The Nationals’ Member for Euroa, Annabelle Cleeland, has raised the urgent issue of escalating WorkCover premiums during this week’s parliamentary sitting, highlighting their detrimental impact on regional businesses.
Ms Cleeland said the 42 per cent increase in WorkCover premiums in 2023 had made Victoria home to the most expensive scheme in the country, placing excessive financial pressure on employers, particularly in regional areas.
Since these increases, Ms Cleeland said local industries across the region were continuing to suffer.
“To put it simply, skyrocketing WorkCover premiums are crushing regional businesses at a time when they can least afford it,” Ms Cleeland said.
“Having spoken with businesses in towns across the region, many are simply closing up shop or moving interstate.
“We need to be making it easier for businesses to operate in Victoria, especially in regional areas where we are already grappling with a lack of investment despite massive growth in population.”
Ms Cleeland pointed to major industries in the region, such as horse breeding and other equine related fields, as being some of the most heavily impacted by WorkCover reforms.
“The equine industry in Euroa is a vital part of our local economy, encompassing breeding, agriculture, and tourism,” Ms Cleeland said.
“However, these businesses are burdened with premiums that are simply too high and not reflective of the work they are doing.
“These effects have also been faced in our building and construction industries, with a concreting business in Seymour seeing their premiums more than double from $6,000 to $13,000 in just three years, despite no claims or incidents.
“This is not just hurting our local businesses, but the community as a whole.”
Ms Cleeland also pointed to a recent report from the Business Council of Australia, which ranked Victoria last for business settings due to high property taxes, payroll costs, and burdensome licensing requirements.
This report has been backed up by data from the Australian Bureau of Statistics that showed Victoria lost nearly 23,000 businesses between 2021 and 2023, with regional areas like Heathcote and Benalla particularly affected.
“We need urgent reform before more businesses shut their doors for good,” Ms Cleeland said.