The NSW Government has instructed icare to limit the average premium rate increase for NSW workers compensation to 2.9 per cent, ensuring predictability and stability for businesses.
This year the average premium rate is expected to be increased from 1.44% of wages to 1.48% for the upcoming 2022-23 NSW workers compensation policy renewals, in line with rate increases in the last policy year and remaining below the national average. It is expected majority of premiums will therefore increase adding additional financial pressure for NSW businesses.
Minister for Finance Damien Tudehope, who provided this instructions in the best interest of NSW Employers has said that the maintenance of a modest increase in premiums balances the cost impacts on NSW businesses and the long-term sustainability of the workers compensation scheme.
The NSW Government’s direction followed consideration of pricing options developed by icare, the NSW Nominal Insurer (NI) that provides coverage for 330,000 NSW employers.
“The Government’s focus on the sustainability of the NI fund continues by driving operational savings, investment performance and other efficiencies introduced by the new leadership team at icare,” Mr Tudehope said.
“NSW businesses with a strong safety record and commitment to helping injured workers return to work will continue to be rewarded with incentives and discounts.”
The icare premium filing will be considered by SIRA in the coming weeks.
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Source: iCare
Title: Premium predictability for NSW businesses
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