WorkSafe Victoria will have the lowest premiums in the country next year, giving the state a great competitive advantage, Chairman Elana Rubin says in the agency’s annual report.

Victoria’s average premium of 1.338% has not changed for 2011/12, and Ms Rubin says it has been kept down by a focus on injury reduction, return to work and sound claims management.

WorkSafe’s premium revenue rose 5% to $1.8 billion and claims expense fell 14% to $1.8 billion for the year to June 30.

The after-tax operating result was $521 million compared with $176 million in the previous year, with investment returns in the 2009 year being reduced by changes in economic assumptions used to calculate claims liability.

The performance from insurance operations fell to $239.9 million from $654.1 million, affected by changes from the Hanks Review into the system, increased claims numbers and time claimants spent on weekly compensation.