience leaders, and frontline supporters whose ongoing efforts remain essential to change. We sincerely thank Rosemary McKenzie-Ferguson for the vast international network of workers' compensation experts she has facilitated introductions to so that our research has been as comprehensive as possible.

We also acknowledge Vasalia Govender and the work of the Injured Workers' Support Team for their valuable contribution.

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Expert Led

Our work has involved speaking to hundreds of doctors, claims managers, rehabilitation providers, insurers, financial institutions and lawyers. All say the system has been built to harm. A special episode of Shattered is devoted to speaking with the experts who all share their opinions on what needs to be done. It is a finance system delivering health and that is not compatible to return to work or recovery. Lives have been shattered for decades with no accountability for the harm that has been done to tens of thousands of injured people.

Pictured Right: Dr. Paul Phillips, Psychologist & Independent Expert speaks to the critical role of the system is to get the mental health diagnosis right in the first place. Too many people suffer and are harmed he says because of inaccurate diagnoses in this system. We also discuss medical misogyny in mental health.

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Research Driven

GIDII Advocacy has spent months trawling legislation, reviewing parliamentary inquiry submissions and academic research. What we have found is a chaotic system that refuses to enact recommendations that will address the harm, over politicization of the health of injured people that denies them care and a system where money is going to everyone except where it should go, and that is to the injured to get them back to work and to health.

 

Interesting Fact: The origins of the early computer Algorithm Colossus developed by the Government Insurance Office in the late 1980's was actually found in the NSW Parliament's library archive. Read about it here.

Town Hall Gatherings

GIDII Advocacy has traversed around the State, several times. From kitchen tables to community cafes across Australia, we've looked into the eyes of those shattered by this broken system. We've held the hands of mothers who can no longer hold their children, listened to workers stripped of their dignity, and witnessed families crumbling under the weight of medical bills and bureaucratic indifference. These aren't just stories – they're the devastating reality of an antiquated system that continues to destroy Australian lives while those in power look away.

Fact: Mental Health Claims in Workers' Compensation Systems have been very poorly administered by insurers for way too long, causing untold suffering and life long harm. There is an urgent need for Workers' Compensation Systems to evolve into safe havens and comply with the National Suicide Prevention Strategy.

 

"Bullying and harassment at work has been associated with an increased risk of suicidal thoughts -
some research suggesting 1.5 - 2.0 times the risk, usually within the context of other psychologically stressful employment conditions.77

 

One-third of workers compensation claims due to mental stress are
related to bullying and harassment.78"

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Educating Policy Makers

We have been the thorn in policy makers and systems' administrators sides for months. Change is messy. Change takes courage and change can be uncomfortable. We make no apology for demanding that sick, vulnerable people who are unable to advocate for themselves deserve care and respect, not abuse.

 

Pictured Left: We hosted Ken Feinberg at NSW Parliament House. Ken is widely regarded as an international expert on compensation systems. His book "What is life Worth' was later told in the Netflix Movie 'Worth' starring Michael Keaton. Ken spoke on the need for compensation systems to be efficient and to get the money where it needs to go, fast.

Educating the Media

Beyond the fleeting headlines in Workers' Compensation coverage lies a predictable pattern: tales of government neglect and heartless policies, punctuated by personal stories of suffering. But this narrative barely scratches the surface of a systemic catastrophe.

 

The scale of this abuse is unprecedented and it has been going on for decades. It has been compounded and spread globally by a computer program introduced in the late 1980's early 90s to stop claims leakage. 

 

This isn't merely mismanagement – it's an atrocity spanning generations, destroying countless lives.

 

This abuse is at scale and incentivizes others to harm.

 

It is one of the biggest scandals this country has ever known, a population of people who all they did was get injured at work, only to be punished, humiliated, degraded and forgotten by society and trapped in a maze of bureaucratic entanglement from which there is no recovery.

Pictured Right: On International Workers' Memorial Day 2025 we hosted 'Heal & Hope' a day to acknowledge the suffering and the need for restitution. James Hartley - Head of Disputes at UK Legal Firm Freeths joined us. He led the Mr Bates V The Post Office litigation in the UK, widely regarded as the greatest miscarriage of justice in the UK. Watch his talk here.

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