Victoria will not raise WorkCover premiums for 2025-26

Victoria will not raise WorkCover premiums for 2025-26, marking the third consecutive year the average premium rate has held steady at 1.8 percent. This decision gives Victorian businesses continued certainty while WorkSafe maintains support for injured workers across the state.

Average Premium Rate Holds Firm for Third Year

The Victorian Government has confirmed that WorkCover premium will remain unchanged for 2025-26, keeping costs predictable for employers navigating an already demanding economic climate.

Deputy Premier and Minister for WorkSafe and the TAC, Ben Carroll, said the average premium will be maintained at 1.8 percent for a third year in a row, while further bolstering assistance for workers to regain their health and return to work.

"WorkCover is about standing by people – giving workers peace of mind and helping businesses through tough times. We've strengthened the scheme so it can continue to deliver on that promise," the minister said.

"We are taking a balanced approach to ensuring the long-term viability of Victoria's workers compensation scheme and passing on the benefits directly to workers and employers."

What This Means for Victorian Businesses

Since financial year 2023-24, the average premium rate has stayed consistent, following Government reforms designed to update the WorkCover scheme. These changes ensure the scheme remains financially viable while continuing to assist injured workers moving forward.

For businesses operating across construction, manufacturing, and healthcare sectors, stable premiums allow for more accurate budgeting and long-term workforce planning. Employers within the broader safety industry can factor this certainty into their operational forecasts without concern for sudden premium hikes.

Victoria isn't alone in freezing rates for businesses. A similar approach was seen when WorkCover Queensland will not increase average premium rate, reflecting a broader industry trend toward stabilising workers compensation costs nationally.

Supporting a Resilient Workers Compensation Scheme

Maintaining a steady average premium rate reflects careful management of Victoria's workers compensation scheme, balancing financial sustainability against the needs of injured workers and the wider industry.

This approach mirrors strategic planning seen elsewhere in the sector, including initiatives outlined when WorkCover WA releases 2022 – 2025 Strategic Plan, demonstrating a national commitment to sustainable compensation frameworks across the industry.

Businesses seeking further guidance on compliance obligations should consult current safety documentation relevant to their industry, particularly where reforms intersect with existing workplace health and safety obligations. For example, organisations managing older frameworks may still reference resources such as the ARCHIVED - OHS Manual (Victoria) 20002-3 or the ARCHIVED - Environmental Plan - Construction - Victoria - archived when reviewing historical compliance practices within their sector.

Key Takeaways for Employers

• Average premium rate remains at 1.8 percent for the third consecutive year
• Reforms since 2023-24 continue supporting scheme viability across the industry
• Stable rates benefit both workers and employers seeking long-term certainty
• Comparable outcomes are emerging across other states within the industry

Construction, manufacturing, and healthcare operators should seek professional advice when reviewing how these changes affect their obligations under current workplace safety frameworks. Where projects require updated documentation, resources like the Architectural SWMS Pack - Victoria or guidance on SOP for Equipment Maintenance may prove useful for maintaining compliance while premium stability continues.

Businesses reviewing their compliance documentation ahead of the new financial year may also wish to check the EOFY 2025 Terms & Conditions for relevant updates affecting procurement and renewals.

Employers are encouraged to seek professional advice tailored to their specific circumstances, as individual outcomes within the scheme may vary depending on claims history and sector-specific risk factors. Explore more details here.