WorkCover NSW worker’s compensation insurance reforms made transparent

WorkCover NSW has announced reforms in workers’ compensation insurance for the 15,000 medium to large employers in NSW who employ over 2.6 million employees.

The proposed reforms were prompted from WorkCover NSW wanting to improve its services to customers and stakeholders by reducing administration and costs. This has been done in order to make premiums fairer, more affordable and easier to understand. Additionally, the reforms are aimed at improving workplace safety, saving employers money and increasing productivity, sustainability and certainty.

WorkCover NSW also proposed ways employers may support employees with an injury to recover at work or return to work.

Key areas of reform:

·         Premiums will be assessed annually and adjusted for final wages at the end of the policy.

·         Minimum and maximum premiums will be introduced to promote stability and make premium forecasting simpler for employers.

·         A more straightforward premium model will allow employers to see how they can influence their premium by providing a safe workplace and supporting an employee with an injury.

·         An upfront incentive scheme, Employer Safety Incentive (ESI) will allow employers to invest in promoting a safe workplace.

·         An Employer Safety Reward (ESR) will be available to employers who have upheld a safe workplace with no claims for four consecutive years.

·         A Return to Work Incentive (RTWI) will be introduced for employers who provide safe recovery at work.

·         To maintain the financial management of the scheme, the new model will include a scheme performance adjustment.

For more info you can view the full Information Paper by WorkCover NSW here. WorkCover NSW will also be holding several information sessions in the coming months to handle queries and announce updates to the Scheme so there are no surprises.

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