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.
ABILITY GROUP was engaged by a client after their premiums increased materially after a frustrating claim. Despite their continued frustrating efforts to achieve a desired outcome, the insurer was unable to delivery what our client was seeking. Our strategic claims review and subsequent efforts delivered $140,000 of workers compensation related refunds.
From 30 June 2015, the calculations for NSW businesses with a premium > $30,000 change completely. The new key drivers of premium become:
– Wages and business activity
– Claim performance now benchmarked against scheme rather industry
– Return to Work related metrics
The most significant changes in 20+ years were intended to simplify NSW workers compensation, but they are being referred to as complex and confusing. Although various claim costs are no longer premium impacting, some of the more dramatic premium increases will result from how an individual business compares to the overall NSW scheme performance. Businesses that struggle with claims will be penalised.
Various sections of the NSW Workers Compensation Act 1987 allow a business to lodge a WorkCover appeal. We have seen the upcoming changes already impact some businesses as they face financial pressure caused by higher premium and there could be grounds for appeal. Although circumstances are often unique, ABILITY GROUP has a successful record in winning appeals on behalf of clients.
The 30 June 2015 NSW changes include a new formula to calculate premiums with a range of new metrics replacing traditional measures. Although designed to make premiums easier to understand, many people are saying the actual result is wide of this mark. In a recent report WorkCover Independent Review Officer (WIRO) labelled some workers compensation changes as too complex and confusing.