Understanding Why They Go Up (And How You May Be Able To Bring Them Down)
If you’ve recently opened your workers compensation renewal notice and wondered why the premium went up again — you’re not alone.
At RSM Tasmania, we understand the Workers Compensation Insurance Tasmania needs, and why many Tasmanian business owners are feeling the pinch, especially with rising costs across the board.
But before you decide it’s just “another unavoidable expense,” it’s worth knowing that some of those costs are within your control.
So, what’s driving premiums up?
Every year, WorkSafe Tasmania reviews and adjusts the “suggested premium rates” for each industry. These are based on things like the number and cost of claims across the state, injury trends, and even the return-to-work success rates.
If your industry has seen more injuries or longer recovery times, rates tend to rise. But even if your sector is stable, your individual premium can increase due to:
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- Higher payroll totals or reclassification of roles
- Your business’s own claims history
- How quickly injured workers return to work
- Administrative or reporting errors (like incorrectly defined wages)
You can see how industry rates are calculated here:
👉 WorkSafe Tasmania – Suggested Premium Rates 2025-26
How to keep your premiums under control
While you can’t control the whole system, there’s plenty you can do to manage your own costs.
✅ Get your classifications right.
Incorrect industry codes or job classifications can bump you into a higher-risk category unnecessarily. Review them with your broker each year.
✅ Check what counts as “wages.”
Not everything you pay staff should be included, but mistakes here are common. WorkSafe Tasmania’s guide can help:
👉 Guideline on the Definition of Wages (A–Z)
✅ Focus on prevention and early return to work.
A solid safety culture reduces claims, and quick, supported recoveries reduce costs even more.
✅ Review your claims history.
Your past claims directly affect your future premium. If something looks off or feels unfair, your broker can review it and negotiate adjustments.
We can help make it easier
At RSM Tasmania Insurance Brokers, we’ve been helping Tasmanian businesses keep their workers compensation costs fair and manageable for nearly 20 years. We can review your classifications, check your wage definitions, and help set up safety and return-to-work systems that make a real difference to your bottom line.
For specialist help, visit our Workers Compensation site at workerscomptas.com.au
or give us a call to arrange a premium review.
Because the best protection for your people shouldn’t come with unnecessary costs.
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs.
For advice tailored to your circumstances, have a chat with us at RSM Tasmania Insurance Brokers Hobart.
Talk to Roger Hosie and stay ahead with RSM Tasmania’s insights.
Call Now! (03) 6244 7854, or email .
