Minister for Finance, Services and Property Dominic Perrottet revealed today that medium-large employers with a good safety record would be paying $200 million less in workers compensation premiums this year, with the reduction coming from new premium calculations, incentives & discounts.
“This Government promised it would create a fairer workers compensation system for all and these changes reflect that commitment,” Mr Perrottet said. “Our reforms reward businesses that have safe workplaces with lower premiums, while ensuring others pay premiums that reflect their true cost to the scheme.”
“NSW is the economic powerhouse of Australia and we want to keep it that way by driving down the cost business while improving safety performance and productivity. The $200 million savings mean that premiums for some medium and large NSW businesses will be among the lowest in the country.”
Today around 80 per cent of scheme costs are generated by the below average safety records of about a quarter of businesses, who pay about the same in premiums as other safe businesses. Under the new regime, businesses that keep their workers safe and help those that are injured return to work will only have to contribute about a third of total premiums – saving them collectively $200 million.
“The new premium incentive regime will free up real money allowing NSW businesses who do the right thing by their workers to grow and invest in people and capital,” said Mr Perrottet. “It is a clear signal that it pays to keep your workers safe and to help them return to work when they are injured,” he said.
icare CEO Vivek Bhatia said a two year grace period will be extended to help businesses that have higher than average claims improve their safety records. Annual premiums will be capped at 30% above the average for the two year period.
“We understand that circumstances are unique for every business and icare is open to talking directly to employers about their issues and working with them to help identify and fix the causes,” he said. “After two years there will be no cap and these businesses will wear the true cost.”
Businesses will see the changes in their renewal notices, issued in recent weeks. For further information about the reforms to the NSW workers compensation system, visit: http://insurancereforms.nsw.gov.au/.