Workers compensation regulation bulletin - Issue 02/2021

NSW workers compensation system regulatory activity

SIRA’s regulatory activities continue to be focused on areas of highest risk. SIRA takes firm and fair enforcement action as needed, based on the severity of harm or potential harm, the degree of negligence, and/or the need for deterrence.

These regulatory actions, along with education and support initiatives, contribute to SIRA’s strategic goals of improving customer experience and results, maintaining scheme and policy affordability, and building public trust.

Regulatory actions and education and support activity for the period 1 October 2020 – 31 January 2021 include:

Employers:

648 businesses purchased a workers compensation policy after SIRA commenced non-insurance investigations. This reflects over $1.3 million in additional premium raised and 2,218 more employees now being covered by a workers compensation policy.
SIRA issued nine penalty notices each for the value of $750 under s155 of the Workers Compensation Act 1987 for non-insurance.
SIRA made referrals to Revenue NSW to commence recovery action for $176,001 of avoided premiums (under s156 of the Workers Compensation Act 1987).
Two fines were issued for failing to pay workers compensation policies totalling $86,306.07 (known as double avoided premiums).
24 employer improvement notices were issued to employers who had failed to establish a return to work program, failed to appoint a return to work coordinator, or not provided suitable work as required by the Workplace Injury Management and Workers Compensation Act 1998.
One penalty notice was issued to an employer who failed to comply with an employer improvement notice.
60 proactive visits to employers with injured workers at risk of not returning to work (as identified through predictive modelling).
SIRA’s Customer Service Team responded to 105 complaints related to employer practices, with 47% alleging non-compliance with legislative obligations and 26% related to employer behaviour and engagement.
Four roundtable discussions were held with industry peak bodies to collaborate and share insights on workers compensation non-insurance in NSW.
There were 906 new registrations for the free online Return to Work Coordination Training, with 656 users identifying as an employer
There were 509 visits to the Small business assist tool and 1,290 visits to the Have you been injured at work? tool.

For more information about these tools visit Return to work coordination training small business assist and have you been injured at work.

Insurers:

SIRA commenced an audit of icare’s pre-injury average weekly earnings (PIAWE) calculations and compliance with workers compensation legislation.
SIRA commenced an audit of the Workers Compensation Insurance Fund (WCIF) to assess compliance with s154E(2) of the 1987 Act.
SIRA convened monthly assurance and oversight meetings with icare covering topics such as premiums, prudential management, claims management, return to work and data quality.
Seven private ruling applications were finalised with two determinations issued to employers. These determinations constitute legally binding decisions as to whether a person performing work is a worker, a deemed worker or an independent contractor for the purposes of workers compensation premium calculation.
17 regulatory reviews in relation to premium disputes between employers and their insurers were resolved, of which nine were arising from claims management issues.

Providers:

Provider approval to operate in the NSW workers compensation system:

295 allied health practitioners were approved;
206 approvals were revoked;
one approval was suspended;
seven approvals were reactivated.

Indexed adjustments to workers compensation benefits from 1 April 2021

The latest indexed adjustments to workers compensation benefits are now available and apply on and from 1 April 2021.

The adjustments were notified in the Workers Compensation (Indexation) Amendment Order 2021 which was published on the NSW Legislation website on 19 March 2021.

The Workers compensation benefits guide April 2021 is now available on the SIRA website and provides all stakeholders with the latest details on the indexed adjustments.

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