Unofficial industry views indicate the recent NSW workers compensation legislation and premium formula changes resulted in 75% of medium to large businesses expecting higher 2015/16 Renewal Premiums. ABILITY GROUP has already won NSW WorkCover appeals on behalf of our clients reducing premiums payable. Higher renewal & need help?
A NSW micro employer is a business with 5 or less employees and a basic premium tariff <$30,000. A micro employer with an injured worker may experience financial difficulties with return to work (RTW) of an injured employee. WorkCover acknowledges for many micro employers there is a financial burden they can’t afford or sustain. WorkCover is now extending special RTW assistance to these businesses.
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.