The examination highlighted significant threats to the financial sustainability and fairness of the scheme. It pointed to deficiencies in the state insurer’s quality control, the use of outdated wage estimates, and lapses in employer follow-up processes. In contrast, specialised insurers demonstrated more active compliance measures, reducing the overall risk exposure.
Since December, SIRA and icare have collaborated on addressing these challenges, successfully reducing over 294,000 outstanding wage declarations and recovering more than $353 million in premiums. Efforts included the implementation of a self-service portal, which efficiently processes 90% of wage submissions instantly, alongside employer education initiatives and enhanced supervision over premium adjustments.
SIRA's CEO, Mandy Young, stated that by the third quarter of the current financial year, there will be an intensified focus on employers with revenues exceeding $250,000 who fail to submit accurate wage declarations. The NSW government is currently considering introducing financial penalties that would extend beyond simple payment recovery to include fines and potential prosecutions for intentional non-compliance.
Ms Young emphasized the importance of robust regulatory tools and clear consequences for those not adhering to the regulations, to maintain the integrity of the scheme and ensure injured workers receive the necessary care and support they deserve.
