24 October, 2007

Premier Morris Iemma has today announced a $165 million boost for New South Wales workers and employers.

Mr Iemma said the WorkCover scheme had returned another strong performance in the six months to June 2007 with the surplus increasing to $812 million.

“With the scheme’s continued strong financial performance, coupled with the lowest injury rates in 20 years, I am able to announce a fifth consecutive reduction in WorkCover premiums,” Mr Iemma said.

“In addition we will introduce a package of reforms to again increase benefits for injured workers.

“The average workers compensation premium will be reduced by a further five percent for all policies new or renewed after Decemeber 31, 2007.

“This will result in an annual saving of about $110 million for NSW businesses.

“The five premium rate reductions in two years amount to a 30 per cent discount, saving NSW businesses $785 million per year.

“This package delivers on my commitment to help working families and to keep NSW open for business.”

The Government will put before Parliament a package of benefit reforms that will:

• substantially increase the level of permanent impairment lump sum payments, with the maximum amount rising by more than 38 per cent to $390,000 (the maximum amount will also be available to a greater number of severely injured workers);
• significantly increase the lump sum payment will increase by more than 28 percent, to $425,000 – the nation’s highest payment);
• ensure all workers sustaining a compensable permanent impairment also receive an additional amount for the pain and suffering arising from their injuries (currently only workers with more severe impairments receive additional compensation for pain and suffering);
• provide for permanent impairment and death benefits to be indexed annually, to ensure their value is maintained over time (Changes to permanent impairment entitlements will apply to workers injured after 1 January 2002, which is when the current permanent impairment system came into effect.)
• streamline the permanent impairment assessment process to ensure compensation for pain and suffering is consistent and equitable for all workers (savings from reduced administration and legal costs will be used to assist fund increase payments to workers); and
• allow more workers (in restricted circumstances) to have their ongoing benefits commuted in one –off payment.

“This is most comprehensive reform of the NSW workers compensation benefits regime since 2001 and will mean more than $50 million more each year being paid direct to injured workers and their families,” Mr Iemma said

“This is in addition to the $250 million set aside from the December 2006 Scheme surplus for initiatives to assist injured workers.

“When we inherited this scheme from the Coalition it hadn’t covered its costs for many years, was wracked with costly legal disputes and headed to a $3.2 billion deficit.

“These further improvements are possible only because of the comprehensive reform program put in place by the NSW Government to make the scheme focus on assisting the injured to recover and return to work.

“Skilled management of this scheme has seen dramatic reductions in premiums to assist business and enhance our State’s competitiveness, while injured workers are receiving more immediate medical and financial assistance.

“The scheme is fulfilling its primary purpose and injured workers and business are both benefiting.”