The Victorian Coalition Government is reducing costs for thousands of Victorian businesses with a significant reduction to the cost of WorkCover premiums set to take effect today.
Treasurer Kim Wells said almost 60 per cent of Victorian businesses would benefit from the $57 million reduction.
"WorkCover premiums have been reduced from 1.338 per cent of employers' remuneration to 1.289 per cent," Mr Wells said.
"This will save three per cent on the average insurance premium rate for Victorian workplace injury insurance and will see premiums reduced by more than 10 per cent for almost 59,000 businesses."
Mr Wells said Victoria had the lowest workplace injury insurance premiums in Australia and the lowest rate of workplace injuries, illnesses and deaths of all states.
"Reducing the number of injuries each year and encouraging employers and injured workers to look for opportunities to return to work are crucial in reducing the costs of running the scheme," Mr Wells said.
"Cost savings can then be passed on to employers in the form of reduced premiums. Like any form of insurance, good performers see the benefits, while others pay more if their own performance, or that of the industry in which they operate, deteriorates."
Mr Wells said WorkCover premium reduction would help attract investment to Victoria and would enhance the state's reputation as a good place to do business.
"The Coalition Government made responsible and necessary decisions in the May Budget to strengthen the state's financial position so we could reduce business costs and keep taxes competitive," Mr Wells said.
"We understand the importance of attracting new investment and supporting economic growth.
"A reduction in WorkCover premiums delivers practical support for businesses at a time when they face an increase in costs from Labor's carbon tax and are dealing with the challenges of a weaker national economy, uncertainty on global markets and the high Australian dollar," Mr Wells said.