The South East Melbourne Manufacturers Alliance (SEMMA) has called for an immediate review of WorkSafe’s and says that the Victorian Government’s recent decision to maintain a hold on WorkCover premiums at 1.8 per cent doesn’t do enough to aid struggling Victorian manufacturers.
Honi Walker, CEO of the industry body, said “Manufacturers have seen significant premium increases despite not making any claims. Holding the rate isn’t enough – we need a full review of WorkSafe now, not in 2027.”
SEMMA argues that the hold does not go far enough to aid manufacturers and has called for an immediate review on WorkCover, rather than waiting for the independent statutory review currently scheduled to take place in 2027.
Honi Walker argues that the financial strain being placed on manufacturers warrants immediate action.
“That’s still two years away – what can we expect to pay in 2026-27 if the review hasn’t started? We are not responsible for the financial issues of WorkCover – but we are being made to pay for it,” said Ms Walker.
This is the latest of several disputes that SEMMA has had with the state government this year, with the body most recently calling for a cap on land tax rates which it labelled ‘gouging’ and ‘an unjustified cash grab’.
SEMMA also argued in its pre-Budget submission in February that the Federal Government should halve the company tax rate for manufacturers.
Honi Walker has called for more cooperation from the Victorian Government in developing policy that won’t have an adverse impact on manufacturers.
“While we understand that WorkSafe is experiencing financial instability, manufacturers are once again the cash cow for government to fill their coffers,” said Ms Walker. “We’d like to see transparency in the calculation process and we invite the Minister for WorkSafe & TAC Ben Carroll to join us for an Industry Roundtable,” she said.
SEMMA has released its Australian Manufacturing Blueprint – 2025 & Beyond, which details a number of strategies including capping business tax rates and reducing business loan rates, as part of its overarching policy objective to enable economic growth in manufacturing from 5.9 per cent (currently) to 10 per cent GDP by 2030.
SEMMA President Peter Angelico has argued for a business-led approach, saying “Let industry lead our policy makers to successful economic evolution, ensuring we retain our Sovereign Capability across all sectors, encourage capital investment and grow wages, boost skilled careers, and lift our standard of living.”
This is the third year in which the Allen Labor Government has kept average premiums at 1.8 per cent. The government noted that last financial year, WorkSafe provided $3.4 billion in tailored support to more than 104,000 injured workers while helping more than 26,000 injured workers to return to safe and sustainable work.
Deputy Premier and Minister for WorkSafe and the TAC Ben Carroll has stated that the government has consulted with employers, unions, mental and occupational health experts in creating its policy.
Bridget Vallence, MP for Evelyn and Shadow Minister for Finance, has voiced criticism of the Victorian Government’s handling of WorkSafe, arguing that the government has failed to respond to key recommendations of the Inquiry into the Workplace Injury Rehabilitation and Compensation Amendment (WorkCover Scheme Modernisation) Bill 2023, claiming that employers, unions, and injured workers are being ignored, and that businesses are still struggling from the 2023-24 increase in WorkCover premiums of 42 per cent.
“The Liberals and Nationals call on the Allan Labor Government to immediately respond to the WorkCover Bill inquiry and extend the freeze on WorkCover premiums for 24 months. Labor can’t manage money and can’t manage the WorkCover scheme, and it’s Victorian businesses and injured workers who are paying the price,” said Ms Vallence prior to the release of the 2025-2026 state budget.
Ben Carroll has noted that though the average rate remains stable at 1.8 per cent, individual WorkCover premium rates do fluctuate on a case by case basis, determined by specific factors such as worker wages and the frequency of safety incidents in a given workplace, and are also influenced by 500 separate rates for specific industries.
WorkCover, the state government points out, has provided invaluable care and relief for Victorian workers.
“WorkCover is about standing by people – giving workers peace of mind and helping businesses through tough times. We’ve strengthened the scheme so it can continue to deliver on that promise. We are taking a balanced approach to ensuring the long-term viability of Victoria’s workers compensation scheme and passing on the benefits directly to workers and employers,” said Mr Caroll.
