NSW Late Payment Fee Change

Important Update: Changes to Late Payment Fee Waiver Process for Workers Compensation Policies. In line with recent regulatory updates, ABILITY GROUP is advising all employers and brokers of a significant change to the process for requesting late payment fee waivers and write-offs for Workers Compensation policies in NSW.

What Has Changed?

Effective October 2025, any request to waive or write off late payment fees must be submitted to the State Insurance Regulatory Authority (SIRA) for approval before icare can process the request. This change aligns with Section 172(2) of the Workers Compensation Act 1987, which mandates that insurers may only waive late fees with SIRA’s approval.

What Employers and Brokers Need to Do

When a late fee waiver or write-off is requested:

Initial Contact: Employers or brokers should contact ABILITY GROUP, we will esclate to icare to initiate the request
Supporting Information: icare will send a letter outlining the required documentation. Employers or brokers must collect and submit relevant supporting information
Payment of Fee: To avoid further penalties, the outstanding late fee should be paid while the waiver request is being processed
Submission to SIRA: icare will lodge the request with SIRA on behalf of the employer
Refund Process: If SIRA approves the waiver, icare will refund the late fee to the nominated bank account

Why This Matters

This change ensures greater transparency and regulatory oversight in the management of late payment fees. It also reinforces the importance of timely premium payments and proactive communication with icare.

Need Help?

ABILITY GROUP is here to support you through these changes. If you need help navigating the new process or understanding your obligations, contact our team for expert guidance in workers compensation compliance and claims management.