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All employers in NSW are required to pay workers compensation premiums. The NSW Workers Compensation Scheme is funded by the premiums paid by employers and provides medical and financial support of injured workers.
Workers compensation insurance premiums are based on a number of things, including:
- the industry in which the employer operates (the base industry premium rate reflects the costs of all compensation claims that have occurred in this industry)
- the amount of wages the employer pays to its workers
- the costs of any claims made by their workers (for employers with a basic tariff premium greater than $10,000 and with wages greater than $300,000)
- the dust diseases levy.
Insurance Premiums Order
The Insurance Premiums Order (IPO) contains important information on the WorkCover Industry Classification System, premium rates, dust diseases rates and information on the manner in which an employer's claims experience will be incorporated into their premium.
Reforms to the NSW Premium System
The NSW Government recognises that premiums should be fair and reflective of employer risk. The reforms aim to more fairly distribute Scheme costs while protecting the overall level of premium collected for the Scheme. See further information.
Mine Safety Fund
The Mine Safety Fund was established with the passing of the Mine Safety (Cost Recovery) Act in December 2005, following recommendations that came out of the Mine Safety Review undertaken earlier that year.
The purpose of the Fund is to provide for mine safety regulation in NSW by the Department of Primary Industries.
Employers in the WorkCover Scheme with wages in the mining industry will contribute to the Mine Safety Fund through an adjustment to their workers compensation premium. The Department of Primary Industries will determine the contribution required to be made to the Fund annually.
For employers whose policies commence on or after 30 June 2006 your workers compensation Scheme Agent will collect your contribution to the Mine Safety Fund.
The Mine Safety Fund premium adjustment amount will appear as a separate amount on your premium notice.
The adjustment for 2006/07 will be 1.186 per cent of wages and applies to those employers within WorkCover Industry Classification Codes 120000 to 152000. The Mine Safety Fund rate will be set annuallyand published in the Insurance Premiums Order.
For more information on the Mine Safety Fund contact the NSW Department of Primary Industries by phoning 1300 736 122 or visit the Department of Primary Industries website.
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