WorkCover SA has reported a $30.2 million profit for the year to June 30 and reduced its unfunded liability to $952 million.

The result compares with a $77 million profit last year, and the scheme is now 64.8% funded, up from 61.5% last year.

Although it was an improvement year-on-year, WorkCover slipped back from its first half, when the unfunded liability fell to $865 million at December 30 and the funding ratio rose to 65.9%.

WorkCover Chair Philip Bentley says the full-year investment return of 10.4% was above the expected average return.

The savings in claims liability is “positive”, but at $47 million was not as large as expected.

The claims liability measures the difference between the projected liability at the start of the period, the actual liability at the end and the payments made.

Mr Bentley says the result was affected by a change in the scheme to stop redemptions, lump sum payments intended to settle and cease a claim, a low return-to-work rate and court decisions.

WorkCover SA stopped offering redemptions after a review of the scheme found they undermined the principle of encouraging people back to work.