WorkSafe Reports Strong Half-Year Surplus Amid Ongoing Reform Push
06 Mar 2026•BlueSafe Team•Source: WorkSafe VIC
WorkSafe Victoria has reported a strong half-year financial result, underpinned by improved investment performance and economic conditions, while emphasising the need for continued reform to secure the long-term sustainability of the workers compensation scheme.
Victoria's workers compensation scheme has posted a solid half-year performance, with the Economic Insurance Result (EIR) – the primary measure of the scheme's financial health – recording a surplus of $650 million.
WorkSafe Victoria is required to maintain substantial investment holdings to meet its long-term WorkCover obligations to injured workers, including income support and medical expenses extending over many years.
For the six months to 31 December 2025, stronger than anticipated investment returns, combined with improved economic conditions, contributed to a net surplus after tax of $1.46 billion.
WorkSafe Chief Executive Officer Cathy Henderson said that, while the scheme's position had improved, further work was necessary to secure its future.
"WorkSafe's financial position continues to strengthen but we are still working towards full financial sustainability," Ms Henderson said.
"WorkSafe's ambitious injury reduction targets and continued heavy investment in strengthening return to work pathways for injured workers will be key to ensuring the long-term viability of the scheme."
The scheme's insurance funding ratio – the key indicator of its overall health – rose modestly to 115.9 per cent. This remains below the benchmark of 120 per cent generally regarded as necessary to support long-term financial sustainability.
From a work health and safety perspective, these results highlight the importance of proactive risk management, effective WHS management systems, and robust policies and procedures in reducing workplace injuries and associated claims costs. Organisations can support scheme sustainability by investing in prevention, consultation, and safe work practices, underpinned by documented WHS frameworks such as formal management systems and Safe Work Method Statements (SWMS). For businesses seeking structured WHS documentation, resources are available online, including comprehensive WHS management systems at BlueSafe Online and trade-specific SWMS templates at BlueSafe Online SWMS.
Media enquiries can be directed to WorkSafe Victoria's media team via email at media@worksafe.vic.gov.au or by phone on 0438 786 968. Stakeholders can also subscribe to receive future media releases and updates on the scheme's ongoing performance and reform initiatives.