This Order prescribes how workers’ compensation insurance premiums are calculated for policies taking effect between 4 pm 30 June 2013 and 4 pm 31 December 2013. It sets the components (basic tariff, experience adjustment and premium, GST/input‑tax adjustment, industry and incentive contributions), numerical caps, minimums and per‑capita rules (cl 3; Schedules 3–13).
It binds employers (classified small/medium/large) who pay premiums and insurers who compute them, requires record‑keeping for allowances (cl 3; cl 4–6), and preserves Authority discretion to issue guidance or reduce factors (Sch 4(5); Sch 7(4)).
This Order, titled Insurance Premiums Order (July-December) 2013 (cl 1), prescribes how workers compensation insurance premiums are to be calculated for policies taking effect between 4 pm on 30 June 2013 and 4 pm on 31 December 2013 (cl 2; Sch 2 cl 1). Mechanically the Order does the following.
Sets a master premium formula for employers (cl 3(1)). The premium P is assembled from a basic tariff premium (T) adjusted by an experience adjustment factor (S) and an experience premium (E), and then modified by a series of labelled contributions and offsets: premiums adjustment contribution (Q), dust diseases contribution (D), input tax credit adjustment (I), Mine Safety Fund adjustment (M), apprentice incentive amount (A), employer safety incentive (ESI) and return to work incentive (RTWI). Each of those components is defined and calculated in dedicated schedules (Schedules 3-13) that are incorporated into the Order (cl 9; Schedules 1-15).
Caps experience-adjusted outcomes for policies where T − A falls into certain bands (cl 3(2)). For single employers, the experience-adjusted premium (T(1−S) + E·S) is constrained by multiples of T (1.5×, 2× or 2.5×) depending on T − A thresholds of $50,000, $150,000 and $300,000 respectively. For employers who are members of groups the caps are applied with reference to group aggregates TG − AG and separate group rules govern how the caps operate (cl 3(3); Schedule 8 cl 3(b)).
Provides discounts for paying the initial premium in full (cl 4). Non-small employers may be entitled to a 3% discount (cl 4(1)); small employers may be entitled to a 5% discount (cl 4(2)). The discounts require the policy term conditions, full payment by the due date, no instalment election, and in some cases an insurer notification of a reasonable wages estimate in accordance with the regulations (cl 4).
Current sections
Direct links to the current provisions in Insurance Premiums Order (July–December) 2013.
This Order commences at 4 pm on 30 June 2013 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 $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
(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].
(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 $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
(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],
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 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 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) $1,903.70.
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 0.869% 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 $1,903.70.
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 2013–2014 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, 931920, 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.
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:
(a) except as provided by paragraph (b):
(i) if the small employer is required by clause 147 (1) of the Workers Compensation Regulation 2010 to supply a reasonable estimate of the wages that will be payable by the employer during the period of insurance to workers employed by the employer—that reasonable estimate of the monetary value of all wages (not including any wages to which Schedule 7 applies) payable to workers by the employer in respect of the period of insurance or the period of 12 months, as the case may be, as calculated by reference to the returns, if any, furnished in accordance with the regulations by the employer to the insurer, or
(ii) in any other case—to a reasonable estimate of the monetary value of all wages (not including any wages to which Schedule 7 applies) payable to workers by the employer in respect of the immediately preceding period of insurance or the immediately preceding period of 12 months, as the case may be, or
(b) where the monetary value of those wages (not including any wages to which Schedule 7 applies) has been ascertained—to the actual value of those wages.
(3) For the purposes of subclause (2) (a) (ii), if 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 (or reasonable estimate) of wages for an employer for the immediately preceding equivalent period of insurance includes the monetary value (or reasonable estimate) of wages for the immediately preceding equivalent 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)
sch 2: Am 2013 (621), Sch 1 [2].
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)
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 (July–December) 2013.
cl 1: Subst 2013 (621), Sch 1 [1].
2 Commencement
2 Commencement
2 Commencement
This Order commences at 4 pm on 30 June 2013 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.
Specifies the employer excess to be repaid to an insurer under s 160 of the Workers Compensation Act 1987 (the Act) (cl 5). If the employer notified the relevant insurance scheme agent within five days of becoming aware of the injury, the prescribed excess is $0; otherwise the prescribed excess is the lesser of the worker’s weekly compensation entitlement under s 36 or $1,903.70 (cl 5).
Fixes the late-payment prescribed rate for s 170(8) and s 172(5) of the Act at 0.869% per month compounded monthly (cl 6).
Establishes minimum premium, classification, wage and allowance treatment rules, record‑keeping requirements for motor vehicle and accommodation allowances, special treatments for per-capita rates, group and predecessor adjustments, and a range of specific contribution calculations: experience adjustment factor (Schedule 4), experience premium (Schedule 5), minimum premium (Schedule 6), reduction for hiring previously injured workers (Schedule 7), input tax credit adjustment (Schedule 8), Mine Safety Fund (Schedule 9), apprentice incentive (Schedule 10), dust diseases contribution (Schedule 11), employer safety incentive (Schedule 12) and return to work incentive (Schedule 13).
The Order therefore specifies both formulaic inputs and procedural requirements (notifications, returns, record-keeping) that determine the final premium an employer pays. The Order cross-references the Act and the Workers Compensation Regulation 2010 for administrative obligations (for example cl 4(d) and Scheds 5, 8), and mandates how insurers are to treat missing information (for example classification defaults and assumed ITC entitlement at 100% where no notice provided, Schedule 8 cl 2(2); Schedule 3 cl 2).
Main concepts
The Order organises premium calculation around a small number of central concepts expressed in defined variables and schedules. Those concepts carry operational meanings and procedural effects.
Basic tariff premium (T). Defined in Schedule 3. T is the starting point: wages or per‑capita measures are allocated across industry classes in Table A and multiplied by rates in Column 3 of Table A to produce T (Schedule 3 cl 1). If insufficient classification information is supplied, the business is classified in the class with the highest percentage rate until reclassification (Schedule 3 cl 2).
Experience adjustment factor (S). Defined in Schedule 4. S is a function of an employer’s claims and wages history, and of group membership or new‑employer status. For employers with two years of qualifying history and compliant claims reporting, S is computed by a formula set out in Schedule 4 cl 1(a). New employers, employers with breaks in insurance or previously self‑insurers are assigned adjusted or default factors (Schedule 4 cl 1(b)-(e); cl 3 and cl 4). The Authority may reduce S where breaks in insurance exist and may issue eligibility criteria and guidelines (Schedule 4 cl 5).
Experience premium (E). Defined in Schedule 5. E measures the employer’s historical claim costs relative to industry claims cost rates (ICCR) and is calculated differently when used as an initial estimate (before the policy expires) versus after the period of insurance has expired (Schedule 5 cl 1(a)-(b)). The Schedule provides detailed algebra to compute Initial ECCR, Hindsight ECCR, and to handle per‑capita items, multi‑class employers and group membership consequences (Schedule 5 cl 1 and cl 7-11). Special group adjustments apply when a group member departs (Schedule 5 cl 3).
Inputs and offsets. The full premium P includes a set of statutory adjustments: premiums adjustment contribution Q (allocated share of insurer contributions to the Insurance Fund), dust diseases contribution D (Schedule 11), input tax credit adjustment I (Schedule 8, which maps notified ITC entitlement to a B% factor), Mine Safety Fund adjustment M (Schedule 9), apprentice incentive amount A (Schedule 10), employer safety incentive ESI (Schedule 12), and return to work incentive RTWI (Schedule 13). Each of these is defined with a precise formulaic rule.
Employer size bands. The Order subdivides employers into small, medium and large, using thresholds based on the basic tariff premium for a 12‑month period: small if T ≤ $30,000; large if T > $500,000; medium otherwise (Schedule 1 cl 2). Size affects discount entitlements (cl 4), which formula to use for I (Schedule 8 cl 1) and various small‑employer special rules (for example Schedule 10 cl 2(3) on apprentice incentive recalculation).
Classification and per‑capita rates. Table A (Schedule 14) and Table B (Schedule 15) map business activities to classes and rates. Per‑capita rates (non‑percentage rates expressed in Column 3 of Table A) are handled by substituting numbers (such as licence plates, events) for wages in the formulas (Schedule 3 cl 2; multiple schedules reference substitution for per‑capita settings).
Record keeping for allowances. Motor vehicle and accommodation allowances are excluded from wages to prescribed extents and require record-keeping (Schedule 1 cl 3; cl 4 and cl 5). Employers choose between continuous recording (odometer readings for every business journey, cl 4) or averaging (a documented 12‑week sampling with rules for reuse for subsequent periods, cl 5-6). Odometer replacement, vehicle swaps and recording obligations are expressly addressed (cl 5(6)-(7); cl 7).
Minimum and default rules. Minimum premium of $175 (Schedule 6), default assumptions where employers fail to notify input tax credit entitlement (Schedule 8 cl 2(2) treats ITC as 100%) or wages (Schedule 9? Actually Schedule 3 & Schedule 8 note insurer estimation) and insurer powers to assume wages (Schedule 9?,see Schedule 3 cl 1(2), Schedule 5 cl 1(2), Schedule 8 cl 2(2)) are central operational defaults.
The Order therefore frames premium calculation as modular, where data quality (accurate wages returns, ITC notice, odometer logs) substantially affects outcomes. Several schedules create asymmetric information responses: high default classification rates, assumed ITC at 100% if no notice, and insurer estimation of wages where returns are missing (Schedules 3, 8, 9; Schedule 5 cl 1(2), Schedule 9 references). Group membership and predecessor relationships import other employers’ histories into an employer’s S and E calculations (Schedule 4 cl 2 and Schedule 5 cl 3; Schedule 1 cl 11).
Where the Order references other instruments, it treats those references as operative prerequisites. Examples are the obligation to notify reasonable wages under the Workers Compensation Regulation 2010 (cl 4 note) and the GST treatment under the A New Tax System (GST) Act 1999 (Schedule 1 cl 1(1)).
Who it affects
The Order targets a number of identifiable actors and categories; it alters how costs and duties fall across them.
Employers. All employers required by the Workers Compensation Act 1987 to obtain a policy are directly affected. The Order differentiates employers by size (small, medium, large) using basic tariff premium thresholds (Schedule 1 cl 2). Size determines discount entitlements (cl 4), which formulas apply (Schedule 8 cl 1), and certain small‑employer procedural rules (Schedule 10 cl 2(3)). Employers that are members of groups are affected by aggregated calculations (cl 3(3); Schedules 4 and 8 cl 3). Employers carrying on per‑capita‑rated businesses (Table A per capita classes) must provide counts rather than wages (Schedule 3 cl 2; Schedules 5, 10, 11).
Insurers. Licensed insurers (and former licensed insurers) are addressed throughout (Schedule 1 cl 1). They must calculate premiums using the formulas in cl 3 and the Schedules, apply discounts where conditions are met (cl 4), impose the prescribed excess amounts (cl 5) and apply late payment rates (cl 6). Insurers have powers to classify businesses and to use default classification where insufficient information is supplied (Schedule 3 cl 2; Schedule 11 cl 2). Insurers must also apply premiums adjustment contribution (Q) in relation to contributions payable under ss 208/208AA of the Act (Sch 1 Definitions).
Small employers and apprentices. Small employers have distinct discount rates and procedural rules for apprentice incentive calculation (cl 4(2); Schedule 10 cl 2(3)). Employers with apprentices may claim an apprentice incentive amount A, which reduces T by a formula tied to wages paid to apprentices and the Table A rates (Schedule 10).
Employers in specific industries. Employers in classes listed at Schedule 1 cl 8 (which cross‑references Table A classes, including per‑capita classes) and thoroughbred racing employers are explicitly excluded from exemption under s 155AA because their exemption limit is fixed at $0 for 2013-14 (cl 8). Employers in dust‑diseases covered classes and mining classes have additional contributions D and M respectively (Schedules 11 and 9).
Groups and predecessors. Employers that are members of a group are treated differently: S and E calculations are aggregated or adjusted using group totals (Schedule 4 cl 2; Schedule 8 cl 3; cl 3(3) group caps). Predecessor relationships import claims and wages history into current employer calculations; the Order defines “predecessor” and specifies that predecessor history is used in S and E calculations (Schedule 1 cl 11; Schedule 4 cl 4; Schedule 5 cl 1(3)).
The Authority (Administering Agency). The Authority (WorkCover Authority in context) has discretionary procedural roles: it may develop criteria for reducing S where there were breaks in insurance and issue guidelines (Schedule 4 cl 5). It approves forms and may direct employers to resume record‑keeping under the averaging method (cl 5(3)(a)). The Governor (on recommendation of the Authority) may set industry claims cost rates (ICCR2) which feed into Schedule 5 (Schedule 5 cl 1).
Specialised insurers and Racing NSW. The Order exempts policies issued by specialised insurers as provided by the Regulation but applies cl 5 (excess) and cl 8(b) to Racing NSW when acting as a specialised insurer (Sch 2 cl 2).
Secondary effects, operationally relevant to practitioners:
Employers who fail to supply required returns or notices will face default or conservative assumptions: classification at the highest applicable rate (Schedule 3 cl 2), assumed ITC entitlement of 100% if no notice provided (Schedule 8 cl 2(2)), and insurer power to use previous tariff sums to calculate W1 where notices are missing (Schedule 5 cl 1(2)). These defaults chiefly increase observable premium outcomes or postpone incentive benefits until compliance occurs.
Employers who fail to notify workplace injuries within five days may face a prescribed excess up to a capped amount per cl 5.
Employers in groups must monitor membership changes because departing members change the continuing employers’ E calculation (Schedule 5 cl 3).
In short, the primary economic incidence falls on employers (differentially by size and industry), with insurers administering the mechanics and the Authority and Governor setting some parameters or exercising discretionary procedural roles. Workers are affected indirectly through premium settings that can affect employer costs and incentives for return‑to‑work and safety, but the Order principally determines payment, reporting and record‑keeping obligations for businesses and insurers.
Key duties and rights
The Order creates explicit duties for employers and insurers, and confers specific rights on employers in defined situations.
Duties and procedural obligations (employers)
Provide returns and notices required by regulation. Multiple provisions reference obligations under the Workers Compensation Regulation 2010: employers must notify reasonable estimates of wages (cl 4(d); note referencing cl 147 of the Regulation), and notify input tax credit entitlement in accordance with clause 151 of that Regulation (Schedule 8 cl 2(1)). Failure to notify yields default assumptions (Schedule 8 cl 2(2)).
Keep records for motor vehicle and accommodation allowances if those allowances are to be excluded from wages. Employers must choose and maintain either the continuous recording method (odometer readings for every business journey, cl 4) or the averaging method (detailed 12‑week sampling and vehicle‑level proportions, cl 5).
Supply particulars of claims to insurers in accordance with the regulations. Clauses in Schedule 4 require that employers have supplied particulars complying with the regulations to be eligible for S calculations based on their two‑year history (Schedule 4 cl 1(a); cl 2 for groups).
Notify insurers of relevant changes: group membership, predecessor relationships and vehicle nominations when replacing vehicles under the averaging method (cl 7(1)-(4); Schedule 1 cl 11 on predecessors).
Pay premiums: employers must pay the premium by the due date to obtain discounts and avoid late payment interest (cl 4, cl 6). Where eligible, pay discounted amount in full and not elect instalment to secure the 3% or 5% discount (cl 4).
Rights and entitlements (employers)
Discount for full payment. Non‑small employers have a right to a 3% discount on the initial premium if conditions are met; small employers have a right to 5% (cl 4).
Eligibility to have certain wages excluded from premium calculation for newly recruited partially incapacitated workers pursuant to Schedule 7, provided an application is made in accordance with Authority guidelines (Schedule 7 cl 1-4).
Right to have experience adjustment factor S reduced on application where breaks in insurance exist, subject to criteria developed by the Authority (Schedule 4 cl 5).
Where employers provide the required notices and returns, entitlement to apprentice incentive A and input tax credit adjustments I apply, potentially lowering premiums (Schedules 10 and 8).
Duties and powers (insurers and Authority)
Insurers must apply the Order’s formulas when demanding premiums (cl 3). Insurers can use prior returns to determine wages where an employer has failed to supply returns (Schedule 5 cl 1(2)).
Insurers may classify businesses and, in the absence of sufficient information, assign the business to the class with the highest applicable rate until reclassification (Schedule 3 cl 2; Schedule 11 cl 2).
The Authority may develop criteria and issue guidelines for reduction of S and for premium reduction in Schedule 7 (Schedule 4 cl 5; Schedule 7 cl 4). The Authority also approves forms for small employer notices for apprentice incentives (Schedule 10 cl 2(4)) and can serve notices to require employers to keep averaging records (cl 5(3)(a)).
Other statutory cross‑reference rights and duties
Repayment of prescribed excess: under s 160 of the Act an employer must repay the prescribed excess to the insurer; cl 5 specifies the amount for the definition of prescribed excess amount in s 160(1), creating a duty on the employer to repay (cl 5).
Late payment interest: ss 170(8) and 172(5) of the Act allow prescribed rates for late payments; cl 6 prescribes 0.869% per month compounded monthly that insurers or the Authority will apply.
Operational mechanics that create both duties and de facto rights
Minimum premium: the insurer is required to charge at least $175 per policy (Schedule 6), which limits the employer’s ability to obtain a premium below this sum even after discounts.
Group and predecessor rules: employers who are members of a group or who have predecessors affect both rights and duties concerning S, E and the application of caps (cl 3(3); Schedule 4 cl 2; Schedule 5 cl 3; Schedule 1 cl 11). These rules create obligations to report and to monitor group composition for accurate premium calculation.
For practitioners: the interaction of these duties and rights is highly procedural. Entitlements (discounts, incentives, reduced S) are contingent on compliance with notification and record‑keeping duties; default assumptions and conservative classification rules penalise non‑compliance by raising the premium base. The Authority and insurers have delegated operational discretion,issuing forms, approving notices, applying group allocations, reducing S on application,so compliance both secures rights and avoids insurer discretion operating against the employer.
Penalties and enforcement
The Order itself is primarily prescriptive and computational; it does not create new criminal offences, but it provides mechanisms that force financial outcomes and ties into the enforcement architecture of the Workers Compensation Act 1987 (the Act). Source‑grounded enforcement instruments and financial penalties include:
Repayment obligations under s 160 of the Act, with cl 5 fixing the prescribed excess amount used in s 160(1). That clause directly determines the amount an employer must repay to insurers where the insurer has paid weekly compensation claims: $0 if the employer notified the insurance scheme agent within five days; otherwise the lesser of the worker’s weekly compensation entitlement under s 36 or $1,903.70 (cl 5). The Order thereby creates a definitional lever that converts non‑notification into a financial repayment obligation.
Interest on late payments under ss 170(8) and 172(5) of the Act, with cl 6 prescribing the exact rate of 0.869% per month compounded monthly. That rate quantifies the financial consequence of late payment of statutory amounts and premiums where those Act provisions apply.
Minimum premium enforcement: Schedule 6 imposes a floor ($175) below which premiums cannot fall. That functions as an automatic enforcement mechanism ensuring administrative costs are recovered and preventing arbitrarily tiny premiums.
Defaults that operate as financial penalties. Where employers fail to comply with notification and record‑keeping duties, the Order prescribes default treatments that typically disadvantage the employer financially:
Classification at the highest applicable rate if insufficient information is supplied (Schedule 3 cl 2; Schedule 11 cl 2). This operates as a de facto penalty because reclassification to a lower rate only occurs once sufficient information is supplied.
If an employer fails to notify input tax credit entitlement as required under clause 151 of the Workers Compensation Regulation 2010, the employer’s ITC entitlement is taken to be 100% for the period (Schedule 8 cl 2(2)), which in the mapping of Schedule 8 produces the smallest premium discount relative to 100% ITC (indeed the employer is treated as having maximum entitlement and thus receives Nil discount relative to 100% ITC). This default can increase the effective premium because it removes the employer’s entitlement to a larger B% offset.
Insurer may use prior sums when required notices are missing for initial ECCR calculations (Schedule 5 cl 1(2)), potentially producing higher initial premiums.
Administrative discretion and guideline enforcement: the Authority may issue guidelines and criteria for reductions of S or for applications under Schedule 7 (Schedules 4 cl 5; 7 cl 4). The Authority’s procedural criteria create an administrative enforcement layer: entitlement to reductions depends on satisfying the Authority’s conditions.
Insurer operational enforcement: insurers have the power to demand premiums, classify businesses and apply default formulas. If an employer refuses to pay or defaults, enforcement will likely proceed under the Act (the Order references Act provisions such as ss 160, 170, 172), though the Order does not specify execution procedures beyond the monetary definitions and rates.
What the Order does not do, in the text provided
The Order does not itself specify criminal sanctions or administrative fines for breaches of the Order’s record‑keeping or notification duties; instead, compliance failures are converted into financial outcomes through default assumptions or via the Act’s existing enforcement architecture (s 160 repayments, interest, insurer collection powers).
The Order does not set out a dispute resolution process for classification disagreements or premium disputes; such processes would be governed by the Act, the Regulation, insurer policies and possibly administrative review mechanisms referenced in those instruments.
For practitioners: the enforcement regime is effectively financial and administrative. The clearest hard‑edged consequences are the repayment obligation under s 160 as quantified by cl 5, the specified late payment rate under cl 6, and the composite effect of defaults that increase premium exposure. Employers should therefore prioritise timely reporting, wage and ITC notices, and prompt injury notification to avoid quantifiable costs set out in the Order.
How it interacts with other laws
The Order is heavily cross‑referential; it assumes and operationalises existing statutory duties and regulatory instruments. The principal legal interactions in the text are these.
Workers Compensation Act 1987 (the Act). The Order explicitly treats terms and obligations in the Act as foundational:
The Order prescribes amounts and methods that are used directly by s 160 (excess repayment) and references s 170(8) and s 172(5) for late payment prescribed rates (cl 5 and cl 6). Clause 5 is expressly “For the purposes of the definition of prescribed excess amount in section 160(1) of the Act” and sets the monetary figure employers must repay.
Policy, employer and insurer concepts,policy of insurance, insurer, insured obligations,are those “within the meaning of the Act” (Schedule 1 cl 1).
The Schedule 7 premium reductions and other obligations operate against the background of the Act’s licensing/self‑insurance regimes (e.g. Schedule 5 refers to self‑insurer status as affecting experience factor treatment).
Workers Compensation Regulation 2010. The Order references the Regulation for procedural reporting duties:
Clause 4(d) and the notes reference clause 147 of the Regulation requiring employer notification of reasonable estimate of wages to obtain discounts (cl 4).
Schedule 5 cl 1(2) and Schedule 10 cl 2(2) reference clause 147 of the Regulation for notices on wages. Schedule 8 cl 2(1) references clause 151 for ITC notifications. These references make the Regulation’s procedural rules an operational precondition to obtaining discounts and incentives under the Order.
A New Tax System (Goods and Services Tax) Act 1999 (Commonwealth). The Order treats GST and input tax credits (ITC) according to the Commonwealth GST Act: definitions reference that Act for GST meaning and the employer’s input tax credit entitlement is determined by reference to that Act (Schedule 1 cl 1; Schedule 8 cl 2(1)). Schedule 8’s formula and table convert notified ITC entitlement into a premium discount factor B% applied to the premium base.
Apprenticeship and Traineeship Act 2001. The Order imports the term “apprentice” from that statute for the apprentice incentive (Schedule 1 cl 1). Schedule 10 uses the apprenticeship contract concept to determine A.
Corporations Act 2001. “Limited proprietary company” draws its meaning from s 112 of the Corporations Act (Schedule 1 cl 1), potentially relevant for employer classification and group structures.
Safety, Rehabilitation and Compensation Act 1988 (Comcare). Schedule 5 defines “Comcare employer” with reference to licensing under Part VIII of the Commonwealth Act and treats those employers differently for E calculation in certain cancellation/renewal scenarios (Schedule 5 cl 1(c)(i)).
Thoroughbred Racing Act 1996 and Racing NSW Rules. Clause 8 fixes exemption limit at $0 for employers in the thoroughbred racing industry who must hold a policy with Racing NSW under the Rules of Racing, referencing the Thoroughbred Racing Act (cl 8(b)). The Order therefore interacts with industry‑specific regimes administered by Racing NSW.
Workers’ Compensation (Dust Diseases) Act 1942. Schedule 11 cl 1(2) references determinations made by the Dust Diseases Board under that Act and provides an alternative calculation for dust diseases contributions where the employer is in a specified class.
Operational consequences of these interactions:
The Order depends on the substantive and administrative architecture of the Act and the Regulation for enforcement, reporting obligations and some entitlement thresholds. For example, entitlement to the full payment discount depends on compliance with the Regulation’s notice obligations (cl 4(d) referencing Regulation cl 147).
Commonwealth GST law is used to measure ITC entitlements for the Order’s financial adjustments, so GST advice and compliance become material to premium calculation (Schedule 8).
Industry‑specific regulator settings (e.g. Racing NSW, Dust Diseases Board determinations) are integrated, producing industry carve‑outs and special contributions (cl 8; Schedule 11).
For practitioners: premium calculation is not self‑contained; it requires coordination with GST accounting, apprenticeship registers, workers compensation reporting under the Regulation, and industry‑specific instruments. The Order assumes those external regimes and expressly conditions discount and incentive entitlements on compliance with them.
Amendment history
The Order as provided contains traces of drafting history and entry points for later administrative adjustments.
Original instrument and commencement. Clause 1 indicates the name “This Order is the Insurance Premiums Order (July-December) 2013” and records substitutional drafting: “cl 1: Subst 2013 (621), Sch 1 [1]”. Clause 2 fixes commencement at 4 pm on 30 June 2013 and requires Gazette publication.
Schedule amendments referenced in marginal notes. Several clauses include marginal or editorial notes indicating administrative updates or references:
Schedule 5 contains an editorial note: “See Gazette No 56 of 25.6.2014, p 2266.” That note appears in Schedule 5 cl 1 and is attached to the ICCR2 definition, which may be set by Gazette notice; the Order therefore anticipates administrative notification of ICCR2 by the Governor on the Authority’s recommendation (Schedule 5 cl 1).
Sch 2 recorded an amendment entry: at the head of Schedule 2 appears “sch 2: Am 2013 (621), Sch 1 [2]”. That suggests Schedule 2 was amended or inserted as part of the 2013 instrument numbered 621, Schedule 1,consistent with the instrument’s own year and number indicators.
The Order explicitly states that Schedules 1-15 form part of the Order (cl 9). That structure allows amendments to individual schedules or to Table A/B classifications by subsequent Orders or Gazette notices as authorised by the Act or by the Governor/Authority.
What the source does not provide
The provided text does not contain a later consolidated list of subsequent amendments after 2013 (beyond the editorial Gazette note in Schedule 5). The Order anticipates administrative rate notifications (ICCR2) and Authority guidelines, but no later amending instruments are included in the supplied text.
There are no detailed legislative amendment traces (no dates of subsequent remakes or explicit revocations) within the supplied text beyond the substitution note and schedule amendment markers.
Practical import for advice
Some parameters that feed into the formulas (notably ICCR2 and possibly Table A/B entries) are administrative and may be notified later by Gazette. Practitioners must verify the version of Table A/B and any ICCR2 values in force at the time a premium is calculated. Schedule 5’s editorial note flags that ICCR2 values may be notified after the Order’s commencement.
The procedural authority to issue guidelines and criteria (Schedules 4 and 7) means part of the Order’s operational content is delegated to Authority instruments rather than being fully specified here, so subsequent administrative guidelines will alter how some provisions operate in practice.
In short, the Order is anchored to the July-December 2013 period, includes marginal amendment markers and anticipates administrative notices; for up‑to‑date application practitioners should check Gazette notices, Authority guidelines and any subsequent Orders that modify Table A/B, ICCR2, or procedural forms.
Litigation history
The text supplied contains no reported litigation history, no case citations and no references to court determinations concerning the 2013 Order. The only judicially relevant cross‑references are to statutory provisions of the Act that in other contexts have been the subject of litigation, but the Order itself does not record legal challenges, decisions, or precedents.
Notable points from the instrument that make litigation possible (but not recorded here)
Classification disputes. Schedule 3 permits the insurer to place a business in the class with the highest percentage rate where insufficient information is supplied (Schedule 3 cl 2). Such classification decisions are common grounds for disagreement between employers and insurers, and practitioners should expect that classification disputes may require administrative review or tribunal determination under the Act or Regulation. The Order itself, however, provides the classification mechanics and not the dispute process.
Group and predecessor adjustments. Schedules 4 and 5 import predecessor and group histories into S and E calculations. Disagreements about whether one entity is a predecessor or whether group allocation rules have been correctly applied could give rise to administrative review or litigation under the Act, especially given the material financial consequences. The provided text contains the definitions and formulae but does not supply case law or precedent.
Discretionary reductions and Authority guidelines. Schedule 4 cl 5 allows the Authority to develop criteria for reducing the experience adjustment factor S. Challenges to the exercise (or refusal to exercise) that discretion might proceed to litigation, but the Order does not document any such cases.
For practical purposes: in the absence of cases named in the Order, practitioners must rely on the Act, the Regulation and administrative review avenues for contesting insurer or Authority decisions that implement the Order. Any litigation history relevant to how these provisions have been interpreted will be found in external case law under the Act and possibly in tribunal records; none is recorded within the source supplied.
Gotchas
The Order contains many operational traps for employers and insurers where small procedural failures produce outsized financial effects. The following are concrete “gotchas” explicitly grounded in the Order’s text.
Missing wage or ITC notifications converts to conservative defaults or lost discounts
If an employer fails to notify its input tax credit entitlement under Regulation clause 151, Schedule 8 cl 2(2) treats the employer’s ITC entitlement as 100% for that period. Schedule 8 then maps ITC entitlement to a B% premium discount schedule; treating ITC as 100% gives Nil premium discount relative to 100% ITC (Schedule 8 cl 1 Table). Practically this removes an employer’s ability to obtain a better premium outcome until notice is provided.
If a small employer has not supplied a notice of wages as required, Schedule 10 cl 2(3) takes the apprentice incentive A as zero for new renewals until the employer supplies the required notice. Similarly Schedule 5 cl 1(2) allows insurers to determine W1 from prior tariff sums where wage notices are missing, influencing Initial ECCR.
Classification defaults can inflate premiums
Multiple schedules prescribe that if the employer does not supply sufficient information to classify the business, the business is placed in the class with the highest percentage rate that appears to be applicable (Schedule 3 cl 2; Schedule 11 cl 2). Employers who do not provide adequate returns risk being charged at the highest applicable rate until they supply sufficient information.
Caps on experience adjustment are applied on a group basis and interact with apprentice incentives
Clause 3(2) caps the experience‑adjusted premium relative to T based on bands of T − A. But cl 3(3) provides that if the employer is a member of a group, cl 3(2) does not apply and instead the TG − AG group sums determine whether and how the caps apply to the employer. The result: employer‑level caps may be displaced by group aggregation rules, so group composition materially affects whether an employer benefits from the caps.
Record‑keeping method choice is sticky and carries follow‑on obligations
Employers electing the averaging calculation method must create and retain detailed 12‑week records (cl 5(1)) and can rely on the derived percentages for up to four subsequent periods unless the Authority requires otherwise or the employer wants to start fresh (cl 5(2)-(5)). Failure to comply with the chosen method’s record requirements may invalidate exclusions and cause wage inclusions.
Predecessor and group history import costs
Definitions in Schedule 1 cl 11 and the group rules in Schedules 4 and 5 allow predecessor and group histories (claims and wages) to be used in calculating S and E. Employers acquiring a business or workforce may thus inherit adverse claims history unless they are able to show otherwise or obtain Authority relief. The arithmetic for allocating departing members’ claims (Schedule 5 cl 3) is intricate and can lead to surprises where group membership changes.
Minimum premium and discount interplay
The minimum premium of $175 (Schedule 6) applies after discounts are calculated (Schedule 6 cl 3 referring to discounted premiums), so small premiums may be increased up to the $175 floor even when discounts would otherwise make the premium lower.
Clause 5 sets the prescribed excess for s 160(1). If the employer notifies the scheme within five days of becoming aware of the injury, the prescribed excess is $0. Otherwise the employer faces an excess up to the lesser of weekly compensation or $1,903.70. That tight five‑day window is therefore a material compliance point.
Default ITC treatment is asymmetric
Schedule 8 cl 1 provides a table mapping ITC entitlement ranges to premium discount percentages (B%). The table penalises lower ITC entitlements with larger discounts; however Schedule 8 cl 2(2) treats non‑notification as 100% ITC (the least favourable mapping). Employers that do not appreciate the arithmetic may inadvertently forfeit discounts by failing to notify ITC.
Authority and Governor variables
Some constants are not fixed in the text. For example ICCR2 is “determined by the Governor, on the recommendation of the Authority and notified in the Gazette” (Schedule 5 cl 1). That means final E calculations can depend on later administrative notices, and insurers will use the notified ICCR2 when available. Practitioners must check Gazette notices for ICCR2 values.
Procedural steps required to access Schedule 7 premium reductions
Schedule 7 requires an application in accordance with Authority guidelines for the premium reduction related to hiring previously injured workers. The schedule does not set substantive criteria itself; compliance requires meeting the Authority’s issued guidelines (Schedule 7 cl 4). Absent adherence to the Authority’s chosen process, the reduction will not be available.
These points were directly drawn from the Order’s text. The common theme: procedural compliance (timely notices, detailed records, correct classification, defined forms) materially changes premium outcomes. For advice focus on upstream administrative controls: timely GST/ITC notification, wage returns, odometer/allowance records, and rapid injury reporting.
How to comply
This section translates the Order’s prescriptive mechanics into an actionable compliance checklist and risk‑mitigation steps, grounded in the Order’s provisions.
Identify employer size and applicable tables immediately
Determine the basic tariff premium T by classifying the business against Table B and using Table A rates (Schedule 3 cl 1; Schedule 1 cl 1 definitions). Employer size (small/medium/large) is defined by T for a 12‑month period (Schedule 1 cl 2). Size affects discounts, computation choices and schedule applicability (cl 4; Schedule 8 cl 1).
Supply all required notices to insurers before premium demand dates
Ensure the reasonable estimate of wages (as required by the Regulation, referenced in cl 4(d) and Schedule 10 cl 2) is notified to the insurer by the date payment is due if you intend to claim full‑payment discounts or apprentice incentives. Failure to supply wage notices can remove entitlements (cl 4; Schedule 10 cl 2(3)). Also notify input tax credit entitlement as required by Regulation clause 151 because Schedule 8 treats non‑notification as 100% ITC entitlement (Schedule 8 cl 2(1)-(2)).
Keep and maintain motor vehicle and accommodation records if claiming exclusions
If excluding motor vehicle allowances from wages, choose and implement either:
Continuous recording (cl 4): keep odometer readings for every business journey, purpose and distance; or
Averaging method (cl 5): make a robust 12‑week odometer sample and maintain vehicle‑level data and proportions, then use the derived percentages for up to four subsequent periods unless the Authority directs otherwise (cl 5(2)-(5)).
Record odometer replacement events and nomination of replacement vehicles as required (cl 5(6); cl 7).
Supply particulars of claims and maintain claims history records
To secure an experience adjustment factor S that reflects historical claims, supply claims particulars in accordance with the regulations. Schedule 4 ties S eligibility to supplying particulars for the two‑year history (Schedule 4 cl 1). Keep documentation to evidence the insurer’s receipt of claimant particulars.
Monitor group membership and predecessor links
If your enterprise is part of a group, maintain clear records of group composition and any departing members because S and E are calculated on group aggregates in many cases (cl 3(3); Schedule 4 cl 2; Schedule 5 cl 3). If you have acquired a business or workforce, document the acquisition and its date so predecessor history can be correctly applied (Schedule 1 cl 11; Schedule 4 cl 4).
Apply for Authority reductions or premium relief where appropriate
If there were breaks in insurance that you believe should reduce S, apply to the Authority under Schedule 4 cl 5 and follow any criteria or guidelines the Authority issues. For premium reductions in Schedule 7 (for hiring previously injured workers), prepare an application in accordance with the Authority’s guidelines (Schedule 7 cl 4). These are discretionary but necessary steps to access relief.
Prepare for default and reclassification outcomes
Anticipate that failure to supply information may produce adverse defaults: classification at the highest rate (Schedule 3 cl 2), assumed ITC at 100% (Schedule 8 cl 2(2)), use of prior tariff sums for W1 (Schedule 5 cl 1(2)) and losing apprentice incentives until wage notice provided (Schedule 10 cl 2(3)). To avoid these outcomes, ensure timely complete returns.
Ensure timely injury reporting
Notify the relevant insurance scheme agent of work injuries within five days of becoming aware to avoid the prescribed excess under cl 5. Keep records proving the date of employer awareness and the date of notification.
Check Gazette notices and Authority publications for ICCR2 and guidelines
Schedule 5 relies on ICCR2 which the Governor may set on the Authority’s recommendation and notify by Gazette (Schedule 5 cl 1). Confirm the ICCR2 values and any Authority guidelines before finalising E and S calculations so your premium is based on the current administrative parameters.
Coordinate GST accounting and legal advice
The input tax credit adjustment I depends on the employer’s ITC entitlement under the Commonwealth GST Act (Schedule 1 cl 1; Schedule 8). Coordinate with tax accountants to calculate the correct ITC percentage and file the required notice to the insurer in the form and time required by the Regulation.
Audit and document everything
Keep copies of all notices to insurers, wage estimates, ITC notices, odometer logs, claims particulars and applications to the Authority. These documents prove entitlement to discounts, incentives and reductions, and support challenges to insurer classification or adjustments.
Understand timing , initial vs hindsight calculations
Work with insurers to understand whether initial ECCR/E calculations are used for mid‑policy demands and anticipate post‑period adjustments (Schedule 5 cl 1(a)-(b)). Where initial estimates are used, plan for subsequent reconciliations after the period of insurance ends.
Implementation checklist for insurers (operational)
Implement the master formula in cl 3 and ensure computational systems apply Schedules 3-13.
Adopt classification protocols for assigning Table A/B classes and apply highest‑rate default where employer information is missing (Schedule 3 cl 2).
Develop internal procedures to apply the cl 5 prescribed excess rule and cl 6 late payment rate.
Apply Schedule 8 mapping for ITC and implement fallbacks for non‑notification (Schedule 8 cl 2(2)).
Maintain audit trails for reclassification, premium adjustments and communication with the Authority.
By following these steps, employers and insurers convert the Order from an abstract formula into an operational compliance programme. The measurable priorities are: timely notification (wages and ITC), robust record‑keeping (odometer, wage returns, claims particulars), monitoring group/predecessor status, and early engagement with the Authority where discretionary reductions are sought.
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 $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
(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].
(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 $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
(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],
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 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 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) $1,903.70.
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 0.869% 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 $1,903.70.
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 2013–2014 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, 931920, 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.
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)
1 Definitions
1 Definitions
1 Definitions
(1) In this Order:
apprentice has the same meaning as in the Apprenticeship and Traineeship Act 2001.
apprentice incentive amount, in relation to an employer, means the amount calculated in accordance with Schedule 10.
basic tariff premium, in relation to a policy, means the basic tariff premium for the policy calculated in accordance with Schedule 3.
claim means a claim made by a person against an employer to which a policy relates.
dust diseases contribution, in relation to an employer, means an amount equivalent to the contributions, if any, payable by an insurer in respect of the employer to the Workers’ Compensation (Dust Diseases) Fund (plus any GST payable) that is calculated in accordance with Schedule 11.
employer includes a person who proposes to become an employer.
input tax credit entitlement, in relation to an employer, means the amount of input tax credit that may be claimed by the employer in accordance with the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth in respect of the issue or renewal of a policy of insurance expressed as a percentage of the GST payable by the employer in respect of the issue or renewal of that policy.
insurer means a licensed insurer, or a former licensed insurer, within the meaning of the Act.
limited proprietary company means a proprietary company limited by shares as referred to in section 112 of the Corporations Act 2001 of the Commonwealth.
NSW WorkCover Industry Classification System or NSWWIC System means the industry classification system set out in Table B.
per capita rate means a rate specified in Column 3 of Table A that is expressed otherwise than as a percentage.
period of insurance, in relation to a policy, means a period for which an insurer assumes risk under the policy, being a period that commences on the first day on which the policy is in force after having been issued or renewed.
policy or policy of insurance means a policy of insurance within the meaning of the Act.
predecessor—see clause 11.
premiums adjustment contribution, in relation to an employer, means an amount equivalent to such part of the contributions, if any, payable by an insurer to the Insurance Fund under section 208 or 208AA of the Act as relates to the premium payable by the employer to the insurer.
regulations means regulations under the Act.
This is an opening excerpt, not the complete document.
%20AND%20(No%3D0204)%20AND%20(Year%3D2013)%20AND%20(%22Historical%20Document%22%3D0))/g1.gif)
%20AND%20(No%3D0204)%20AND%20(Year%3D2013)%20AND%20(%22Historical%20Document%22%3D0))/g2.gif)