WorkCover NSW has announced premium reforms for Medium and Large employers taking effect 30 June 2015. This has resulted in significant changes to the way premiums are calculated and the new system is focused on early return to work, with important premium changes including:

Renewal Premium

Premiums will now be calculated on base premium, taking three years of claims cost as a percentage of wages which is measured annually against the Scheme performance. This will then be adjusted with either a discount or a loading Claims Performance Adjustment (CPA).

Single Rate Calculation

Claims experience will only impact the initial premium calculation at the beginning of the year, any adjustments are based on the changes of the business wages.

Claims Cost

Paid wage loss will primarily affect claims costs along with Lump sums for premium purposes. Medical, Rehabilitation and Legal costs will no longer impact.

Removal of Estimated Claims Cost

Premiums will be impacted by paid cost only, there will be no estimated costs associated with claims.


Employer Safety Incentive (ESI)

This will provide a 10% discount on employers base premium upfront which can be invested into providing a safer workplace for employees.

Employer Safety Reward (ESR)

This will provide further discounts to employers with safe workplaces who have not had a claim in the past four years.

Return to Work Incentive (RTWI)

This will provide discounts to claims cost at renewal for employers who are able to provide a return to work for their employees.

Return to Work Period Return to Work Incentive (RTWI)
0 – 13 weeks 15% reduction in paid weekly claims assessments
13 – 26 weeks 10% reduction in paid weekly claims assessments
26 – 52 weeks 5% reduction in paid weekly claims assessments

Performance Discount (PD)

This is a brand new discount that will apply to the final premium adjustment calculation if the WorkCover NSW scheme has improved its performance to rewared employers’ return to work efforts.


AEI Workers Compensation Solutions can help your business implement strategies to reduce your premiums through the introduction of Risk Management Systems, Workplace Safety programs, Loss prevention and general education for the workforce.

If an injury does occur, it is important to focus on early intervention where we can use our skills and experience to work with your insurance company to get the best outcome for all parties.

For more information about these changes download the WorkCover NSW Guide or contact us today to speak with one of our Workers Compensation Specialists – Mitchell Clark on 0434 692 113 or Ben Donnelly on 0439 331 308.