In changes to the Victorian WorkCover, premiums are set to increase by an average of 42%.
Last week, the Victorian Government announced that it would be modernising the WorkCover Scheme. In doing so, they have advised that the average premium rate would increase from 1.27% to 1.8% of remuneration in order to cover the cost of claims. This compares with average premiums of 1.23% in Queensland and 1.48% in New South Wales.
The increase in average premiums represents a cost increase of 42%. This coupled with other increases in costs announced in the 2023-24 Victorian State Budget puts considerable pressure on businesses operating in Victoria.
The other key reforms relevant to modernising the WorkCover Scheme include:
- Establishing Return to Work Victoria to provide more support for workers to return to employment; and
- Adjusting the eligibility for mental injury claims and introducing a whole person impairment threshold of 20% for claims that receive weekly benefits for more than two and half years
What are the next steps
If you believe this will impact you and/or your business reach out to your Pitcher Partners expert to discuss the impact today.