The Queensland Government announced today that it has proposed to impose a new law which would increase the WorkCover premiums in the state. This law will be effective from July 1 this year. According to this law, now Queensland businesses will have to pay more to insure employees through WorkCover.

Premier Anna Bligh and Industrial Relations Minister Cameron Dick announced about the new proposed law in a joint statement in Brisbane today.

According to the new proposed law, WorkCover premiums would rise to $A1.30 per $A100 of wages while currently $A1.15 are being paid as WorkCover premiums for every $A100 of wages. The payouts would also be capped after the new law would be in effect from this July.

The new law says that the payouts for general damages of pain and suffering will be capped at $A300000, and damages for loss of future earnings will be capped at three times average earnings or about $A176000 in current terms.

Premier Anna Bligh said that the government would make major changes to the workers' compensation scheme of the state to pull it out of the losses due to the global financial crisis. The Queensland Government began a review of WorkCover Queensland earlier this year. Bligh said that the premiums have to rise to ensure the scheme remains stable.

However, the WorkCover premiums in Queensland will still remain the lowest in any state or territory in the country. Victoria is reported the second lowest in the list with a premium of $A1.39.