Business NSW will continue to push for reform of compulsory state insurer icare after the NSW Government limited the increase in workers compensation premiums to 8 per cent.

Nominal insurer icare had requested an exorbitant 22 per cent increase however the NSW Government announced it will raise workers’ compensation premiums for the 2023-24 financial year by 8 per cent, and cap the two subsequent years to no more than 8 per cent.

The changes by icare – which covers more than 3 million NSW employees for wages and medical costs for workplace injuries – are expected to impact more than 300,000 of the state’s 817,000-plus businesses and will still represent a significant challenge for already-struggling businesses.

Business NSW CEO Daniel Hunter says the incremental hikes will hurt businesses already battling interest rate rises, spiralling energy costs, labour shortages and incoming industrial relations changes.

“Absorbing an 8 per cent increase on their insurance premiums will be very difficult for many businesses,” Mr Hunter said.

“For the sake of hardworking businesspeople, workers and taxpayers, the NSW Government must strictly performance manage icare to ensure the 8 per cent increase in the next financial year is significantly reduced in the following years.

“Business NSW will be watching closely and working with the government to ensure the broken claims management system is reformed and the overall volume of claims is reduced. 

“Work Health and Safety Minister Sophie Cotsis acknowledges herself this impost will ‘still be incredibly tough on small businesses’.

“Any failure to address icare’s fundamental underperformance must have consequences.

“Small businesses have indeed been through so much hardship over the last few years.

“When businesses are strong the economy is strong. Let’s keep it that way to ensure our state remains the best state to start and run and business.”