Western Australian employers are facing renewed cost pressures as WorkCover WA announces increases across the board.
Earlier this year, recommended premium rates were increased by 5.3%, lifting the average rate from 1.732% to 1.823% of total wages (YoY). This adjustment is part of the 2025–2026 financial year review and is expected to impact businesses across all sectors.
In a public statement, WorkCover WA Acting Chief Officer, Rebecca Harris, cited several key factors for the increase; higher average claim size, an uptick in claims lodged and projected wages growth.
Beyond workers’ compensation, employers are also facing mounting liability cost pressures. Increasing legal and medical expenses, and inflation-driven service costs are contributing to higher expenses and greater financial exposure.
As regulatory thresholds and indexed limits shift upward, businesses may find themselves navigating more complex claims environments with tighter margins.
From 1 November, workplace rehabilitation expenses rose from $209.25 per hour (2024) to $227.25 (2025). The new service price is applicable both for new cases and ongoing injuries. This change aligns with inflationary trends and reflects the growing cost of delivering rehabilitation services to injured workers.
Interestingly, the cost of workplace rehabilitation services has risen by 8.61%, significantly outpacing the 3.30% increase in the maximum budget available per claim. This growing cost means employers may need to reassess their injury management strategies to maximise efficiency, ensuring effective recovery within tighter financial limits.
Proactive claims handling and early return-to-work initiatives will be more important than ever to avoid exceeding claim caps and incurring additional costs.
Want more clarification on these changes? Speak with the Willis Temby team today.