WorkCover deficit falls by $266 million in six months

The NSW government Minister for Finance Michael Daley recently announced a drastic improvement in the WorkCover Scheme’s financial position in the six months to 31 December 2009.

Daley said that the latest valuation result indicates that the WorkCover Scheme deficit has been reduced by $266 million: “That is an 18% reduction over just six months. This result was driven by increased investment values and positive investment returns. It is further proof of the WorkCover Scheme investment strategy’s strength and resilience in the face of the global financial crisis.

“I am also pleased to see that NSW work injury rates have improved. Fewer workers compensation claims were made last financial year than in any year since the scheme commenced in 1987.

“The NSW government has reduced all workers compensation premium rates by an average 30% since 2005. That reduction has led to a saving for businesses of more than $970 million in 2010/11 alone. The government will continue to manage the WorkCover Scheme so as to maintain and build on these achievements.”