By Elizabeth (Liz) Greenwood

Many businesses are paying too much for workers’ compensation and we need members to help make the system fairer.

From 1 July 2026, NSW has frozen increases to the workers' compensation premium rate (known as the 'insurance premium target collection rate') until 30 June 2028. 

However, that does not mean every employer's premium will stay the same. Businesses whose premiums are influenced by their claims history, known as experience-rated employers, may still see their premiums rise or fall during this period.

This is because the part of the premium calculation that takes account of an employer's claims history will remain unchanged. Employers with open claims where injured workers are receiving weekly benefits may continue to see their premiums fluctuate.

icare has advised Business NSW that it will use the rate-freeze period to consult on how workers' compensation premiums are calculated and has asked Business NSW to work closely with it throughout this process.

Business NSW has established a sub-committee of workplace health and safety, workers' compensation and regulatory policy experts to help shape its response to the review. We will identify concerns with the current premium formula and provide recommendations on how it could be improved.

The exact premium formula has not been publicly disclosed since the 2015 workers' compensation reforms. As a result, our feedback will draw on what is publicly known about the formula, as well as employers' experiences and the impact of the formula on businesses across NSW.

We want to hear from employers. If you have concerns or suggestions about the way your premium is calculated (for example, suggestions for new types of incentives), please share your experience with  the policy team at policy@businessnsw.com. We will be in touch to discuss further.

Elizabeth (Liz) Greenwood is Senior Policy Manager, Workers Compensation, WHS and Regulation, at Business NSW.