WorkCover premiums in NSW are to fall by an average of 5% for 200,000 employers, saving them more than $113 million a year, according to State Treasurer Andrew Constance.

“The Government’s WorkCover reforms have not only prevented premium increases, but enabled premium reductions in the past year.”

The cuts for 2014/15 follow average rate reductions of 12.5% last year, which have returned $334 million, he says.

NSW Minister for Finance and Services Dominic Perrottet says the previous Labor government left a “broken” workers’ compensation scheme, with a $4.1 billion deficit.

“Key reforms and better management have put the scheme in a much stronger position, restoring its financial sustainability,” Mr Perrottet said.

Earlier this year the Government announced a $1.3 billion surplus for the scheme, driven by investment returns of $690 million.

Mr Perrottet says NSW’s return-to-work rate improved 3% to 88% in 2012/13 – above the national average of 86%.