The half-yearly results for the Victorian WorkCover Authority show that there is plenty of scope for a premium reduction for employers in the next State Budget, as requested in our Pre-Budget submission.

The results for the first half of the 2005/06 financial year show a net profit of $669 million, with a funding ratio of 115 percent. There was also a 3.9 percent reduction in injuries and the frequency rate of injuries has dropped from 14.38 per 1000 workers in 1999/2000 to 12.46 per 1000 workers in 2005/2006.

"The continuing reduction in fatalities, injuries and claims in Victorian workplaces is testimony to the commitment of Victorian employers in working together with employees to improve workplace safety", says VECCI Chief Executive Officer, Mr Neil Coulson.

"This has helped drive the strong financial performance of the VWA, which drives the case for a further flat 10 percent premium reduction in the next State Budget.

"We welcome the news that the VWA Board will consider whether to offer a further premium reduction for the 2006/2007 insurance year in the coming months - the level of WorkCover premiums impact on the competitive position of Victorian industry.

"Victorian employers recently indicated to VECCI in a Pre-Budget Survey that premium levels are, in fact, the primary issue of concern to them.

"Another key challenge will be to reduce the administrative burden on employers by updating and simplifying the current OHS regulatory regime, much of which is now over twenty years old and in need of review and change.

"These reforms will lead to better workplace safety outcomes, lower premiums, less red tape and a more competitive Victorian economy", says Mr Coulson.