Businesses might be slugged with larger premiums underneath adjustments to Victoria’s WorkCowl, with the state authorities overhauling a system it says is damaged.
Premier Daniel Andrews introduced companies would pay a median of 1.8 per cent of remuneration from July 1, growing from 1.27 per cent..
Stress and overwork from insurance coverage claims might be excluded underneath the adjustments pushed by an unsustainable system.
“WorkCover in this state is broken,” Mr Andrews instructed reporters on Friday.
“The number of claims and the cost of clients has tripled since 2010.””
WorkCover’s claims liability has tripled since 2010, mainly due to the increased cost of weekly income support.
Many workers are also staying on the scheme long-term and mental injury claims now represent 16 per cent of new claims.
Eligibility for mental injury claims will be adjusted and a whole person impairment threshold will be introduced for claims that receive weekly benefits for more than two and half years.
Workers struggling with stress and burnout will instead be eligible for provisional payments for 13 weeks to cover medical treatment.
They will also have access to enhanced psychosocial support services.
The government will establish Return to Work Victoria to help people get back into the workforce.
“I’m positive some will say it goes too far,” Mr Andrews stated.
“Others will say it does not go far sufficient.
“That normally gives you a sense that you have found a point of balance.”
The adjustments will come into impact from 2024.
Source: www.perthnow.com.au
