The system is an insurance scheme where businesses pay additional fees on top of their payroll tax bill to ensure the medical care of injured workers. The Victorian Chamber has put the business perspective on the Workplace Bill - currently before the State Parliament - to both the Government and Opposition.

Slugging businesses with eye-watering increases to WorkCover premiums of an average 42 per cent, as occurred this year, is the definition of bill shock and cannot be repeated.

The State is now faced with a choice: reform the WorkCover system or provide cash from State Budgets to prop it up. Businesses will likely be unable to cover massive increases next year and many will shutter if the system continues without change.

That’s not good for Victorian business and it's not good for workers.

We are advocating for a well-administered and sustainable system that limits any required premium increases and awaiting details on the State Government’s new Return to Work Victoria entity. It must support Victorians currently in work as well as those who may be on the WorkCover scheme. It should focus on prevention, as well as providing support for injured workers.

The Victorian Chamber is working with the Victorian Trades Hall Council to establish programs that assist in prevention of injury and give employers the tools to further cultivate mentally healthy workplaces for all staff. 

It is imperative that a revamped system eliminate all fraudulent claims by ensuring that frivolous applications for compensation are quickly reviewed.

There is no doubt there is system abuse. A tightening of the scheme might be seen as unpopular for those who don’t understand business, but fraud is fraud. Business has a right to know the money is well spent to protect those who need it... not those who want to scam it.

The scheme could also do better in managing high-risk and/or high-stress sectors of first responders, and police and emergency service workers, nurses, teachers and corrections staff.

 The Victorian Chamber is resolute in wanting WorkCover reformed and modernised. The Government and the Opposition must come together and agree on the reforms required for a sustainable solution.

Merely raising premiums on businesses, who already contribute to additional funding via the Mental Health Levy on payroll tax, won't cut it. All Victorians deserve safer, healthier and happier workplaces.  But we will have significantly less workplaces if the WorkCover bill shock continues.

This article was originally published in the Herald Sun on Thursday 16 November 2023.