TRANSCRIPT:
I rise today to speak on the Workplace Injury Rehabilitation and Compensation Amendment Bill 2025, a bill that brings forward a range of amendments aimed at reforming WorkCover. As we have heard throughout the day, this is a scheme that we can all agree is fundamentally broken. This is primarily done by amending existing legislation such as the Workplace Injury Rehabilitation and Compensation Act 2013 and the Accident Compensation Act 1985. These amendments propose several changes that are designed to improve the claims process for injured workers, enhance compensation for families of deceased workers and create better systems for workplace rehabilitation. Despite there being merit to many of these amendments, there are still some concerns that have not been addressed throughout the legislation. My concern is about the broad implications of these changes, particularly the impact they will have on small businesses and those operating in regional Victoria.
One of the most striking proposals is the introduction of a Code of Claimants’ Rights, which is set to define the service standards that must be met by WorkSafe and self-insurers when assessing workers’ claims. While this sounds well intentioned, there is still a lot of uncertainty around how this will impact businesses in practice. If the code requires additional compliance or administrative costs, these will inevitably be passed down to businesses, many of which are already struggling. The bill also mandates mandatory training for return-to-work coordinators, which will undoubtedly come at a cost. There are also concerns about how much this bill will burden employers, especially those who have few claims and will be required to pay for training and provide facilities to return-to-work coordinators. Given the already strained business environment, these additional costs could prove too much for some businesses to bear.
We also cannot discuss WorkCover without talking about the higher premiums businesses have faced in recent years, something that is continuously putting pressure on employers and driving up the cost of doing business in our state. Employers were forced to accept a massive 42 per cent increase in their premiums in 2023, making Victoria home to the most expensive WorkCover scheme in the entire country. Within my region the rise in WorkCover premiums can best be viewed through its impact on our local equine and breeding industry. In Euroa the equine industry is a cornerstone of our local economy. Hundreds and hundreds and hundreds of jobs are dependent on a successful equine industry. Breeders, equine service providers and farmers are some of the major employers in our region, providing thousands of jobs and driving our economy forward. But this sector has faced ridiculously high increases to WorkCover premiums in recent years. While this is somewhat understandable for jockeys and track riders, the risk faced by others in the equine industry does not merit the same premium cost.
The lack of understanding from WorkCover and the current government about how industries like this actually operate is so frustrating. The equine industry in Euroa is not just about horse racing. It includes the breeding sector, agriculture and tourism. These sectors are a major economic driver, contributing significantly to jobs, tourism and our entire economy. When businesses in this industry are burdened with excessive WorkCover premiums, it does not just hurt them, it hurts our entire community. The problem does not end there. As it stands, these premiums are pushing businesses to the brink. Farmers, breeders and service providers are paying the same WorkCover premiums as high-risk workers, despite having such different risk profiles. If the government continues to ignore this nuance, it will harm industries that are critical to the prosperity of regional Victoria.
While the impact to our region’s equine industry has been discussed, it is not the only one that is doing it incredibly tough. Take Kylie – and I want to thank Kylie for speaking with me today – who operates a concreting business out of Seymour. In the past three years they have seen premiums go from $6000 to nearly $13,000 per year – and this is just in recent years. This is despite them never filling out a claim, never having any incidents and operating with the same number of staff as they did previously. There is no reason for these increases other than a broken system. They were just simply told one day they would now have to pay more than double what they had previously paid. And this is a small business that employs so many people in our community. The increases are seriously having an impact on the viability of so many of our businesses. Kylie and her family’s business used to be able to pay quarterly, but with the new increase they have to move to a payment plan. It is so cruel, but this comes with an additional $1000 cost on top of what they have already paid. Business is doing it tough in our regions, in particular for building and construction, which has seen major cuts and a lack of work coming out of usual locations such as Puckapunyal. There are simply no viable alternatives for many of our small businesses, and these premiums are making it too hard for them to survive.
We need to make it easier for businesses to operate in Victoria, especially in regional areas where we already grapple with business closures and a lack of investment. We need policies that attract businesses and investment and make it easier to stay in regional Victoria, not policies that drive them away with unfair premiums and unmanageable compliance costs. A recent report from the Business Council of Australia ranked Victoria last for business settings, citing high property taxes, payroll costs and burdensome licensing requirements. We have all heard it. All of our businesses are screaming out for some help. This is reiterated by the Australian Bureau of Statistics, which painted an equally grim picture, showing Victoria lost nearly 23,000 businesses between 2021 and 2023, the highest drop of any state in Australia. This is being reflected right across the region in my electorate, with Heathcote, Benalla, Seymour, Kilmore and Broadford all reporting fewer businesses operating than the year before.
In Benalla alone 36 businesses closed their doors in the past year, and when I met with business owners in Heathcote to hear firsthand about the challenges they are facing, WorkCover premiums were the number one issue of concern. Half of the businesses I spoke to were either shutting down or moving interstate because doing business in Victoria is just too damn hard. Skyrocketing WorkCover premiums, along with rising taxes and crime, are crushing our local businesses. To make matters worse, these businesses owners feel like the government is not listening. I am sure many of these people will still feel the same if this bill is passed.
I understand the intention behind many of the provisions in the bill, and it is crucial, but we must pay attention to the real-world impacts of businesses, especially in our regional communities. For my region and several other rural areas the bill could create more uncertainty and costs, making it harder for them to continue operating and contributing to our economy. They are the backbone of our regional economy. This bill does bring forward necessary changes that will benefit families of those who suffer workplace incidents, and that should not be ignored, but these changes can also be legislated in a way that does not harm small businesses at a time when they are already doing it tough.
I thank the member for Evelyn for putting forward a reasoned amendment that would freeze any further increases to WorkCover premiums and ensure this legislation is more suitable going forward.