The NSW Government has announced a $1 billion insurance reform package designed to create a “fairer system,” in the workers compensation space.
The package includes three main elements; a simplified system and customer experience, enhanced benefits for injured workers and premium reductions for business.
Announcing the reforms, NSW Minister for Finance, Services and Property, Dominic Perrottet said that the $1 billion package will help balance the current system.
“We are creating a fairer system,” Perrottet said.
“A system that is a financially sustainable now and into the future. A system that places the injured workers and businesses at the centre of decision making.
“Now that we are on a financially stable footing after fixing Labor’s $4.1 billion scheme deficit, we can proceed with the next stage of reform to better support injured workers, incentivise safe workplaces and keep premiums down."
To simplify the system and deliver better customer service, the Government will create three new organisations to operate and regulate the State insurance schemes and regulate work health and safety following recommendations from Parliamentary and independent reviews.
Payment of medical expenses, certain prostheses and aids for life for seriously injured workers will be stepped-up as will lump sum and minimum weekly payments with new financial assistance to help those injured return to work or education and facilitate retraining.
Business are likely to see 5-20% discounts for “maintaining safe work places and helping injured employees return to work,” the Government statement said.
“These reforms have been developed from the ground up by talking to injured workers, meeting with businesses and engaging with our stakeholders,” Perrottet continued.
“They honour the Government’s election commitment to provide two thirds of every dollar, above the amount to keep the scheme sustainable, to support injured workers and one third to lower premiums for business.
“We have simplified the system for all who engage with it, enhanced benefits to better support injured workers and provided substantial discounts on premiums to drive safer workplaces.
“The Coalition is delivering a Worker’s Compensation system that is fair, sustainable and customer centric.”
