Tort reform and the need to compete with the Federal Government’s Comcare system are major factors behind a 10% cut in Victorian WorkCover insurance premiums expected to be announced in the state budget by Victorian Treasurer John Brumby later today.

NSW has already implemented an average 5% reduction in its Workcover premiums. The Victorian decrease, expected to be effective from July 1, will take the average premium to 1.46% of the payroll – the lowest in the scheme’s history.

The target collection rate for NSW is 1.99%, which is the lowest in 10 years.