NSW WorkCover will hold its average premium at 1.68% of wages following the State Government’s decision to reform the scheme and cut benefits.

WorkCover Advisory Board Chairman Michael Carapiet says the reforms passed into law last month mean premium increases are no longer necessary.

The Government had said that without reform, premiums would have to increase by 28% to address the scheme’s $4 billion deficit.

The reforms include earlier reductions in benefits as well as measures to encourage people back to work. Unions mounted a fierce campaign against the changes, but Mr Carapiet says simply increasing premiums would have cost jobs.

“Existing premiums paid by NSW employers are already between 20% and 60% higher than in Victoria and Queensland, and any further increase would have had a adverse impact on the economy,” he said.

All the mainland states have now published their workers’ compensation premium rates for this financial year.

Victoria’s rate remains the lowest in the country at 1.298% after the Government announced a 3% cut in this year’s budget, followed by Queensland at 1.45%, up from 1.42% in 2011/12.

WA increased its rate by 7.8% to 1.691% and South Australia’s rate remains the highest at 2.75%.