WorkSafe Victoria posts half-year after tax net loss

WorkSafe Victoria posts half-year after tax net loss of $378 million, according to the safety agency's latest half-year results covering the six months to December 2021.

The results show as at December 31 2021, WorkSafe Victoria's insurance funding ratio – a measure of assets against claims liabilities – sat at 115 percent, slightly above the preferred funding range of 100-140 percent.

What Drove the Net Loss?

High costs associated with supporting injured workers, combined with a $482 million increase in WorkSafe's projected claims costs, contributed to a Performance from Insurance Operations (PFIO) figure of negative $1.076 billion.

• Rising mental injury claims placing pressure on the scheme
• Increased complexity of treatment for psychological injuries
• Higher projected claims costs across the insurance portfolio

Mental Injuries Placing Pressure on the Scheme

WorkSafe Chief Executive Colin Radford said continued growth in mental injuries was putting pressure on Victoria's workers' compensation scheme.

"Workplace safety is something that touches every single Victorian," he said. "As a community, we simply must do better at preventing workplace injuries and harm, both physical and psychological."

"We also need to improve outcomes for those who have been injured – supporting them to return to health and return to safe work – including those with mental injuries who often require more complex services and treatment for longer."

Supporting Injured Workers Back to Health

Businesses across construction, manufacturing and healthcare sectors rely on robust safety practices to reduce claims and protect worker wellbeing. Employers who invest in proactive risk management often find it easier to pay compensation obligations while keeping teams focused on safe return-to-work outcomes.

For organisations wanting deeper insight into the scheme's financial position, read our earlier coverage on WorkSafe Victoria's half-year results and the related report on WorkSafe Victoria's half-year financial results.

Victorian employers can also strengthen compliance by exploring our OHS Manual for Victoria, alongside sector-specific resources such as the Architectural SWMS Pack for Victoria and the Environmental Plan for Construction in Victoria.

Safety professionals seeking recognition for excellence in workplace health initiatives may also be interested in nominations for this year's WorkSafe Victoria Awards.

Original source: WorkSafe Victoria website.