WorkSafe Victoria recovers financial footing

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8 March 2010

Worksafe Victoria is on track to bypass the horrendous losses of 2008/09, lodging a $686 million net result after tax for the first six months of fiscal 2010.

After an investment blow-out led to a loss of $1.25 billion in the previous financial year, the workers’ compensation authority has recovered its financial footing with a sound first-half result, strengthened by recovering investment returns, falling compensation claims and an additional $50 million in actuarial releases.

An improved funding ratio of 109% has also helped strengthen its balance sheet.

The first-half results stand in stark contrast with those of 12 months ago, when it posted a first-half loss of $1.42 billion and performance from insurance operations of $168 million.

WorkSafe Chair Elana Rubin says a reduction in worked hours during the economic downturn has also helped its position.

“While injury rates dropped there has also been a significant increase in work-related deaths, with 14 work-related fatalities reported between June and the end of December and five more since then,” she said.

“This is a shockingly high number and requires broad community involvement if it is to be reduced.”

While other state workcover authorities have yet to announce their half-year results, most are expected to have experienced a tough 2009 amid turmoil in investment markets and rising compensation costs.

The NSW WorkCover authority lodged a deficit of $51 million in 2008/09, while the Queensland Government will consider raising premiums following consecutive annual deficits totalling more than $800,000.