Workers Compensation
Practical information for employers
In NSW, employers have clear obligations when managing workplace injuries and must consider how the management of injuries in their workplace will impact on the recovery and well-being of their workers, as well as the potential impact on their workers’ compensation insurance premiums.
How are Workers’ Compensation Premiums calculated?
When applying for a Workers Compensation policy, businesses must disclose their activities so a Workers Compensation Industry Classification (WIC) can be assigned. The average performance premium is calculated by multiplying the WIC premium rate by total wages paid. If the business has multiple activities, this calculation is done for each and combined.
If the average performance premium is $30,000 or less, the business is a deemed a small employer. Premiums aren’t affected by injury claims.
If it is over $30,000, the business is a deemed a medium to large employer (also called an experience-related employer), and claims performance will influence premium costs.
Whilst WIC and wages are unable to be changed to minimise premiums, the cost of claims and associated increase in premiums can be minimised through effective injury management and promoting a safe and early return to work following a workplace injury.
What is a Return to Work Program?
A workplace injury can be a challenging experience for both employees and their employer. To ensure a smooth transition back to work, the State Insurance Regulatory Authority (SIRA) mandates that all employers in NSW maintain a Return to Work (RTW) Program.
A RTW Program is a structured policy that outlines the procedures for managing work-related injuries or illnesses. It should reflect an employer’s commitment to workplace safety, injury management, and employee well-being and must align with SIRA’s Guidelines for Workplace RTW Programs which outlines mandatory obligations and best practices. These programs are designed to support injured workers in their recovery while ensuring compliance with workers' compensation legislation.
Employers in NSW are legally required to establish a RTW Program within 12 months of becoming a Category 1 or 2 employer.
The importance of proactive injury prevention and injury management programs
Work, Health and Safety statistics released in a report by Safe Work Australia in September 2024 indicate that:
In Australia in 2022/23, there were 139,000 serious workers compensation claims.
Over the past 10 years, time lost for work-related injuries and illnesses has been increasing, with the median now being 13 weeks or more off work for 21.3% of accepted claims (2021/22).
The leading cause of serious workers compensation claims, making up 32.7%, was body stressing injuries.
The report noted 61% of serious workers’ compensation claims occurred in industries which have varied and wide-ranging manual handling hazards including manufacturing, transport, warehousing, health care and social assistance, public administration and construction.
How we can help
Caliso offers support to employers to effectively manage workers’ compensation claims, meet their injury management obligations and guide them to minimise potential increases in workers’ compensation premiums through proactive injury management strategies.
If you would like a confidential discussion on how Caliso could assist please contact us on admin@caliso.au
