On the 4th of December 2015, icare (previously known as WorkCover NSW) announced further changes as a component of the NSW government ongoing NSW workers compensation reforms.
The latest reforms include benefit changes to injured employees in need of the highest benefits being those with a Whole Person Impairment (WPI) of >30%. In addition to this there were several other as well as additional changes.
Despite the NSW scheme changes taking effect back on 30 June 2015, the majority of medium to large NSW businesses are yet to receive their 2015/16 premium renewals. With iCare now authorising the NSW insurers to start processing 2015/16 renewal notices the challenge they now face is there is a 3-4 month backlog. Given the events over the last 4 months, we have covered this inside out. To help make these changes easier to understand, ABILITY GROUP provide a quick reference list below for our clients and partners:
1) Reforms are causing increases & Renewal Premium Increases
2) Renewal Capping & Appeals
3) New Premium Scheme Transition
The Minister of Finance, Dominic Perrottet, & the NSW Government have been driving reform to make it easier and cheaper to do business in NSW. Reforms have been diverse with workers compensation a beneficiary. As previously covered, workers compensation reforms are designed to reward the good and penalise the poor performers. Despite suggestions most businesses would pay lower premiums, the insurers have advised us that approximately 75% of medium to large NSW business will see increased 2015/16 Renewal premiums.
After identifying a client’s claim had deteriorated, we explained that the lost wages under the new workers compensation formula would result in material increases in their next 3 premiums. After subsequently being engaged to manage the claim, our Senior Injury Management Specialist identified key strategies, including engaging specialist rehabilitation support which returned the injured worker 4 weeks ahead of schedule.
Unofficial industry views indicate the recent NSW workers compensation legislation and premium formula changes resulted in 75% of medium to large businesses expecting higher 2015/16 Renewal Premiums. ABILITY GROUP has already won NSW WorkCover appeals on behalf of our clients reducing premiums payable. Higher renewal & need help?
The recent NSW workers compensation changes have caused challenges across the industry since taking effect on 30 June 2015. Medium to large businesses with premiums over $30,000 are yet to receive their official 2015/16 Premium Renewals calculated under the new legislated formula. Unofficial data suggests 75% of businesses will see higher premiums. Most businesses are yet to therefore understand if their 2015/16 Renewal Premium will increase or decrease due to the numerous changes. Under the new formula, the key drivers of renewal premium changes will include:
ABILITY GROUP has already helped numerous clients with higher 2015/16 Renewal Premiums.