WorkCover sting for business

By Lachlan Ellis

While making sure injured workers are compensated is very important, a significant increase to WorkCover premiums has drawn frustration from businesses and lobby groups.

The State Government announced earlier this year that WorkCover premiums would increase to 1.8 per cent – an increase of 42 per cent compared to last year’s premiums – making Victoria’s WorkCover the most expensive in the country.

Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra acknowledged the WorkSafe system needed reform, but said hitting employers with such a large increase wasn’t the way forward.

“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,” Mr Guerra said.

“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.”

Mr Guerra said that every business in the state wanted WorkCover to be viable, “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. 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,” he said.

It’s not just businesses affected – the increase also raised eyebrows at Moorabool Shire Council’s latest Ordinary Meeting on 2 August, with Council told it would pay a premium of $730,862 plus GST this year – an increase of just over $250,000 compared to the premium Council paid last year.

“I’m just curious as to why…did the Government provide any justification for such huge increases to WorkCover?” Cr David Edwards asked.

“Bar what was in the media about the WorkCover premiums going up around the state, and the deficiencies and deficits that exist in the program, there was no reason. It was not related to our risk profile is what I can say, it’s just an overall increase that’s happening across the state,” Mr Madden said.

Council were entitled to a five per cent discount for paying early, prior to 14 August however.