Workers Compensation Premium Rates Reduced

Minister for Finance Michael Daley said the rate cuts would be delivered to those industries

that have shown a sustained improvement in work health and safety, injury prevention and

management.

“Businesses operating in more than 240 industry classes will see their premium rates

reduced,” he said.

“This reduction will benefit more than 161,000 employers – or 55% of employers covered by

the WorkCover Scheme – across the state.

“It is the sixth premium rate cut for NSW employers since November 2005, bringing the

target premium collection rate in New South Wales to 1.66 per cent.

“That’s the lowest target premium collection rate in more than a decade.

“This represents an average 33 per cent reduction in WorkCover Scheme rates over the last

five years – a total saving to business of around $1 billion each year.

”This is another example of the NSW Labor Government’s continued efforts to support local

businesses and local jobs.”

The reduction in premium rates will benefit both small and large businesses. For example;

• A clothing wholesaler in Sydney paying wages of $750,000 will save $247.50 per

year

• An egg farmer in country New South Wales paying wages of over $5 million will save

$22,786 per year.

Mr Daley said cuts have been enabled by improvements in the financial position of the

WorkCover Scheme.

“The Keneally Government’s measured and responsible changes to the NSW WorkCover

Scheme have placed it in a strong position to continue delivering better value for both

employers and injured workers,” Mr Daley said.

The rate cuts will be published in the Insurance Premiums Order 2010-2011 and will be

effective for policies that start or renew on or after 30 June 2010.
 

Wednesday 23rd June 2010
Workcover NSW