NSW Workers Compensation Changes 1 July 2015
Recent reforms to the NSW WorkCover could send some business to the wall, with brokers reporting some clients are facing shock premium increases of hundreds of thousands of dollars.
The NSW Government unveiled new methods for calculating workers compensation premiums for medium and large businesses earlier this year, following on from similar reforms in the small business sector aimed at addressing long-standing concerns.
In 2011, the NSW government said the changes to WorkCover were needed because it was facing a $4.1 billion deficit. This led to a reduction in entitlements for injured workers and employer premiums. The scheme returned to a surplus of $1.36 billion in December 2013.
These reductions in entitlements are part of the 'removal of claims' metioned by Maquarie University researchers. They say the removal of claims for journeys to and from work has shifted costs from the workers' compensation scheme to Medicare, Centrelink and compulsory third party motor vehicle insurance.
Minister for Finance and Services Dominic Perrottet said that in 2015-2016 businesses faced premium rises of up to 28 per cent and more than 12,000 jobs would have been at risk without the WorkCover reforms.
WorkCover NSW offers their Insurance Premiums User Guide to answer in simple terms some of the key questions raised in consultation with the industry.