While extraordinary events dominated 2020, WorkSafe remains focused on delivering a range of important workplace safety initiatives including improved mental injury prevention, increased support for workers returning to work, and targeted enforcement where it is most needed.
“WorkSafe exists to reduce workplace harm and improve outcomes for injured workers,” Chief Executive Colin Radford said.
“By concentrating on initiatives which will shift the dial in these two areas, WorkSafe can deliver maximum value to the Victorian community.”
At 31 December 2020, WorkSafe’s insurance funding ratio – a measure of assets against claims liabilities – was 123 per cent, above the midpoint of the 100 to 140 per cent target range.
A growth in the cost of claims, and an increase in the length of the time injured workers spend in the scheme, led to a rise in the valuation of WorkSafe’s liabilities and contributed to a Performance from Insurance Operations (PFIO) of negative $1.1 billion.
This was offset by strong returns on the compensation scheme’s investment portfolio, contributing to an after-tax loss of $502.5 million for the first half of the financial year – a $148 million improvement on the result for the six months to December 2019.
WorkSafe and the Victorian Funds Management Corporation manage the workers compensation scheme’s investment portfolio to achieve sound returns over the long term.
The portfolio has achieved an average return of more than eight per cent a year over the past decade.