Recent changes announced by NSW WorkCover initially suggest further premium reductions for businesses. There are however key changes that could have the opposite effect and result in higher 2014/15 renewal premiums. By reducing Industry Cost of Claims Rate (ICCR) by an expect average of 25%, in some situations it is likely to increase workers compensation premiums as a result. The 2014-15 NSW Budget cuts to WIC Rates by an average of 5% will help offset some of the expected increases and could benefit those with better than industry performance.
Following from recent NSW Workers Compensation Changes 2014, further changes were announced yesterday by NSW Treasurer Andrew Constance and Minister of Finance & Services Dominic Perrottet as part of the NSW 2014-15 budget. The changes will lead to further reductions in NSW workers compensation premiums and help make the WorkCover scheme both fair and sustainable.
On average WorkCover Industry Classification (WIC) rates will reduce on average by a further 5% and will contribute to the Premium rate reductions announced in May 2013 and subsequent rate reductions announced in November 2013.
On the 3rd of June, NSW WorkCover announced the latest changes designed to further improve the scheme effective 30 June 2014. A key change is an approximate 25% reduction in Industry Cost of Claims Rate (ICCR) rates. If a business has not had a similar % improvement in claims performance, then they will possibly face significant 2014/15 premium increases. Additional changes relate to maximum premium caps and extended instalment options. We recommend all medium to large businesses contact their broker or ABILITY GROUP to determine likely financial impact to their business.
From 1 July 2014, WorkCover laws in Victoria will become simpler with the Workplace Injury Rehabilitation and Compensation (WIRC) Act 2013 becoming operational.
Additionally there are changes in the 2014/15 Premiums Orders that will be gazetted in June 2014. The numerous changes include…