Victoria’s WorkCover scheme has achieved a financial turnaround that may see it fully funded in three years. According to figures issued last week by the state-operated authority, WorkCover’s unfunded liabilities have dropped from an estimated $1.07 million in December last year to $692 million on June 31 – a difference of $382 million.

But employers, who had substantial premium rises imposed last year to cover the deficit and the reintroduction of common law rights for injured workers, won’t be getting any relief for a while yet. WorkCover Minister Bob Cameron said premiums will not drop until the scheme is running in the black. 

Mr Cameron said it’s the first time in 16 years that the Victorian scheme’s financial position has been improved by management rather than legislation or funding changes. He attributes the change to a new system using a group of highly experienced lawyers using similar review techniques to the Transport Accident Commission.

The legal profession is also enjoying a WorkCover bonanza, via the rise in business created through the growing number of employers slapped with prohibition notices. 

Over the past year, newly introduced field inspectors have raised the number of Victorian employers charged with health and safety breaches, WorkCover Authority CEO Bill Mountford said. Prohibition notices increased to 2497 last year.  Fines for breaches are up to $250,000 for companies and $50,000 for individuals.