NSW employers will pay 8% more on average for workers’ compensation cover next financial year.  

State insurer icare says the rate rise – the third consecutive year of maximum allowed increases – comes as it works to cover increasing claims costs.  

“Workers’ compensation schemes across Australia are responding to inflationary pressures, higher numbers of complex claims, and investment volatility,” an icare spokesperson said.  

“icare’s average premium increase of 8% responds to the economic environment and helps support a strong and sustainable workers’ compensation scheme for more than 338,000 public and private sector employers in NSW, and 3.5 million workers across NSW.”  

It says individual employers’ premium rises will vary depending on industry, claims history, safety performance and other risk factors.  

The minimum premium for a workers’ compensation policy will increase from $225 to $240.  

Eligibility for the Safe Employer Reward – a premium credit for employers based on claims performance – will also change, with businesses required to submit an “actual wage declaration” in the 2026-27 financial year.  

“We encourage all employers to ensure their actual wage declarations are submitted on time, talk through options with their broker, or simply visit our website for helpful guidance,” icare said.  

Small businesses are entitled to a cost cut of 5% for early premium payments, while medium to large organisations can achieve a 3% discount.