From 30 June 2015, the calculations for NSW businesses with a premium > $30,000 change completely. The new key drivers of premium become:
– Wages and business activity
– Claim performance now benchmarked against scheme rather industry
– Return to Work related metrics
NSW workers’ compensation reforms, meant to simplify the system, are seen as complex. Some claim costs no longer affect premiums, but steep increases will depend on how each business compares to overall scheme performance—penalising those with higher claims.
REFORMS CAUSING PREMIUM INCREASES
The new reforms extend this to 3 years. Even with rehab, legal, and investigation costs excluded, this subtle change has already driven dramatic premium increases.
A key change is the comparison against overall scheme performance. Clients who once outperformed industry peers now appear weaker when measured against the scheme.
Under the new formula Return To Work (RTW) of injured workers is rewarded and the focus for businesses should now be how can they get their injured worker back to work in a quick and safe manner.
ABILITY GROUP’s businesses are built on the premise of providing specialist services and solutions to assist businesses of all sizes across industries focus on their core business while we manage their workers compensation program and related matters. Our specialist Injury/Claim Management service will assist clients in securing the various RTW incentives for businesses moving forward.