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While most employers have digested the impact of premium increases across VIC and NSW, they are not out of the woods yet. The reality is that these schemes are continuing to deteriorate, and we expect to see premium rates increase into FY25.
For those who missed our update, premium rates have increased by 42% in Victoria with the second highest impact on premium rates seen in NSW. As VIC and NSW renewal invoices are now being released, most employers will see these increases reflected in their invoices if they have not yet been provided premium projections by their insurer or broker.
Upfront discounts remain available with payment by instalment across these states. Alternatively, premium funding can be organised.
Now that 30 June has passed, employers will need to consider each state/territory’s requirements to finalise the lodgement of their actual wage declarations for FY23 and close out any pending FY24 estimate confirmations. It is not too late to amend FY24 estimates if needed.
Below is a summary of the arrangements in each state/territory, the key lodgement dates, and discounts available for upfront payment.
While most employers have digested the impact of premium increases across VIC and NSW, they are not out of the woods yet. The reality is that these schemes are continuing to deteriorate, and we expect to see premium rates increase into FY25 (which has already been confirmed for NSW). Therefore, effective claims management will become even more crucial to limit premium increases into FY25. Here are some key areas to consider:
These claims are often the hardest to manage due to the complex nature of the injuries, with factors such as secondary psychological impacts and/or employer-employee relationship breakdown often the driving force behind deteriorating claims performance and the scheme more broadly. While it is tempting to dismiss these matters as “too hard”, it is important to maintain regular check-ins and continue to develop clear strategies with insurers to help optimise outcomes for clients.
As an employer, if you are not across the management strategy of your claim and working closely with your Claim Agent/Broker then there is likely room for improvement. Clear and transparent strategies should be implemented not only to benefit the worker's sustainable return but also to ensure consistency throughout the claim's life cycle. Key stakeholders must all be held accountable in this process.
“Prevention is better than cure” is the best approach to reducing your workplace risk exposures. If you do not know what your business’ key risk exposures are, then it is time to start delving into your claims performance and incident reports to understand what is causing incidents and injuries and develop strategies to mitigate your risks.
SafeWork Australia, in addition to your insurer and even your broker, can provide benchmarking data or trend reporting to help you make a start and support your risk management strategy.
If you are an employer with deteriorating claims performance, the reality is your premiums (specifically in VIC & NSW) will continue to increase substantially. If claim costs are set, then it is wise to take a close look at your premium calculation breakdown and how you will be placed for FY25 to help minimise bill shock. Both your insurer and broker can assist you with this process.
