In January we communicated Upcoming NSW Workers Compensation Changes and how these were likely to impact medium to large NSW businesses. On 18th May 2015, Vivek Bhatia (CEO of WorkCover NSW) confirmed these changes and ABILITY GROUP believe they represent the most dramatic changes in 20+ years. So what are the changes?
From 30 June 2015 onwards, the premium calculation for businesses with a NSW premium > $30,000 (i.e. medium and large businesses) change completely. In short the new premium formula is intended to reward businesses with fewer claims and a strong return to work performance. Businesses however that struggle with claims are expected to be penalised. The sweeping changes also impact what is included in premium claims costs, the view of industry, size, etc.
At the end of 2014 WorkCover NSW provided their Report Card on the numerous changes made during the last 12-18 months for small businesses. As these changes have driven such positive outcomes across the 260,000 small business employers in the NSW scheme, WorkCover NSW recently announced similar changes for medium to large businesses following the 2015 NSW state election.
The important changes for medium to large NSW businesses adopt the key principles of delivering easy to understand premiums, providing safer workplaces, improving return to work, recovery at work for injured workers, reducing red tape and delivering sustainability plus certainty. To understand more about these important proposed changes read more…
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…
NSW Workers Compensation Changes
This week NSW Premier Barry O’Farrell and Finance and Services Minister Greg Pearce made announcements regarding important changes to NSW Workers Compensation with reforms targeting reducing cost of doing business in NSW.
Following a series of other NSW legislation changes that took effect at the start of the year, the latest changes were announced on 1 May 2013 and are significant for NSW workers compensation.