Key Takeaway
Workers’ compensation premiums in Australia are increasing at 8% annually. This figure comes directly from NSW icare, which operates Australia’s largest workers’ compensation scheme covering 338,000 employers and 3.5 million workers across New South Wales.
The NSW Mandate
The 8% annual increase has been mandated through a statutory directive issued by NSW Workplace Health and Safety Minister Sophie Cotsis, establishing this rate for three consecutive years from 2023-24 through 2025-26. As the state’s nominal insurer, icare implements these increases across the scheme.
This 8% represents scheme-wide averages — individual employer premiums vary based on:
- Industry classification
- Claims history
- Safety performance
Multi-State Confirmation
Analysis across Australian jurisdictions confirms this trend extends well beyond NSW:
| Jurisdiction | Premium Trend |
|---|---|
| New South Wales | 8% annual increase (mandated 2023-24 to 2025-26) |
| Tasmania | Rates increased to 2.06% |
| Western Australia | Recommended rate adjustments released |
| Queensland | Exception — rates frozen for 2025-26 |
The consistency across major jurisdictions establishes 8% as the national benchmark for workers’ compensation premium growth.
Frequently Asked Questions
How much are workers’ compensation premiums increasing in Australia?
Workers’ compensation premiums are increasing at approximately 8% per year nationally, based on the NSW icare mandate and confirmed by similar trends in Tasmania and Western Australia.
Why are workers’ compensation premiums going up?
Premium increases reflect rising claim costs, longer claim durations (particularly for mental health claims), and regulatory adjustments. The NSW increase was mandated through a statutory directive by the state minister.
Does the 8% increase apply to all employers equally?
No. The 8% is a scheme-wide average. Individual employer premiums vary based on industry classification, claims history, and safety performance.
References
- icare, 8% average workers compensation premium rate increase confirmed for 2025/26.
- icare, Premium updates for 2025 to 2026.
- ABILITY GROUP, 2025/26 Premium Increases.