WorkCover NSW have announced some upcoming changes to workers’ compensation premium calculations for medium and large employers in NSW. Whilst detail is scarce at this stage, we understand that there will be:
Only one rate calculation a year, although premiums will continue to be adjusted on final wages at the conclusion of each policy year.
New minimum and maximum premiums.
An Employer Safety Incentive and Employer Safety Reward for those employers who can minimise the number of claims.
A Return to Work Incentive for employers based on each individual claim.
Some of these changes are based on measures previously introduced for small employers. WorkCover NSW will be holding information sessions over the coming months regarding these and (we believe) other changes. It is worth noting that the changes are intended to reduce red tape, not premium.
The biggest change appears to be the move away from two rate calculations a year, which will make accruing for premium much easier. However it will also reduce the immediacy of impact of any improvements in claims outcomes, and if WorkCover NSW continues to use three years of claims experience in the premium calculation, it will effectively make claims one year older when they are used in the calculation.
WCD will be monitoring any changes that WorkCover NSW is proposing and will provide updates as information comes to hand. In the meantime should you have any queries please do not hesitate to contact WCD – Workers’ Compensation Solutions.
Craig Simpson: email@example.com
Phone: 02 8745 2002.