Insurance and Care NSW (icare) has announced that average workers’ compensation premium rates in New South Wales (NSW) will increase by 8% for the 2024-25 fiscal year.
The increase follows a statutory direction from Workplace Health and Safety Minister Sophie Cotsis, which limits the average annual rate increase to 8% over a three-year period from 2023/24 to 2025/26.
According to an icare spokesperson, the additional revenue will support the Nominal Insurer scheme in returning to a break-even funding level. The scheme saw no increase in average premium rates from 2012 to 2020.
“Workers’ compensation schemes across Australia are responding to inflationary pressures, higher numbers of complex claims, and investment volatility. icare’s average premium increase of 8% responds to economic realities and ensures a strong and sustainable workers’ compensation scheme for over 320,000 employers and 3.5 million workers across New South Wales,” the spokesperson said.
Employers should be aware that individual premiums may differ from the 8% average. Final rates are calculated based on industry classification, claims history, safety performance, and other risk-related factors. Employers may qualify for support to reduce their premiums, including discounts for upfront payment and incentives for maintaining safer workplaces.
“Employers with a higher risk workplace should consider how, in any given year, an increase above the average rate might be sought in response to a growth in injury claims. Similarly, lower risk workplaces may receive a premium increase below the 8% average, rewarding measures by an employer to improve their workers’ safety and reduce claims. We encourage all employers to talk through options with their broker, or simply visit our website for helpful guidance,” the spokesperson said.
icare offers several discounts and incentives to businesses with strong safety records and those that facilitate injured workers’ return to work.
Small employers paying in full by the due date currently receive a 5% discount. Those with at least three years of policy history and a good safety record can earn a Safe Employer Reward of up to 7.5%.
icare also provides guidance to help small businesses create safer workplaces and reduce premium-increasing practices.
Experience-rated employers who pay in full by the due date currently receive a 3% discount. A Safe Employer Reward of up to 7.5% is also available for those with strong safety records.
icare offers various incentives, discounts, and adjustments to help larger businesses in NSW manage their insurance costs and reward them for maintaining safer workplaces.
Last year, icare launched the next phase of the Professional Standards Framework, which aims to enhance the delivery of improved workers’ compensation claims model for workers and their employers in NSW. The update includes the implementation of a new assessment to standardise the capabilities, knowledge, and skills of claims professionals in the personal injury sector and deliver better outcomes for injured workers and employers.
