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Payback Time At Workcover

Sydney Morning Herald

Thursday March 22, 2007

Jacqueline Maley

WORKCOVER insurance premiums will drop 5 per cent, and $250 million will be returned to NSW workers, the State Government announced yesterday.

The Commerce Minister, John Della Bosca, revealed the plans after the latest valuation results of the WorkCover scheme showed it was $41 million in surplus.

The six-monthly review by PricewaterhouseCoopers, released yesterday, showed the state-run compensation body has bounced back from a $3.2 billion deficit in December 2002.

Mr Della Bosca claimed the premium cuts and one-off payment were possible because of the State Government's sound financial management. "This latest reduction means Morris Iemma has now dropped premiums by 25 per cent" he said.

The president of the Small Business Reform Group, June Gibson, said premiums were still too high, forcing many businesses to move interstate or risk insolvency. WorkCover auditors inspecting many businesses had deemed subcontractors to be employees and billed the businesses for millions of dollars in outstanding premiums, she said.

Chris Hartcher, the Opposition spokesman on industrial relations, said the figures proved small business had been paying too much. He said the scheme would be overhauled by a Coalition government.

© 2007 Sydney Morning Herald

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