ReturnToWorkSA Average Premium Rate for 2023-24
(23 May 2023)
The ReturnToWorkSA Board has set the average premium rate for 2023-24 at 1.85%. This is an increase from 1.80% in 2022-23.
The new average premium rate will cover the estimated liability for new claims received in 2023-24 and contribute towards returning the Scheme to full funding.
At the time of setting the 2022-23 average premium rate, the prospect of future increases was identified as it related to increased liabilities and future costs linked to the outcome of a significant legal case that was ultimately reached in 2021. When the Return to Work (Scheme Sustainability) Amendment Bill 2022 was tabled in June 2022, the Government forecasted the proposed legislative changes would allow future increases to be contained within an average premium rate of 1.90%. The Return to Work (Scheme Sustainability) Amendment Act 2022 was passed on 6 July 2022.
Continued improvements in “remain at and return to work" performance of the Scheme have also assisted in keeping the average premium rate increase to a minimum while taking reasonable steps to responsibly restore the Scheme balance sheet towards full funding.
The average premium rate is a percentage of remuneration paid by South Australian employers which ReturnToWorkSA collects to cover the cost of claims and administration of the Scheme for the approaching financial year, and any funding shortfall from liabilities incurred in previous years.
While the average premium rate is a measure of the overall cost of the Scheme, it is important to note that the premium paid by individual employers will vary significantly depending on the risk and claims costs of the industry they operate in, the amount of remuneration they pay to their employees, the level of discount they receive (based on size), and their individual claims experience (number of claims and return to work performance).