NSW Workers Compensation Premium Rates Frozen for Two Years

The NSW Government has introduced a two-year freeze on workers compensation premium rates for the 2026/27 and 2027/28 financial years, providing businesses with greater certainty over an important employment cost.

For most NSW businesses, the freeze means the underlying prejmium rates will remain stable over the next two years, making it easier to budget and plan ahead.

However, a rate freeze does not necessarily mean your actual premium will stay the same.

Your individual workers compensation premium can still change if there are changes to:

• Wages – particularly if you employ more staff or your total wages increase.

• Business activities – changes to the work your business performs may affect your classification.

• Claims history – workplace injuries and claims can influence premiums for some businesses.

• Incentive eligibility – changes to discounts or other premium adjustments may affect the final amount payable.

  
  

For example, if your business grows and your wages increase, your overall premium could still rise even though the underlying premium rate has been frozen.

What does this mean for your business?

The freeze is positive news and should provide some welcome certainty for NSW employers. However, businesses should continue to check their wage estimates, workers compensation classification and claims history when budgeting for the year ahead.

The key takeaway: premium rates may be frozen, but your final workers compensation bill can still change depending on what is happening within your business.

If you have any further questions please contact your Client Manager.