Victorian businesses will have their WorkCover premiums frozen for 12 months as the Nationals and Liberals and secure key concessions to Labor’s WorkCover reforms.
Nationals Member for Euroa Annabelle Cleeland said after years of mismanagement under Labor, WorkCover was fundamentally broken and on the brink of financial collapse.
“Businesses have been paying the price for Labor’s ongoing mismanagement of WorkCover,” Ms Cleeland said.
“Last year Victorian businesses were forced to pay an average of 42 per cent increase in the compulsory WorkCover insurance, while taxpayers have forked out $1.3 billion in taxes to prop up the scheme over the past three years.
“Victoria is the only state in Australia that has experienced a decline in the number of businesses, 7606 businesses have moved interstate or stopped trading last year, it’s a startling figure.
“After speaking with businesses, workers, allied health professionals and return to work specialists we understood a WorkCover freeze was needed to provide financial relief and improved certainty to businesses.”
Ms Cleeland said local industries such as thoroughbred breeding and farming had suffered from exorbitant rises in WorkCover premiums in recent times.
“The horse industry’s rate for WorkCover contributions surged by an astounding 65 percent last year – with absolutely no warning,” Ms Cleeland said.
“These rises happened to occur right after stud service fees were already set for the season.
“It is simply unacceptable that local breeders are being put at financial risk due to this government’s mishandling of the WorkCover system.”
The Nationals and Liberals secured a raft of concessions for Victorian businesses and workers which also included an independent inquiry to review the impact of these new reforms on WorkCover, which must report back to parliament by the end of 2024.
The concessions include:
- A WorkCover premium freeze at the current average of 1.8 per cent of remuneration for the 2024-25 financial year.
- An independent inquiry to review the impact of these new reforms on WorkCover, which will report back to Parliament by the end of 2024.
- Establishing the Return to Work Advisory Committee as a sub-committee of the existing WorkCover Advisory Committee, drawing from an expanded membership and chaired by the WorkSafe board chairperson.
- Clarity around the structure and objectives around Return to Work Victoria, which will provide greater support to injured workers.
- An additional consultation process with core business, union, and health stakeholders to take place next week.
