NSW Workers Compensation Cuts
Following from recent NSW Workers Compensation Changes 2014, further changes were announced yesterday by NSW Treasurer Andrew Constance and Minister of Finance & Services Dominic Perrottet as part of the NSW 2014-15 budget. The changes will lead to further reductions in NSW workers compensation premiums and help make the WorkCover scheme both fair and sustainable.
On average WorkCover Industry Classification (WIC) rates will reduce on average by a further 5% and will contribute to the Premium rate reductions announced in May 2013 and subsequent rate reductions announced in November 2013.
On the 3rd of June, NSW WorkCover announced the latest changes designed to further improve the scheme effective 30 June 2014. A key change is an approximate 25% reduction in Industry Cost of Claims Rate (ICCR) rates. If a business has not had a similar % improvement in claims performance, then they will possibly face significant 2014/15 premium increases. Additional changes relate to maximum premium caps and extended instalment options. We recommend all medium to large businesses contact their broker or ABILITY GROUP to determine likely financial impact to their business.
From 1 July 2014, WorkCover laws in Victoria will become simpler with the Workplace Injury Rehabilitation and Compensation (WIRC) Act 2013 becoming operational.
In the weeks leading up to yesterday’s 2014 federal budget the Australian media were filled with warnings of drastic measures and changes. So when Joe Hockey started his budget speech last night including “Our future depends on what we as a nation do today”, few expected to come out a winner. Are the changes beneficial longer term and what does the 2014 budget mean for you and your business?
In last night’s 2014 Australian federal budget, Treasurer Joe Hockey announced the retirement age is set to increase to 70 by 2035. Additionally a $10,000 incentive will be paid to businesses that employee workers over the age of 50. These announcements confirm the Australian workforce will continue to age. Business therefore will increasingly experience issues associated with an ageing workforce and unless they proactively take steps ensure workplace safety, minimise injuries and actively manage workers compensation claims, costs will increase.