NSW Rugby League last week announced the introduction of the Player Points Index System (PPIS) for clubs across the state from next season.

The system is designed to reward clubs for fostering their junior talent and players for their loyalty while trying to limit player movement within the same competition.

The NSWRL also hopes it will encourage ex-NRL players to return to their junior clubs.

The PPIS includes a Notional Principal Contracts Allowance for former NRL stars to have their points recalculated to a notional value as their return has a positive impact on the club, competition and community.

"It's got to come and the benefits of the system are there," Loxley said.

While NSWRL stated the system will be used from 2022, it might not be the case for the western area.

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Group 11 has never played under a points cap before and the idea of one has been voted down by clubs in the past.

Group 10 has used a points cap and clubs from the two competitions are set to go head-to-head next year in the Western Premiership.

"When I asked if the points system was mandatory, I was told it wasn't," Loxley said.

"The Group 10 guys have said it will be hard for us because we've never played under a points system before. They think they will be fine.

"There may be the opportunity to leave it until 2023 for Group 11 to become used to it. But that could also make Group 10 stronger if they don't have to use it."

Major opponents to the idea in the past have been clubs like Nyngan and Narromine, who are based in smaller towns and often rely on signing players from other clubs or competitions to survive.

Loxley pointed to the strong juniors bases those clubs have as a positive but added employment opportunities in smaller towns are often limited so benefits needed to be made for those who are unable to hold onto all their junior players.

NSWRL has addressed that and the new system has allowances for clubs in smaller populated towns who play in a competition with a major centre like Dubbo.

The NSWRL's Greater Western and South Western Zone Manager David Skinner did much of the work in designing the PPIS and he's someone Loxley spoke to in recent weeks.

"I said whatever you come up with, it's got to suit the unique characteristics of Nyngan. It's small town and a small population," Loxley said.

"I was very dubious to start with but I think it will do everything we need, provided it meets the needs of Nyngan because there's no way I want to see Nyngan out of the competition.

"They've worked too hard and they deserve to be there. They should be allowed to, with their unique circumstances, to field a side that is competitive."

As part of the design the last five years of the player's history will be considered and players will be categorised on their highest level in that timeframe.

Reductions are given for each season a player has been at the club.

Players moving between Group 11 clubs will have the highest allocation, generally starting at 25 points in their first season.

All clubs will start on 100 points but that will be reduced depending on how teams finish in future seasons.

The 2022 premiers will only be allowed to use 75 per cent of the quota the following year while the runners-up will be at 80.

The team who finishes third will be able to use 85 per cent, with a five per cent increase for the teams who finish fourth and fifth respectively.

Teams who finish outside of the finals will be given their full allocation.

The system also applies to reserve grade but with a 50 per cent reduction.

Clubs will be able to have their say on the PPIS at a Group 11 meeting on Sunday morning at Narromine.