The New South Wales Business Chamber has warned that over 12,600 jobs could disappear from the state economy if workers’ compensation premiums are allowed to increase by the projected 28 per cent.

 

The NSW Business Chamber told the Joint Select Committee on the Workers Compensation Scheme that a ‘kneejerk’ reaction to balancing the state’s scheme would have a major impact on the state’s economy.

 

“If premiums are increased by the 28% that the Actuaries assert is needed to get the scheme back to full funding in 5 years, our very conservative projections show there will be 12,600 jobs and job opportunities lost from across the NSW economy,” said Stephen Cartwright, CEO of the NSW Business Chamber.

 

“Even at the lower 8% needed to get the Scheme back in the black in 10 years; the potential job impact will be around 8,000.”

 

Mr Cartwright has argued for a move to structural reform of the scheme, which has recorded a $1.4 billion deficit, rather than an increase in premiums.

 

“This is not easy reform, but it is necessary reform if we are to have a Compensation Scheme that gets the balance right between supporting injured workers and helping employers to create jobs,” Mr Cartwright said.