Vic WorkCover premiums cut welcomed

The Victorian government has delivered a pragmatic budget while a reduction in WorkCover premiums will help industry, the Australian Industry Group says.

Ai Group Victorian director Tim Piper said the budget treads the fine line between supporting growth but without undermining the state's Triple A credit rating.

Mr Piper said he was pleased with a three per cent cut in WorkCover premiums.

"The Victorian government has managed to pull a rabbit out of a hat as well as keep a lid in some areas," he told journalists.

However, Mr Piper said he wanted to see money invested in infrastructure to be delivered into the local community, and further investment in manufacturing.

The budget is a boost for business, the state's chamber of commerce and industry says.

VECCI industry policy manager Steven Wojtkiw said the budget would successfully trim the government's internal spending, and boost business in the state through major infrastructure projects such as the East West Link, which earned $15 million for a business case study.

The budget would also reduce Victorian employers' costs by cutting WorkCover premiums by three per cent, Mr Wojtkiw said.

"This budget is a plus for business," he told reporters.

Victorian Automobile Chamber of Commerce spokesman David Russell said the budget will increase consumer and business confidence which had been at a low ebb.

"Small business owners are likely to regard this budget as responsible and balanced and therefore they hope it will improve consumer and business confidence," he told reporters.

Mr Russell said he appreciated the cut in WorkCover premiums, however small, and welcomed spending on small business programs.

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