This Order operationalises a few core concepts which determine premium calculation, timing and who bears which risks.

Adjustment dates (cl 3(2); Schedule 4)

• An adjustment date is one of four fixed recalculation points measured from policy commencement: +15 months (first), +24 months (second), +36 months (third), and +48 months (fourth). These dates are the only moments at which the deposit premium is revisited to produce an adjusted premium (cl 6; Schedule 1(2)).

Deposit premium and adjusted premium (cl 6; Schedule 1)

• Deposit premium (PD) is the insurer’s initial calculation of premium at policy commencement. The adjusted premium (P) is the recalculated premium at each adjustment date. The Order prescribes the method for calculating both the deposit and adjusted premiums (Schedule 1; Schedule 2 where the employer is a member of a group).

Required deposit (RD) (s 8)

• The Order prescribes the formula by which the required deposit for a policy is computed. The formula differs depending on whether the time is on or before the third adjustment date or after the third adjustment date. The required deposit is derived from the basic tariff premium (BTP) and other components as specified in s 8 and the Schedules.

Bounds: minimum and maximum premiums (Schedule 1)

• Adjusted premiums cannot be less than a Pmin or more than a Pmax, each of which is defined in Schedule 1 (see Schedule 1, clause 2). Also, every deposit or adjusted premium is subject to a statutory floor of $175 (cl 7).

Cost of claims and excluded elements (Schedule 1 clause 2)

• C represents total cost of claims for the employer during the period of insurance but explicitly excludes costs of claims under sections 10 (Journey claims) and 11 (Recess claims) of the Act. The exclusion is part of the definition of C in Schedule 1(2).

Claims adjustment factor V (Schedule 4)

• V (or VG for a group) modifies the claim cost contribution to the adjusted premium. V is determined at each adjustment date and depends on whether the employer (or group) has elected a large claim limit of $350,000 or $500,000 under clause 154(5) of the Workers Compensation Regulation 2010. Schedule 4 provides the numeric V values by adjustment date and by elected large claim limit (for example, 3.05 at the first adjustment date for $350,000, 2.95 for $500,000).

Size adjustment factor S (Schedule 3)

• S is a multiplicative adjustment reflecting employer size relative to some tariff base. Schedule 3 gives formulae for S for standalone employers and for groups (SG). The schedules direct that BTP should be calculated on a 12‑month equivalent where the policy period is not 12 months (Schedule 3(3)).

Group aggregation and allocation (Schedule 2)

• If an employer is a member of a group, Schedule 2 applies and prescribes group deposit and adjusted premium calculations (PGd, PG, PGmin, PGmax, SG, VG, CG). The individual employer’s deposit/adjusted premium is derived from the group calculation according to the Schedule 2 formulas.

Other tariff components and inclusions (Schedule 1(2) definitions)

• The adjusted premium includes, where applicable, the premiums adjustment contribution (Q), dust diseases contribution (D), Mine Safety Fund adjustment (M), and apprentice incentive amount (A). These items are to be calculated in accordance with the relevant General Order.

Temporal scope and interaction with General Order (cl 4)

• The Order applies to policies taking effect in a specific 12‑month window (4 pm 30 June 2015 to 4 pm 30 June 2016) and continues only until a successor retro‑paid loss premium order is made. The "relevant General Order" (Insurance Premiums Order 2015-2016, or failing that the 2014-2015 order) applies except for clauses 3, 4, 7 and 9 (cl 4(4)).

Fixed amount for specific Regulation clauses (cl 9)

• For the purposes of particular clauses of the Workers Compensation Regulation 2010 (clauses 154(2)(d)(ii)(C) and 155(2)(d)(ii)(C)), the amount to be used is $1,999.30.

Taken together, these concepts prescribe a four‑step recalculation process where observed claim costs (C) are multiplied by an adjustment V and combined with tariff components and size adjustments to produce an adjusted premium bounded by a Pmin/Pmax envelope and subject to statutory minimums and group allocation rules.

Payors and primary economic impacts

• Employers who opt into, or are eligible for, the retro‑paid loss premium method under section 168A of the Act are the direct payors of the deposit and adjusted premiums. The Order applies "only to and in respect of policies of insurance for employers to whom the optional alternative method ... applies" (cl 4(1)). Employers bear the residual cost of claims as that cost materially drives adjusted premiums (through C and V) at each adjustment date.

Insurers and administrative actors

• Insurers decide the timing of premium demands and must apply the formulas set out in the Order when offering or renewing retro‑paid loss premium policies. The Order prescribes the method insurers must use for deposit and adjusted premium calculations "for the purposes of section 168A of the Act" (cl 6). Insurers therefore implement the mechanics: initial deposit calculation, claims monitoring, recalculation on prescribed dates, application of bounds (Pmin/Pmax), and invoicing/collection.

Groups and group members

• Employers that belong to a group are treated under Schedule 2. The group as a whole is pooled for the purposes of PG (group adjusted premium), CG (group claim costs) and VG (group claims adjustment factor). A group member’s premium is then derived from the group result. The Order classifies an employer as a large employer if any group member satisfies the BTP threshold (cl 5(b)).

Large employers

• The Order expressly classifies "large employers" as those with a basic tariff premium that exceeds $500,000 for a 12‑month period or that would exceed that threshold on a 12‑month equivalent (cl 5). Membership of a group in which at least one member meets that threshold also triggers large employer classification for group members (cl 5(b)). The large employer designation interacts with the claims adjustment factor V via Schedule 4, which distinguishes adjustment factor values based on the employer’s election of a large claim limit ($350k or $500k).

Specialised insurers and exclusions

• The Order does not apply to a policy issued or renewed by a specialised insurer that is exempted from insurance premiums orders under clause 165 of the Workers Compensation Regulation 2010 (cl 4(5)). This reduces the Order’s coverage over niche classes of insurers designated as "specialised" in the Regulation.

Regulatory interface actors

• The Order refers repeatedly to the "relevant General Order" (Insurance Premiums Order 2015-2016 or, if absent, the 2014-2015 Order) and to specific clauses of the Workers Compensation Regulation 2010 (see cl 3(1) and cl 9). Those who need to apply or enforce the Order include regulatory staff and compliance officers who must reconcile the Order with provisions in the relevant General Order and the Regulation.

Employers’ claims management practices

• Employers who are insured under the retro‑paid method have an incentive to manage claims because claim costs C (excluding journey and recess claims) feed into the adjusted premium calculations. The Order makes explicit that C excludes journey and recess claims (Schedule 1(2)), altering which claims an employer can expect to influence their adjusted premium.

Temporal beneficiaries / affected policies

• The Order is time‑limited to policies taking effect between 4 pm on 30 June 2015 and 4 pm on 30 June 2016 (cl 4(2)), but it also contains a continuation safeguard if a successor retro‑paid loss premium order has not been made before 4 pm on 30 June 2016 (cl 4(3)). In practice the instrument therefore affects policies that begin within that window and persists for those multi‑year policy periods until the fourth adjustment date or until supplanted.

Who decides (procedural points)

• The text makes clear that some operational choices remain with the insurer (application of the prescribed method, calculation and demand for deposit and adjusted premiums) and some with the employer (electing a large claim limit in the terms of the Regulation, if that election is available), with statutory amounts and parameters prescribed by the Order. The Order itself does not set administrative procedures for elections; it references elections under the Regulation (Schedule 4 preamble).

Who does not pay / unaffected payors

• Small employers with minimal BTP still fall within scope if they have chosen (or are eligible for) the retro‑paid option, but the statutory minimum premium of $175 applies to deposit and adjusted premiums (cl 7). Specialised insurers and policies excluded under the Regulation are unaffected by this Order (cl 4(5)).

Duties expressly imposed by the Order

• Use prescribed method for retro‑paid loss premium policies: For policies to which s 168A applies, the insurer must use the alternative method described (deposit premium then recalculation at adjustment dates) "for the purposes of section 168A of the Act" (cl 6). The Order defines the method insurers must use to determine deposit and adjusted premiums in Schedule 1 (and Schedule 2 for group members).
• Charge at least the minimum premium: A deposit or adjusted premium cannot be less than $175 (cl 7).
• Calculate required deposit per s 8 formula: The insurer or other calculating party must compute the required deposit (RD) using the formula set out in s 8, which depends on BTP and whether the calculation occurs on or before the third adjustment date (s 8(a)) or after the third adjustment date (s 8(b)).
• Observe adjustment dates and recalculation mechanism: Insurers must recalculate premiums at the four defined adjustment dates (cl 6; Schedule 1(2)).
• Apply schedule‑defined bounds and adjustments: Insurers must apply Pmin and Pmax bounds and calculate S (size adjustment), V (claims adjustment factor), and the tariff components Q, D, M, A in accordance with the relevant Schedules and the relevant General Order (Schedule 1(2) definitions).

Rights or entitlements under the Order

• Employers’ entitlement to an adjusted premium that reflects their claim experience: The mechanism links adjusted premiums to the employer’s claim costs (C) and adjustment factors, producing an entitlement (or obligation) that the adjusted premium be calculated in the specified way at each adjustment date (Schedule 1 and Schedule 2).
• Group allocation rights: Where Schedule 2 applies, employers who are group members participate in the group calculation and receive premiums allocated from the group adjusted premium according to Schedule 2 formulas (Schedule 2(2)-(4)).
• Employer election effect: Employers who have elected a large claim limit for the purposes of clause 154(5) of the Regulation are entitled to have the claims adjustment factor V set according to that election (Schedule 4). The Order preserves the effect of that election by assigning a corresponding V for each adjustment date.

Specification and exclusion duties

• Exclusion of certain claims from C: The Order specifies that cost of claims C excludes journey and recess claims (Schedule 1(2)). Practically, the insurer must remove those categories from the claim cost tally used in the premium formula.

Interaction duties with the General Order and Regulation

• Apply relevant General Order components: The Order declares that the relevant General Order applies to these policies except for clauses 3, 4, 7 and 9 (cl 4(4)). Entities must therefore reconcile and apply the parts of the General Order that remain in force alongside this Order’s special regime.

Administrative duties implicit in the Order

• Record and tracking duty: The insurer must track timing across a multi‑year policy period to apply recalculations at +15, +24, +36 and +48 months. The Order requires multi‑year recordkeeping of claims costs (C) attributable to the policy period and allocation across group members where relevant.
• Calculation transparency: Although the Order does not detail notice procedures, the prescribed nature of the method implies insurers must have internal procedures to compute deposits and adjusted premiums and to explain these to employers if queried. The Order itself does not set explicit disclosure duties; those will generally be found in the Act, the relevant General Order, or market practice.

No criminal penalties or express enforcement mechanics in this Order

• The Order sets calculation mechanics and monetary floors and ceilings. It does not itself prescribe penalties, sanctions or enforcement mechanisms. Compliance enforcement should be read in conjunction with the Act and the relevant General Order, which contain licensing, regulatory and enforcement provisions; the Order references those instruments for definitions and complementary mechanics (cl 3(1); cl 4(4)).

Textual absence of express penalties

• The Order does not itself create criminal offences, civil penalties, administrative fines or enforcement mechanisms. It sets mandatory calculation rules and parameters, but enforcement of those rules is left to the supervisory regime provided by the Act and the relevant General Order and Regulation. The Order should therefore be read as a technical instrument within the existing regulatory enforcement framework rather than a stand‑alone punitive instrument.

Where enforcement will be sourced

• Any breach or non‑compliance with the calculation mechanics in this Order would be actionable under the regulatory powers and enforcement provisions of the Act and the Workers Compensation Regulation 2010 and the relevant General Order (the Order expressly incorporates meanings from the relevant General Order at cl 3(1)). Practitioners therefore need to coordinate compliance advice with those instruments for concrete penalty rules, licensing consequences or administrative actions.

Regulatory supervision of insurers

• Insurers who administer the retro‑paid loss premium policies are subject to the insurer regulatory framework in the Act and likely to the administrative oversight that governs calculation of premiums and insurer conduct. The Order specifies calculation methods which supervisory bodies may expect insurers to follow when offering retro‑paid loss premium policies; non‑adherence could attract corrective action or directions from the regulator under the Act or the General Order.

Auditability and record retention

• While the Order does not specify record retention periods, the multi‑year nature of deposit/adjusted premium calculations and the fact that the adjusted premium relies on observable claim costs (C), tariff components (Q, D, M, A) and factors (V, S) implies that insurers must retain sufficient records to demonstrate implementation. Failure to retain records may hamper an insurer’s ability to justify its calculations in a regulatory review under the Act.

Dispute resolution and adjudication

• The Order does not provide a dispute resolution mechanism for differences about calculation inputs (for example, the amount of C or the inclusion/exclusion of particular items). Such disputes would be resolved under the dispute resolution processes in the Act, the relevant General Order, or market dispute mechanisms (contracts, policy terms) and subject to regulatory oversight. The Order references that certain elements are to be calculated in accordance with the relevant General Order (Schedule 1(2) definitions), which will carry its own dispute and compliance frameworks.

Practical enforcement risk factors

• Because the Order prescribes numeric V values and formulaic steps but leaves other components (e.g. data sources for C, timing of employer elections under the Regulation) to linked instruments, enforcement will require cross‑checking between the Order, the relevant General Order, policy documents, and the Regulation. Regulatory action for non‑compliance therefore depends on the regulator’s capacity to audit multi‑year records, reconstruct claim cost histories, and validate the calculations at each adjustment date.

Integration with the Act (section 168A and section 172A)

• The Order is expressly drafted "for the purposes of section 168A of the Act" (cl 6) and specifies the alternative method required by that section. It also directs the calculation of the "required deposit" in accordance with section 172A of the Act (heading of s 8). These references mean the Order operates as the specific implementation mechanism for the statutory alternative premium method set out in the Act.

Dependence on the relevant General Order

• The Order repeatedly cross‑references the "relevant General Order" which is defined as the Insurance Premiums Order 2015-2016, or if none, the Insurance Premiums Order 2014-2015 (cl 3(2)). Clause 4(4) provides that the relevant General Order, except for clauses 3, 4, 7 and 9, applies to retro‑paid loss premium policies unless this Order provides otherwise. Practitioners must therefore read the two orders together to compute tariffs, contributions (Q, D, M, A) and other components. The Order does not supplant the General Order wholesale; it modifies only those aspects it explicitly addresses.

Interaction with the Workers Compensation Regulation 2010

• The Order imports terminology and mechanisms from the Workers Compensation Regulation 2010, and it gives effect to election mechanics under the Regulation. For instance, Schedule 4’s claims adjustment factors depend on whether the employer has "elected a large claim limit for the purposes of clause 154 (5) of the Workers Compensation Regulation 2010" (Schedule 4 preamble). Clause 9 of the Order directly sets an amount ($1,999.30) for the purposes of clauses 154(2)(d)(ii)(C) and 155(2)(d)(ii)(C) of the Regulation.

Exclusion of certain claims categories under the Act

• The Order specifies that the C variable (cost of claims) excludes the cost of any claims under sections 10 (Journey claims) and 11 (Recess claims) of the Act (Schedule 1(2)). That exclusion shifts the cost of those claim categories away from the retro‑paid premium calculation and into the residual tariff or another charging mechanism governed by the Act and General Order.

Group calculations and corporate structures

• Schedule 2 integrates group aggregation into premium calculations (PG, CG, SG, VG). The Order therefore intersects with corporate or group structures, requiring aggregation of BTP across members and the allocation of group premiums back to individual members. This may interact with corporate reporting obligations or intra‑group cost allocation practices under other laws and contracts.

Specialised insurer exemptions under the Regulation

• The Order does not apply to policies issued by specialised insurers exempted under clause 165 of the Regulation (cl 4(5)). The Regulation’s exemption regime therefore narrows the Order’s applicability; where a specialised insurer is exempt, the insurer is outside the constraints of this Order and will operate under whatever pricing rules apply to that specialist class.

Temporal interaction and successor instruments

• The Order’s limited timeframe (policies effective on or after 4 pm 30 June 2015 and before 4 pm 30 June 2016; cl 4(2)) and its continuation provision (cl 4(3)) create a temporal link with successor insurance premiums orders. If a subsequent retro‑paid order is not made before 4 pm on 30 June 2016, this Order applies to policies that take effect after that time "pending the making of such an order" (cl 4(3)). Practitioners must monitor legislative continuity to determine whether the mechanics here remain in force or are displaced.

Tie‑ins to tariff components in the General Order

• The adjusted premium formulae incorporate tariff components (Q, D, M, A) and BTP, which are to be calculated "in accordance with the relevant General Order" (Schedule 1(2)). That cross‑reference requires users to consult the General Order for the precise methods of computing these components and any interplay with other statutory levies or contributions.

No express displacement of contract law or policy terms

• The Order prescribes statutory methods for calculating premiums but does not expressly override contractual arrangements between insurer and insured except to the extent such agreements must comply with statutory calculation methods for policies issued under s 168A. Insurers and employers should therefore reconcile policy terms with statutory mechanics; where policy terms conflict with the prescribed calculation, statutory mechanics would generally prevail for policies issued/renewed under the s 168A option.

Commencement and temporal limitation

• The Order commences at 4 pm on 30 June 2015 and must be published in the Gazette (cl 2). The Order is expressed as the "Insurance Premiums Order (Retro‑Paid Loss Premium Method) 2015-2016" (cl 1). It is therefore framed as a yearly instrument for the 2015-2016 period.

Time window for affected policies and continuation provision

• The core application window is for policies that are to be or have been issued or renewed so as to take effect at or after 4 pm on 30 June 2015 and before 4 pm on 30 June 2016 (cl 4(2)). Clause 4(3) provides that if, before 4 pm on 30 June 2016, no successor insurance premiums order for retro‑paid loss premium policies has been made, this Order applies to policies beginning at or after that later time "pending the making of such an order". Thus the instrument contains its own limited transitional or continuation mechanism.

Schedules made integral

• Clause 10 states that Schedules 1-4 form part of the Order. Any amendment to the Order would therefore typically be effected by amending the principal clauses or the Schedules.

No express amendment record within the text

• The text provided does not contain an internal amendment log or subsequent amending provisions. The Order should therefore be treated as the 2015-2016 version; any later amendments would appear in later statutory instruments or in consolidated versions of the Insurance Premiums Orders. Practitioners must check the consolidated instrument and Gazette notices for any later amending orders.

Interaction with successor General Orders

• The Order designates the relevant General Order as the Insurance Premiums Order 2015-2016 or, if none, the Insurance Premiums Order 2014-2015 (cl 3(2)(b)). That designation implies that each year the General Order suite is updated; correspondingly, retro‑paid loss premium mechanics may be adjusted by later Orders or successor instruments.

No in‑text revocation clause

• The Order does not itself include a revocation clause for prior retro‑paid loss premium orders. Instead, it operates for the specified period and by reference to successor instruments. Any revocation or amendment of this Order would typically occur by later statutory instrument.

Practical note on legislative currency

• Because the instrument is annually framed and time‑limited, practitioners should verify whether a later Insurance Premiums Order for the retro‑paid method exists for subsequent years. Clause 4(3) anticipates a continuity gap, but the long‑run operative rules for policies beginning after 30 June 2016 depend on successor Orders.

No cases named in the instrument

• The text of the Order does not refer to any litigation or judicial decisions. It contains no citations to cases, and there is no internal record of disputes or appeals.

No expressed adjudicative or dispute mechanism within the Order

• The Order prescribes calculation formulas and parameters but does not establish a specific tribunal or novel adjudicative route for disputes arising out of its application. Challenges to the Order’s application or to an insurer’s calculation under it would therefore proceed under existing dispute resolution mechanisms in the Act, the relevant General Order, or via ordinary administrative law channels.

Practical implications for litigation risk

• Because the Order defines numeric factors (Schedule 4) and explicit exclusions (e.g. excluding journey/recess claims from C), it reduces some ambiguity that might otherwise drive litigation over the mechanics of calculation. Litigation, if it arises, is more likely to concern the proper factual application (e.g. whether a specific cost was correctly characterised as a journey or recess claim) or the insurer’s compliance with the prescribed method rather than the legal validity of the method itself.

No recorded judicial interpretation in the text

• There is no judicial gloss or interpretation contained within this instrument. Users must therefore rely on the statutory language, the General Order, and any administrative guidance or later authorities for interpretative guidance. If disputes do arise, courts or tribunals will interpret the Order in conjunction with the Act and Regulation.

Minimum premium floor overrides other calculations (cl 7)

• Even where formulaic calculations would produce a deposit or adjusted premium lower than $175, cl 7 mandates a $175 floor. Small employers or policies with very low BTP should not expect a premium below that statutory minimum.

Image/formula visibility in the printed instrument (Schedules)

• Several clauses and schedules in the instrument present formulae in embedded image form (the published text includes image references). Practitioners working from partial copies should ensure they have the full instrument with legible formulae (Schedules 1 and 2, Schedule 3 size adjustment formulae, and s 8 required deposit formula are in the schedules and include mathematical expressions). Reliance on a redacted or textual summary without the embedded formulae risks incorrect computation.

Exclusion of journey and recess claims from C (Schedule 1(2))

• C explicitly excludes costs of claims under sections 10 and 11 of the Act (journey and recess claims). Insurers and employers must therefore segregate those claim costs; failure to do so will misstate C and produce an incorrect adjusted premium.

Adjustment factors depend on an employer’s election under the Regulation (Schedule 4)

• The claims adjustment factor V depends on whether the employer (or group) has elected a large claim limit for the purposes of clause 154(5) of the Workers Compensation Regulation 2010. Practitioners must confirm whether such an election was validly made and recorded because it changes V (e.g. V is 3.05 at the first adjustment date for a $350,000 limit versus 2.95 for a $500,000 limit).

Group membership can convert non‑large employers into large employers (cl 5)

• An employer who would not individually exceed the $500,000 BTP threshold can be classified as a large employer if they are a member of a group that contains at least one member satisfying the threshold (cl 5(b)). Employers that are members of groups must check whether any group member triggers the large employer classification, as this affects the calculations and available V factors.

Pmin and Pmax bounds may substantially limit volatility but can produce counterintuitive outcomes (Schedule 1)

• Adjusted premiums are bounded by Pmin and Pmax (Schedule 1(1) and Schedule 1(2) interpretation). A large claim early in the policy period may be scaled by a high V, but Pmax may cap the immediate premium impact; conversely, Pmin can prevent full relief for low claim experience at early adjustment dates. Practitioners should model the bounds to understand practical premium volatility.

Timing of required deposit changes after third adjustment date (s 8)

• The required deposit formula differs on or before the third adjustment date and after the third adjustment date (s 8(a)-(b)). The change in formula after the third adjustment date may change RD exposures late in the multi‑year policy period. Insurers must implement the correct RD formula depending on the timing.

Differences between single employer and group calculations (Schedules 1-2)

• Where an employer is a group member, the order requires first computing a group deposit/adjusted premium (PGd/PG) and then allocating to members (Schedule 2). Errors in group aggregation (BTPG, CG) or misapplication of SG instead of S can materially misstate premiums for individual members.

Tariff components Q, D, M, A are sourced from the General Order (Schedule 1(2))

• These components are not defined in this Order beyond naming; they are to be "calculated ... in accordance with the relevant General Order." Failure to consult the General Order for the correct computation of Q (premium adjustment contribution), D (dust diseases), M (Mine Safety Fund), and A (apprentice incentive) will produce incorrect adjusted premiums.

Statutory continuation may extend its binding effect beyond 2016 (cl 4(3))

• If no successor retro‑paid order is made before 4 pm on 30 June 2016, this Order continues to apply to policies taking effect after that time "pending the making of such an order" (cl 4(3)). Users should not assume the instrument ceases to apply at the end of the stated window without confirming the existence of a successor order.

Fixed amount for specific Regulation clauses must be used (cl 9)

• Clause 9 fixes $1,999.30 "for the purposes of" certain Regulation clauses. That specific numeric input must be used where the Regulation refers to the amount in those clauses; substituting a rounded figure or different number would be inconsistent with the Order.

Specialised insurers excluded (cl 4(5))

• Some insurers are exempt under clause 165 of the Regulation. Policies issued by such specialised insurers are outside this Order; applying these rules to a policy issued by a specialised insurer would be an error.

No express dispute mechanism in the Order

• There is no procedure set out for disputes about the inputs (for example, characterisation of a claim as journey/recess). Disputes must be handled under the Act, Regulation, the General Order, policy terms, or standard legal processes, which can delay resolution of premium adjustments.

Stepwise procedure for insurers (practical checklist)

1. Confirm eligibility and applicability

   • Verify the policyholder is an employer to whom s 168A applies and that the policy takes effect in the temporal window (cl 4(1)-(2)). If the insurer is a specialised insurer exempt under clause 165 of the Regulation, these rules do not apply (cl 4(5)).

2. Determine whether group rules apply

   • If the employer is a member of a group, apply Schedule 2 rather than Schedule 1 (Schedule 2(1)). Aggregate BTP for group calculations (BTPG) and compute PGd and PG using the group formulas set out in Schedule 2.

3. Compute the deposit premium (PD) at commencement

   • Use the Schedule 1 deposit formula (Schedule 1(1)) or the Schedule 2 group deposit formula (Schedule 2(2)) as applicable. Ensure BTP is calculated on a 12‑month equivalent when the policy period is not 12 months (Schedule 3(3) interpretation).

4. Apply the $175 statutory floor

   • Ensure PD is not less than $175 (cl 7).

5. Track and record policy commencement date and adjustment dates

   • Establish internal systems to trigger recalculations at each adjustment date: +15, +24, +36, +48 months from policy commencement (cl 3(2); Schedule 4 table). Maintain auditable claim records for the policy period.

6. At each adjustment date, compute the adjusted premium (P)

   • Use Schedule 1(2) formula for adjusted premium or Schedule 2(3) for group members. Inputs include:
     • C: total cost of claims for the employer for the period of insurance, excluding journey and recess claims (Schedule 1(2));
     • V: claims adjustment factor per Schedule 4, chosen according to whether the employer/group elected a large claim limit under clause 154(5) of the Regulation; use the numeric table in Schedule 4 to select the correct V for the adjustment date;
     • S or SG: size adjustment factor calculated per Schedule 3 using BTP or BTPG on 12‑month equivalents;
     • BTP: basic tariff premium for the employer(s) per the relevant General Order;
     • Q, D, M, A: tariff components calculated in accordance with the relevant General Order (Schedule 1(2) definitions).
   • Ensure the adjusted premium lies between Pmin and Pmax as prescribed in Schedule 1 (Schedule 1(2)). If necessary, apply the formulaic bounds.

7. Recompute and apply the required deposit (RD) where relevant

   • Calculate RD in accordance with s 8. Use the formula appropriate to whether the computation is on or before the third adjustment date or after the third adjustment date (s 8(a)-(b)). RD will inform the deposit required at the relevant time.

8. Issue notices/invoices and enforce premium collection as per internal processes and statutory rules

   • While the Order does not prescribe notice content, insurers must issue demand for the deposit and revised invoices for adjusted premiums consistent with the Act, policy terms and market practice. Keep contemporaneous calculation workpapers to justify the recalculations.

9. Maintain detailed records and audit trail

   • Preserve claim cost breakdowns (distinguishing journey/recess claims from others), BTP calculations (including 12‑month equivalent conversions), S and V calculations, group aggregation formulas (where applicable), and all communications with employers. Records will be necessary for regulatory review under the Act and to defend any disputes.

10. Coordinate with the relevant General Order and the Regulation

    • For computation of Q, D, M, A and for definitions not supplied in this Order, use the relevant General Order. For elections affecting V, confirm the employer’s election under clause 154(5) of the Regulation and its effective date.

Employer actions and compliance points

• Confirm election and policy terms: Employers should confirm whether they have elected the retro‑paid loss premium method (s 168A option) and whether any election has been made under clause 154(5) of the Regulation that affects the large claim limit. Absent a valid election about large claim limits, the default V may apply.
• Monitor claim history and categorisation: Employers should work with their insurer to ensure claims are accurately categorised (particularly journey and recess claims which are excluded from C) because the adjusted premium depends on C. Employers should retain claim records and correspondence that show claim classification.
• Understand volatility bounds: Employers should model and anticipate how Pmin/Pmax and the $175 floor affect possible premium movement at each adjustment date. Employers who are part of groups should understand how group pooling and allocation (Schedule 2) will affect their individual premium.
• Engage early with insurer on disputes: If an employer disputes the inclusion/exclusion of particular claim costs or the correctness of a calculation, raise the matter promptly under the policy’s dispute procedures, the Act, or the relevant General Order, and preserve evidence relevant to the claim characterisation.

Model and testing recommendations

• Build calculation models that mirror the Schedules: Implement automated models that compute PD, P, Pmin, Pmax, S, V and RD with clear input fields for BTP, C, group membership, elected large claim limit and tariff components Q, D, M, A. Validate the model against sample cases.
• Scenario test group vs standalone outcomes: For employers in groups, test both individual and aggregated computations to confirm allocation results. Pay particular attention to the effect of large claim limits and the group’s BTP on SG and VG.
• Stress test for timing and late claims: Because the recalculation schedule spans up to 48 months, test scenarios with late‑reported claims and see how the exclusion of journey/recess claims and the Pmax/Pmin bounds interact late in the policy period.
• Confirm use of Schedule 4 numeric values: Implement Schedule 4’s numeric V values exactly as stated for each adjustment date and each large claim limit choice (e.g. 3.05 and 2.95 at the first adjustment date for $350k and $500k limits respectively).

Practical checklists for documentation (insurer)

• For each insurer calculation produce:
  • A dated calculation worksheet showing inputs (BTP, C breakdown, V, S, Q, D, M, A) and outputs (PD, RD, P, Pmin, Pmax), and references to the specific Schedule clauses used;
  • Evidence of employer election status regarding large claim limit;
  • Evidence of group membership and group BTP aggregation where Schedule 2 is used;
  • All notices/invoices sent to the employer and the calculation method summary provided to the employer.

Regulatory liaison and contingency

• Keep regulatory counsel or compliance officers informed about model logic and the use of General Order parameters. Because the Order is time‑limited and tied to successor instruments, confirm annually whether a new retro‑paid order or amendments have been made that alter variables or formulae.

By following the procedural steps above and building auditable models that mirror Schedule 1-4 inputs and outputs, insurers and employers can implement the retro‑paid loss premium method required by this Order while keeping records to demonstrate compliance with the Act and the relevant General Order.