The WorkCover Queensland fund will be cut to an average premium rate of $A1.15 for every $100 an employer pays in wages, saving business well over $30 million a year.

The new rate is down 4.2% from $1.20 last year.

“This is fantastic news for Queensland employers who now have had the lowest average premium rate of any Australian state for eight years and received premium rate cuts for the past three consecutive years," Deputy Premier Anna Bligh said.

“In the last two years the Government has legislated to increase death benefits for workers' dependents, increased lump sums and boosted the time a job for seriously injured workers is held open from six to twelve months.”