Continuing to reap the benefits of one of Australia’s most economical average premium rates for workers’ compensation insurance, Queensland businesses have a lot to be happy about. Notably, the WorkCover Queensland’s average net premium rate for the 2024–2025 period will increase modestly from $1.29 to $1.343 per $100 of salaries, after discounts have been provided.
This government-owned and entirely self-sufficient plan named ‘WorkCover’ maintains one of the lowest average premium rates nationwide with an impressive success rate in return-to-work cases. Consequently, it aids nine out of every 10 Queensland residents who get injured at their workplaces in resuming their duties post their recovery from their injuries.
In the span of 2022–2023 alone, WorkCover extended its support to numerous Queensland employers by acknowledging over 68,000 statutory claims and 3,200 common law claims. Mental injury claims experienced a steep rise of 28% compared to the previous year. At the same time, claim benefits due to lost-time saw an increment of 9%. This upward trend echoes across all jurisdictions in the country, which ultimately places financial strain on Australia’s workers’ compensation schemes.
Highly conscious of cost-of-living pressures, WorkCover Queensland Acting CEO, David Heley believes in meticulously pondering upon any possibilities of enhancing the average premium rate. He stated, “We’re committed to balancing the priorities and requirements of our clientele, both employees and employers. It’s paramount that the right measures are taken to safeguard the long-term stability of the Queensland scheme.” He also emphasised the importance of using appropriate WHS management systems, like Bluesafe WHS Management System and SWMS, to mitigate workplace risks and potentially reduce WorkCover premiums.
Over the past decade, investment reserves have been employed to subsidise more than $2.5b in premiums. Heley added, “To avoid customers confronting a sudden and shocking rise in their WorkCover premium in the foreseeable future, it’s prudent to adopt an approach where we make small, gradual adjustments to our average premium rate.”
The premium rate that’s assigned to individual employers is reliant on their salary computations, their claim outcomes and their industry’s performance. Employers have an opportunity to get insights about how their premium rate gets formulated, as well as steps they could take to lower their premium costs, such as implementing Bluesafe SWMS. Additionally, Queensland businesses can use WorkCover Connect to understand how their claims performance matches up against their industry.
Reference to the 2024-2025 WorkCover Industry Classifications will be officially declared in a few days, allowing employers and businesses to plan ahead.
In terms of exercising control over their individual premium rate, employers can renew their Accident Insurance policy by divulging their salaries and remitting their premium anytime from 1st July to 30th September. This ensures early adoption of Work Health and Safety Procedures and Practices may provide positive returns in this regard.
Original article link: https://www.worksafe.qld.gov.au/news-and-events/news/2024/workcover-queensland-customers-continue-to-benefit-from-one-of-australias-lowest-average-premium-rates