As we enter the 2025/26 financial year, businesses across Australia will face a mixed bag of changes to 2025/26 workers compensation premium increases. At ABILITY GROUP, we’re committed to helping employers navigate workers compensation-related matters with clarity and confidence. Here’s a state/territory breakdown of what’s changing and what it means for your 2025/26 workers compensation premiums.
The workers compensation premium you will pay in 2025/26 depends on many variables such as:
- state/territory
- wages
- business activity
- claims history
- state/territory workers compensation specific legislation or premium formulae
We summarise below key known changes, yet remembering that each business will/may have unique factors that influence the premium they have to pay.
New South Wales (NSW)
Average increase: 8%
NSW employers will see an average 8% rise in premiums, marking the third and final year of capped increases under a government directive. However, actual premiums will vary based on industry classification, claims history, and safety performance. Employers with strong safety records may still benefit from discounts of up to 7.5% through the Safe Employer Reward (SER) program.
Victoria
No change: Premium remains at 1.8%
Good news for Victorian businesses is WorkCover premiums will remain steady at an average of 1.8% for the third consecutive year. This stability follows significant reforms in 2023/24 and reflects the state’s ongoing efforts to manage scheme sustainability.
Queensland
No change: Premium remains at $1.343 per $100 of wages
WorkCover Queensland has frozen its average net premium rate for 2025/26, offering welcome relief amid broader economic pressures. Queensland continues to boast one of the lowest average rates in the country, supported by strong return-to-work outcomes.
South Australia
Premiums vary by industry
While no blanket increase has been announced, South Australia’s industry-based classification system means premiums are recalculated annually based on claims performance. Employers should review their classification and claims data to anticipate changes.
Western Australia
Premiums under review
WorkCover WA has released its recommended premium rates for 2025/26, though final rates may vary by insurer. Employers should expect adjustments based on legislative reforms and changes to compensation entitlements.
Tasmania
Suggested average increase: from 1.89% to 2.06%
Tasmania’s suggested average premium rate has risen to 2.06%, driven primarily by increases in average claim size. While not mandatory, these rates guide insurers and signal a general upward trend.
Australian Capital Territory (ACT)
Suggested average increase: from 2.00% to 2.04%
The ACT has proposed a modest 1.8% increase in average premium rates, reflecting updated actuarial assessments. As with Tasmania, these are advisory rates and may differ by insurer.
Northern Territory
Market-driven premiums
The NT remains unique in that premiums are not regulated or capped. Instead, they are set by private insurers based on individual risk profiles. Employers are encouraged to shop around and maintain strong safety records to secure competitive rates.
Increased Premiums?
At ABILITY GROUP, we specialise in supporting businesses/organisations of all sizes across Australia navigate workers compensation. If your 2025/26 workers compensation Renewal premium (or your 2024/25 Adjustment) has increased, please contact us to explore strategies to help legally minimise your premiums.
Further Information
- Comcare – www.comcare.gov.au
- New South Wales – State Insurance Regulatory Authority (SIRA): www.sira.nsw.gov.au
- Victoria – WorkSafe Victoria: www.worksafe.vic.gov.au
- Queensland – WorkCover Queensland: www.worksafe.qld.gov.au
- South Australia – ReturnToWorkSA: www.rtwsa.com
- Western Australia – WorkCover WA: www.workcover.wa.gov.au
- Tasmania – WorkSafe Tasmania: www.worksafe.tas.gov.au
- Australian Capital Territory – WorkSafe ACT: www.worksafe.act.gov.au
- Northern Territory – NT WorkSafe: www.worksafe.nt.gov.au