After much scrimping and saving, the NSW workers’ compensation scheme is back in the black.

Industrial Relations Minister John Della Bosca says the WorkCover Authority, which was drowning in more than $3 billion in unfunded liabilities just five years ago, has paid off its debts and can afford to be a little more generous with its key stakeholders.

“We’re able to increase benefits to injured workers by 10% and provide a further cut to premiums of 5%,” he said.

The changes will take place from January 1.

The statutory workers’ compensation scheme in Victoria is also achieving strong financial results. The Victorian WorkCover Authority has announced a $475 million result from its insurance operations. Mr Lenders says the financial result was further buoyed by a strong improvement in workplace safety and a 10% cut in the average premium charged.

A record low number of fatalities occurred during the 2005/06 financial year.