Due to changes introduced by the New South Wales (NSW) State
Government, the anticipated surge in workers compensation premiums
has been avoided. The Workers Compensation Legislation
Amendment Act 2012 (Act), which received assent on 27 June
2012, was designed to reduce WorkCover NSW's deficit, lower
insurance premiums for NSW employers and fix some inequities in the
system, in particular for seriously injured workers. The amendments
drastically change the face of the NSW Workers Compensation Scheme
and are likely to significantly impact key players within the
scheme, including employers, workers and insurers.
An independent investigation into WorkCover's ailing
financial position revealed a AU$4.1 billion deficit, which was
increasing at a reported AU$9 million a day. NSW employers'
premiums were 20% to 60% higher than competitive states (including
Queensland and Victoria). As a result of the reforms, the expected
28% rise in premiums will not be implemented.
