New workers' compensation premium rates

24/3/04
Recommended average workers' compensation insurance premiums will drop next financial year.
Consumer and Employment Protection Minister John Kobelke said while the latest fall was good news for employers, it highlighted the deficiencies in the system that meant injured workers got fewer benefits than they deserved.
Mr Kobelke said the premiums, set by the Premium Rating Committee, would reduce the average gazetted rate for the year 2004/05 from 2.34 per cent to 2.25 per cent of an employer's payroll.
"This is well down on the disastrous costs of the previous Liberal Government, when average workers' compensation premiums peaked at 3.44 per cent," Mr Kobelke said.
"However, there are two factors driving the lower premium rates - benefits in the system that are below those in other States and a reduction in the number of claims.
"It has been agreed an appropriate balance between fair and proper benefits for workers and affordable premiums for employers needs to be based on average premium rates of between 2.4 and 2.7 per cent of an employer's payroll.
"That range was endorsed by the Pearson Committee, on which the Chamber of Commerce and Industry was represented."
The Minister said the Gallop Government's Workers' Compensation Reform Bill, due to go to Parliament in the near future, would shift premiums to that range, which would still be below the 3.0 per cent, inherited when the Gallop Government was elected in 2001.
"This year employers will also get an added bonus (from July 1, 2004) when stamp duty on workers' compensation premiums is abolished," he added.
For 2004-05 recommended premium rates would be gazetted on March 31, 2004 and take effect from 4pm on June 30, 2004.
Mr Kobelke also announced that because of progress in processing claims, for workers affected by the HIH Insurance collapse, the Supplementation Fund Levy would be maintained at one per cent for the coming year.
Minister's office: 9222 9211