The New South Wales Government has announced reform that will make it easier for Government-owned entities, local government and public universities to lodge security deposits to cover workers compensation obligations.

 

State Minister for Finance and Services, Greg Pearce, said the reform will free up millions of dollars for councils to spend on community projects.

 

“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,”  Mr Pearce said.

 

“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.