The Economic Insurance Result (EIR), which is the key performance measure for Victoria's workers compensation scheme, was a surplus of $650 million.
WorkSafe is required to hold significant investments in order to fund long term WorkCover payments to injured workers.
In the six months to December 2025, higher than expected investment returns and better economic conditions were the main drivers of a half-year net surplus after tax of $1.46 billion.
WorkSafe Chief Executive Officer Cathy Henderson said work was still required to deliver a sustainable scheme.
"WorkSafe's financial position continues to strengthen but we are still working towards full financial sustainability," Ms Henderson said.
"WorkSafe's ambitious injury reduction targets and continued heavy investment in strengthening return to work pathways for injured workers will be key to ensuring long-term viability of the scheme."
WorkSafe's insurance funding ratio, the key measure of scheme health, had a small increase to 115.9 per cent but is still short of the 120 per cent considered necessary for long-term financial sustainability.
