WorkCover NSW has announced a target collection rate of 1.68% of wages in 2011/12.

The rate compares with 1.66% last year and compares with 1.338% recently announced by Victoria for 2011/12, 1.42% in Queensland and 1.547% in WA.

WorkCover NSW says rates will remain the same, although the agency will adopt a new classification system from July 1 which provides employers with a better alignment between industry risk and premium rates.

The classification is based on the Australian and New Zealand Standard Industrial Classification 2006 system, which is also used by Victoria. It gives NSW another 41 industry functions, including occupations relating to internet publishing and broadcasting.

WorkCover NSW CEO Lisa Hunt says 87% of employers covered by the scheme will see no change in their premium in 2011/12 unless their wages increase or decrease or they move industry classification.

“For the 13% of employers whose premium takes into account their own claims experience, their premium may be affected by their wages and claim costs relative to other employers in the same industry classification,” Ms Hunt said. 

“Those with a good claims record relative to their industry will benefit from a reduction in their basic tariff premium. Those with a relatively poor claims record would pay more than their basic tariff premium.”

A WorkCover spokesman told insuranceNEWS.com.au the target collection rate will rise slightly because of a shift in distribution of wages between blue-collar high-risk industries and white-collar jobs.

Over the past year there has been a substantial decrease in white-collar wages, particularly in the finance sector, while wages in blue-collar industries have remained stable or slightly increased.

Around 85,000 claims are made each year, and Ms Hunt says WorkCover is focusing on improving claims management, “which creates the potential for reductions in… rates in future years”.