An overhaul of Victoria’s WorkCover scheme is on the playing cards, with the state authorities describing it as “essentially damaged”.
Victoria’s premiums are at present decrease than all states and territories besides Queensland, and haven’t elevated for greater than 20 years.
The hole between the annual price of claims and premium collected has resulted in an annual premium deficit of $1.1 billion and rising.
The federal government on Tuesday confirmed it was taking a look at all choices, together with proposals from enterprise and staff, to reform the scheme.
“The WorkCover scheme is essentially damaged,” a Victorian authorities spokesperson mentioned in a press release.
“The scheme is not match for objective and doesn’t meet the fashionable wants of these it was initially designed to help greater than 30 years in the past.”
Simply final yr, the state authorities tipped in an additional $300 million into the employees’ compensation scheme to offset rising prices.
The money injection was added to offset the forecast monetary hit with out growing premiums for companies – however it appears an overhaul would see precisely that.
