Boom state WA has lowered premiums on compulsory worker’s compensation insurance to its lowest level on record.

Wage growth coupled with low rates of claims have allowed the state’s WorkCover authority to reduce rates by 14 percentage points to 1.497%.

“WA has had historically low recommended premium rates over the past few years,” Workcover WA Chair Greg Joyce said last week. “The 2010/11 recommended premium rates continue that trend.

The rate reduction applies to 443 of 480 premium classes. Premiums will rise in 36 categories “reflecting the performance of individual industries”.

WA’s WorkCover premiums are now among the lowest in country, alongside Victoria (1.387%) and substantially lower than SA at 2.75%.

Queensland’s WorkCover authority, which has the lowest rates in the country at 1.15%, has come under fire for approving claims with little investigation and a reliance on investment returns.

A recent survey by Deloitte found the authority will accumulate $8.6 billion in debt by 2018 if reform is not achieved.

InsuranceNEWS.com.au reported in March that Queensland’s scheme was teetering on the brink of financial ruin, following consecutive annual deficits totalling more than $800,000.