Small Employer Reforms

by | May 3, 2013 | Workers Compensation

Transformation & Change Ahead
Small Employer Reforms | Cutting Red Tape

For small employer with premiums between $10,001 & $30,000, Barry O’Farrell announced reforms to provide an opportunity for these businesses to reduce costs and achieve more stable premiums. The reforms include receiving an Employer Safety Incentive (ESI) and Return to Work Incentive (RTWI) based on achieving certain criteria, boosting early payment incentives, removing claims experience impacts and reducing the amount of red tape.

Key Features of the Reforms

  • Employer Safety Incentive (ESI) – Rewards businesses that demonstrate strong workplace safety practices
  • Return to Work Incentive (RTWI) -Employers who help injured workers return within 13 weeks can retain their 10% discount
  • Early Payment Incentives -Encourage timely payments with added financial benefits
  • Reduced Red Tape – Streamlined processes mean less administrative burden for small employers
  • Stable Premiums -Claims experience impacts are removed, leading to more predictable costs

Benefits for Small Employers

  • Cost Savings -Average premium reductions of 7.5% for businesses with improved safety and claims experience
  • Improved Workplace Safety -Incentives encourage proactive safety measures
  • Employee Retention -Supporting injured workers back to work strengthens loyalty and morale
  • Simplified Compliance – Easier processes free up time to focus on business growth

Why These Reforms Matter

For small employers, every dollar counts. These reforms not only reduce financial pressure but also foster a culture of safety and responsibility. By cutting red tape and rewarding good practices, small businesses can thrive while protecting their workforce.

Conclusion

The Small Employer Reforms represent a significant step toward balancing affordability, safety, and compliance for small businesses. Employers who embrace these changes stand to benefit from lower costs, stronger employee relationships, and a safer workplace overall.

Should a claim occur and the employer can return the injured worker within 13 weeks they will be eligible to keep their 10% discount. Businesses demonstrating improved safety and claims experience from 30 June 2013, will receive an average rate reduction of 7.5% thanks to the changes NSW Premier Barry O’Farrell announced this week.

Download the Small Business Reforms media release here