30 June 2025 marked the third year in a row that the average workers compensation premium rates under the NSW scheme increase by 8%. These increases were flagged by the State Insurance Regulatory Authority (SIRA). Prior to their 2023-2024 review.
With these average increases, base premium rates for some of our typical clients have increased by 10 to 45% over this period. some examples below.
| WIC Class | Type of Business | 2022_23 | 2023_24 | 2024_25 | 2025_26 | Overall increase |
| 511000 | Supermarket and Grocery Stores | 3.1 | 3.18 | 3.34 | 3.42 | 10.1% |
| 215100 | Flour Mill Product Manufacturing | 2.96 | 3.03 | 3.18 | 3.34 | 12.5% |
| 572000 | Pubs, Taverns and Bars | 2.2 | 2.25 | 2.43 | 2.55 | 15.5% |
| 218200 | Beer and Malt Manufacturing | 1.9 | 2.00 | 2.15 | 2.31 | 20.5% |
| 217900 | Food Manufacturing | 3.1 | 3.42 | 3.87 | 4.28 | 34.5% |
| 611020 | Road Freight Trans -Short distance | 6.86 | 7.95 | 9.23 | 10.44 | 45.0% |
Another consequence of this rate increase is that many employers have been pushed into higher Premium Categories meaning they are penalised more harshly if they have multiple claims or even 1 difficult claim can especially a claim where employees lose time off work.
Changes being considered regarding Psychosocial Workers compensation claims
The NSW government has announced a potential major overhaul of the NSW workers compensation system to address concerns regarding the cost impact and poor return to work outcomes of workers experiencing workplace psychological injuries.
Under the current system, only 50% of workers with a psychological injury are returning to work within a year (compared to 95% of workers with a physical injury), with the number of psychological injury claims having doubled in the last 6 years
The most significant effect of changes in the Workers Compensation Legislation Amendment Bill 2025 before the NSW parliament is that in order for a worker to make a compensation claim for psychological injury in the context of allegations that they have suffered harassment or bullying, they will be required to first have some form of bullying or harassment claim heard by a court or tribunal and a finding that such conduct has occurred including in a new jurisdiction proposed to be established in the NSW Industrial Relations Commission (NSW IRC). Workers will only then be able to formally notify their employer of their claim after such a finding.
It is expected the bar an employee will need to meet will reduce the number of claims and limit many psychosocial claims to a limited period of medical costs only.
Summary of changes to Victorian Workers compensation scheme
Note that a company’s actual premiums depend on your Industry classification and its specific rate, Remuneration declared, Claims history and performance rating
The most recent changes in the Victorian Workers Compensation scheme include.
- The Average Premium rate stays at 1.8% (no change for a third year in a row)
- Employers Remuneration will be indexed at +4.75% if not updated online
- Claim cap in now $501,200 for each claim
- Early-payment discounts can apply 5% if paid by 18 August or 3%if paid by 1 October
- Actual Declaration deadlines are 24 Oct 2025 for premiums > $200k and March 2026 for all others
Over the last 18 months there have been several changes to the legislation behind the scheme
March 2024 the Workplace Injury Rehabilitation and Compensation Amendment (WorkCover Scheme Modernisation) Act 2024 was passed, key updates included:
New statutory definition of “mental injury”, requiring:
- Significant cognitive, behavioural or psychological dysfunction diagnosed by a GP or psychiatrist
- Employment must be the predominant (strongest) cause—not merely a contributing factor—of the injury
- Mental injury exclusions: Routine stress, burnout, workload pressures or interpersonal conflict won’t qualify, unless arising from traumatic or front‑line exposure scenarios
The latest Workplace Injury Rehabilitation & Compensation Amendment Bill 2025 (introduced March 2025) will place obligations on employers to ensure RTW Coordinators complete approved training within a set timeframe or hold relevant qualifications.
Summary of changes to South Australian Workers compensation scheme
In South Australia the average premium rate has remained at 1.85% for 2023–24 and stayed stable through 2024–25
The Return to Work (Employment and Progressive Injuries) Amendment Act 2024 effective since December 2024 places a stronger obligation on employers to provide suitable duties to injured workers failure to comply, the South Australian Employment Tribunal (SAET) may intervene and order reinstatement or compensation
Queensland Summary
WorkCover Queensland remains fully funded with a strong surplus, allowing premium stability.
The average premium rate has remained steady at 1.23% of wages from 2022–23 through 2024–25. This is among the lowest in Australia.
How can Victual help?
- Victual can help you understand the factors impacting your premium and how it is calculated.
- How you manage your workplace injuries and claims will directly affect your Claims Management Performance rate that is applied to your premium. Victual can help you in setting up your injury and claims management systems working with your insurer for best outcomes.
- We can support in understanding difficult claims and strategies to manage these claimants
- Ultimately, your best defence will be a proactive approach to safety. To take your safety from reactive to proactive, contact us.
Contact us for more information and enquiries.