Closure of the Premium Discount Scheme

The reforms to the workers compensation premium system announced by the NSW Minister for Commerce, John Della Bosca, on Friday 17 June included the decision to wind down the Premium Discount Scheme (PDS) starting from 30 June 2005. As a result, the PDS will be closed to new participants from that date.

The decision to close the PDS was based on the mixed reaction that was received from stakeholders regarding its ongoing value. Furthermore, the reforms to the premium system will provide longer-term incentives for employers to improve workplace safety and injury management.

As a current PDS participant:

• you will cease participation in the PDS at the end of your 2004/05 policy renewal year, as specified in the Insurance Premiums Order 2004/05
• you will be able to undertake the relevant audit for your current year of participation (if you have not already done so), given that you have passed at least one audit prior to 30 June 2005
• your final audit must be undertaken within six months of the end of your 2004/05 policy renewal year, as specified in the Insurance Premiums Order 2004/05.

For the purposes of final verification, all Premium Discount Advisers (PDAs) will be given a rating of 15 percent. In other words, if the verification is to confirm the discount for year one of participation, your discount would be 15 percent of your experience-adjusted premium; for year two it would be 10 percent; and for year three it would be five percent – or up to the maximum amount as noted in the Guide to the NSW Premium Discount Scheme.