An overhaul of Victoria's WorkCover scheme is on the cards, with the state government describing it as "fundamentally broken".
Victoria's premiums are currently lower than all states and territories except Queensland, and have not increased for more than 20 years.
The gap between the annual cost of claims and premium collected has resulted in an annual premium deficit of $1.1 billion and growing.
The government on Tuesday confirmed it was looking at all options, including proposals from business and workers, to reform the scheme.
"The WorkCover scheme is fundamentally broken," a Victorian government spokesperson said in a statement.
"The scheme is no longer fit for purpose and does not meet the modern needs of those it was originally designed to assist more than 30 years ago."
Just last year, the state government tipped in an extra $300 million into the workers' compensation scheme to offset rising costs.
The cash injection was added to offset the forecast financial hit without increasing premiums for businesses - but it seems an overhaul would see exactly that.
