WA business-owners and contractors face a 1.38% rate rise for workers’ compensation policies following the abolition of age-based limits on claims.

The legislative changes to the Workers Compensation and Injury Act 1981, which came into effect at the weekend, will extend the safety net for workers’ over the age of 64 who previously could only receive entitlements up to a year after any workplace accident.

Workcover WA Chairman Greg Joyce says a moderate increase is needed as the changes are expected to cost an additional $11.9 million in claims per year.

Rates have been adjusted from 1.547% of payroll to 1.569% equating to a 1.38% increase. However, despite this rise, the authority’s annual report released last week shows the average recommended rate has reduced by 37% since 2002/03.

“Changes to the Act in 1999 regarding access to common law and recent high wages growth are the main drivers of these reduction,” the report said.

Total income increased from $28.65 million in 2009/10 to $33.06 million, while net profit after expenses rose from $10.03 million to $13.76 million.

Premium income also showed a marked improvement from $793.2 million in 2009/10 to $851.3 million this year, and compensation payments rose from $648 million to $665.5 million.

Workcover WA is now developing a case management system to help reduce disputes, which rose from 1762 in 2009/10 to 1866 this year.