WorkSafe has released its half-yearly results, recording a Performance from Insurance Operations (PFIO) deficit of $508 million.
Published:16 March 2023
The benchmark indicator of the scheme's performance, the PFIO result is mainly due to the continued gap between the premium charged and the cost of claims.
WorkSafe recorded a net surplus after tax of $213 million, which includes a $300 million operating grant from the Victorian Government. This result was supported by favourable investment returns of 3.6 per cent and a $238 million decrease in expected future claims liabilities, due to external economic factors.
Without the operating grant, WorkSafe would have recorded an $87 million deficit.
The WorkCover scheme's financial sustainability remains under severe strain due to the underlying premium deficit, more workers staying on the scheme beyond 130 weeks and the increasing number of mental injury claims.
WorkSafe Chief Executive Officer Colin Radford said despite the economic challenges, WorkSafe was continuing to focus on reducing workplace harm and improving outcomes for injured workers.
"Against a backdrop of increasing mental injury claims and economic uncertainty, we have continued to help thousands of injured Victorians return to work," Mr Radford said.
"However, we know that injury prevention and strong return to work efforts are not enough on their own to ensure the ongoing viability of the scheme."
WorkSafe's insurance funding ratio is at 105.8 per cent, within the preferred funding range of 100-140 per cent.