Newly released figures from icare reveal the desperate situation of the state’s workers’ compensation scheme, just days after the insurer received a $669 million bail out from the NSW Government.

Despite the NSW Government announcing an average 8 per cent premium increase for employers in April, large cohorts of businesses – particularly in aged care and transport – will next week face premium increases of up to 16.7 per cent, according to icare’s premium briefing.

Business NSW analysis reveals these increases, from July 1, will have major cost implications for 2200 small employers.

These employers will be pushed into a higher cost bracket that’s normally reserved for larger businesses.

The changes are predicted to hurt regional businesses the most because, outside the major cities, it’s typically more difficult for injured workers to find alternative work.

Business NSW CEO Daniel Hunter said this cost increase will have a negative impact on businesses’ future operations – especially in light of wage increases, interest rate rises, energy price spirals and softening consumer demand.

“While the state government describes the increase as an average increase of 8 per cent, in reality, the increases range between 2 per cent and 16.7 per cent,” he said.

“Because of these Workers Compensation Industry Classification (WIC) rate increases, 2200 employers will be pushed into being what’s known as experience rated employers.

“This means that, to avoid an unnecessary increase in premiums they will now need to invest more time and energy into ensuring their claims are managed properly.

“The premium increase comes hot on the heels of this month’s annual wage review decision – which saw that national minimum wage increase by 8.65 per cent and the modern award minimum wage increase by 5.75 per cent.

“These wage increases mean even more employers will be pushed into this higher cost bracket.”

Last week Treasurer Daniel Mookhey announced $669 million would be given to icare to prop up another fund that icare manages.

“The $669 million in taxpayer money being given to icare is further evidence of poor management,” Mr Hunter said.

“Business NSW is calling for urgent reform to the workers’ compensation system to ensure employers and taxpayers are not forced to pay for bad claims management practices.”