Freeze described as 'big deal for employers' and 'welcome pragmatic response'
WorkCover premiums in Victoria will be frozen at 1.8% for businesses for 12 months as part of a political agreement to secure the passage of the WorkCover modernisation bill.
The Liberals, Victoria's opposition, agreed to pass the government's proposed WorkCover Scheme Modernisation Bill in exchange for freezing the premiums for employers at the current average of 1.8% of remuneration for the 2024-25 financial year.
"The Liberals and Nationals have secured a critical freeze to WorkCover premiums, which will provide much needed financial relief to businesses across the state," said Cindy McLeish, shadow minister for WorkCover, in a statement.
The Ai Group congratulated the government for achieving the freeze on WorkCover premiums for the 2024-25 financial year.
"The Opposition was able to stick to its plan and deliver a freeze on premiums to business. That's a big deal for employers," said Ai Group Victoria head Tim Piper in a statement.
"The welcome pragmatic response from the parties will ensure businesses are not lumbered with additional WorkCover premiums next year."
The deal was carried out to secure the opposition's support for the government's WorkCover Scheme Modernisation Bill so it gets passed in Parliament.
Under the bill, WorkSafe's board will be expanded to six, while an advisory committee on the creation of Return to Work Victoria will also be established.
This will ensure that the state's WorkCover scheme is sustainable and fit-for-purpose.
"We were clear that WorkCover is fundamentally broken – we're pleased we can now get on with delivering these important changes, making sure our scheme can continue to support Victorian workers when they need it most," said WorkSafe Minister Danny Pearson in a statement.
The government has previously criticised the WorkCover scheme, which was established by the former Labour government.
Since 2010, WorkCover's claims liability has tripled, fuelled by the increased cost of weekly income support, according to the state government.
