WorkCover Queensland says it maintained a “fully funded position” in 2011/12, posting an operating profit of $199.64 million – up from a $41.71 million loss the previous year.

The statutory scheme credits its health to higher-than-expected wages, a fall in outstanding claims liability and an increase in revenue from premiums.

Total revenue from premiums was $1.44 billion, up 26.9% on the previous year’s $1.14 billion. This was mainly due to a raised premium rate of $1.42 per $100 of wages, up 9% from the 2010/11 figure of $1.30, and “higher-than-expected wages growth”.

The average premium rate per $100 of wages stands at $1.45, which is still the second-lowest of all the states and territories.

The scheme has also benefitted from a drop in common law claims following reforms in 2010 to address their growth.

“As increasing common law claim numbers were previously identified as a threat to the scheme’s viability, this trend is pleasing,” the annual report says.

WorkCover Queensland covers 90% of the state’s employees. It is currently under a parliamentary review, with some submissions calling for less red tape on self-insurance, which they claim prevents employers from accessing it.