The NSW Government will provide an extra $669 million to top up icare schemes that provide workers’ compensation and other insurance arrangements for the public sector. 

The main scheme in icare’s Insurance for NSW is the Treasury Managed Fund, which provides workers’ compensation cover for more than 384,000 workers and 143,000 volunteers. It also provides cover for key assets and infrastructure such as schools, hospitals and other services provided by the state. 

The funding injection is needed to help address issues including historic child sexual abuse liabilities, damage from natural disasters and workers compensation claims, the Government says. 

The latest valuation as at December 31 2022 shows the Insurance for NSW schemes’ ratio of assets to liabilities is about 101% rather than the required 105%. The schemes need to be topped up by June 30 to ensure compliance with asset policies. 

Treasurer Daniel Mookhey says lagging return to work rates have been a persistent issue for the state’s insurance system.  

“Reduced injury rates, reduced severity of injuries and better return to work outcomes are the key reforms needed to ensure these protections are available to workers today and in the future,” he said. 

“This additional contribution will likely result in an increase in gross debt impacting the Budget in September but it is necessary to ensure our public sector workers and property are properly insured.” 

The Labor Government, elected in March, has blamed icare problems affecting public and private sector schemes on the previous state leadership. An independent review was completed in 2021 and changes introduced. 

“The reforms have begun, but we need to be honest that it will take years to fix a decade of neglect and mismanagement of icare by the previous government,” Industrial Relations Minister Sophie Cotsis said.