Premiums cut by another 5%

A further 5% reduction in workers compensation premiums for NSW will enable businesses to focus more on workplace safety, according to an Australian industry representative.

NSW Premier, Morris Iemma announced the package today, which will also see a 10% increase in permanent impairment benefits for injured workers.

The Australian Industry Group (AIG) has been quick to support the decision and said it has lobbied for reductions to premiums in the past, regardless of whether the workers compensation scheme has been in surplus or deficit.

But Iemma credits the package to the fact that the scheme has recovered to a surplus of $85 million, after being in deficit of $3.2 million several years ago.

The AIG believes the surplus has been achieved ahead of schedule due to lower claims; more immediate reporting of injuries; and better care of injured workers, who are returning to work earlier.

The Group said that some of the frustration businesses currently feel over compensation costs will be alleviated, enabling them to focus more on workplace safety.

"The WorkCover scheme now has much lower legal costs and a greater focus on immediate medical care, financial support and assistance to return to work," Iemma said.

He estimates that the surplus and its resulting premium decrease has the potential to create more than 8000 jobs and save large Sydney manufacturers $85,752 a year in premiums.

This latest cut follows on from two reductions to premiums earlier this year: 10% in March and another 5% in November.

Wendy Cramer, Editor
28/9/06