The NSW Workers’ Compensation Scheme has recorded a $576 million improvement in its financial position, according to NSW Commerce Minister John Della Bosca.

He attributes the improvement to a combination of better claims management and a strong investment return.

The latest official valuation by PricewaterhouseCoopers shows the scheme’s projected deficit has been reduced substantially over the past six months. “The independent actuary reported at June 30 2004 the deficit was estimated to be $2353 million, a reduction of $576 million on the previous valuation in December,” Mr Della Bosca said.

The scheme’s funding ratio has improved to 73% – up from 68% six months ago.

Mr Della Bosca says the valuation demonstrates the effectiveness of the 2001 reforms, which have saved $1800 million, mostly from legal and related costs.