The NSW Government may make further premium rate cuts to the state’s workers’ compensation scheme, following reductions last year.

“In the 2013 premium cycle, rate reductions averaging 12.5% for NSW employers returned $330 million to help grow the state’s economy,” Finance and Services Minister Dominic Perrottet said.

He says further premium reductions will be considered under the usual review processes.

The current average premium rate is 1.47% of total wages.

“The NSW insurance premiums order will establish the set rates to be used from June 2014 onwards,” a WorkCover NSW spokesman told insuranceNEWS.com.au.

“This [order] is set to be released mid to late May.” He says the authority “can’t speculate on the movement of rates”.

At December 31 claims reported last year were down 24% compared with 18 months previous, according to the spokesman.

Last week NSW Treasurer Andrew Constance and Mr Perrottet announced the scheme has an updated surplus of $1.36 billion, driven by investment returns of $690 million.

This gives the Government flexibility on premium rate reductions and benefits for injured workers, subject to the findings of a statutory review and a Law and Justice Committee inquiry, they say.

Mr Perrottet says reforms two years ago resulted in the lower premiums.

“Workers’ compensation insurance premiums are now $1.1 billion lower for NSW employers than they would have been without the 2012 reforms.”

Elsewhere, WA has an average premium rate of 1.66% of wages, with Victoria on 1.29%, Queensland 1.45% and SA 2.75%.