Millions of dollars will be allocated for councils to use on community projects under the reforms announced by NSW Finance & Services Minister Greg Pearce.
The Minister said that it will now be easier for Government-owned entities, local government and public universities to lodge security deposits to cover workers compensation obligations.
“A total of $ 229 million is held in security deposits, mostly in the form of bank guarantees, which reduces the borrowing capacity of these entities for core activities,” said Mr Pearce.
“Under the new reforms, for those self insured councils and public universities that have provided cash deposits for their security, the change in requirements will see the immediate release of a total of $ 5.7 million in funds currently held in respect of the Bankstown, Campbelltown, and Shoalhaven councils, and the University of Wollongong.
“For the Shoalhaven this will result in an additional $ 2.2 million being released now, with potentially further releases over the next two years.
“This measure will also open up participation in alternative insurance arrangements for local government, which may help to improve work health and safety councils overall costs.
“The NSW Government is committed to reducing the regulatory burden that the NSW community faces and will continue to achieve a more effective and sustainable Workers Compensation Scheme,” said Mr Pearce.
Review of security deposit requirements will apply to these self insured councils:
Bankstown City Council, Campbelltown City Council, Council of the City of Blacktown, Council of the City of Shoalhaven, Council of the City of Sydney, Fairfield City Council, Gosford City Council, Hawkesbury City Council, Lake Macquarie City Council, Liverpool City Council, Newcastle City Council, Sutherland Shire Council, Warringah Council, Wollongong City Council and Wyong Shire Council.