Businesses have called for workers’ compensation and emergency service levy reforms in next week’s NSW budget. 

A quarterly survey on business conditions shows companies are concerned about steep insurance price rises, workforce challenges and global turmoil. 

“To tackle soaring insurance costs, the NSW government must fast-track reforms to the emergency services levy, which adds nearly a quarter to premiums,” Business NSW CEO Dan Hunter said. 

“This would provide vital relief to thousands of businesses struggling to stay afloat.”  

The Business NSW survey shows 71% of respondents want workers’ compensation reform in the state budget, 66% are seeking red tape reduction and 40% want emergency services levy reform.  

The trade group has called on the state parliament to pass workers’ compensation changes, which have been referred to an upper house committee inquiry. 

Businesses were asked about the impact of a 36% increase in workers’ compensation premiums over three years, which was flagged as a possible outcome without reforms. 

About 45% said they would reduce staff, 36% would scale back operations and 35% would put expansion plans on hold. One in five said their businesses would no longer be viable. 

Insurance costs have been a leading concern in the quarterly survey for two years. More than one-third of businesses faced price increases of more than 30% in the past year. 

The survey, conducted from May 4-19, received 720 responses across key industries and regions in the state. 

In November 2023 the NSW government announced it would reform the way emergency services are funded. It released a consultation paper and has continued discussions. 

Last year it introduced legislation allowing it to collect insurance data to use in modelling and designing a new funding system, subject to privacy protections. 

Treasurer Daniel Mookhey will hand down his third budget on Tuesday.

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