As we move into 2025, Australia’s workers’ compensation schemes reflect the significant changes made in 2024 to address financial pressures and support workers and employers.
In Western Australia, reforms under the Workers Compensation and Injury Management Act 2023 introduced higher medical expense limits, extended weekly payments to 26 weeks, and ensured lifetime care for catastrophic injuries. The average premium rate in WA for 2024-25 increased slightly by 1.7 per cent.
Victoria maintained its average increased premium rate at 1.8 per cent following sharp increases in 2023. New regulations introduced this year require workers in VIC who receive benefits beyond 130 weeks to undergo work capacity and impairment tests.
New South Wales implemented an 8 per cent premium rate increase for 2024-25 which also saw the launch of icare’s LPR Plus product for large employers, providing more choice in claims service providers.
Queensland raised its average premium rate by 4 per cent which is largely driven by an increase in mental injury claims, while remaining one of the most affordable schemes nationally.
South Australia held its premium rate steady at 1.85 per cent, focusing instead on stability and encouraging proactive risk management.
Looking ahead, 2025 may bring further adjustments to premium rates and scheme regulations as governments and insurers respond to ongoing economic pressures and evolving workplace trends, particularly in mental health and return-to-work initiatives.
Employers should prioritise prevention by fostering safe and supportive workplaces, investing in mental health programmes, and addressing risks proactively to reduce injuries and improve overall employee well-being.
Contact your Bellrock Advisor to navigate state-specific workers’ compensation requirements and strengthen your risk management strategy.
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