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Business welcomes reduction in workers compensation premiums

Release Date

02 May 2013

NSW’s peak business organisation, the NSW Business Chamber, has strongly welcomed the NSW Government’s announcement that workers compensation premiums will be reduced by an average of 7.5 per cent as a result of last year’s reforms to the scheme.

Australian Business Consulting & Solutions forms part of something bigger; the Australian Business Solutions Group. The group supports the NSW Business Chamber and its efforts to support small business. The reduction in workers compensation premiums is just one example of how the Chambers advocacy work for small business is bearing fruit.

The NSW Business Chamber was a vocal advocate of the need to reform the NSW Workers Compensation Scheme that had a $4 billion deficit and potential premium hikes of 28 per cent. The NSW Business Chamber conservatively estimated at the time that such a premium hike could jeopardise 12,600 jobs and job opportunities.

“This is a great outcome for the NSW business community. Not only has the leadership of the Premier prevented a potential 28 per cent hike in premiums and a threat to 12,600 jobs, but the overall cost of the scheme has now been reduced by an average of 7.5 per cent,” said Stephen Cartwright, CEO of the NSW Business Chamber.

“Premier O’Farrell has put jobs first with his decision to reform the state’s workers compensation scheme rather than take the easy option of hiking premiums to cover the scheme’s deficit.

“These reforms particularly recognise the importance of supporting small businesses and their vital role in generating jobs.”

Mr Cartwright said at a time when the NSW Business Chamber’s Business Conditions Surveys are showing that businesses are continuing to struggle in a difficult economic environment, it made sense for government to be reducing cost burdens rather than adding to them.

“In our submission last year to the Joint Select Committee on the NSW Workers Compensation Scheme, the Chamber argued reforms had to go beyond those being considered by the Committee and encompass such things as the design of the premium system. We are particularly pleased to see our calls have been heard and there is to be a simpler, fairer and more transparent premium system for 95% of businesses.

“While the premium reductions and premium changes are both very important and welcome, more work needs to be done to make the system even more competitive with other states and easier to understand and use for both employers and injured workers.

“Today’s announcement that the reforms to the state’s workers compensation scheme are working and are reducing the cost of employing people is a significant step on the path to making NSW a more competitive state in which to run a business.”

 

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