The New South Wales Government has released an issues paper and announced a parliamentary committee as the next steps to reforming WorkCover NSW.

 

State Minister for Finance and Services, Greg Pearce, said the scheme will run a $4 billion deficit and would fast become unviable unless it was reformed to make it more economically sound.

 

“We want to transform the scheme to ensure injured workers get the best treatment as quickly as possible; that employers are not hit by massive premium hikes; and that our State has a solid scheme which will do its job well into the future,” Mr Pearce said.

 

“Analysis by WorkCover, the independent scheme actuary - PwC - and the Auditor-General have concluded that the scheme in its current form is not financially sustainable.”

 

Mr Pearce warned that without immediate action, NSW businesses could face premium hikes of up to 28 per cent on average.

 

“Huge increases in premiums would be a damaging impost on business owners and operators who work hard to make a living and generate jobs for others,” Mr Pearce said.

 

“With premiums in NSW already between 20 and 60 per cent higher than in Victoria and Queensland, any increase would only drive more businesses and more jobs interstate.”

 

Mr Pearce also announced the Joint Parlimentary Committee of eight, to be chaired by Robert Borsak, and consist of four Coalition MPs, two labor MPs and one Christian Democratic Party MP.

 

The committee will be tasked with inquiring and reporting on:

  • The performance of the scheme in the key objectives of promoting better health and return-to-work outcomes;
  • The financial sustainability of the scheme; and
  • The functions and operations of the WorkCover Authority.

 

The committee will report to the Government in late May

 

The issues paper can be found here