icare confirmed today that NSW workers compensation premiums will increase by the maximum allowed. This represents an average of 8% as previously communicated. Businesses already facing higher costs will be required to manage workplace injuries, workers compensation claims and related matters much more closely or face significantly higher premiums in subsequent years.
Earlier today icare officially announced NSW workers’ compensation premiums will rise by an average of 8% or the maximum increase approved by the NSW Government, for the upcoming fiscal year. This means a non-experience rated business that currently pays $27,800 in annual premiums, will become claims experience-rated meaning claims-related CPR costs will increase their future premiums.
Higher premiums will aid in balancing the finances of icare’s nominal insurer scheme, which did not see an increase in average premium rates from 2012 to 2020, according to an icare representative.
The icare spokesperson explained “Workers compensation schemes across Australia are responding to inflationary pressures, higher numbers of complex claims, and investment volatility. icare’s average premium increase of 8% responds to economic realities and ensures a strong and sustainable workers compensation scheme for over 320,000 employers and 3.5 million workers across New South Wales,“
Following objections from businesses over a possible 20% rate increase, the government instructed icare in April of the previous year to cap average premium increases at 8% per year or 24% in total for the next three years.
The actual premiums for individual employers may differ from this average, as they are determined based on factors such as industry type, claims history, safety record, and other risk elements.
The icare spokesperson advised that employers operating in higher-risk environments should anticipate potential increases above the average rate due to a rise in injury claims within any given year.
Conversely, employers with lower-risk workplaces might see their premium increase by less than the 8% average, which serves as a reward for their efforts to enhance workplace safety and minimise claims.
Employers looking to reduce their premiums can receive up to a 5% discount for full upfront payment as well as incentives for businesses with safer work environments.
Need help with your workers compensation premium?
Contact our team of workers compensation specialists to assist you in understanding how these changes could impact your business. You can also discuss a review of your workers compensation premium/s, premium forecasts, premium reduction strategies or other advice.
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Source: icare
Title: icare announce 8% average workers compensation premium rate increase for 2024-25
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