A quick overview
In August 2015, the NSW Government announced a $1 billion reform package to deliver a fairer, more sustainable and customer-centric workers compensation system.
The reform package has three elements:
- Enhanced benefits for injured workers
Injured workers are now supported with a fairer, more sustainable and customer-focused compensation scheme. Many of these new benefit reforms have already commenced, with other benefits expected to begin from mid-2016, following a consultation period and the drafting of regulations.
- Premium reductions for employers with good safety and return to work records
Insurance premiums are now clearly linked to good claims performance. Employers within the NSW workers compensation scheme (icare workers insurance) who perform well – by improving workplace safety or helping injured workers return to work – will pay lower premiums than those who perform poorly.
- Structural reform for better service and regulation
Three new agencies have now been created with a clear focus on their responsibilities. The separation of insurance and regulatory functions results in a far more transparent and accountable system with better outcomes for injured workers.
With these reforms, the NSW Government has met its 2015 commitment that every dollar above the minimum surplus needed to keep the scheme sustainable would be returned to support injured workers and businesses in a two-third, one-third split.