Victoria considering blocking bullying and harassment claims for workers’ compensation

Government looking at limiting mental health claims to just PTSD cases after $1.1bn shortfall

• Follow our Australia news live blog for the latest updates
• Get our morning and afternoon news emails, free app or daily news podcast

Workers’ compensation for mental health injuries could be restricted to post-traumatic stress disorder and exclude bullying and harassment under plans being floated to rein in the growing cost of Victoria’s WorkCover scheme.

Last week the government declared the scheme “fundamentally broken” – with benefits paid to injured workers exceeding the premiums paid by business to fund the scheme by about $1.1bn a year. The government also flagged the possibility of higher premiums for businesses to help cover the cost of paying claims.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup