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WorkCover premiums soar rise after $1.3B rescue package fuelling cost of living crisis in Gippsland

Melina Bath, representing Eastern Victoria, highlights the burden of rising WorkCover charges on struggling businesses amid a cost of living crisis. She calls for urgent reform to the unsustainable system.

By news@gippsland - 22nd August 2023 - Back to News

Life under Labor is getting increasingly tougher for Victorian families and businesses as WorkCover premiums soar. The Nationals Member for Eastern Victoria Region, Melina Bath said the Andrews government was slugging families and businesses any way it can after blowing billions in public money through mismanagement and inept decision making.

Victorian families and businesses struggle as Labor's WorkCover premiums soar due to fiscal mismanagement, Says Melina Bath

Rising costs strain

Ms Bath said, "Policy decisions and city projects with billion dollar budget blowouts are driving the cost of living crisis in the state. The huge spikes in WorkCover charges have come at a time when Victorian businesses can least afford them - the price of goods and services is increasing, rents and mortgages soaring and workforce shortages are biting hard."

"There's no end in sight for hardworking Victorian businesses who are feeling the financial pain from skyrocketing state government fees and charges. To remain viable, the only option is to pass the increase onto their equally struggling customers," she said.

WorkCover reform urgent

The average WorkCover rise is 42 percent, however some regional business across the state are reporting rises of almost 80 percent from last year. The premium increase comes after Victorians had to fork out $1.3 billion in recent years for a WorkCover rescue package due to Labor continuing to spend beyond its means.

Ms Bath said experts and business groups have been warning for quite some time that WorkCover in Victoria was "fundamentally broken". "The WorkCover scheme requires a complete overhaul with modern fit for purpose reform as in its current form it is unsustainable. Victoria employers pay the highest WorkCover rates in Australia which is a major contributing factor in Victoria's cost of living crisis," she said.

Take the online survey

Ms Bath also said, "While hardworking Victorians continue to struggle, tone deaf WorkSafe executives shockingly awarded themselves an additional $42,000 in their pay packets - taking their annual salaries to $310,000 and beyond."

"The Labor government is unable or unwilling to exercise financial discipline as costs spiral out of control, meanwhile Daniel Andrews' default position remains to punish Victorians for his mismanagement and waste. I encourage all businesses, clubs and community groups to complete my quick survey on the Cost of living survey page," she said.

Pictures from Melina Bath MP website.

Source: http://gippsland.com/

Published by: news@gippsland.com

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  Gippsland East MP Tim Bull urges state government to fund Surf Life Saving Victoria, warning councils face doubled contributions while new Emergency Services levy strains East Gippsland and Wellington budgets.
• Have your say on key council plans, policies, and the future direction of South Gippsland through current engagement opportunities
  South Gippsland Shire Council invites community feedback on key draft plans, policies, and the 2026/27 Budget, with in-person engagement opportunities and "Coffee with a Councillor" sessions in October.