{"id":"nsw:sl-2012-0272","name":"Insurance Premiums Order 2012–2013","slug":"insurance-premiums-order-2012-2013","collection":"regulation","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"272 of 2012","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":178106,"registerId":"nsw-nsw:sl-2012-0272-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 2012–2013](/view/html/inforce/current/sl-2012-0272).","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 2012 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%3D0272)%20AND%20(Year%3D2012)%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%3D0272)%20AND%20(Year%3D2012)%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 calculated with respect to the period of insurance in accordance with Schedule 11.\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 \\[(T × (1 − S)) + (E × S)\\] is not to exceed one and a half times the amount of that basic tariff premium \\[1.5 × T\\], 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 \\[(T × (1 − S)) + (E × S)\\] is not to exceed twice the amount of that basic tariff premium \\[2 × T\\], 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 \\[(T × (1 − S)) + (E × S)\\] is not to exceed two and a half times the amount of that basic tariff premium \\[2.5 × T\\].\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 \\[(T × (1 − S)) + (E × S)\\] is not to exceed one and a half times the amount of the employer’s basic tariff premium \\[1.5 × T\\], 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 \\[(T × (1 − S)) + (E × S)\\] is not to exceed twice the amount of the employer’s basic tariff premium \\[2 × T\\], 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 \\[(T × (1 − S)) + (E × S)\\] is not to exceed two and a half times the amount of the employer’s basic tariff premium \\[2.5 × T\\],\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 147 of the [Workers Compensation Regulation 2010](/view/html/repealed/current/sl-2011-0037) 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 weekly payment of compensation to which the worker is entitled as determined by section 36 of the Act,\n> > \n> > > (ii) $1,838.70.\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.\n> \n> **cl 5:** Am 2012 (683), cl 3.","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 0.977% per month compounded monthly.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Calculation of costs of individual claims and provisional payments of compensation: clauses 154 (2) (d) (ii) (C) and 155 (2) (d) (ii) (C) of Regulation","content":"#### 7 Calculation of costs of individual claims and provisional payments of compensation: clauses 154 (2) (d) (ii) (C) and 155 (2) (d) (ii) (C) of Regulation\n\n7 Calculation of costs of individual claims and provisional payments of compensation: clauses 154 (2) (d) (ii) (C) and 155 (2) (d) (ii) (C) of Regulation\n\n> For the purposes of clauses 154 (2) (d) (ii) (C) and 155 (2) (d) (ii) (C) of the [Workers Compensation Regulation 2010](/view/html/repealed/current/sl-2011-0037), the amount specified is $1,838.70.","sortOrder":6},{"sectionNumber":"8","sectionType":"section","heading":"Exemption limit for certain employers: section 155AA (8) of Act","content":"#### 8 Exemption limit for certain employers: section 155AA (8) of Act\n\n8 Exemption limit for certain employers: section 155AA (8) of Act\n\n> The exemption limit (within the meaning of section 155AA (8) of the Act) for an employer who carries on a business that is covered by Table A’s classes 612310, 612315, 612320, 612322, 612324, 612326, 612330, 931120, 931130, 931920, 931930, 931940 or 931950 (being classes that refer to a per capita rate), regardless of whether the employer carries on any other business, for the 2012–2013 financial year is fixed at $0.\n> \n> Note—\n> \n> The effect of fixing the exemption limit for the specified employers at $0 is that those employers will not be “exempt employers” within the meaning of section 155AA (Exempt employers not required to obtain policy of insurance) of the Act.","sortOrder":7},{"sectionNumber":"9","sectionType":"section","heading":"Schedules form part of Order","content":"#### 9 Schedules form part of Order\n\n9 Schedules form part of Order\n\n> Schedules 1–13 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 9)","sortOrder":9},{"sectionNumber":"10","sectionType":"section","heading":"Meaning of “predecessor”","content":"#### 10 Meaning of “predecessor”\n\n10 Meaning of “predecessor”\n\n> > (1) For the purposes of this Order, a person is the predecessor of an employer if:\n> > \n> > > (a) Acquisition or otherwise gaining possession of predecessor’s business\n> > > \n> > > the employer has acquired or otherwise come into the possession of the business of the person, or\n> > \n> > > (b) Transfer of all or majority of predecessor’s workforce\n> > > \n> > > the employer has, during any policy period, employed workers who at any time constituted all or a majority of the workers employed, during any policy period, by the person and those workers have carried out activities or performed services for the employer that were the same or similar to activities carried out or services performed by those workers for the person.\n> > \n> > Note—\n> > \n> > The claims and wages history of an employer’s predecessor are used in the calculation of the employer’s workers compensation insurance premium—see Schedule 4, clause 4 and Schedule 5, clause 1 (3) of this Order.\n> \n> > (2) Subclause (1) (a) applies whether the business acquired is the whole or main part of the business of the person or is the whole or main part of a separate and distinct business of the person, and whether or not the business acquired is carried on at the same location.\n> \n> > (3) Subclause (1) (b) applies whether or not the activities carried out or services performed for the employer were carried out or performed at the same location as those carried out or performed for the person.\n> \n> > (4) In this clause, business has the same meaning as in Division 2B of Part 7 of the Act.","sortOrder":19},{"sectionNumber":"Schedule 2","sectionType":"schedule","heading":"Application","content":"# Schedule 2 Application\n\nSchedule 2 Application\n\n(Clause 9)","sortOrder":20},{"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":23},{"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":26},{"sectionNumber":"Schedule 5","sectionType":"schedule","heading":"Experience premium","content":"# Schedule 5 Experience premium\n\nSchedule 5 Experience premium\n\n(Clause 3)","sortOrder":32},{"sectionNumber":"Schedule 6","sectionType":"schedule","heading":"Minimum premium","content":"# Schedule 6 Minimum premium\n\nSchedule 6 Minimum premium\n\n(Clause 9)","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 9)","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},{"sectionNumber":"Schedule 11","sectionType":"schedule","heading":"Dust diseases contribution","content":"# Schedule 11 Dust diseases contribution\n\nSchedule 11 Dust diseases contribution\n\n(Clause 3)","sortOrder":53}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: setting premium calculation methodology for a single financial year. While the document is lengthy due to detailed mathematical specifications, it does not expand beyond insurance premium determination into broader workers compensation policy areas."},"complexity_factors":["Multiple interdependent mathematical formulas with 15+ defined variables (P, T, S, E, Q, D, I, M, A, W, R, ICCR, C, Ga, etc.)","13 separate schedules with cross-references between them (e.g., Schedule 3 calculations feed into Schedule 4, which feeds into Schedule 5)","Nested conditional logic with tiered thresholds ($10K, $50K, $150K, $300K, $500K) that trigger different calculation methods","Dual calculation tracks for 'medium/large' vs 'small' employers, plus special rules for group employers that override individual calculations","Extensive cross-referencing to external legislation (Workers Compensation Act 1987, Workers Compensation Regulation 2010, Apprenticeship and Traineeship Act 2001, Corporations Act 2001, Commonwealth GST Act)","Complex temporal provisions calculating premiums across variable periods (12-month vs shorter periods) with pro-rata adjustments","Multiple exception clauses that modify standard calculations (e.g., per capita rates replacing wages, predecessor business rules, departing group member adjustments)","Embedded mathematical notation rendered as images rather than text, making the formulas opaque to standard text analysis","Self-modifying formulas where variables are redefined based on other calculated values (e.g., experience adjusted premium caps replacing base values in subsequent calculations)"],"plain_english_summary":"This legislation sets out how much New South Wales employers must pay for workers compensation insurance for the 2012–2013 financial year.\n\n**Who it affects:**\n- **Employers in NSW** who are required to have workers compensation insurance (almost all employers with workers).\n- **Insurers** who provide this compulsory insurance.\n- **Workers**, indirectly, as the premiums fund their compensation if injured at work.\n\n**What it does:**\n- **Calculates insurance premiums** using different formulas depending on whether an employer is small, medium or large (based on wages and premium size).\n- **Rewards safe workplaces**: Employers with fewer claims pay less through \"experience rating\" — their premium goes up or down based on their actual claims history compared to their industry average.\n- **Sets caps on premium increases**: Even if an employer has a bad claims year, their premium can't jump more than 1.5×, 2× or 2.5× their base rate, depending on their size.\n- **Provides discounts**: A 3% discount for employers who pay their annual premium in full upfront.\n- **Handles special cases**: Includes adjustments for apprentices (wage subsidies), mining safety levies, dust diseases contributions for hazardous industries, and GST input tax credits.\n- **Sets minimums and excesses**: Establishes a $175 minimum premium and rules about when employers must pay the first ~$1,839 of a worker's weekly compensation claim (the \"excess\").\n\n**Why it matters:**\nThis Order directly determines how much money NSW employers must set aside for workers compensation. It creates financial incentives for workplace safety while ensuring the insurance scheme remains solvent. For small businesses especially, the premium caps provide protection against catastrophic premium spikes from a single serious injury."},"summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The instrument appears to serve its stated purpose — setting workers compensation insurance premium rates for the 2012–2013 year. The mid-year amendment (31 December 2012 update) is consistent with routine administrative adjustment of premium rates rather than any expansion or contraction of original intent."},"complexity_factors":["Key substantive content (Schedules 12 and 13 containing actual rate tables) is published externally in the NSW Government Gazette rather than in the instrument itself, requiring cross-referencing multiple documents","Industry-specific premium classifications require understanding of workers compensation scheme categories","Two separate versions existed within a single financial year (27 June 2012 and 31 December 2012), meaning applicable rates depended on the precise timing of the insurance period","An erratum (correction notice) was issued after original publication, adding a layer of interpretation about which version of the rates is authoritative","The instrument operates within the broader NSW workers compensation legislative framework, which itself is complex"],"plain_english_summary":"The Insurance Premiums Order 2012–2013 (NSW) set the premium rates employers had to pay for workers compensation in NSW for the 2012–2013 year. It required insurers to apply prescribed dollar or percentage rates varying by industry risk, with large rate tables published separately.\n\nIt mattered because it standardized premiums across the scheme, affected all employers required to hold workers compensation cover and their insurers, and ensured legal and financial consistency for the 2012–2013 year."},"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":true,"description":"The Order applies to policies taking effect 4 pm 30 June 2012–4 pm 30 June 2013 (Schedule 2 cl 1). It expressly fixes the exemption limit at $0 for employers in specified per‑capita classes so those employers are not \"exempt employers\" under section 155AA (clause 8), which alters eligibility for exemption for those classes. Otherwise the Order defines calculation mechanics and applicability without wider jurisdictional expansion (Schedules and Schedule 1 definitions)."},"complexity_factors":["Multiple interlocking mathematical formulas across Schedules 3–5, 8–11 that combine base tariff (T), experience factor (S), experience premium (E) and several adjustments (Schedules 3–5,8–11).","Tiered caps and thresholds limiting experience adjustments by employer size and group aggregation (clause 3(2)–(3); Schedule 8 clauses 1(b)–(d), 3(b)).","Group aggregation rules that require summing premiums, apprentice incentives and wages across members, with special treatment when members depart (clause 3(3); Schedules 4,5,3).","Multiple special cases and exceptions: per‑capita rates, Comcare employers, specialised insurers, self‑insurers, predecessors (Schedule 2 cl 1–2; Schedule 5(1)(c); Schedule 1 defs).","Record‑keeping and compliance burdens for employers (odometer and journey records; continuous or averaging methods) with multi‑period rules (Schedule 1 clause 3; clauses 4–7).","GST/input tax credit banding table that changes the premium adjustment by ITC entitlement bands (Schedule 8, cl 1 and Table).","Cross‑references to the Act and to the Workers Compensation Regulation 2010 for definitions, returns and notification obligations (multiple clauses; Sched 1 defs).","Discretionary powers and administrative processes: Authority may issue guidelines and permit reductions of experience factors (Schedule 4 cl 5; Schedule 7 cl 4).","Operational complexity from historical data dependence (uses current and prior two periods’ wages and claim costs; predecessor histories) in calculating ECCR and hindsight rates (Schedule 5).","Numerous minimums, rounding and substitution rules (minimum premium $175; substitution of per‑capita numbers for wages; reclassification when insufficient info) (Schedule 6; Schedule 3; various clauses)."],"plain_english_summary":"This Order prescribes how employers’ workers‑compensation insurance premiums for policies effective between 30 June 2012 and 30 June 2013 are calculated. It sets numeric formulas for a base tariff, experience adjustments, experience premiums, and extra contributions (dust diseases, mine safety, GST/input‑tax adjustments), plus minimums, a 3% prompt‑payment discount and record‑keeping rules for vehicle/accommodation allowances.\n\nEmployers pay the premiums; insurers calculate them using the Order’s formulas and employer returns. The Authority retains limited discretion to issue guidelines and allow reductions."}},"importantCases":[],"_links":{"self":"/api/acts/insurance-premiums-order-2012-2013","history":"/api/acts/insurance-premiums-order-2012-2013/history","analysis":"/api/acts/insurance-premiums-order-2012-2013/analysis","conflicts":"/api/acts/insurance-premiums-order-2012-2013/conflicts","importantCases":"/api/acts/insurance-premiums-order-2012-2013/important-cases","documents":"/api/acts/insurance-premiums-order-2012-2013/documents"}}