The workers’ compensation environment in WA remained healthy and sustainable last financial year, according to WorkCover WA’s annual report.

The number and cost of claims was stable, premiums were below comparable rates in other states and the proportion of total claim costs paid directly to workers exceeded the national average.

The recommended 1.4% cut in the average premium to 1.668% of wages reflects continued wages growth in WA, the report says.

WorkCover collected premiums of $1.23 billion and paid $810.9 million in claims last financial year.

It paid $1.03 million for claims on HIH Insurance, which collapsed in 2001, and says $1.09 million of claims are outstanding. It has paid out more than $75 million since the insurer went into liquidation.