Treasury

19
Nov

Coalition driving down WorkCover costs

Treasury Portfolio

Coalition Government has slashed WorkCover costs by more than $340 million

Victoria is the safest state in which to work

Napthine Government delivering record low WorkCover premiums

A re-elected Napthine Government will continue to deliver record low WorkCover premiums through safer workplaces, better return to work and streamlined administration, Assistant Treasurer Gordon Rich-Phillips said today

“The Napthine Government has slashed WorkCover costs by more than $340 million since coming to office,” Mr Rich-Phillips said.

“Last month, federal agency Safe Work Australia (SWA) identified Victoria as the safest state in which to work and the number of workplace injuries in Victoria each year continues to fall.

In the latest performance monitoring report by Safe Work Australia, Victorian workplaces recorded an improvement in safety of more than 6.6 per cent, with workplace injuries claims reducing from six for every million hours worked to 5.6.

“Victoria’s excellent safety record, combined with incentives for employers and injured workers to take advantage of return to work opportunities and streamlined administration, are central to reducing WorkCover costs and the average premium rate,” Mr Rich-Phillips said.

The Coalition Government cut average WorkCover premiums by 3 per cent in 2012 and by a further 2 per cent this year, slashing costs for Victorian businesses by $97 million.

“At 1.272 per cent of payroll, the average WorkCover premium is the lowest rate in Victoria’s history,” Mr Rich-Phillips said.

“A re-elected Coalition Government is committed to working with employers to create even safer workplaces in Victoria. Low premiums help Victorian businesses stay competitive, and drive investment, jobs and growth across Victoria.

“In contrast, Daniel Andrews and Labor would be a hand-brake on business, tearing up the contracts for East West Link, giving the militant CFMEU a seat in Cabinet and controlling construction sites throughout the state”, Mr Rich-Phillips said.

This year, the Coalition also introduced a 5 per cent discount for employers who pay their WorkCover premium by 1 August and extended the existing 3 per cent discount for 1 October payments to all small businesses - slashing annual business costs by a further $57.5 million.

“As well as cutting WorkCover premiums, the Napthine Government has saved Victorian businesses more than $75 million in WorkCover compliance costs by cutting unnecessary red tape in areas such as OHS regulation, licencing and dangerous goods,” Mr Rich-Phillips said.

Aggregated savings 2012/13 – 2014/15:

WorkCover premium and red tape cuts
2012 premium cut (3% reduction from 1.338% to 1.298%)
$171.00 m
2014 premium cut (2% reduction from 1.298% to 1.272%)
$40.00 m
Introduction of 5% discount for 1 August payment
$51.80 m
Extension of 3% discount for 1 October payment to all small businesses
$5.70 m
Red tape cuts
$75.71 m
Total
$344.21 m

Media contact: Andrew Drever  0409 580 996 andrew.drever@minstaff.vic.gov.au
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