Victorian workers’ compensation premium notices will be sent to employers on 7 July.
In 2016-17 the average premium rate will remain at 1.272 per cent of rateable remuneration. By now your insurer will have asked you to estimate your business remuneration for the coming year and WorkSafe Victoria will determine your premium accordingly. If you do not provide this information, it is likely that WorkSafe will estimate your premium rate using the 2015-16 rate and adding 20 per cent. You can manage your insurance on the WorkSafe Victorian website.
5 August: Due date for annual premium payments to receive a five per cent discount
1 October: Due date for annual premium payments to receive a three per cent discount or first due date for the first instalment if you pay monthly or quarterly.
How your premium is calculated
Premiums vary for each employer based on their claims experience and industry rate. WorkSafe Victoria estimates that 43.1% of all employers premium rates will decrease while 23.5% will stay the same and 33.4% will increase. These indicative outcomes may change as employers update their individual details including remuneration estimates.
WorkSafe Victoria uses five factors to work out your premium:
Remuneration – your workers’ pay and other benefits.
Your industry classification – the category your workplace fits in which is determined by the goods and services you provide.
Business – if your total wages are less than $200,000 a year, your premium is based on the industry average. If your company’s total wages are above that amount you will pay based on your industry average and your claims history.
Capping – WorkSafe caps any changes by 30%, so if your wages, industry average or claims amount lifts significantly, your premiums won’t jump up! This does not apply if the change is due to a change in industry classification or awards.
Buy-outs – in most instances, a business is responsible for the first 10 days of an employee’s claim. However, you can remove this amount by paying a 10% increase in premiums.
To set premium rates, industry averages of past claim costs are taken into account. However, businesses with a claims history are given a rating, which also affects their premium where it has wages totalling more than $200,000 per year. This claims rating will be shown in the premium notice that you receive at the end of each financial year. The rating is then factored into your premium amount, so if you have a good rating or low claims your premium will be reduced. This is why it is so important to take proactive steps to reduce injuries and intervene early when incidents occur.
If your premium is rising, you have concerns over complex claims or need help to manage workers with injuries our team of experts can help you manage all aspects of your workers’ compensation program. We can review your workers’ compensation performance and help you manage your workplace health and safety and thereby reduce the likelihood of receiving a claim. We can help you manage individual claims and we can help you with return to work strategies for your injured employees.
If you are considering changing your insurer to the new insurance provider appointed by WorkSafe Victoria, Employers Mutual Ltd (EML) or have questions regarding EML please contact us on 03 8662 5333 or email email@example.com