Racing Victoria’s CEO, Andrew Jones, has openly acknowledged the escalating concerns within the industry regarding the mounting Workcover costs that are placing trainers in a challenging position across the state. He characterised the situation as “a real challenge” and shed light on the noteworthy spike in insurance premiums. Jones revealed that “Workers’ comp premiums have increased in Victoria across the board,” a situation not confined solely to racing but impacting all employers in the region.
The increase in rates from “about five per cent to about 10 or 11 per cent,” as noted by Jones, has been attributed to both a surge in claims and the escalating costs associated with them. He emphasised that the most effective strategy to curtail these escalating costs lies in two directions: “fundamentally, the way to reduce the cost of workers’ compensation insurance is to increase the safety of stables,” and to undertake efficient claims management.
Jones acknowledged that assessing the claims management landscape is challenging due to the complex involvement of insurers. Moreover, he pointed out the constraints Racing Victoria faces in allocating funds, stating, “Is there a magic pot of money that Racing Victoria can use to pay workers’ compensation premiums? No.” He highlighted the careful distribution of resources among prizemoney, club support, and operational expenses.
While considering alternatives like the Racing New South Wales model, Jones remained cautious, saying, “So we’re looking at it very actively right now, but the real question is, is the scheme cheaper in New South Wales than Victoria?” He went on to delineate the differences in funding mechanisms, comparing the direct burden on trainers and owners in both models.
Jones’s insights underline the financial intricacies facing the racing sector. The burgeoning Workcover costs necessitate a balanced approach that safeguards the industry’s viability while ensuring the welfare of trainers and owners.
