Psychological injury costs in the Commonwealth public service continue to rise, while the length of time staff stay off work has grown in the past year.

Comcare has reported a $98.3 million operating loss for the year, compared with a $687.3 million loss the previous year due to a change in the way it reports its provision for outstanding claims liabilities.

The scheme’s 64% funding ratio “is not strong”, according to the annual report.

CEO Paul O’Connor says he aims to return the scheme to a fully funded position while delivering certainty for workers’ entitlements and minimising the financial impact on employers.

Last financial year, average premiums grew 25% to reflect the increasing cost and complexity of claims.

Premium increased 26% to $341.7 million and claims payments grew 13% to $309.1 million.

The Australian Government Actuary has proposed a premium framework to restore the scheme to full funding over 10 years.

This led to Comcare levying an extra margin of 13.5% on the estimated premium pool this financial year, so premiums have risen by 18% over last financial year.

“Premium increases will continue until the underlying issues of workplace harm and return to work are addressed,” Mr O’Connor said. He notes the rises come at a time of significant budgetary pressures in the public sector.

Comcare manages the Commonwealth’s asbestos claims, and had an outstanding liability of $926.8 million at June 30.

Injuries categorised as “body stressing” accounted for 55% of workplace injuries, while mental stress comprised 9%.