{"id":"nsw:sl-2010-0265","name":"Insurance Premiums Order 2010–2011","slug":"insurance-premiums-order-2010-2011","collection":"regulation","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"265 of 2010","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":178227,"registerId":"nsw-nsw:sl-2010-0265-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Name of Order","content":"#### 1 Name of Order\n\n1 Name of Order\n\n> This Order is the [Insurance Premiums Order 2010–2011](/view/html/inforce/current/sl-2010-0265).","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n2 Commencement\n\n> This Order commences at 4 pm on 30 June 2010 and must be published in the Gazette.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Calculation of insurance premium payable by employer","content":"#### 3 Calculation of insurance premium payable by employer\n\n3 Calculation of insurance premium payable by employer\n\n> > (1) The premium payable by an employer for a policy of insurance is to be calculated by requiring the premium to be calculated for a period of insurance of not more than 12 months and:\n> > \n> > > (a) if the employer is a medium or large employer for the purposes of the policy, in accordance with the following formula:\n> > > \n> > > ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0265)%20AND%20(Year%3D2010)%20AND%20(%22Historical%20Document%22%3D0))/g1.gif)\n> > \n> > > (b) if the employer is a small employer for the purposes of the policy, in accordance with the following formula:\n> > > \n> > > ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0265)%20AND%20(Year%3D2010)%20AND%20(%22Historical%20Document%22%3D0))/g2.gif)\n> > \n> > where:\n> > \n> > P is the premium for the time being payable by the employer in respect of the period of insurance to which the policy relates, being:\n> > \n> > > (a) except as provided by paragraph (b), the initial premium so payable in accordance with this Order, or\n> > \n> > > (b) where adjustments are required to be made to that premium by reason of the operation of this Order, the premium so payable by reason of those adjustments.\n> > \n> > T is the basic tariff premium for the employer, calculated with respect to the period of insurance in accordance with Schedule 3.\n> > \n> > S is the experience adjustment factor for the employer determined with respect to the period of insurance in accordance with Schedule 4.\n> > \n> > E is the experience premium, if any, for the employer determined with respect to the period of insurance in accordance with Schedule 5.\n> > \n> > Q is the premiums adjustment contribution, if any, for the employer.\n> > \n> > D is the dust diseases contribution, if any, for the employer.\n> > \n> > I is the input tax credit adjustment, if any, for the employer determined with respect to the period of insurance in accordance with Schedule 8.\n> > \n> > M is the Mine Safety Fund premium adjustment, if any, for the employer calculated with respect to the period of insurance in accordance with Schedule 9.\n> > \n> > A is the apprentice incentive amount, if any, for the employer determined with respect to the period of insurance in accordance with Schedule 10.\n> \n> > (2) However, where the basic tariff premium less the apprentice incentive amount \\[T − A\\] for a policy of insurance whose total premium is to be calculated under subclause (1) (a):\n> > \n> > > (a) is less than $50,000 (or, if the period of insurance is to be less than 12 months, where the basic tariff premium less the apprentice incentive amount \\[T − A\\] would be less than $50,000 were that period of insurance to be 12 months), the experience adjusted premium ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0265)%20AND%20(Year%3D2010)%20AND%20(%22Historical%20Document%22%3D0))/g3.gif) is not to exceed one and a half times the amount of that basic tariff premium ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0265)%20AND%20(Year%3D2010)%20AND%20(%22Historical%20Document%22%3D0))/g4.gif) , and\n> > \n> > > (b) is or exceeds $50,000 but is less than $150,000 (or, if the period of insurance is to be less than 12 months, where the basic tariff premium less the apprentice incentive amount \\[T − A\\] would be or would exceed $50,000 but would be less than $150,000 were that period of insurance to be 12 months), the experience adjusted premium ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0265)%20AND%20(Year%3D2010)%20AND%20(%22Historical%20Document%22%3D0))/g5.gif) is not to exceed twice the amount of that basic tariff premium ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0265)%20AND%20(Year%3D2010)%20AND%20(%22Historical%20Document%22%3D0))/g6.gif) , and\n> > \n> > > (c) is or exceeds $150,000 but is less than $300,000 (or, if the period of insurance is to be less than 12 months, where the basic tariff premium less the apprentice incentive amount \\[T − A\\] would be or would exceed $150,000 but would be less than $300,000 were that period of insurance to be 12 months), the experience adjusted premium ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0265)%20AND%20(Year%3D2010)%20AND%20(%22Historical%20Document%22%3D0))/g7.gif) is not to exceed two and a half times the amount of that basic tariff premium ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0265)%20AND%20(Year%3D2010)%20AND%20(%22Historical%20Document%22%3D0))/g8.gif) .\n> \n> > (3) However, if the employer is a member of a group:\n> > \n> > > (a) subclause (2) does not apply, and\n> > \n> > > (b) where the sum of the basic tariff premiums less the sum of apprentice incentive amounts \\[TG− AG\\] for all the members of that group:\n> > > \n> > > > (i) is less than $50,000 (or, if the period of insurance is to be less than 12 months, where the sum of basic tariff premiums less the sum of apprentice incentive amounts \\[TG− AG\\] would be less than $50,000 were that period of insurance to be 12 months), the experience adjusted premium for the employer’s policy ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0265)%20AND%20(Year%3D2010)%20AND%20(%22Historical%20Document%22%3D0))/g9.gif) is not to exceed one and a half times the amount of the employer’s basic tariff premium ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0265)%20AND%20(Year%3D2010)%20AND%20(%22Historical%20Document%22%3D0))/g10.gif) , and\n> > > \n> > > > (ii) is or exceeds $50,000 but is less than $150,000 (or, if the period of insurance is to be less than 12 months, where the sum of basic tariff premiums less the sum of apprentice incentive amounts \\[TG− AG\\] would be or would exceed $50,000 but would be less than $150,000 were that period of insurance to be 12 months), the experience adjusted premium for the employer’s policy ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0265)%20AND%20(Year%3D2010)%20AND%20(%22Historical%20Document%22%3D0))/g11.gif) is not to exceed twice the amount of the employer’s basic tariff premium ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0265)%20AND%20(Year%3D2010)%20AND%20(%22Historical%20Document%22%3D0))/g12.gif) , and\n> > > \n> > > > (iii) is or exceeds $150,000 but is less than $300,000 (or, if the period of insurance is to be less than 12 months, where the sum of basic tariff premiums less the sum of apprentice incentive amounts \\[TG− AG\\] would be or would exceed $150,000 but would be less than $300,000 were that period of insurance to be 12 months), the experience adjusted premium for the employer’s policy ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0265)%20AND%20(Year%3D2010)%20AND%20(%22Historical%20Document%22%3D0))/g13.gif) is not to exceed two and a half times the amount of the employer’s basic tariff premium ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0265)%20AND%20(Year%3D2010)%20AND%20(%22Historical%20Document%22%3D0))/g14.gif) ,\n> > \n> > where:\n> > \n> > AG is the sum of apprentice incentive amounts (if any) for all the members of the group calculated:\n> > \n> > > (a) where the period of insurance to which the premium relates is 12 months—in accordance with Schedule 10 with respect to that period of insurance, or\n> > \n> > > (b) where the period of insurance to which the premium relates is not 12 months—in accordance with Schedule 10 as if the policies to which the premiums relate had a period of insurance of 12 months.\n> > \n> > TG is the sum of the basic tariff premiums for all the members of the group calculated:\n> > \n> > > (a) where the period of insurance to which the premium relates is 12 months—in accordance with Schedule 3 with respect to that period of insurance, or\n> > \n> > > (b) where the period of insurance to which the premium relates is not 12 months—in accordance with Schedule 3 as if the policies to which the premiums relate had a period of insurance of 12 months.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Discount available for premiums paid in full","content":"#### 4 Discount available for premiums paid in full\n\n4 Discount available for premiums paid in full\n\n> An employer is entitled to a discount of 3 percent on the initial premium payable by the employer for a policy of insurance if:\n> \n> > (a) the period of insurance to which the policy relates is 12 months, and\n> \n> > (b) the employer has paid the discounted amount of the premium in full by the date on which payment of the premium is due, and\n> \n> > (c) the employer has not elected to pay the premium by instalments, and\n> \n> > (d) the employer has notified the insurer, in accordance with the regulations, of the reasonable estimate of the wages that will be payable during the period of insurance.\n> \n> Note—\n> \n> Clause 130 of the [Workers Compensation Regulation 2003](/view/html/repealed/current/sl-2003-0628) requires an employer to notify the insurer concerned of the matter referred to in paragraph (d).","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Recovery of excess from employer: section 160 of Act","content":"#### 5 Recovery of excess from employer: section 160 of Act\n\n5 Recovery of excess from employer: section 160 of Act\n\n> For the purposes of the definition of prescribed excess amount in section 160 (1) of the Act, the following excess amount is specified:\n> \n> > (a) if the employer concerned notified the relevant insurance scheme agent of the injury that led to the weekly compensation claim of the worker within 5 days of the employer becoming aware of it—$0,\n> \n> > (b) in all other cases—the lesser of the following:\n> > \n> > > (i) the amount that is the current weekly wage rate of the worker as determined by section 42 of the Act,\n> > \n> > > (ii) $1,716.40.\n> \n> Note—\n> \n> Under section 160 (2) of the Act, an employer is required to repay the prescribed excess amount to the insurer under a policy of insurance in respect of each weekly compensation claim that the insurer has paid under the policy. However, if the amount that the insurer has paid in respect of any such claim is less than the prescribed excess amount, the amount the employer must repay is that lesser paid amount.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Late payment prescribed rates: sections 170 (8) and 172 (5) of Act","content":"#### 6 Late payment prescribed rates: sections 170 (8) and 172 (5) of Act\n\n6 Late payment prescribed rates: sections 170 (8) and 172 (5) of Act\n\n> For the purposes of sections 170 (8) and 172 (5) of the Act, the prescribed rate is 0.961% per month compounded monthly.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Calculation of costs of individual claims and provisional payments of compensation: clauses 137 (2) (c) (ii) (C) and 138 (2) (c) (ii) (C) of Regulation","content":"#### 7 Calculation of costs of individual claims and provisional payments of compensation: clauses 137 (2) (c) (ii) (C) and 138 (2) (c) (ii) (C) of Regulation\n\n7 Calculation of costs of individual claims and provisional payments of compensation: clauses 137 (2) (c) (ii) (C) and 138 (2) (c) (ii) (C) of Regulation\n\n> For the purposes of clauses 137 (2) (c) (ii) (C) and 138 (2) (c) (ii) (C) of the [Workers Compensation Regulation 2003](/view/html/repealed/current/sl-2003-0628), the amount specified is $1,716.40.","sortOrder":6},{"sectionNumber":"8","sectionType":"section","heading":"Schedules form part of Order","content":"#### 8 Schedules form part of Order\n\n8 Schedules form part of Order\n\n> Schedules 1–12 form part of this Order.","sortOrder":7},{"sectionNumber":"9","sectionType":"section","heading":"Explanatory note","content":"#### 9 Explanatory note\n\n9 Explanatory note\n\n> The explanatory note does not form part of this Order.","sortOrder":8},{"sectionNumber":"Schedule 1","sectionType":"schedule","heading":"Interpretation","content":"# Schedule 1 Interpretation\n\nSchedule 1 Interpretation\n\n(Clause 8)","sortOrder":9},{"sectionNumber":"Schedule 2","sectionType":"schedule","heading":"Application","content":"# Schedule 2 Application\n\nSchedule 2 Application\n\n(Clause 8)","sortOrder":19},{"sectionNumber":"Schedule 3","sectionType":"schedule","heading":"Basic tariff premium","content":"# Schedule 3 Basic tariff premium\n\nSchedule 3 Basic tariff premium\n\n(Clause 3)","sortOrder":22},{"sectionNumber":"Schedule 4","sectionType":"schedule","heading":"Experience adjustment factor","content":"# Schedule 4 Experience adjustment factor\n\nSchedule 4 Experience adjustment factor\n\n(Clause 3)","sortOrder":25},{"sectionNumber":"Schedule 5","sectionType":"schedule","heading":"Experience premium","content":"# Schedule 5 Experience premium\n\nSchedule 5 Experience premium\n\n(Clause 3)","sortOrder":31},{"sectionNumber":"Schedule 6","sectionType":"schedule","heading":"Minimum premium","content":"# Schedule 6 Minimum premium\n\nSchedule 6 Minimum premium\n\n(Clause 8)","sortOrder":36},{"sectionNumber":"Schedule 7","sectionType":"schedule","heading":"Reduction of premium for employers of previously injured workers etc","content":"# Schedule 7 Reduction of premium for employers of previously injured workers etc\n\nSchedule 7 Reduction of premium for employers of previously injured workers etc\n\n(Clause 8)","sortOrder":38},{"sectionNumber":"Schedule 8","sectionType":"schedule","heading":"Input tax credit adjustment","content":"# Schedule 8 Input tax credit adjustment\n\nSchedule 8 Input tax credit adjustment\n\n(Clause 3)","sortOrder":44},{"sectionNumber":"Schedule 9","sectionType":"schedule","heading":"Mine Safety Fund premium adjustment","content":"# Schedule 9 Mine Safety Fund premium adjustment\n\nSchedule 9 Mine Safety Fund premium adjustment\n\n(Clause 3)","sortOrder":48},{"sectionNumber":"Schedule 10","sectionType":"schedule","heading":"Apprentice incentive scheme","content":"# Schedule 10 Apprentice incentive scheme\n\nSchedule 10 Apprentice incentive scheme\n\n(Clause 3)","sortOrder":50}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":false,"description":"The Order applies to policies taking effect between 4 pm 30 June 2010 and 4 pm 30 June 2011 (Sched 2 cl 1) and excludes specialised insurers except for the excess rule (Sched 2 cl 1–2). The instrument itself does not state that it expands or narrows the policy coverage beyond ordinary premium calculation mechanics; no material in this text demonstrates a change of regulatory scope compared with prior instruments, so no scope change is identifiable from this Order alone."},"complexity_factors":["Multiple interlocking mathematical formulas across primary clause 3 and Schedules 3–10 (tariff, experience factor, experience premium, input tax adjustment, mine safety, apprentice incentive).","Tiered employer size thresholds (small/medium/large) and wage/premium bands that change which formulas and caps apply (Sched 1 cl 2; cl 3(2)–(3)).","Caps and limits on experience‑adjusted premiums with different multipliers depending on tariff ranges (cl 3(2)–(3) and Sched 8(b)–(d)).","Group aggregation and allocation rules for members of corporate groups, plus special provisions where members depart (cl 3(3); Sched 4 cl 2; Sched 5 cl 4).","Record‑keeping and calculation method choices (continuous vs averaging odometer methods) create operational compliance obligations (Sched 1 cl 3–7).","References to external classification and rate tables (Table A/Table B in Schedules 11–12) require cross‑referencing separate materials.","Special‑case rules (per capita rates, Comcare employers, prior self‑insurers, specialised insurer exemptions) add branching complexity (Sched 2; Scheds 3,5,8).","Discretion for the Authority to develop criteria/guidelines and to approve reductions or exclusions (Sched 4 cl 5; Sched 5 cl 3), introducing administrative judgement points.","Tax interaction: GST/input tax credit bands mapped to percentage adjustments (Sched 8) requiring employers to notify entitlements and insurers to apply brackets.","Operational details such as minimum premium, early‑payment discount, late‑payment interest rate and prescribed excess amounts add multiple ancillary calculations (Sched 6; cl 4; cl 6; cl 5)."],"plain_english_summary":"This Order sets the mechanical rules for calculating employers’ workers‑compensation insurance premiums for policies effective between 4 pm 30 June 2010 and 4 pm 30 June 2011. Clause 3 and Schedules 3–10 combine a tariff (wage or per‑capita based), experience adjustments and premiums, tax/input adjustments, sector contributions, apprentice incentives, discounts and minimums. Employers pay the calculated premium; insurers bill and collect it. The Authority may reduce experience factors on application (Sched 4 cl 5). The Order requires wage and odometer records (Scheds 3–5), and applies group aggregation and tiered thresholds that affect administrative burden."},"kimi_summary":{"content_quality":"ok","complexity_score":9,"scope_assessment":{"changed":false,"description":"This is an annual Insurance Premiums Order made under the Workers Compensation Act 1987. Its scope is consistent with previous iterations—setting premium rates and calculation methodologies for a specific financial year. While the specific dollar amounts (thresholds, caps, excess amounts) and some formula details are updated annually, the fundamental structure and purpose remain stable: experience-rated premiums with incentives for apprentices and injured workers, plus industry-specific adjustments. No evidence of scope creep beyond the traditional function of these orders."},"complexity_factors":["Multiple interdependent formulas with nested variables (P, T, S, E, Q, D, I, M, A, B%, ICCR1, ICCR2, ECCR, etc.)","12 separate schedules with cross-references between them (e.g., Schedule 3 calculations feed into Schedule 4, 5, 8, 9, 10)","Conditional logic with multiple tiers: employer size (small/medium/large), group membership status, insurance history length (new vs established, 12 months vs 24 months), and per capita vs wage-based calculations","Complex exception structures: clauses 3(2) and 3(3) create parallel but different cap structures for individual employers vs group members, with three separate monetary thresholds ($50k, $150k, $300k) each triggering different multipliers (1.5×, 2×, 2.5×)","Temporal complexity: formulas change based on whether calculating initial premium, post-expiration adjustment, or cancellation; also 12-week averaging periods for vehicle allowances with 4-period carry-forward rules","Predecessor business rules: claims and wages from acquired businesses can be inherited or excluded depending on circumstances (Schedules 4 and 5)","Group membership mechanics: complex allocation formulas when members leave groups (Schedule 5, clause 4) with 6 separate modified formulas for C0, C1, C2, W0, W1, W2","External document dependencies: Tables A and B are not included in the Order text but published separately in the Gazette (referenced in Schedule 1)","GST/input tax credit interactions with tiered percentage discounts (Schedule 8, Table)","Self-insurer and Comcare employer transition rules creating hypothetical 'as if insured' calculations","Per capita rate substitutions for specific industries (boxing, taxis) requiring parallel calculation tracks (Schedule 5, clauses 4–6)"],"plain_english_summary":"This Order sets out how much New South Wales employers must pay for workers compensation insurance for the 2010–2011 financial year. It applies to most employers who need this insurance under the Workers Compensation Act 1987.\n\n**Who it affects:**\n- **Employers** in NSW who must hold workers compensation insurance (called a 'policy of insurance' in the legislation)\n- **Insurers** who provide this coverage\n- **Apprentices** and **previously injured workers** (who benefit from premium discounts)\n\n**What it does:**\n\n**1. Calculates insurance premiums using different formulas based on employer size:**\n- **Small employers** (basic premium ≤$10,000 or wages ≤$300,000): Use a simpler formula\n- **Medium and large employers** (basic premium >$10,000): Use a more complex formula that considers their claims history ('experience rating')\n\n**2. Sets out the building blocks of the premium calculation:**\n- **Basic tariff premium (T):** Calculated from wages paid and industry classification rates (Schedule 3)\n- **Experience adjustment factor (S):** Rewards or penalises employers based on their safety record and past claims (Schedule 4)\n- **Experience premium (E):** Additional adjustment based on actual claims costs compared to industry averages (Schedule 5)\n- **Apprentice incentive amount (A):** Discount for employing apprentices (Schedule 10)\n- **Mine Safety Fund adjustment (M):** Extra levy for mining industry employers (Schedule 9)\n- **Input tax credit adjustment (I):** GST-related adjustment (Schedule 8)\n\n**3. Caps premium increases:**\n- Limits how much premiums can increase based on claims history, with different caps depending on the employer's basic premium size (ranging from 1.5× to 2.5× the basic tariff premium)\n- Special rules apply for employers who are members of corporate groups\n\n**4. Provides a 3% discount** for employers who pay their annual premium in full upfront and on time.\n\n**5. Sets the 'excess' amount** that employers must repay to insurers for each workers compensation claim (ranging from $0 if injury is reported within 5 days, up to $1,716.40 or the worker's weekly wage, whichever is less).\n\n**6. Specifies late payment interest rate** at 0.961% per month, compounded monthly.\n\n**7. Creates special premium reductions for:**\n- Employers who hire previously injured workers who have been unemployed (Schedule 7)\n- Employers of apprentices (Schedule 10)\n\n**8. Sets a minimum premium** of $175 for any policy.\n\n**Why it matters:**\nThis Order directly determines how much money NSW employers must pay for mandatory workers compensation insurance. The 'experience rating' system creates financial incentives for workplace safety—employers with fewer claims pay less, while those with poor safety records pay more. The apprentice incentives encourage hiring apprentices, and the previously injured worker provisions help people return to work."},"summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument appears straightforward and purpose-specific: it sets workers compensation insurance premiums for a defined financial year (2010–2011). There is no indication from the available text that its scope changed from its original intent. It has remained in its original form since commencement on 18 June 2010 with no amendments recorded."},"complexity_factors":["Key rate tables (Schedules 11 and 12) are not included in the main document — they were published separately in the NSW Government Gazette, requiring access to an external source to understand the full effect of the law","The premium-setting methodology for workers compensation involves industry classification systems that can be difficult for small employers to navigate","Only the metadata and status information is visible in the provided text — the substantive operative provisions and rate schedules are not reproduced here, limiting full analysis","Workers compensation premium frameworks involve interaction with the broader Workers Compensation Acts, adding layers of regulatory context"],"plain_english_summary":"The Order sets the mandatory workers’ compensation premium rates for NSW employers for the 2010–2011 financial year, with different rates by industry to reflect varying workplace risks. It determines how much businesses paid for compulsory cover (affecting scheme funding and injured workers’ protection) and has been in force since 18 June 2010; detailed tables were published in the Government Gazette."}},"importantCases":[],"_links":{"self":"/api/acts/insurance-premiums-order-2010-2011","history":"/api/acts/insurance-premiums-order-2010-2011/history","analysis":"/api/acts/insurance-premiums-order-2010-2011/analysis","conflicts":"/api/acts/insurance-premiums-order-2010-2011/conflicts","importantCases":"/api/acts/insurance-premiums-order-2010-2011/important-cases","documents":"/api/acts/insurance-premiums-order-2010-2011/documents"}}