30/3/02
An overall decrease in workers' compensation insurance premiums of six per cent for the coming year will be welcome news for Western Australian businesses, Employment Protection Minister John Kobelke said today.
"Businesses will also be pleased to know that the State Government Supplementation Fund levy of five per cent has been dropped to three per cent," Mr Kobelke said.
The Premium Rates Committee determines the recommended workers' compensation premiums based on past claims data.
This year's recommended rates mean a majority of businesses will pay up to 20 per cent less for their insurance for the coming year.
Last year the Gallop Government put in place a rescue package to protect workers' compensation payments affected by the collapse of HIH Insurance.
The plan, backed by business, involved offering a smaller reduction in workers' compensation premiums to fund a five per cent levy to meet the liability caused by the HIH collapse.
This meant on average there was an overall saving on workers' compensation premiums for business of 3.2 per cent, instead of 8.2 per cent.
The levy was paid into the State Government's Supplementation Fund to meet the compensation payments for injured workers who were covered by HIH up until March 14 last year. The expectation was that claims would cost $93million when the Supplementation Fund contained about $8.5million.
Mr Kobelke said that a review of the Supplementation Fund meant the levy would be dropped from five per cent to three per cent from 4pm on June 25 this year.
"I am pleased the Government can reduce the levy after the efficient and effective management of those claims by the claims manager," he said.
"The recommended premium rates for a significant number of industry classes will drop significantly as a direct consequence of their fewer claims, while other employers will experience increases."
Employers in the mining industry who are required to contribute to the Compensation (Industrial Diseases) Fund will receive an additional benefit, as the fund is surplus. Their premium has reduced to $100 per policy.
"The Government is committed to achieving a balance between benefits to workers and costs to employers to reflect the needs of the community," Mr Kobelke said.
"I am currently working on a legislative package which will achieve the Government's policy direction on workers' compensation.
"I will be examining long duration claims particularly, so that we can deal with this major cost driver in the system."
The recommended premium rates and the Supplementation Fund Levy will be gazetted on April 5.
Minister's Office - 9222 9211
