Part 9Registration and funding

Part 9—Registration and funding 50—Registration of employers (section 128 of Act) (1) If— (a) a person (the employer) employs 1 or more persons (the workers) under a contract of service or contracts of service; and (b) the workers are not employed for the purposes of a trade or business carried on by the employer; and (c) the total remuneration payable by the employer to the workers in a particular financial year does not exceed $12 286 (indexed), the employer is not, in respect of those workers, required to be registered under section 128 of the Act (and the remuneration paid to those workers need not be included in any return or statement submitted or provided to the Corporation under Part 9 Division 7 of the Act). (2) The employers who are not required to be registered under section 128 of the Act by virtue of subregulation (1) are, in respect of the workers referred to in subregulation (1), a prescribed class of employers exempt from the operation of section 64(5) of the Act. (3) If the total remuneration payable in a particular financial year by an employer to workers employed by the employer (other than workers of a kind referred to in subregulation (1)) does not exceed $12 286 (indexed), the employer is not required to be registered under section 128 of the Act. (4) However, if a worker employed by an employer who is, but for this subregulation, exempted from the obligation to be registered under section 128 of the Act by virtue of subregulation (3) suffers an injury arising from that employment that is determined under the Act to be a work injury, the exemption does not apply in relation to the employer from the day of the occurrence of the injury until the end of the financial year in which the injury occurred. Note— An employer required to be registered by the Corporation must apply for registration within 14 days after the obligation to be registered arises—see section 128(3) of the Act. (5) The employers referred to in subregulation (3)— (a) are not required to include the remuneration paid to their workers in any return or statement submitted or provided to the Corporation under Part 9 Division 7 of the Act; and (b) are a prescribed class of employers exempt from the operation of section 64(5) of the Act, (regardless of whether they are required under subregulation (4) to be registered under section 128 of the Act). (6) For the purposes of subregulations (1) and (3), the amount applying in relation to an employer at any time during a financial year will be the amount applying as at the beginning of that financial year. 51—Prescribed terms and conditions—self-insured employers (section 129 of Act) For the purposes of section 129(5)(a)(iii) of the Act, the registration of an employer as a self-insured employer (or as 1 of a group of self-insured employers) is subject to the terms and conditions prescribed in Schedule 3. 52—Agencies of the Crown (section 130 of Act) For the purposes of section 130(4) of the Act, the following bodies are prescribed for the purposes of the definition of agency or instrumentality of the Crown: (a) Minda Incorporated; (b) Royal Society for the Blind of South Australia Inc. 53—Registration—self-insured employers (section 131 of Act) (1) For the purposes of section 131(1) of the Act, an application for registration as a self‑insured employer or group of self‑insured employers must contain, or be accompanied by, the following: (a) a statement, prepared by an actuary, of the liabilities that an employer would be undertaking over the first 12 months if the applicant were registered as a self‑insured employer; (b) details of the financial guarantee or other security arrangements, and the contract of insurance, that the applicant would obtain for the purposes of Schedule 3 if the applicant were registered as a self‑insured employer; (c) a detailed plan of the arrangements that the applicant would implement to administer claims under the Act, which must— (i) include details of— (A) the job specifications of the officers who would be responsible for administering the claims; and (B) the lines of accountability and control that would apply to those officers; and (C) the policies that would be adopted for the return to work of injured workers; and (D) the arrangements that would be implemented for the making of claims under the Act; and (ii) be accompanied by a copy of any form that the applicant would require a claimant to complete; (d) in respect of safety policies— (i) a copy of any safety policy that has been adopted by the applicant; and (ii) details of any programs that the applicant has implemented, or proposes to implement, to train workers in safe working procedures; and (iii) details of the facilities and arrangements that the applicant has for providing first aid to workers; and (iv) details of any safety committees that have been established by the applicant, and a copy of any minutes kept from meetings held by those committees over the period of 6 months immediately preceding the application; (e) the name of any registered association of which any worker employed by the applicant is a member. (2) For the purposes of section 131(2) of the Act, a fee of $10 000 (plus GST) in addition to $15 (plus GST) for each worker employed by the employer, or group of employers, at the time of the application is fixed as the fee that must accompany an application for registration as a self‑insured employer, or group of self‑insured employers. (3) However— (a) if the applicant is an employer who is taking over, or who has within the preceding period of 12 months before the date of application taken over, an activity undertaken by the Crown or an agency or instrumentality of the Crown and who, at the same time, is taking over, or has taken over, the employment of various workers engaged in that activity then— (i) if that activity is the sole activity undertaken by the employer within the State—no fee is payable under subregulation (2); and (ii) in any other case—there will be a proportionate reduction in the fee that is otherwise payable under subregulation (2) according to the proportion that the activity that is being taken over, or that has been taken over, bears to all activities undertaken by the employer within the State; and (b) if the applicant is an employer who has ceased or intends to cease to be a self-insured employer by virtue of— (i) a proclamation under section 130(2) of the Act; or (ii) no longer being prescribed under section 130(4) of the Act, then no fee is payable under subregulation (2); and (c) the maximum fee payable under subregulation (2) is $40 000 (plus GST). 54—Changes in details for registration (section 132 of Act) For the purposes of section 132 of the Act— (a) any material change in any details or information previously provided under section 131(1) of the Act will constitute prescribed circumstances; and (b) the period of 30 days from the occurrence of any such change is prescribed. 55—Compensation Fund (section 135 of Act) (1) For the purposes of section 135(2)(e) of the Act, the Compensation Fund will include any money received by the Corporation under the Work Health and Safety Act 2012. (2) For the purposes of section 135(3)(j) of the Act, the Compensation Fund may be applied towards the costs incurred by the Corporation in carrying out its functions under the— (a) Freedom of Information Act 1991; and (b) South Australian Employment Tribunal Act 2014; and (c) Work Health and Safety Act 2012. 56—Industry rates (section 142 of Act) For the purposes of section 142(3) of the Act, the following criteria are prescribed: (a) the extent to which work carried on in the particular class of industry is, in the opinion of the Corporation, likely to contribute to the cost of work injuries; (b) the need for the Corporation to establish and maintain sufficient funds— (i) to satisfy the Corporation's current and future liabilities in respect of work injuries attributable to traumas occurring in a particular period from premiums raised in relation to that period; and (ii) to make proper provision for administrative and other expenditure of the Corporation; and (iii) to make up any insufficiency in the Compensation Fund resulting from previous liabilities or expenditures or from a reassessment of future liabilities. 57—Remission of premium (section 144 of Act) For the purposes of section 144(8) of the Act, the following are prescribed as circumstances where the Corporation may remit the premium payable by an employer under that section: (a) if the remuneration otherwise subject to the premium belongs to a category of remuneration determined by the Corporation for the purposes of this paragraph to be a category in relation to which the premium will be remitted (with the extent of the remission under this paragraph reflecting the extent to which remuneration falls into any such category); (b) if the Corporation considers that administrative savings are being made (or will be made) on account of the employer managing claims made by workers who suffer work injuries in the employment of the employer; (c) if, in the opinion of the Corporation, the amount standing to the credit of the Compensation Fund is sufficient to justify a remission of premium. 58—Limit on fine (section 145(6)(b) of Act) For the purposes of section 145(6)(b) of the Act, the amount of $5 000 is prescribed. 59—Recovery on default (section 154 of Act) (1) For the purposes of section 154(3)(b) of the Act, the rate of penalty interest on an amount in arrears is a simple interest rate equal to 5% of the amount in arrears (expressed as an annual rate and applied with respect to the relevant period) plus the TAA market rate for the financial year in which, under Part 9 of the Act, notice of an assessment is given, with the interest to be calculated at a daily rate over the relevant period. relevant period means the period during which the amount in arrears is unpaid; TAA market rate means the market rate as defined in section 26 of the Taxation Administration Act 1996. 60—Penalty for late payment (section 155 of Act) (1) For the purposes of section 155(1)(a) of the Act, the rate of penalty interest on an amount in arrears is a simple interest rate equal to 5% of the amount in arrears (expressed as an annual rate and applied with respect to the relevant period) plus the TAA market rate for the financial year in which, under Part 9 of the Act, notice of an assessment is given, with the interest to be calculated at a daily rate over the relevant period. relevant period means the period during which the amount in arrears is unpaid; TAA market rate means the market rate as defined in section 26 of the Taxation Administration Act 1996. 61—Insurance of registered employers against other liabilities (section 166 of Act) For the purposes of section 166(1) of the Act, the terms and conditions to the insurance provided under that section to employers by the Corporation are set out in Schedule 4. 62—Insurer of last resort (section 167 of Act) For the purposes of section 167(4) of the Act— (a) the actuarial guidelines approved by the Corporation from time to time for the purposes of the calculation of financial guarantees under Schedule 3 clause 8; and (b) the principle that a scaling factor equal to the scaling factor that applies under Schedule 3 clause 8(2)(a) should be applied to any actuarial determination of the value of liabilities, are prescribed for estimating and capitalising liabilities under that section.