by ABILITY GROUP | Jan 10, 2019 | Reforms, Workers Compensation
Workers’ compensation is a cornerstone of workplace safety and employee well-being. In New South Wales, reforms introduced by the State Insurance Regulatory Authority (SIRA) in 2019 under the Workers Compensation Legislation Amendment Act 2018 have reshaped the dispute resolution process. For organisations like ABILITY GROUP, understanding these reforms is essential to managing injury claims effectively, supporting employees, and controlling insurance costs.
Why Reform Was Needed
Before the reforms, inefficiencies in claims management often led to delays in medical and rehabilitation services. These delays inflated insurance expenses, raised premiums, and negatively impacted both employers and employees. The NSW Business Chamber highlighted these shortcomings, calling for urgent changes to restore fairness and efficiency.
Key Reform Highlights
- Centralised Dispute Resolution: The Workers Compensation Commission (WCC) now handles all disputes, ensuring mandatory internal reviews for injured workers.
- Faster Insurer Responses: Insurers must respond to work capacity or liability reviews within 14 days, reducing delays in treatment and support.
- Legal Support for Workers: Costs for reviews of work capacity decisions are covered by the Independent Legal Assistance & Review Service (ILARS).
- Transparent Decision-Making: Notice templates must include information from employers, workers, and insurers, ensuring balanced evidence.
- Clear Complaint Pathways:
- Employers: unresolved complaints directed to SIRA (13 10 50 / contact@sira.nsw.gov.au).
- Workers: unresolved complaints directed to WIRO (13 94 76 / contact@wiro.nsw.gov.au).
- Permanent Impairment Compensation: In certain cases, the WCC can award compensation without referral to an Approved Medical Specialist.
Additional Adjustments
- Mandatory electronic delivery of workers’ compensation information
- Updated definition of Pre-Injury Average Weekly Earnings (PIAWE)
- Injured workers entitled to both compensation and CTP damages pay
- Certain entitlements may now be commuted
Positive Outcomes
Despite initial criticism, the NSW Treasurer’s office has emphasized the reforms’ success. Since 2015, they report:
- Reduced business premiums
- Increased worker support
- Elimination of scheme debt
- Correction of the predicted $4.1 billion deficit and prevention of 28% premium hikes
Impact on ABILITY GROUP
For ABILITY GROUP, these reforms mean:
- Lower insurance costs through streamlined claims management
- Faster recovery support for injured employees
- Improved compliance with updated legislation
- Enhanced reputation as a fair and responsible employer
Conclusion
The state of workers’ compensation reform in NSW reflects a significant step toward efficiency, fairness, and sustainability. By embracing these changes, ABILITY GROUP strengthens its injury management processes, supports its workforce more effectively, and positions itself as a leader in responsible business practices.
Contact us to know more
Source: Insurance News
Title: NSW Treasurer hits back after workers’ comp criticism
Read time: 2 minutes
by ABILITY GROUP | Nov 19, 2018 | Human Resources
As of 1 November 2018, the Fair Work Commission introduced changes across a large number of modern awards. While many of these adjustments were largely wording-related and did not alter the intent of clauses, several key changes directly impact termination of employment practices. Employers must act on these updates to remain compliant and avoid penalties.
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by ABILITY GROUP | Nov 18, 2018 | Uncategorized
There are 5 common types of toxic employees. Your ability to identify & address such employees requires care to avoid complications. Knowing warning signs & understanding the difference between a difficult & toxic worker are key to minimising impacts.
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by ABILITY GROUP | Nov 13, 2018 | Health & Wellbeing, Injury Management, Mental Health
Mental illness is now recognised as the fastest-growing workplace injury worldwide, costing businesses hundreds of billions annually and impacting employee wellbeing more than traditional physical injuries. Employers who fail to address psychosocial hazards risk higher absenteeism, reduced productivity, and significant compensation claims.
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by ABILITY GROUP | Nov 1, 2018 | Premium
Overdue premium adjustments are a critical issue for businesses, as they directly affect compliance, cash flow, and client trust. Employers and policyholders must understand how insurance premium adjustments work, why delays occur, and how to manage them effectively to avoid financial and legal risks.
What Are Premium Adjustments?
- Insurance premium adjustments occur when insurers recalculate premiums based on updated risk assessments, claim history, or market conditions.
- Adjustments may be triggered by escalation clauses, changes in coverage, or discrepancies in payroll and revenue reporting.
Why Premium Adjustments Become Overdue
- Late reporting of payroll, revenue, or claims data.
- Administrative delays in processing adjustments by insurers.
- Disputes between insurers and policyholders over coverage or risk classification.
- Cash flow challenges leading businesses to postpone payment.
Risks of Overdue Premium Adjustments
- Compliance issues: Regulatory bodies may penalize businesses for late payments.
- Coverage gaps: Policies may lapse or be suspended if premiums remain unpaid.
- Financial strain: Overdue adjustments can accumulate, creating sudden large liabilities.
- Reputation damage: Clients and partners may lose trust in a business that fails to manage obligations.
How Employers Can Manage Premium Adjustments
- Regular audits: Ensure payroll and revenue data are accurate and submitted on time.
- Clear communication: Maintain open dialogue with insurers to resolve disputes quickly.
- Budget planning: Allocate funds for potential adjustments to avoid cash flow shocks.
- Professional support: Engage experts like ABILITY GROUP to manage insurance compliance and negotiate favorable terms.
Conclusion
Overdue premium adjustments are more than just an administrative inconvenience, they represent a serious financial and compliance risk. By proactively managing insurance data, maintaining communication with insurers, and seeking expert guidance, businesses can protect themselves from costly consequences.
Please download the Declaration of Actual wages form from icare here.
For assistance contact ABILITY GROUP.
