Queensland workers’ compensation premiums will rise 4% next financial year, but the state says businesses will continue to benefit from one of Australia’s lowest average rates.

The average net premium rate will move from $1.29 to $1.343 per $100 of wages, after discounts, WorkCover Queensland announced today.

Acting CEO David Heley says any rate increase is considered carefully, particularly amid cost-of-living pressures.

“It’s important that we balance the interests and needs of our customers, both workers and employers, with doing the right thing to protect the Queensland scheme’s long-term viability,” he said.

“Small, incremental changes to our average premium rate are the best way to ensure customers are not faced with a sudden dramatic increase to their WorkCover premium in the future.”

Mr Heley says the scheme, which is government-owned and self-funded, has used its investment reserves to subsidise more than $2.5 billion in premiums over the past 10 years.

The premium rate applied to individual employers is dependent on their wages, their claims performance and that of their industry.

WorkCover Queensland says it supported employers through more than 68,000 accepted statutory claims and 3200 common law claims in 2022-23.

Mental injury claims were up 28% compared with the previous year, while time-lost benefits were up 9%. Such trends have been seen in other jurisdictions across the country, with the cost impacts creating pressure on all workers’ compensation schemes, WorkCover Queensland says.

In NSW, icare last week said workers’ compensation premiums would increase by an average 8%.