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Business slugged with 42 per cent increase to WorkCover premiums

Today’s State Government announcement of a 42 per cent increase in WorkCover premiums to 1.8 per cent makes our scheme the most expensive in the country and is yet another increase to the cost of doing business in Victoria.

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While the Victorian Chamber acknowledges that the WorkSafe scheme is unsustainable and premiums have remained stagnant for several years, it is disappointing that business is once again asked to foot the bill.

The Chamber has been actively advocating for holistic reform of the system, beyond merely slugging employers with a premium increase. It’s clear that the mental health injury is a factor in the scheme’s challenges, and we would have liked to see more preventative and proactive measures as part of this announcement to ensure that workers can be assessed sooner and get help sooner.

What we are left with is a scheme that is no longer fit for modern Victoria – employers, employees and their families – and business is left to cover the costs of this broken system. Victorian employers and employees need WorkCover to succeed but in order for this to happen, we need a commitment to preventive measures.

The average equivalent WorkCover premium rate in NSW is 1.48 per cent and the Queensland rate is 1.23 per cent.

To be attributed to Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra:

“Today’s 42 per cent increase has contributed to Victoria having the highest WorkCover rates in the country and will impact our reputation as the best place to do business.

“The WorkSafe system is in trouble and it’s clear it’s been in trouble for a while but slugging employers with premium increases, without any other reform measures, is not the answer. We need clear commitment to reform, and they must be legislated. We cannot be back here again next year with another premium increase.

“Employers and employees deserve holistic reform of the system with business and unions having a seat at the table to collaborate on practical, meaningful solutions. The Chamber must be involved in shaping a program to address the mental health crisis among our workforces and we are well placed to do this.

“The only way to prevent further increases of this nature is to deliver real reform of the system which would result in healthier and happier workplaces.

“Ultimately, every business wants to ensure a viable WorkCover System, but no business wants to wear increases of 40-plus percent on premiums. Reform is required. The business community is willing to engage to guide that reform.”  

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