The NSW Government & WorkCover NSW have recently introduced new changes to the way workers compensation premiums are calculated for medium and large employers in NSW. Although details on WorkCover NSW's website appear to be an overview and employers are best to discuss these changes with their workers compensation insurer, below is a summary of the key changes.

1) Average Performance Premium (APP)

This is the starting point for all employers and is a calculation of the companies wages bill multiplied by the relevant WorkCover Industry Classification (WIC). This is similar to the existing structure in NSW.

2) Employer Safety Incentive (ESI)

Previously introduced for small employers (Those with a base tariff premium < $30000), there is now a similar incentive for medium and large employers to improve safety within their workplaces. This results in a reduction to the APP rate listed in point 1 above. In addition there is also another incentive for employers (Employer Safety Reward) whom do not sustain any premium impacting claims for a 4 consecutive year period.

3) Claims Performance

Finally, medium and large employers can get further discounts to their premium based on how quickly they return injured workers back to suitable work after an accident. Incentives are based on time periods post accident (0 - <13 weeks, 13 - <26 weeks, & 26 - <52 weeks) and the reductions can be as high as 15%. This incentive program applies to claims made after 30 June 2015.

Further Information:

WorkCover NSW have some additional information on their website but this is limited and most employers would obtain more detailed information by speaking with their workers compensation insurer or broker directly.