GRIEVING families will be charged up to $150 more for funerals,
the industry has warned, after a Baillieu government move to
increase WorkCover premiums.
Funeral directors have slammed the government over its lack
of consultation and expressed shock at the move, which will
raise premiums by more than 50 per cent.
Australian Funeral Directors Association spokesman Mark Osborne said
the move would force the industry to pass on costs. ''It will affect
bereaved families, there's no doubt about it,'' he said. ''There is
simply no capacity to absorb the increases.
Victorian companies pay an average of 1.4 per cent of their payroll to WorkCover, which compensates injured workers.
Funeral companies have until recently paid average premiums of about
1.8 per cent for funeral directors but under the new rates being
introduced from July 2011 to July 2013 this will rise to about 3
per cent.
This will bring the premium into line with the state's cemetery workers,
who are employed by state-owned cemeteries and whose premium is
set to be cut from about 3.4 per cent under the new arrangements.
Mr Osborne said it was outrageous that funeral companies were being
forced to pay the same to insure their workers as cemeteries when
funeral directors faced less risk of injury in their line of work than
people who operate heavy machinery and work outdoors.
The tax rise, he said, had been introduced to bring Victorian premiums
in line with other Australian jurisdictions but it differed here because
Victorian funeral homes employed no cemetery staff.
He said the increase would cost his Geelong funeral home tens of
thousands of dollars a year and could force smaller country operators
out of business.
Mr Osborne said it was impossible to calculate exactly by how much
the tax rise would increase the cost of a funeral, but it would be in
the range of $50 for a modest funeral and $150 for an expensive one.
''This came with no consultation, just a little letter of advice to say
it was coming,'' he said. ''Funeral directors drive hearses not backhoes.
The difference needs to be understood and reflected in the premiums.''
Opposition WorkCover spokesman Robin Scott said the Baillieu
government's lack of consultation with the industry meant legitimate
concerns had not been aired.
Workcover Minister Gordon Rich-Phillips said the classifications had
changed last year and were modelled on recent Australian Bureau of
Statistics classifications, which were the national standard and which
group funeral directors and cemetery workers together.
He declined to say if it was fair to group the two sets of workers
together when they faced different risks.He said the government
was open to discussion but indicated the grouping was unlikely to
change.
the industry has warned, after a Baillieu government move to
increase WorkCover premiums.
Funeral directors have slammed the government over its lack
of consultation and expressed shock at the move, which will
raise premiums by more than 50 per cent.
Australian Funeral Directors Association spokesman Mark Osborne said
the move would force the industry to pass on costs. ''It will affect
bereaved families, there's no doubt about it,'' he said. ''There is
simply no capacity to absorb the increases.
''For the Liberals to put 60 per cent increase on a tax on top of
everything else … it's certainly not what you'd expect.''Victorian companies pay an average of 1.4 per cent of their payroll to WorkCover, which compensates injured workers.
Funeral companies have until recently paid average premiums of about
1.8 per cent for funeral directors but under the new rates being
introduced from July 2011 to July 2013 this will rise to about 3
per cent.
This will bring the premium into line with the state's cemetery workers,
who are employed by state-owned cemeteries and whose premium is
set to be cut from about 3.4 per cent under the new arrangements.
Mr Osborne said it was outrageous that funeral companies were being
forced to pay the same to insure their workers as cemeteries when
funeral directors faced less risk of injury in their line of work than
people who operate heavy machinery and work outdoors.
The tax rise, he said, had been introduced to bring Victorian premiums
in line with other Australian jurisdictions but it differed here because
Victorian funeral homes employed no cemetery staff.
He said the increase would cost his Geelong funeral home tens of
thousands of dollars a year and could force smaller country operators
out of business.
Mr Osborne said it was impossible to calculate exactly by how much
the tax rise would increase the cost of a funeral, but it would be in
the range of $50 for a modest funeral and $150 for an expensive one.
''This came with no consultation, just a little letter of advice to say
it was coming,'' he said. ''Funeral directors drive hearses not backhoes.
The difference needs to be understood and reflected in the premiums.''
Opposition WorkCover spokesman Robin Scott said the Baillieu
government's lack of consultation with the industry meant legitimate
concerns had not been aired.
Workcover Minister Gordon Rich-Phillips said the classifications had
changed last year and were modelled on recent Australian Bureau of
Statistics classifications, which were the national standard and which
group funeral directors and cemetery workers together.
He declined to say if it was fair to group the two sets of workers
together when they faced different risks.He said the government
was open to discussion but indicated the grouping was unlikely to
change.
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