Another blowout – this time $222 million – has taken WorkCover’s unfunded liability back over $1 billion.
The latest actuarial figures to 31 December last year show the unfunded liability has exploded from $952 million to $1174 million in just six months.
The unfunded liability was just $55 million in June 2001. The following table shows the diabolical performance of WorkCover under the Labor Government:
Year Amount ($m)
As at 31 Dec 2011 1,174
“Labor’s management of WorkCover has been an unmitigated disaster with employers still paying the highest levies in the nation and the scheme suffering from the worst return-to-work figures in the nation,” Shadow Finance Minister Rob Lucas said.
“When the Labor Government introduced their controversial amendments to the legislation in 2008 they claimed their actuarial advice was the scheme would be fully funded within five to six years! It is clear this will be yet another Labor broken promise.
“In summary, after a decade of Labor the unfunded liability has blown out by more than $1 billion,” Shadow Finance Minister Rob Lucas said.
“Labor can’t lay all the blame on global economic conditions, because for most of the past 10 years there was strong national economic growth, yet the unfunded liability rose year after year.”