FY24-25 Mid-Year Insights Paper - Workers Compensation Premiums
- garrysimpson
- 4 days ago
- 1 min read
Ability Roundtable regularly reports on the workers compensation premiums of Ability Roundtable members using its longitudinal data set. In its most recent financial year reporting for 2023-24 we found that the median workers compensation premium of participating members was 3.0%. Ability Roundtable has since undertaken a 2024-25 Mid-Year financial snapshot of participating members, and as at 31 December 2024, the median workers compensation premium of participating members was 3.1%, compared to the historical Disability Support Worker (DSW) Cost Model assumption of 2% of Direct Costs.
It is important to observe:
the median across all jurisdictions now sits above the NDIA Cost Model assumption of 2.0% of Direct Costs.
While the median increase over the last 12 months is small, the overall increase for the highest 25% of participating members see workers compensation premiums of 4.25% or above.
In fact, there are now only 16% of participating members who report workers compensation premiums within the DSW Model assumptions of 2.0% of Direct Costs or below.
There are clear differences across jurisdictions which are not accommodated by the DSW Cost Model’s national approach to pricing. When comparing results across three financial years, for most jurisdictions we have observed an increase to the median year on year.
In fact, we see NDIA’s Cost Model assumptions effectively disadvantage providers financially for operating in certain jurisdictions, especially in New South Wales/ACT where the median sits at 4.7%.
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