In January, we communicated the upcoming NSW Workers Compensation Changes and how these were likely to impact medium to large NSW businesses. On 18th May 2015, Vivek Bhatia (CEO of WorkCover NSW) confirmed these changes and ABILITY GROUP believe they represent the most dramatic changes in 20+ years.
From 30 June 2015 onwards, businesses in NSW with premiums above $30,000 (medium and large businesses) face a completely new premium calculation. The new formula rewards businesses that lodge fewer claims and demonstrate strong return-to-work performance.
NSW Workers Compensation Changes
From 30 June 2015, there have been what we consider the most dramatic changes in 20+ years. Details will be finalised in the Insurance Premium Order (IPO) released in June 2015, yet the following provides an overview of the sweeping changes.
Consistent with the previous small business reforms, the key principles for latest medium to large business reforms are:
- Deliver easier to understand premiums
- Provide safer workplaces
- Improve RTW and recovery at work outcomes
- Reduce administrative “Red Tape”
- Deliver sustainability and certainty
What’s gone?
- ICCR – Industry Cost of Claims Rate
- ECCR – Employer Cost of Claims Rate
- S – Size factor
- E – Experience Premium
What’s new?
- Additional T-Caps designed to provide greater capping limits for businesses
- CPR – Claims Performance Rate
- ESI – Employer Safety Incentive
- ESR – Employer Safety Reward
- RTWI – Return to Work Incentive
What changes?
- Claims Costs – Paid + Estimates become paid weekly wages
- BTP (Basic Tariff Premium) becomes APP (Average Performance Premium)
- Medical, rehab, investigations and legal costs excluded from claim costs impacting premium
For further details, please refer to:
Source: WorkCover NSW
Title: Your Insurance Premium User Guide
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