Victoria has been looking for a way to deter locally based national companies from leaving the state workers’ compensation scheme, and it may have found it. The Victorian Government appears determined to make defecting corporations pay a penalty disguised as red tape.

A mass industry exodus from WorkCover would leave a significant hole in the state scheme’s bottom line. Finance Minister John Lenders said on Monday that legislation will be amended to make defectors pay an additional six years of claims after they leave WorkCover, and intimated that some companies could attempt to evade their state liabilities.

Business groups were quick to point out premiums should cover liabilities.

Mr Lenders also wants corporations leaving the state scheme to pay to fund inspectors and occupational health and safety campaigns.