Establishes how employers’ workers‑compensation insurance premiums are calculated for policies effective between 4pm 30 June 2014 and 4pm 30 June 2015. It prescribes a mathematical premium formula that combines a basic tariff, experience adjustments and experience premium plus add‑ons (apprentice, dust‑disease, Mine Safety Fund), caps, a minimum, discounts for up‑front payment, a prescribed excess, a late‑payment interest rate and record‑keeping rules.
Applies to employers required to hold policies (small, medium, large, and groups). Employers pay the premiums; insurers and the Authority apply classifications, rates and reporting rules, imposing wage‑reporting and vehicle‑record compliance obligations.
This Order, titled Insurance Premiums Order 2014-2015, prescribes how workers compensation insurance premiums and certain related amounts are to be calculated for policies taking effect between 4 pm on 30 June 2014 and 4 pm on 30 June 2015 (see Schedule 2 (1)). It commences at 4 pm on 30 June 2014 and must be published in the Gazette (clauses 1 and 2). Mechanically, the Order sets a formulaic architecture: it defines a basic tariff premium (T) (Schedule 3), an experience adjustment factor (S) (Schedule 4), an experience premium (E) (Schedule 5) and then specifies how these and a sequence of adjustments and contributions combine to produce the premium payable by an employer under a policy (clause 3(1)). The premium formula includes additional components and offsets: a premiums adjustment contribution (Q), a dust diseases contribution (D, Schedule 11), an input tax credit adjustment (I, Schedule 8), a Mine Safety Fund adjustment (M, Schedule 9), an apprentice incentive amount (A, Schedule 10), an employer safety incentive (ESI, Schedule 12) and a return to work incentive (RTWI, Schedule 13).
The Order imposes ceilings on the experience-adjusted element for policies where T−A falls into prescribed bands, by restricting (T × (1 − S)) + (E × S) to fixed multiples of T depending on the T−A band (clause 3(2)). Where an employer is a member of a group, those caps are applied on group sums in certain respects and the caps for individual members are adjusted accordingly (clause 3(3)). The Order distinguishes small, medium and large employers by the basic tariff premium thresholds and treats small employers differently in a number of respects (Schedule 1 clause 2; note Schedules 8, 10 and clause 4).
It prescribes a discount for paying the initial premium in full, 3 percent for employers other than small employers and 5 percent for small employers, subject to conditions including a 12 month period of insurance and that instalment payment has not been elected (clause 4). It fixes the prescribed excess amount for recovery under section 160 of the Workers Compensation Act 1987, including a $0 excess where the employer notified the insurer of the injury within 5 days and otherwise the lesser of the weekly compensation payment under s 36 or $1,948.80 (clause 5). The Order sets the late payment prescribed rate at 0.845 percent per month compounded monthly for the purposes of sections 170(8) and 172(5) of the Act (clause 6). It specifies $1,948.80 as the amount used in certain cost and provisional payment calculations in the Regulations (clause 7). It sets a minimum premium of $175 (Schedule 6).
Current sections
Direct links to the current provisions in Insurance Premiums Order 2014–2015.
This Order commences at 4 pm on 30 June 2014 and must be published in the Gazette.
3
Calculation of insurance premium payable by employer
3 Calculation of insurance premium payable by employer
3 Calculation of insurance premium payable by employer
(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:
(a) if the employer is a medium or large employer for the purposes of the policy, in accordance with the following formula:
(b) if the employer is a small employer for the purposes of the policy, in accordance with the following formula:
where:
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:
(a) except as provided by paragraph (b), the initial premium so payable in accordance with this Order, or
(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.
T is the basic tariff premium for the employer, calculated with respect to the period of insurance in accordance with Schedule 3.
S is the experience adjustment factor for the employer determined with respect to the period of insurance in accordance with Schedule 4.
E is the experience premium, if any, for the employer determined with respect to the period of insurance in accordance with Schedule 5.
Q is the premiums adjustment contribution, if any, for the employer.
D is the dust diseases contribution, if any, for the employer calculated with respect to the period of insurance in accordance with Schedule 11.
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.
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.
A is the apprentice incentive amount, if any, for the employer determined with respect to the period of insurance in accordance with Schedule 10.
ESI is the employer safety incentive, if any, for the employer calculated with respect to the period of insurance in accordance with Schedule 12.
RTWI is the return to work incentive, if any, for the employer calculated with respect to the period of insurance in accordance with Schedule 13.
(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):
(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
(b) is or exceeds $50,000 but is less than $100,000 (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 $100,000 were that period of insurance to be 12 months), the experience adjusted premium [(T × (1 − S)) + (E × S)] is not to exceed 1.75 times the amount of that basic tariff premium [1.75 × T], and
(c) is or exceeds $100,000 but is less than $200,000 (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 $100,000 but would be less than $200,000 were that period of insurance to be 12 months), the experience adjusted premium [(T × (1 − S)) + (E × S)] is not to exceed 1.85 times the amount of that basic tariff premium [1.85 × T], and
(d) is or exceeds $200,000 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 $200,000 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 twice the amount of that basic tariff premium [2 × T], and
(e) is or exceeds $300,000 but is less than $500,000 (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 $300,000 but would be less than $500,000 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], and
(f) is or exceeds $500,000 (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 $500,000 were that period of insurance to be 12 months), the experience adjusted premium [(T × (1 − S)) + (E × S)] is not to exceed three times the amount of that basic tariff premium [3 × T].
(3) However, if the employer is a member of a group:
(a) subclause (2) does not apply, and
(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:
(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
(ii) is or exceeds $50,000 but is less than $100,000 (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 $100,000 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 1.75 times the amount of the employer’s basic tariff premium [1.75 × T], and
(iii) is or exceeds $100,000 but is less than $200,000 (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 $100,000 but would be less than $200,000 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 1.85 times the amount of the employer’s basic tariff premium [1.85 × T], and
(iv) is or exceeds $200,000 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 $200,000 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 twice the amount of the employer’s basic tariff premium [2 × T], and
(v) is or exceeds $300,000 but is less than $500,000 (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 $300,000 but would be less than $500,000 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], and
(vi) is or exceeds $500,000 (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 $500,000 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 three times the amount of the employer’s basic tariff premium [3 × T],
where:
AG is the sum of apprentice incentive amounts (if any) for all the members of the group calculated:
(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
(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.
TG is the sum of the basic tariff premiums for all the members of the group calculated:
(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
(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.
4
Discount available for premiums paid in full
4 Discount available for premiums paid in full
4 Discount available for premiums paid in full
(1) An employer (other than a small employer) is entitled to a discount of 3 percent on the initial premium payable by the employer for a policy of insurance if:
(a) the period of insurance to which the policy relates is 12 months (or a period of less than 12 months if the policy is issued to an employer who is a member of a group to enable the policy to renew on the same date as the policies of other members of the group), and
(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
(c) the employer has not elected to pay the premium by instalments, and
(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.
Note—
Clause 147 of the Workers Compensation Regulation 2010 requires an employer to notify the insurer concerned of the matter referred to in paragraph (d).
(2) A small employer is entitled to a discount of 5 percent on the initial premium payable by the small employer for a policy of insurance if:
(a) the period of insurance to which the policy relates is:
(i) 12 months, or
(ii) a period of less than 12 months but only if the policy is issued to a small employer who is a member of a group to enable the policy to renew on the same date as the policies of other members of the group, or
(iii) a period of less than 12 months but only if the policy is issued to a small employer to enable the policy to expire at the end of a month, and
(b) the small employer has paid the discounted amount of the premium in full by the date on which payment of the premium is due, and
(c) the small employer has not elected to pay the premium by instalments.
5
Recovery of excess from employer: section 160 of Act
5 Recovery of excess from employer: section 160 of Act
5 Recovery of excess from employer: section 160 of Act
For the purposes of the definition of prescribed excess amount in section 160 (1) of the Act, the following excess amount is specified:
(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,
(b) in all other cases—the lesser of the following:
(i) the amount that is the weekly payment of compensation to which the worker is entitled as determined by section 36 of the Act,
(ii) $1,948.80.
Note—
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.
6
Late payment prescribed rates: sections 170 (8) and 172 (5) of Act
6 Late payment prescribed rates: sections 170 (8) and 172 (5) of Act
6 Late payment prescribed rates: sections 170 (8) and 172 (5) of Act
For the purposes of sections 170 (8) and 172 (5) of the Act, the prescribed rate is 0.845% per month compounded monthly.
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
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
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
For the purposes of clauses 154 (2) (d) (ii) (C) and 155 (2) (d) (ii) (C) of the Workers Compensation Regulation 2010, the amount specified is $1,948.80.
8
Exemption limit for certain employers: section 155AA (8) of Act
8 Exemption limit for certain employers: section 155AA (8) of Act
8 Exemption limit for certain employers: section 155AA (8) of Act
The exemption limit (within the meaning of section 155AA (8) of the Act) for the following employers for the 2014–2015 financial year is fixed at $0:
(a) an employer who carries on a business that is covered by Table A classes 612310, 612315, 612320, 612322, 612324, 612326, 612330, 931120, 931130, 931930, 931940 or 931950 (being classes that refer to a per capita rate), regardless of whether the employer carries on any other business,
(b) an employer who carries on a business in the thoroughbred racing industry and who is required by the Rules of Racing (within the meaning of the Thoroughbred Racing Act 1996) to hold a policy of insurance with Racing NSW, regardless of whether the employer carries on any other business.
Note—
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.
cl 8: Am 2015 (81), Sch 1 [1].
9
Schedules form part of Order
9 Schedules form part of Order
9 Schedules form part of Order
Schedules 1–15 form part of this Order.
Schedule 1
Interpretation
Schedule 1 Interpretation
Schedule 1 Interpretation
(Clause 9)
10
Determination of wages—small employers
10 Determination of wages—small employers
10 Determination of wages—small employers
(1) This clause applies in relation to small employers.
(2) In this Order, a reference to wages, in relation to a period of insurance under a policy issued or to be issued to an employer or in relation to a period of 12 months ascertained by reference to any such period of insurance, is a reference to:
(a) if there is no immediately preceding period of insurance—the reasonable estimate of the monetary value of the wages (not including any wages to which Schedule 7 applies) supplied to the insurer under clause 147 (1) of the Workers Compensation Regulation 2010 for the relevant period of insurance, or
(b) if the small employer has, in accordance with clause 147 (3) of the Workers Compensation Regulation 2010, supplied to the insurer the actual wages paid by the employer during the employer’s second last period of insurance to workers employed by the employer—the actual monetary value of all wages (not including any wages to which Schedule 7 applies) paid to workers by the employer in respect of the second last period of insurance multiplied by 1.026, or
(c) otherwise—the monetary value of the wages (not including any wages to which Schedule 7 applies) used to calculate the employer’s premium in respect of the immediately preceding period of insurance, multiplied by 1.3.
(3) For the purposes of subclause (2) (b) and (c), if the second last period of insurance or the immediately preceding period of insurance is less than 12 months, the monetary value of the wages concerned is to be adjusted to reflect the wages that would be paid on a 12 monthly basis.
(4) For the avoidance of doubt:
(a) in this Order, a reference to wages payable to workers includes wages payable to apprentices, and
(b) in subclauses (2) and (3), the monetary value of wages for an employer for a period of insurance includes the monetary value of wages for that period of insurance paid to apprentices.
11
Meaning of “predecessor”
11 Meaning of “predecessor”
11 Meaning of “predecessor”
(1) For the purposes of this Order, a person is the predecessor of an employer if:
(a) Acquisition or otherwise gaining possession of predecessor’s business
the employer has acquired or otherwise come into the possession of the business of the person, or
(b) Transfer of all or majority of predecessor’s workforce
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.
Note—
The claims and wages history of an employer’s predecessor are used in the calculation of the employer’s workers compensation insurance premium—see clause 4 of Schedule 4 and clause 1 (3) of Schedule 5 to this Order.
(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.
(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.
(4) In this clause, business has the same meaning as in Division 2B of Part 7 of the Act.
Schedule 2
Application
Schedule 2 Application
Schedule 2 Application
(Clause 9)
Schedule 3
Basic tariff premium
Schedule 3 Basic tariff premium
Schedule 3 Basic tariff premium
(Clause 3)
Schedule 4
Experience adjustment factor
Schedule 4 Experience adjustment factor
Schedule 4 Experience adjustment factor
(Clause 3)
Schedule 5
Experience premium
Schedule 5 Experience premium
Schedule 5 Experience premium
(Clause 3)
Schedule 6
Minimum premium
Schedule 6 Minimum premium
Schedule 6 Minimum premium
(Clause 9)
Schedule 7
Reduction of premium for employers of previously injured workers etc
Schedule 7 Reduction of premium for employers of previously injured workers etc
Schedule 7 Reduction of premium for employers of previously injured workers etc
(Clause 9)
Schedule 8
Input tax credit adjustment
Schedule 8 Input tax credit adjustment
Schedule 8 Input tax credit adjustment
(Clause 3)
Schedule 9
Mine Safety Fund premium adjustment
Schedule 9 Mine Safety Fund premium adjustment
Schedule 9 Mine Safety Fund premium adjustment
(Clause 3)
Schedule 10
Apprentice incentive scheme
Schedule 10 Apprentice incentive scheme
Schedule 10 Apprentice incentive scheme
(Clause 3)
Schedule 11
Dust diseases contribution
Schedule 11 Dust diseases contribution
Schedule 11 Dust diseases contribution
(Clause 3)
Schedule 12
Employer safety incentive
Schedule 12 Employer safety incentive
Schedule 12 Employer safety incentive
(Clause 3)
Schedule 13
Return to work incentive
Schedule 13 Return to work incentive
Schedule 13 Return to work incentive
(Clause 3)
Schedule 14
Table A
Schedule 14 Table A
Schedule 14 Table A
Editorial note—
For the text of Schedule 14 see Gazette No 56 of 25 June 2014, p 2240. Amended by Gazette No 13 of 20 February 2015, p 373.
For the text of Schedule 15 see Gazette No 49 of 30 May 2014, p 1530. Amended by Gazette No 13 of 20 February 2015, p 373.
sch 15: Am 2015 (81), Sch 1 [3] [4].
Source text: opening excerpt
Sourced from legislation.nsw.gov.au, CC BY 4.0.
1 Name of Order
1 Name of Order
1 Name of Order
This Order is the Insurance Premiums Order 2014–2015.
2 Commencement
2 Commencement
2 Commencement
This Order commences at 4 pm on 30 June 2014 and must be published in the Gazette.
3 Calculation of insurance premium payable by employer
3 Calculation of insurance premium payable by employer
3 Calculation of insurance premium payable by employer
(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:
(a) if the employer is a medium or large employer for the purposes of the policy, in accordance with the following formula:
(b) if the employer is a small employer for the purposes of the policy, in accordance with the following formula:
where:
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:
(a) except as provided by paragraph (b), the initial premium so payable in accordance with this Order, or
(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.
T is the basic tariff premium for the employer, calculated with respect to the period of insurance in accordance with Schedule 3.
S is the experience adjustment factor for the employer determined with respect to the period of insurance in accordance with Schedule 4.
E is the experience premium, if any, for the employer determined with respect to the period of insurance in accordance with Schedule 5.
Q is the premiums adjustment contribution, if any, for the employer.
D is the dust diseases contribution, if any, for the employer calculated with respect to the period of insurance in accordance with Schedule 11.
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.
The Order embeds procedural and record-keeping requirements: classification of a business and allocation of wages across classes (clause 8 and Schedule 3); two alternative methods for excluding motor vehicle allowances from wages with specific odometer and record-keeping regimes (clauses 3-7); requirements to notify input tax credit entitlement and wages to insurers under the Regulations (referred to throughout, e.g. Schedules 8 and 10); and provisions allowing the Authority to issue guidelines and reduce the experience adjustment factor in certain circumstances (Schedule 4(5)). Schedules 1-15 form part of the Order (clause 9).
This is an instrument of calculation and administrative prescription. It names who pays (the employer), who decides certain discretionary elements (the Authority for guidelines and potential reductions; the Governor for ICCR2 industry rates when notified in the Gazette; insurers for the initial premium demand and reclassification if insufficient information is supplied), the data employers must supply (wages, GST/input tax entitlement, odometer and travel records where applicable) and the adjustments that insurers and the Authority will make to produce a final premium. The Order cross‑refers to the Workers Compensation Act 1987 (the Act) and to specified provisions of the Workers Compensation Regulation 2010 and other Commonwealth statutes (Schedules and definitions in Schedule 1).
Main concepts
The Order builds from a modular set of defined components that aggregate into the employer premium. The principal defined items are:
Basic tariff premium (T): calculated by multiplying components of total wages (or substituted per capita numbers) by percentage rates set out in Table A (Schedule 3). The classification of business operations against Table B determines which rates apply (clause 8 and Schedule 3(1)). If employers fail to supply classification information, the business is placed in the class with the highest applicable rate (Schedule 3(2), repeated in other Schedules).
Experience adjustment factor (S): a factor between 0 and 1 representing the degree to which the employer’s premium is adjusted toward an experience premium. S is calculated using employer claims and wages history across the last two years and varies if the employer is new, a group member, a former self‑insurer or has a predecessor (Schedule 4). The Authority can reduce S where there have been breaks in insurance, guided by criteria it may develop (Schedule 4(5)).
Experience premium (E): reflects the employer’s recent claims cost experience (Schedule 5). E is calculated differently depending on whether it is an initial calculation before the policy period has expired, a calculation after a full 12 month period, or where the policy period is less than 12 months or cancelled. The Schedule defines Employer’s Claims Cost Rates (Initial ECCR and Hindsight ECCR) built from C0, C1, C2 (claim costs) and W0, W1, W2 (wages). ICCR industry rates are used in benchmarking; ICCR2 may be determined by the Governor on the Authority’s recommendation and published in the Gazette (Schedule 5(1)).
Adjustments and contributions:
Apprentice incentive amount (A) reduces the tariff to recognise apprentice wages under Schedule 10.
Input tax credit adjustment (I) adjusts for GST recoverable by the employer and uses a table mapping the employer’s input tax credit entitlement to a multiplicative premium discount (Schedule 8).
Dust diseases contribution (D) is a separate percentage component applied per Table A Column 5 (Schedule 11), with a special 4.4 percent rate for certain specified employers (Schedule 11(2)).
Mine Safety Fund premium adjustment (M) applies across Division B classes (Schedule 9) at a fixed RMSF factor of 0.607 percent.
Employer safety incentive (ESI) and Return to Work incentive (RTWI) provide reductions based on return-to-work outcomes and claim characteristics (Schedules 12 and 13).
Small, medium, large employer definitions: determined by the basic tariff premium threshold at the time the insurer demands premium (Schedule 1(2)). Small employer ≤ $30,000 T (on a 12 month basis); large employer > $500,000 T (on a 12 month basis). Membership of a group aggregates basic tariff premiums and wages for threshold calculations (Schedule 1(2)).
Caps on the experience adjusted premium: clause 3(2) (and Schedule 8 mirrors these) limits (T × (1 − S)) + (E × S) to multiples of T according to ranges of T−A. Multiples vary from 1.5×T for T−A < $50,000 up to 3×T for T−A ≥ $500,000. For group members, clause 3(3) disapplies subclause (2) and applies caps based on TG−AG, where TG and AG are group sums.
Record keeping methods for motor vehicle allowances: two alternatives, continuous recording (clause 4) and averaging over a 12 week sample (clause 5), with detailed odometer and journey purpose requirements and rules for replacing vehicles, recalibration and re-sampling (clauses 6-7).
Minimums and other fixed amounts: minimum premium $175 (Schedule 6); prescribed excess figures and monetary thresholds such as $1,948.80 used for s160 excess and in Regulations calculations (clauses 5 and 7); the late payment rate 0.845 percent per month compounded monthly (clause 6).
These concepts interlock: T is the base from which most other elements are computed; S and E move the premium toward experience relativity; A and other incentives reduce payable amounts; I and Q adjust for fiscal structures and statutory funds; D and M fund specific statutory liabilities. The Order also prescribes administrative approaches,default assumptions (e.g. 100 percent ITC if employer fails to notify), reclassification to the highest rate if insufficient information is supplied, and Authority/insurer powers to request, determine and apply data.
Who it affects
Primary economic actors: employers required to obtain workers compensation cover under the Workers Compensation Act 1987, insurers licensed under the Act, and the Authority and Governor who make certain determinations. Employers pay the premium; insurers demand and collect the premium; the Authority issues guidelines and may exercise discretions, and the Governor can determine ICCR2 industry claims rates on the Authority’s recommendation (Schedule 5(1)).
By employer size: small employers (basic tariff premium ≤ $30,000 on a 12 month basis) are treated differently in a number of respects. They are eligible for a higher discount (5 percent) if they pay in full and meet other conditions (clause 4(2)); their determination of wages for premium calculation uses provisions specific to small employers including higher reliance on the second last period of insurance multiplied by 1.026 or a 1.3 multiplier where previous data absent (clause 10). Medium and large employers use different estimation rules (clause 9).
Employers carrying on particular businesses: Schedule 14 (Table A) and Schedule 15 (Table B) specify industry classes and the percentage rates, per capita rates and special contributions that apply to different business activities. Clause 8 fixes the classification mechanism and instructs that the basic tariff premium is determined having regard to the rate in Column 3 of Table A for the class applicable to the employer’s business. Clause 8 also clarifies that employers can carry on multiple businesses and sets rules for when businesses are separate and distinct for classification.
Groups and predecessor relationships: the Order treats employers who are members of groups differently in experience caps, S calculation and input tax aggregation (see clause 3(3), Schedule 4(2), Schedule 8(3)). Employers that acquire a business or a majority of a predecessor’s workforce are treated as having predecessors for the purpose of carrying forward claims and wages history, which affects S and E calculations (clause 11 and Schedule 4(4) and Schedule 5(3)). This imposes an effect on buyers of businesses and on the transferee employers who must account for predecessor history.
Specific industries: clause 8 fixes an exemption limit at $0 for listed per capita Table A classes and for thoroughbred racing employers required to hold Racing NSW policies; the practical effect is to remove exemption under s 155AA for those employers for 2014-2015 (clause 8). Specialised insurers are mostly exempt from the Order, but clause 2(2) preserves application of clause 5 (excess amount) and clause 8(b) to policies issued by a specialised insurer such as Racing NSW where relevant.
Other affected parties: workers will be indirectly affected through employer incentives such as ESI and RTWI aimed at return-to-work outcomes, and by the prescribed excess rules which allocate certain initial costs back to employers under s 160 of the Act (clause 5). Government entities (e.g. the Dust Diseases Fund, Mine Safety Fund and Insurance Fund) are funded through the D, M and Q components embedded in premium calculations.
Administrative and compliance actors: insurers, who must demand premiums and apply the Order’s formulas (clause 3), the Authority, which has powers to issue guidelines, make eligibility determinations and recommend ICCR2 to the Governor (Schedule 4(5), Schedule 5(1)), and the Governor, who may set ICCR2 and whose determinations are to be notified in the Gazette (Schedule 5(1) editorial note referencing Gazette No 47 of 5.6.2015). Employers are obliged to provide returns, wage notices and GST/input tax notifications to insurers as required by the Regulations referred to throughout the Order (see Schedule 1 definitions and Schedules 8 and 10).
Key duties and rights
Duties imposed on employers
Provide accurate wage notifications and other returns to the insurer in accordance with the Workers Compensation Regulation 2010, including notifications of input tax credit entitlement (Schedule 8(2)) and reasonable estimates of wages to claim discounts (clause 4(1)(d) and Schedule 10(3)(4)). Where employers fail to notify input tax credit entitlement the Order treats their ITC as 100 percent for premium purposes (Schedule 8(2)).
Maintain records specified by the Order if they elect or are required to use particular methods for excluding motor vehicle allowances, including odometer readings, journey purposes and distance calculations under the continuous or averaging methods (clauses 3, 4, 5 and 6). Where averaging is used, employers must perform a 12-week sample and refresh it after four successive periods of insurance (clause 5).
Notify insurers of injuries within 5 days where possible to avoid the $0 prescribed excess level not applying (clause 5). If they fail to notify within 5 days they face a prescribed excess equal to the lesser of the weekly payment under s 36 and $1,948.80.
Supply particulars of claims as required by the regulations to enable calculation of the experience adjustment factor and experience premium (Schedule 4(1)(a)(ii) and Schedule 5(1) C1/C2 definitions).
Comply with record-keeping and application procedures for specific reductions or incentives, for example submitting applications for premium reduction under Schedule 7 under Authority guidelines (Schedule 7(4)) and applying for reductions to S where there have been breaks in insurance (Schedule 4(5)).
Duties on insurers and the Authority
Insurers must calculate premiums in accordance with clause 3 and the Schedules, demand premiums from employers and apply discounts, adjustments and caps as prescribed. If an employer fails to provide sufficient classification information, insurers must classify the business in the class with the highest percentage that appears applicable (Schedule 3(2) and repeated elsewhere).
Insurers may apply a 1.3 multiplier to prior period wages when an employer has failed to furnish returns for any relevant period (clause 9(3)).
The Authority may issue guidelines and determine eligibility, methods and other matters for reductions to S and for Schedule 7 applications (Schedule 4(5) and Schedule 7(1-4)). The Governor, on the Authority’s recommendation, may determine ICCR2 industry claims cost rates and publish them in the Gazette (Schedule 5(1)).
Rights and protections
Employers that meet the requirements for paying premiums in full (and other conditions) are entitled to a discount: 3 percent for non-small employers and 5 percent for small employers (clause 4(1)-(2)). The conditions include paying the discounted amount in full by the due date, not electing instalments and providing wage estimates in accordance with the Regulations.
Employers are protected from unlimited experience loading by the caps in clause 3(2) and clause 3(3) for group members. These caps limit the experience adjusted premium to specified multiples of T depending on the T−A band.
Employers who are new, previously self-insurers or have predecessors have prescribed methods for how their S is calculated (Schedule 4(1)(b)-(d), Schedule 4(3) and Schedule 4(4)), which provide explicit formulae rather than ad hoc treatment.
Employers may apply for reductions of the experience adjustment factor where there have been breaks in insurance; the Authority may develop criteria for such reductions (Schedule 4(5)).
Administrative detail and defaults
If an employer does not supply sufficient information to enable classification or wage notices, the Order sets defaults that are unfavourable to the employer: classification to the highest applicable rate (Schedule 3(2)), input tax credit entitlement to 100% if not notified (Schedule 8(2)), and apprentice incentive amount treated as zero until required notices are supplied (Schedule 10(2)-(3)).
Where policies involve per capita rates, the Order prescribes direct substitution of the relevant numbers (for example, number of taxi licences) in place of wages when calculating T, E and various other components (Schedule 3(2), Schedule 5(4-6)).
These duties and rights create an administrative regime in which employers must supply accurate and timely data to obtain favourable premium calculations, while insurers and the Authority are assigned predictable powers and default rules to be applied in the absence of that data.
Penalties and enforcement
The Order itself prescribes monetary thresholds, caps, rates and procedures rather than criminal penalties. Enforcement mechanisms flow from statutory relationships to the Workers Compensation Act 1987 and the Regulations referred to in the Order.
Recovery and repayment
Clause 5 implements the definition of prescribed excess amount for the purposes of section 160(1) of the Act. Under section 160(2) of the Act (the Order notes), an employer is required to repay the prescribed excess amount to the insurer in respect of each weekly compensation claim that the insurer has paid under the policy. The Order therefore fixes how much an employer must repay where the insurer has paid weekly compensation and the employer did not notify the insurer within 5 days (clause 5).
Late payment and interest
Clause 6 prescribes the rate of late payment for sections 170(8) and 172(5) of the Act at 0.845 percent per month compounded monthly. Sections 170 and 172 of the Act deal with the insurer’s rights and employer liabilities in relation to payment timing; the Order fixes the prescribed interest applied to late payment, which determines the financial charge for employers who miss payment deadlines.
Insurer powers and administrative enforcement
If an employer fails to furnish returns required by the Regulations, clause 9(3) permits insurers to estimate wages by applying a multiplier of 1.3 to the wages for the immediately preceding equivalent period. That is an enforcement-by-default mechanism: insurers can avoid under-collection by using an upward estimate.
If an employer fails to supply sufficient information for classification, the insurer must classify the business in the class with the highest percentage rate that appears to be applicable (Schedule 3(2) and repeated in Schedules 10 and 11). That imposes a direct financial consequence for non‑cooperation.
Authority discretion and procedural gating
The Authority has procedural powers, including issuing guidelines and developing criteria for eligibility and methods for reductions of S and for applications under Schedule 7 (Schedules 4(5) and 7(4)). These guidelines will define administrative eligibility and the manner of any reductions. Enforcement can therefore include refusal of reductions where criteria are not met.
Minimums and fixed replacements
The Order enforces a minimum premium of $175 (Schedule 6). This is a binding upward adjustment when calculated premiums fall below the floor.
Administrative publication and determinations
The Order allows the Governor, on recommendation of the Authority, to fix ICCR2 industry rates and requires publication in the Gazette (Schedule 5(1)). Publication is an administrative enforcement mechanism to make binding industry benchmarking rates public.
No criminal or civil penalty amounts are specified in the Order itself; instead financial effects are achieved through the premium arithmetic, interest, excess repayments and administrative defaults. Enforcement of compliance with recordkeeping and notifications will arise via the insurer’s calculation adjustments and through the Act and the Regulations, which are referenced throughout the Order. The Order also references the Workers Compensation Regulation 2010 for obligations such as clause 147 (wage notices) and clause 151 (input tax credit notifications). Failure to comply with statutory obligations under the Act or Regulations may invoke the Act’s separate enforcement provisions, but those are not restated in the Order.
How it interacts with other laws
The Order is integrally linked to the Workers Compensation Act 1987 (the Act), the Workers Compensation Regulation 2010 (the Regulations), Commonwealth GST law and other statutes. The Order explicitly cross‑references multiple external provisions and uses their definitions and mechanisms.
Workers Compensation Act 1987
The Order operates under the Act and supplies numerical and procedural particulars needed to calculate premiums and prescribed amounts under the Act. Clause 5 ties directly into section 160(1) of the Act by specifying the prescribed excess amount used when imposing employer reimbursement obligations under s 160(2). Clauses 6 and 7 supply prescribed figures for sections 170(8), 172(5), and Regulation clauses 154 and 155 respectively. The Order consistently references the Act as its statutory base (Schedule 1 definition of "the Act").
Workers Compensation Regulation 2010
The Order repeatedly refers insurers’ and employers’ obligations under the Regulations. For example, clause 4(1)(d) requires an employer to notify the insurer of the reasonable estimate of wages in accordance with the Regulations (and the Order’s Note references clause 147 of the Regulation). Schedule 8(1) and Schedule 10(2) refer to clause 151 and clause 147 of the Regulations respectively concerning notification of input tax credit entitlement and wage notices. The Order therefore depends on the Regulations for procedural detail about timing, form and manner of employer notifications. The Order also references clauses 154 and 155 of the Regulations indirectly by providing the $1,948.80 figure used in those Regulation clauses (clause 7).
A New Tax System (Goods and Services Tax) Act 1999 (Commonwealth)
Schedule 1 defines GST and input tax credit entitlement by reference to the Commonwealth GST Act. Schedule 8 calculates an input tax credit adjustment based on the employer’s ITC entitlement as notified in accordance with the Regulations, and the Order specifies default treatment where notification is not provided (Schedule 8(2)). This ties premium adjustment mechanics to Commonwealth taxation entitlements.
Other Commonwealth and State statutes
Schedule 1 references the Corporations Act 2001 (definition of limited proprietary company) and the Apprenticeship and Traineeship Act 2001 (definition of apprentice and apprenticeship contracts used in Schedule 10). Schedule 5 references the Safety, Rehabilitation and Compensation Act 1988 (Comcare employers) to define special handling where an employer becomes a Comcare employer. Schedule 11 cross‑references the Workers’ Compensation (Dust Diseases) Act 1942 and a historical Board determination for a special class where the DD contribution uses a flat 4.4 percent rate.
Administrative law and publication
The Order contemplates administrative determinations by the Authority, and the Governor’s notification in the Gazette for ICCR2 (Schedule 5(1) and editorial note referring to Gazette No 47 of 5.6.2015). It therefore interfaces with administrative law norms (publication, delegated determinations).
Interactional mechanics and potential friction points
The Order’s calculations often rely on employer-supplied data as required by the Regulations. Where that data is missing, the Order prescribes defaults that can increase employer liabilities (classification to highest rate, 1.3 multiplier for missing returns, assumed 100 percent ITC). Consequently the Order’s mechanics rely on effective enforcement and coherence between insurer application and the Regulations’ procedural obligations.
Group and predecessor constructs in the Order interact with corporate law transfers and commercial transactions. Clause 11 defines “predecessor” in a way that depends on factual determinations about acquisition of business or employment of a predecessor’s workforce. That can interact with sale of business structures under the Corporations Act and conveyancing or asset sale arrangements.
Application across jurisdictional boundaries: where an employer becomes a Comcare employer (Schedule 5(1) definition), the Order supplies alternate calculation rules. That ties State premium calculation to Commonwealth licensing under the Safety, Rehabilitation and Compensation Act 1988.
The Order therefore sits within a web of provisions from the Act, the Regulations and Commonwealth taxation and industrial statutes. Compliance requires coordination between employer conduct under the Regulations, insurer calculation practice and administrative determinations by the Authority and the Governor.
Amendment history
The Order as presented contains internal editorial notes pointing to subsequent amendments and formal publication steps. The Order commenced at 4 pm on 30 June 2014 and required Gazette publication (clauses 1-2). The instrument is identified in the opening as Insurance Premiums Order 2014-2015.
Specific amendment pointers within the text include:
Clause 8: an express amendment note "cl 8: Am 2015 (81), Sch 1 [1]". Clause 8 fixes exemption limits at $0 for specified employers for the 2014-2015 financial year and the amendment note indicates that clause 8 was amended in 2015 in instrument 2015 (81), Schedule 1, item [1].
Schedule 5: Schedule 5(1) contains an editorial note directing readers to Gazette No 47 of 5.6.2015, p 1582 for a determination under the ICCR2 definition. That shows that the Governor’s industry claims cost rate (ICCR2) has been the subject of a subsequent determination notified in the Gazette.
Schedule 14 and Schedule 15: editorial notes instruct readers to consult specific Gazette issues for the text of Tables A and B and record amendments:
Schedule 14: "For the text of Schedule 14 see Gazette No 56 of 25 June 2014, p 2240. Amended by Gazette No 13 of 20 February 2015, p 373. sch 14: Am 2014 (385), cl 3; 2015 (81), Sch 1 [2]."
Schedule 15: "For the text of Schedule 15 see Gazette No 49 of 30 May 2014, p 1530. Amended by Gazette No 13 of 20 February 2015, p 373. sch 15: Am 2015 (81), Sch 1 [3] [4]."
These internal notes indicate that the classification tables (Tables A and B) were published in the Gazette on or about the Order’s commencement and were subsequently amended in February 2015. They also indicate that the statutory instrument record shows amendments in 2014 and 2015 (identified by instrument numbers and schedule references).
The Order also embeds references to the Regulations and other statutes that may be amended independently; any changes in those referenced laws will affect administrative obligations under the Order (for example clauses in the Workers Compensation Regulation 2010 referenced in clause 4 and Schedules 8 and 10). The Order’s own text contains no further amendment history beyond the editorial notes quoted.
Practically, legal and compliance teams must watch Gazette notices and the Authority’s publications for (a) ICCR2 determinations by Governor, (b) any amendments to Tables A and B, and (c) any Authority guidelines (Schedule 4(5) and Schedule 7(4)). The editorial notes in Schedule 5 and Schedules 14-15 explicitly direct readers to Gazette numbers and dates where key materials or amendments are published.
Litigation history
The Order does not cite any judicial decisions or administrative appeals within its text. There are no cases named or decisions described in the instrument. The Order is a regulatory pricing and administrative instrument that establishes formulae and procedural defaults; it therefore creates potential factual and legal points that could give rise to disputes, but the Order itself contains no litigation history.
Potential dispute areas suggested by the Order’s text include:
Classification disputes: clause 8 and Schedule 3 rely on Table B for classification and Table A for rates. Where an employer’s activities fall between classes or where the employer’s supplied information is incomplete, the insurer is instructed to classify in the class with the highest applicable rate (Schedule 3(2)). That procedural default may generate disputes between employers and insurers about correct classification and the applicable rate, and subsequently appeals to the Authority or tribunal, although none are recorded in the Order.
Predecessor and group determinations: clause 11 provides a two‑part test for “predecessor” based on acquisition of business or the transfer of a majority of a workforce. Application of that factual test to business sales, asset transfers, franchise arrangements or labour hire could be contentious and may generate disputes over whether predecessor history must be imported into an employer’s premium calculation (Schedule 4(4) and Schedule 5(3)).
Experience calculations and data sufficiency: Schedule 4 and Schedule 5 rely on C0, C1, C2 and W0, W1, W2 which in turn depend on claims history and wage returns provided under the Regulations. Insurers are permitted to use default upward adjustments when returns are missing (clause 9(3)). These estimation rules may give rise to disagreements about whether the insurer properly applied defaults, whether the Authority’s guidelines for reductions have been correctly applied, and whether the employer supplied adequate particulars.
Application of ICCR2 and industry benchmarking: Schedule 5(1) enables ICCR2 to be determined by the Governor on advice. Affected employers or industry bodies might litigate or seek judicial review if they consider the recommendation or the determination process flawed, but the Order itself contains only the enabling text and a Gazette reference for an ICCR2 determination.
Absent explicit litigation entries, practitioners should assume that any disputes arising under this Order will be litigated or reviewed under the general administrative law and the Act’s dispute resolution mechanisms. The Order places much emphasis on data reporting and administrative determination; these are the most likely sources of contested decisions.
Gotchas
The Order contains several technical details and defaults that materially affect premium outcomes. The following are concrete “gotchas” distilled from the text that practitioners and compliance teams should watch.
Defaults are unfavourable to employers who fail to provide data
Classification: if the employer does not supply sufficient information to enable classification, the insurer must classify the business in the class with the highest percentage rate that appears applicable (Schedule 3(2)). That can immediately increase T.
Input tax credit entitlement: if an employer fails to notify its ITC entitlement in accordance with clause 151 of the Regulations, the Order treats the employer’s ITC as 100% (Schedule 8(2)). The Schedule 8 table then maps ITC entitlement to premium discounts relative to 100% ITC; treating ITC as 100% removes any discount that a lower ITC would confer.
Apprentice incentive: for small employers renewing a policy, the apprentice incentive amount is taken as zero until the employer supplies the required wage notice (Schedule 10(3)). That may remove an incentive normally expected to reduce T.
Caps on experience-adjusted premium interact with apprentice incentive A
The caps on (T × (1 − S)) + (E × S) are applied based on T−A (clause 3(2)). Because the apprentice incentive A reduces the T−A base, its presence impacts which cap band applies. Practitioners should check that A has been correctly calculated and applied before caps are determined.
Group aggregation and thresholds change cap application
If an employer is a member of a group clause 3(3) disapplies the per-employer application of clause 3(2) and applies caps based on TG−AG (the group sum of T less apprentices incentive). That can either raise or lower caps for individual members compared with standalone application, depending on other members’ premiums and apprentices.
Periods of insurance shorter than 12 months are treated as if 12 months for some calculations
Many computations ask to treat a non‑12 month period as if it were 12 months for purposes of determining T, TG, AG and cap banding (see clause 3(2), clause 3(3), Schedule 4(1) and others). This can move an employer into a different size band or cap category and create discontinuities when policies are issued for short periods to align renewal dates.
Record-keeping requirements for motor vehicle allowances are detailed and prescriptive
Choosing the continuous recording method requires keeping odometer readings at start and end of each business journey and purpose of journeys (clause 4). The averaging method requires a 12 week initial recording, vehicle-level odometer logs and retention for up to four subsequent periods with recertification rules (clause 5). Errors in sampling or in replacement vehicle nominations (clause 7) may lead to disallowance of the allowance exclusion and increased wages for premium purposes.
Missing wage returns lead to automatic 30% increase in wage estimate for medium/large employers
If an employer fails to furnish returns and the monetary value of wages for that period has not been ascertained, the insurer may take the previous equivalent period’s wages and multiply by 1.3 (clause 9(3)). Small employers have specific multipliers too (clause 10(2)(b) uses 1.026 in one case and clause 10(2)(c) uses 1.3 in others). These default multipliers can significantly inflate premiums.
Minimum premium and discount interaction
The minimum premium is $175 (Schedule 6). Clause 6(3) explicitly states that the premium as discounted under clause 4 is included when checking against the minimum. Thus, a discounted premium that would fall below $175 must be increased to $175; paying in full to obtain a discount may still deliver no benefit where the minimum binds.
Prescribed excess and notification timing
Clause 5 fixes a $0 excess where the employer notified the insurer within 5 days of becoming aware of the injury. Otherwise the excess is the lesser of the weekly compensation payment under s 36 or $1,948.80. Employers who miss the 5 day window may therefore face material repayments to insurers under s 160(2).
Interplay with GST law and Regulations
The input tax credit adjustment depends on the employer’s ITC entitlement as defined by the Commonwealth GST Act and notified under the Regulations (Schedule 8). Misunderstanding or mis-notifying GST treatment will affect the B% multiplier in Schedule 8 and alter premiums.
Predecessor and group rules bring acquired businesses’ histories into current premiums
Clause 11 treats an employer as a successor where the business is acquired or where a majority of the predecessor’s workforce is employed and doing similar work. Schedule 5 and Schedule 4 bring predecessor claims and wages into C and W calculations. Buyers and sellers of business assets must account for this transfer risk.
The Authority can promulgate guidelines for S reductions and for Schedule 7 applications (Schedule 4(5), Schedule 7(4)). The scope and criteria of those guidelines will affect whether reductions are available. Until guidelines are published, employers face uncertainty about eligibility and calculation methods.
Per capita rates substitution
Where a policy relates to per capita rates, the Order requires substitution of the relevant count (e.g. number of taxi licences) for wages in multiple formulae (Schedules 3, 5, others). This changes the numeric character of premiums and may cause misapplication if insurers or employers use wage-based logic by mistake.
These are concrete procedural and numerical pitfalls embedded in the Order’s text that materially change premium outcomes or employer obligations.
How to comply
Compliance requires a coordinated administrative plan addressing data, timing, calculation and interaction with insurers and the Authority. The following practical checklist mirrors the Order’s mechanics and identifies necessary steps and records, with clause and Schedule citations.
Determine classification and applicable rates
Map the employer’s business activities to Table B (clause 8(1)). Ensure any multi-business operations are assessed for separate and distinct businesses as per clause 8(3)-(6). If classification information is incomplete, expect the insurer to apply the highest applicable rate (Schedule 3(2)). Keep documentary evidence of business activities, sites, and worker duties to support classification challenges.
Calculate basic tariff premium (T)
Use Schedule 3: break total wages into Wa, Wb… corresponding to Table A classes and multiply by the applicable percentage rates Ra, Rb… (Schedule 3(1)). If per capita rates apply, substitute the relevant counts for wages (Schedule 3(2)). Maintain wage allocation returns, ideally as required under the Regulations referenced in Schedule 3.
Provide wage notifications and returns on time
Comply with the Workers Compensation Regulation 2010 obligations (noted in clause 4 and Schedules 8 and 10). For small employers, note the special rules about calculating wages (clause 10). Missing or late wage returns trigger default multipliers (clause 9(3) and clause 10(2)(c)) and can eliminate apprentice incentives until notices are supplied (Schedule 10(2)-(3)).
Notify input tax credit entitlement and GST treatment
Notify the insurer of ITC entitlement in accordance with clause 151 of the Regulations. If not notified, the Order treats ITC as 100 percent (Schedule 8(2)), which may forego a favourable premium discount. Keep GST advice, calculations and documentation to support the notified entitlement.
Maintain odometer and travel records if excluding motor vehicle allowances
Decide between continuous recording (clause 4) and the averaging method (clause 5). For continuous recording, log odometer readings for each business journey and purpose (clause 4). For averaging, perform an initial 12-week sample capturing vehicle-level odometer readings and journey allocations (clause 5(1)). Keep supporting records for vehicle replacements, recalibrations and any later re‑sampling (clauses 6-7). These records must be available on request by insurers or the Authority.
Compute S and E with complete claims and wage data
Ensure claims particulars are supplied in accordance with the Regulations to enable calculation of S (Schedule 4(1)(a)(ii)). Maintain claim cost records C0, C1, C2 and wage histories W0, W1, W2 as required for Schedule 5. If the employer has a predecessor or was a self-insurer, prepare supporting documents to have the predecessor periods or self-insurer periods recognised under Schedule 4(3-4) and Schedule 5(3).
Apply incentives, adjustments and contributions
Calculate apprentice incentive amount A per Schedule 10, ensuring apprenticeship contracts are properly recorded and wage estimates provided in approved form where required (Schedule 10(1,3,4)). Calculate input tax adjustment I using Schedule 8’s formula and B% table based on ITC entitlement. Compute dust diseases contribution D (Schedule 11), Mine Safety Fund M (Schedule 9), ESI (Schedule 12) and RTWI (Schedule 13) as applicable. Keep separate accounting of amounts attributable to per capita and wage elements where a policy covers both (Schedule 5(5-6)).
Check and apply caps correctly
Determine whether the cap bands in clause 3(2) or clause 3(3) apply by assessing T−A on a 12 month basis and whether the employer is a group member. Apply the relevant multiple of T as a ceiling for the experience-adjusted element. For group members, calculate TG and AG on a 12 month basis as required.
Claim discount for payment in full if eligible
To claim the 3 percent (non‑small) or 5 percent (small) discount (clause 4), the employer must:
Have a 12 month policy (or limited exceptions for synchronised renewal or month‑end expiry),
Pay the discounted premium in full by the due date,
Not elect to pay by instalments, and
Notify the insurer of a reasonable estimate of wages per the Regulations (clause 4(1)(a-d)). Keep receipts and trustee records proving timely full payment.
Observe notification timelines for injuries
Notify the insurer within 5 days of becoming aware of an injury to obtain a prescribed excess of $0 under clause 5. If notification is late, prepare for employer repayment obligations under s 160(2) of the Act up to the lesser of weekly payment and $1,948.80.
Prepare for insurer defaults and challenge mechanisms
Where the insurer applies defaults (classification to highest rate, 1.3 multiplier, ITC default, apprentice incentive zero), be prepared to present documentation to challenge and obtain reclassification or recalculation. Use the Authority’s guidelines and appeal mechanisms under the Act and Regulations where available.
Monitor Authority guidelines and Gazette notices
Watch for Authority guidelines on S reductions (Schedule 4(5)) and Schedule 7 application procedures (Schedule 7(4)). Monitor the Gazette for ICCR2 determinations and amendments to Tables A and B (Schedule 5(1) editorial note and Schedules 14-15 editorial notes). Record versions of Tables A and B relied on for each period of insurance and maintain correspondence about any reclassification.
For acquisitions or restructures, examine predecessor and group implications
Before acquiring a business or transferring a workforce, assess whether the operation will be a “predecessor” under clause 11 and the implications for claims history and premium calculation. If acquiring a majority of a workforce doing the same work, gather the predecessor’s claims and wages history to allow insurers to calculate S and E with continuity where applicable.
Keep documentary trails for every calculation
Retain copies of insurer premium demands, supplied wage notifications, ITC notifications, odometer and travel records, apprenticeship contract wage estimates, claim particulars, and any Authority or Governor determinations used in calculations. These documents will be the basis for disputes, recalculations and audit responses.
Understand interaction with the Regulations and other Acts
Coordinate the employer’s obligations under the Workers Compensation Regulation 2010 and the GST Act with the Order’s requirements. Seek tax and industrial law advice where necessary to determine ITC entitlement, wage classifications under industrial instruments and treatment of allowances.
Following this compliance roadmap addresses the main data points and procedural gateways the Order imposes. The Order’s detailed formulas and multiple interdependent Schedules mean compliance is a data management and administrative exercise: gather accurate wage and claims data, document apprentices, record travel in the prescribed form if claiming exclusions, notify ITC and wages to insurers on time, and watch administrative instruments (Gazette and Authority publications) that change benchmarking and guideline criteria.
Section 6Late payment prescribed rates: sections 170 (8) and 172 (5) of Act
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.
A is the apprentice incentive amount, if any, for the employer determined with respect to the period of insurance in accordance with Schedule 10.
ESI is the employer safety incentive, if any, for the employer calculated with respect to the period of insurance in accordance with Schedule 12.
RTWI is the return to work incentive, if any, for the employer calculated with respect to the period of insurance in accordance with Schedule 13.
(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):
(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
(b) is or exceeds $50,000 but is less than $100,000 (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 $100,000 were that period of insurance to be 12 months), the experience adjusted premium [(T × (1 − S)) + (E × S)] is not to exceed 1.75 times the amount of that basic tariff premium [1.75 × T], and
(c) is or exceeds $100,000 but is less than $200,000 (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 $100,000 but would be less than $200,000 were that period of insurance to be 12 months), the experience adjusted premium [(T × (1 − S)) + (E × S)] is not to exceed 1.85 times the amount of that basic tariff premium [1.85 × T], and
(d) is or exceeds $200,000 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 $200,000 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 twice the amount of that basic tariff premium [2 × T], and
(e) is or exceeds $300,000 but is less than $500,000 (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 $300,000 but would be less than $500,000 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], and
(f) is or exceeds $500,000 (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 $500,000 were that period of insurance to be 12 months), the experience adjusted premium [(T × (1 − S)) + (E × S)] is not to exceed three times the amount of that basic tariff premium [3 × T].
(3) However, if the employer is a member of a group:
(a) subclause (2) does not apply, and
(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:
(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
(ii) is or exceeds $50,000 but is less than $100,000 (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 $100,000 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 1.75 times the amount of the employer’s basic tariff premium [1.75 × T], and
(iii) is or exceeds $100,000 but is less than $200,000 (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 $100,000 but would be less than $200,000 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 1.85 times the amount of the employer’s basic tariff premium [1.85 × T], and
(iv) is or exceeds $200,000 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 $200,000 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 twice the amount of the employer’s basic tariff premium [2 × T], and
(v) is or exceeds $300,000 but is less than $500,000 (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 $300,000 but would be less than $500,000 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], and
(vi) is or exceeds $500,000 (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 $500,000 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 three times the amount of the employer’s basic tariff premium [3 × T],
where:
AG is the sum of apprentice incentive amounts (if any) for all the members of the group calculated:
(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
(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.
TG is the sum of the basic tariff premiums for all the members of the group calculated:
(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
(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.
4 Discount available for premiums paid in full
4 Discount available for premiums paid in full
4 Discount available for premiums paid in full
(1) An employer (other than a small employer) is entitled to a discount of 3 percent on the initial premium payable by the employer for a policy of insurance if:
(a) the period of insurance to which the policy relates is 12 months (or a period of less than 12 months if the policy is issued to an employer who is a member of a group to enable the policy to renew on the same date as the policies of other members of the group), and
(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
(c) the employer has not elected to pay the premium by instalments, and
(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.
Note—
Clause 147 of the Workers Compensation Regulation 2010 requires an employer to notify the insurer concerned of the matter referred to in paragraph (d).
(2) A small employer is entitled to a discount of 5 percent on the initial premium payable by the small employer for a policy of insurance if:
(a) the period of insurance to which the policy relates is:
(i) 12 months, or
(ii) a period of less than 12 months but only if the policy is issued to a small employer who is a member of a group to enable the policy to renew on the same date as the policies of other members of the group, or
(iii) a period of less than 12 months but only if the policy is issued to a small employer to enable the policy to expire at the end of a month, and
(b) the small employer has paid the discounted amount of the premium in full by the date on which payment of the premium is due, and
(c) the small employer has not elected to pay the premium by instalments.
5 Recovery of excess from employer: section 160 of Act
5 Recovery of excess from employer: section 160 of Act
5 Recovery of excess from employer: section 160 of Act
For the purposes of the definition of prescribed excess amount in section 160 (1) of the Act, the following excess amount is specified:
(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,
(b) in all other cases—the lesser of the following:
(i) the amount that is the weekly payment of compensation to which the worker is entitled as determined by section 36 of the Act,
(ii) $1,948.80.
Note—
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.
6 Late payment prescribed rates: sections 170 (8) and 172 (5) of Act
6 Late payment prescribed rates: sections 170 (8) and 172 (5) of Act
6 Late payment prescribed rates: sections 170 (8) and 172 (5) of Act
For the purposes of sections 170 (8) and 172 (5) of the Act, the prescribed rate is 0.845% per month compounded monthly.
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
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
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
For the purposes of clauses 154 (2) (d) (ii) (C) and 155 (2) (d) (ii) (C) of the Workers Compensation Regulation 2010, the amount specified is $1,948.80.
8 Exemption limit for certain employers: section 155AA (8) of Act
8 Exemption limit for certain employers: section 155AA (8) of Act
8 Exemption limit for certain employers: section 155AA (8) of Act
The exemption limit (within the meaning of section 155AA (8) of the Act) for the following employers for the 2014–2015 financial year is fixed at $0:
(a) an employer who carries on a business that is covered by Table A classes 612310, 612315, 612320, 612322, 612324, 612326, 612330, 931120, 931130, 931930, 931940 or 931950 (being classes that refer to a per capita rate), regardless of whether the employer carries on any other business,
(b) an employer who carries on a business in the thoroughbred racing industry and who is required by the Rules of Racing (within the meaning of the Thoroughbred Racing Act 1996) to hold a policy of insurance with Racing NSW, regardless of whether the employer carries on any other business.
Note—
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.
cl 8: Am 2015 (81), Sch 1 [1].
9 Schedules form part of Order
9 Schedules form part of Order
9 Schedules form part of Order
Schedules 1–15 form part of this Order.
Schedule 1 Interpretation
Schedule 1 Interpretation
Schedule 1 Interpretat
This is an opening excerpt, not the complete document.
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