WorkCover Premiums

The Hon. GREG DONNELLY: My question is addressed to the Acting Minister for Industrial Relations, and Minister Assisting the Minister for Finance. Will the Minister update the House on the latest WorkCover premium rates?

The Hon. ERIC ROOZENDAAL: I thank the honourable member for his question on this important matter. The new WorkCover premiums order was gazetted earlier this month. It confirms that New South Wales workers compensation premiums remain at their lowest rate level in more than a decade. The Iemma Government has reduced WorkCover premium rates by an average of 30 per cent over the past two years. This is a $785 million annual saving to New South Wales businesses, with the most recent cut delivered in December last year. The new Insurance Premiums Order 2008-09 has, for the first time, given employers both the initial and hindsight claims cost rates simultaneously. This gives larger, experience-rated employers greater certainty, and allows these businesses to budget more effectively.

The Insurance Premiums Order sets the rates for each industry based on that industry's recent claims performance. No industry rate increased this year. However, some industries with improved performance in their claims history will see lower overall premium rates. The Insurance Premiums Order 2008-09 applies to policies that start or renew on or after 30 June 2008. The target collection rate has reduced to 1.72 per cent of wages—down from 1.77 per cent. Businesses in New South Wales pay the third lowest rate of the States and Territories, while injured workers have access to the nation's most comprehensive suite of benefits. This Government rescued the New South Wales workers compensation scheme with no assistance from the Coalition. Errors made by the previous Liberal-Nationals Government saw the scheme build a $3.2 billion deficit.

[Interruption]

Members opposite laugh at a $3.2 billion deficit! That was their contribution to the people of New South Wales. I can report that the scheme is now back in the black. Premiums have been reduced and benefits have been increased. As part of the scheme's continued improvement, WorkCover will adopt the revised national standard for industry classifications when determining workers compensation premiums from 2010. In recognition of the changing industrial landscape, New South Wales will use the new Australian and New Zealand Standard Industry Classification [ANZIC] 2006 as the basis for its classification system. ANZIC 2006 has an additional 41 classifications, and will more accurately reflect modern industry trends. It provides a more effective framework for classifying businesses as they recognise changing industries and technological advances.

Additional industry classifications will provide greater overall alignment between an industry's level of risk and an employer's premium rate. The Insurance Premiums Order 2008-09 and more information on the WorkCover industry classification system is available from the website, www.workcover.nsw.gov.au, or by calling 131050. The Iemma Government will continue to work hard to deliver real improvements to the workers compensation system to make it easier to conduct business in New South Wales and to benefit the whole community.