TAC Annual Report tabled in Parliament

08 Oct 2015

The Transport Accident Commission has paid out $1.128 billion in support services and benefits to clients in 2014/15.

The TAC's Annual Report was tabled in State Parliament today, showing an after-tax operating profit of $175 million in the last financial year.

TAC Chair John Walter said the scheme was in a strong financial position, with its insurance operations achieving a profit of $413 million, up from $325 million in 2013/14.

"This demonstrates the underlying health of the TAC scheme and it has been driven by efficiency measures, continued strong claims management and effective accident prevention work," Mr Walter said.

"The work the TAC does in the core areas of prevention, compensation and rehabilitation is critical to ensure the long-term financial sustainability of the scheme."

The TAC's total assets, including investments managed by the Victorian Funds Management Corporation to support its long-term insurance liabilities, grew by $1.23 billion to $12.86 billion. Total liabilities also grew to $13.04 billion. While the value of these investments and liabilities are subject to volatility in the global financial markets, the TAC's funding ratio on June 30, 2015, was at 92.3 per cent, which remains within the preferred range set by the Minister for Finance.

The TAC provided support and benefits to 47,204 people in the 2014/15 financial year, with 22,138 of those being new claims.

"The fact that more than 20,000 people required support following a transport accident highlights the key challenge that exists in Victoria to make further gains in the area of accident prevention," Mr Walter said.

Despite new claims being up from 22,012 last year, the TAC achieved its highest ever client satisfaction score.

"This year's results show that client outcomes can be improved while meeting our obligations to manage the scheme's liabilities in a responsible and sustainable way," Mr Walter said.

Key results for the TAC in 2014/15:

• $1.128 billion in support services and benefits for 47,204 clients
• Performance from insurance operations of $413 million
• Actuarial release of $93 million
• Record client satisfaction score of 7.65
• $97.6 million for safety improvements to Victorian roads
• $17.7 million to Victoria Police for additional booze buses and roadside drug testing
• $1.2 million for local councils to improve local roads infrastructure

Mr Walter said the development of a new strategic framework to guide the TAC into the next decade would be a key responsibility for new chief executive officer Joe Calafiore in the 2015/16 financial year.

• 2015 TAC Annual Report PDF, 3.55MB