Sophie Cotsis MP steps in to prevent rising insurance premiums for businesses

·

Minister for Work Health and Safety, Sophie Cotsis, has moved with a last-minute intervention to prevent an average 20% insurance increase from icare, the state’s workplace injury insurer.

Minister Cotsis wrote to icare, the state’s workplace injury insurer, late on Friday directing it to limit average premium increase to 8 per cent in each of the next three financial years.

Ms. Cotsis acknowledged this would still be incredibly tough on small businesses, but noted the an average increase was limited to 8 per cent in future years there was a lot more work ahead to put downward pressure on any average increase. 

However, the Minister warned against false hope, saying it would still take years to fix a decade of dysfunction in the state’s injured workers compensation system.

Incoming briefs received by the new government warn that the nominal insurer is so seriously run down it will not regain financial sustainability without significant premium increases.

According to a government’s media release, briefings make clear that the primary reason for this is the previous government’s refusal to put in place adequate rate increases between 2014 and 2021. 

The release mentions that the previous government was warned last year it would need to increase premiums by 15 per cent – and if it didn’t, even higher increases would be needed in future years.

Currently the average premium rate is 1.48 per cent of wages, well below both the break-even point of 1.91 per cent and the national average of 1.7 per cent.

As the press release highlights, this crunch point comes after years of scandal including a $140 million IT contract awarded in a seven-day tender and an $18 million printing contract awarded without tender to the Liberal Party’s printer and a major donor.

In 2018, icare launched a model where the new claims were largely managed by a single claims service provider – a move which injured workers and businesses both agree was a disaster. Icare is now moving away from this model.

“Since taking office I have been advised of the parlous financial state of the workplace injury system. It is entirely unacceptable,” Ms Cotsis said.

“Small businesses have been through so much hardship over the last few years. We are putting in place an immediate process of reform with the needs of both business and workers paramount.

“It will take years to fix a decade of decline in the workers compensation system, but the reform starts now.”

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

‘A disgrace’: Professor Tamis responds to Australia’s World Greek Language Day snub

The Australian Government refused last week to vote in favour of recognising 9 February as an International Day for the Greek Language.

Liberal Party supports GCM’s cultural programs with $1.6 million commitment

The Federal Liberal Party has committed to supporting Greek Community of Melbourne (GCM) projects designed to enhance the organisation.

Greek PM unveils €1 billion relief plan for pensioners and renters

Greek Prime Minister Kyriakos Mitsotakis on Tuesday, April 22, announced a €1 billion three-part economic support plan.

Ecumenical Patriarch Bartholomew mourns ‘precious brother’ Pope Francis

In a poignant tribute during the Paschal season, Ecumenical Patriarch Bartholomew mourned the passing of Pope Francis.

Dutton edges out Albanese in heated final federal election debate

Opposition Leader Peter Dutton narrowly won the third and final leaders’ debate of the federal election campaign, following a fiery exchange.

You May Also Like

Mitsotakis: Greece is no longer the ‘black sheep’ of Europe

Prime Minister, Kyriakos Mitsotakis, said that Greece is no longer the 'black sheep' of Europe, having shown discipline in its handling of the coronavirus.

Greek Film Festival comes to an end with a bang

The Greek Film Festivals in Sydney and Melbourne have officially ended after almost two weeks of packed theatres.

Economist Sophie Photios estimates 50 percent chance of recession for 2024

Macquarie economist Sophie Photios estimates there is a 50 percent chance of recession this year as the “trap” of high migration unwinds.