PricewaterhouseCoopers (PWC) has recommended upping the gazette rate for workers’ compensation insurance in Western Australia in a move to shrink the state’s increasing claims costs deficit.

The recommended 2.9% rate increase for 2005/06 comes as PWC predicts a higher than expected rise in claims costs and a low claims cost to wage ratio.

PWC’s tough stance came in its annual industry update, which is used by the scheme’s participants to strategise for the year ahead.

The WA workers’ comp system is currently being overhauled by the State Government, and changes to its injury management system and simplified access for injured workers under common law are to be introduced by November.