WorkSafe Victoria has released its half-yearly results, recording a Performance from Insurance Operations (PFIO) deficit of $508 million.
Chief Executive of WorkSafe, Colin Radford said the benchmark indicator of the scheme’s performance, the PFIO result was mainly due to the continued gap between the premium charged and the cost of claims.
“WorkSafe recorded a net surplus after tax of $213 million, which includes a $300 million operating grant from the Victorian Government,” Mr Radford said.
“This result was supported by favourable investment returns of 3.6 per cent and a $238 million decrease in expected future claims liabilities, due to external economic factors,” he said.
“Without the operating grant, WorkSafe would have recorded an $87 million deficit.”
Mr Radford said the WorkCover scheme’s financial sustainability remained under severe strain due to the underlying premium deficit, more workers staying on the scheme beyond 130 weeks and the increasing number of mental injury claims.
He said that despite the economic challenges, WorkSafe was continuing to focus on reducing workplace harm and improving outcomes for injured workers.
“Against a backdrop of increasing mental injury claims and economic uncertainty, we have continued to help thousands of injured Victorians return to work,” the WorkSafe Chief Executive said.
“However, we know that injury prevention and strong return to work efforts are not enough on their own to ensure the ongoing viability of the scheme,” he said
Mr Radford said WorkSafe’s insurance funding ratio was at 105.8 per cent, within the preferred funding range of 100-140 per cent.
