Avoiding Victorian Workcover Remuneration Estimate Penalties

Photo: Unsplash.com

If you employ, you need to review the annual remuneration estimate you made at the beginning of the financial year.

You need to provide your Victorian WorkSafe Agent with a revised estimate if you become aware that what you expect to pay in remuneration is 20% or more above your current estimate prior to 30 June 2018.

If you don't make this adjustment, a penalty of up to 100% of the insurance premium difference may be applied for the financial year.

You should also advise your WorkSafe Agent if your actual remuneration will be less than your estimate, so your future insurance payments can be adjusted.

Please see below for more information about Workcover Remuneration. Feel free to contact us, or your WorkSafe Agent, if you have any questions.

 If you employ in other states of Australia, please check with your Agent in that state for further information as the rules vary from state to state.

More information on Workcover remuneration:

The Average Premium Rate for 2018/19 is 1.272% of the State’s rateable remuneration.

Industry Rates and Industry Claim Cost Rates (IRs and ICCRs) were gazetted on 16 May 2018. The Gazettal Notice is available from the Gazette website.

Individual industry rates are available in a Special Gazette.

There is now an online system available to estimate remuneration for the 2018-19 Financial Year.

You can use this system to review or update your Estimate or Rateable Remuneration. To use this system, you can click here and login.

Submissions received before 30 June 2018 will be reflected in renewal notifications.

Other key dates and parameters for WorkSafe insurance premiums in the 2018/19 Premiums Order:

  • Claims Reporting Period – 1 January 2015 to 30 June 2017
  • Remuneration Experience Period – 1 July 2014 to 30 June 2017
  • Minimum premium – $202 ($222.20 including GST)
  • Maximum claims cost for an individual claim – $390,600
  • Maximum legal costs for an individual claim – $73,100
  • Maximum recovery – for an individual claim allocated to an employers' performance calculation - $390,600.

Employers will be able to access their Premium Renewal notifications for 2018-19 from 12 July 2018.

Continuation of the 5% and 3% discount for early payment of premium.

A discount of 5 percent per annum is again available for employers who pay their full year's premium by 6 August 2018.

A discount of 3 percent per annum is also available to employers who wish to continue to pay their premium in full by 1 October.

To qualify for the 5 percent discount employers must:

  • Pay any outstanding balance from 2017/18 (or previous years); and
  • Pay their full 2018/19 premium (less the 5% discount) by 6 August 2018. To qualify for the 3 percent discount employers must:
  • Pay any outstanding balance from 2017/18 (or previous years); and
  • Pay their full 2018/19 premium (less the 3% discount) by 1 October 2018.

Information on ways to pay your premium will be sent out in your Premium Notice.

If you disagree with the estimated remuneration figure used to calculate your WorkCover insurance premium for 2018/19, you can go online and update your remuneration.

You can then recalculate your premium and also pay your premium at this time.

Need some advice? Get in touch