Understanding Workers' Compensation in NSW: What You Need to Know About iCare, Wages Declarations, and Premiums

In New South Wales, iCare (Insurance and Care NSW) is the default provider of workers' compensation insurance for most employers. This insurance covers employees in the event of a workplace injury, including medical treatment, income support, and recovery services.

The Actual Wages Declaration: Critical for Accurate Premiums

Each policy year, businesses must lodge a declaration of actual wages paid to workers. This ensures the workers compensation premium is based on real figures, not estimates.

📉 If you don't submit your actual wages, iCare automatically applies a 30% uplift to your previous declaration or estimate. This often results in an inflated premium.

📌 Case in Point: We've assisted businesses that had not lodged for multiple years and were unknowingly paying far more than required due to compounding estimated increases.

Industry Classification Rates: Why Accuracy Matters

Your business activity determines your base premium rate, so it's vital that your iCare policy accurately reflects what you do. Rates vary significantly even within the same sector.

Consider this example for businesses in the concrete construction industry:

A misclassification here could more than double your premium. We recommend reviewing your policy annually to ensure it reflects the actual work performed.

Material Workforce Changes? Update Your Wages Promptly

If your business has experienced a substantial increase or reduction in staff or wages, it's important to lodge a wages update with iCare. This could result in:

• An increase in your premium (if wages rose), or
• A refund or credit (if your workforce decreased).

Keeping this information current also helps avoid large adjustments at year-end.

Communication Delays with iCare

We've observed some delays in communications and processing from iCare, including:

• Late policy renewal or wage estimate notices.
• Slow turnaround times for wage declarations and adjustments.

These can cause budgeting issues and confusion, especially for businesses finalising accounts. Our recommendation is to not wait for iCare but to be proactive.

HOT TIP! : Aligning with Your Financial Year

To simplify reporting, you can ask to align your iCare policy with the financial year (July–June). This may involve a short transitional period but can significantly reduce the administrative burden at EOFY.

How to Lodge Your Wage Declarations

iCare provides a self-service portal where businesses can lodge or update their wage declarations:

👉 Submit Wage Declarations Here

‍


Return to Business Insights Hub