NSW Premium Incentives Summary

by | Feb 24, 2020 | Premium, Workers Compensation

NSW workers compensation has seen significant change in the recent years & it is difficult for businesses to stay updated. Under current NSW legislation, there are numerous different incentives that can reduce workers compensation premiums. To make things easy we have summarised each incentive. NSW Premium Incentives Summary – summary of each incentive are below: 1. Premium Discounts for Update Payment

You are entitled to a discount on your premium if you pay your annual premium in full (on or before the due date).

For small employers, the current discount is 5 per cent.

For experience-rated employers the current discount is 3 per cent.

2. Employer Safety Incentive (ESI)

The ESI provides an opportunity for employers to invest the savings in workplace safety.

Small employers, will get a 7.5% per cent Employer Safety Incentive (ESI) premium discount at the beginning of each policy period.

Experience-rated employers, are employers with an average performance premium (total wages x your industry rate) greater than $30,000. Experience-rated employers will receive a 7.5% per cent Employer Safety Incentive (ESI) premium discount at policy renewal.

3. Employer Safety Reward (ESR)

An employer safety reward (ESR) discount of 5 per cent will be applied at the end of the insurance period for experience-rated employers who have not incurred any premium-affecting claims in the previous four consecutive policy periods.

4. Apprentice Incentive Scheme

Under this scheme, if you employ an apprentice, you’re entitled to a premium reduction based on the wages paid to your apprentice.

To be eligible for the reduction you must:

    • Have a valid workers compensation policy
    • Have entered into a Training Services NSW approved contract with the apprentice. The apprentice must be identified in the training contract.

Icare will calculate the apprentice incentive amount based on details you provide in your wages declaration forms.

5. Return to Work Incentive (RTWI)

A return to work incentive discount (5, 10 or 15 per cent) will be applied, for Experience rated employers, to the cost of each claim with a sustainable return to work outcome up to 52 weeks. Higher discounts apply to shorter return to work outcomes.

6. Avoid the Claim Excess

If a worker suffers a workplace injury, employers may avoid paying a claims excess by notifying their insurance agent or insurer within 48 hours of becoming aware of the workplace injury.

7. Performance Discount

All small employers with policies commencing on or after 30 June 2019 are eligible to receive a performance discount at the end of the policy year.

Experience-rated employers with claims performance better than the Scheme are eligible to receive a performance discount at the end of the policy year.

Note: The performance discount depends on the NSW workers compensation Scheme’s financial performance and can change from year to year.

For any queries regarding any discounts/incentives or your renewal paperwork please contact the friendly staff at ABILITY GROUP.