Davidson businesses face an increase of over $17 million in their workers’ compensation premiums unless the WorkCover scheme is reformed, according to local MP Jonathan O’Dea.
The average annual increase for every local business would be $2,201.
“An increase of this size will hit jobs and economic growth and make our employers think twice about continuing to do business in NSW,” Mr O’Dea said.
“The WorkCover scheme is facing a $4.1 billion black hole and unless it is reformed our local businesses will bit hit with an extra 28 per cent on their premiums to cover the shortfall.
“It could also mean residents pay higher prices for everyday products because businesses will have to make up the difference just to keep their heads above water,” Mr O'Dea said.
The figures provided by WorkCover showed that last year businesses in Davidson paid $61,609,795 in workers’ compensation premiums – that would increase to $78,790,935 unless changes were made.
“Labor mismanaged this scheme for 16 years and our businesses now pay up to 60 per cent more than their counterparts in Victoria and Queensland,” Mr O’Dea said.
An issues paper released by the NSW Government last week outlined the WorkCover scheme’s failings when compared to its key aims – supporting injured workers through rehabilitation, getting them back to work, and remaining financially sustainable while still being price competitive with other States.
It noted the cost of the scheme was increasing despite the number of claims dropping – meaning injured workers were remaining on WorkCover benefits for longer than ever before.
“We must achieve better rehabilitation outcomes, better rates of return-to-work and better management of the scheme,” Mr O’Dea said.
He said a Parliamentary committee is now being formed to look at the best ways to make the scheme viable in the long term.
