WorkCover Victoria: Scheme Freeze and Claim Allocation Review Update

14 March 2024

Members will be aware that the Victorian State Opposition recently supported the Government’s proposed WorkCover Scheme Modernisation Bill in exchange for a 12 month freeze on the headline Victoria WorkCover premium at a rate of around 1.8%. The freeze is welcome news for business, providing some temporary relief from the rising costs experienced under the scheme in recent years. Business also hopes the new WorkSafe business model, coupled with a future review, will be able to further improve Victoria’s WorkSafe scheme.

RCSA would like to clarify for members that the freeze relates to the headline rate, NOT to industry or individual rates which will still be calibrated as per the usual process. As such, the freeze will not impact the work RCSA and members have been doing with WorkSafe in relation to the Labour Hire Services WIC review in recent months.

As members are aware, WorkSafe is reviewing claim allocations against the Labour Hire Services WIC since 2018, following complaints from RCSA members about exorbitant premiums of over 7% for office-based internal recruitment staff. That review is now close to completion and WorkSafe advised RCSA that prior to the closure date of the review, more than 30% of the claims they had reviewed were incorrectly allocated to the Labour Hire Services WIC and should have been allocated elsewhere. RCSA thanks all RCSA members who participated in and supported the WorkSafe review and look forward to sharing more information on the results of the audit when they are available.

If members would like additional information, please don’t hesitate to get in touch with Lily Andrews in RCSA’s advocacy team on +61 448 332 610 or at [email protected]