General
1 General
The experience premium (“E”) for an employer is to be calculated:
for the purpose of calculating the initial premium payable before the expiration of the period of insurance for which the premium is to be calculated, and
after the period of insurance for which the premium is to be calculated has expired (being a period that is less than 12 months),
in accordance with the following formula:
after the period of insurance for which the premium is to be calculated has expired (being a period that is not less than 12 months), in accordance with the following formula:
where:
W is the total of the wages payable to workers by the employer in respect of the period of insurance.
F75 is 4.7.
F76 is 2.8.
F77, F78 and F79 are such numbers as are determined by the Governor on the recommendation of the WorkCover Authority and notified in the Gazette.
C1 and C2 are respectively the totals of the cost of claims for the employer in respect of the last and second last period of 12 consecutive months that occurred before the commencement of the period of insurance (not including the cost of any claims under sections 10 (Journey claims) and 11 (Recess claims) of the Act).
C0 is the total of the cost of claims for the employer in respect of the period of insurance (not including the cost of any claims under sections 10 (Journey claims) and 11 (Recess claims) of the Act).
W1 and W2 are respectively the totals of the wages payable to workers by the employer in respect of the last and second last period of 12 consecutive months that occurred before the commencement of the period of insurance.
W0 is the total of the wages payable to workers by the employer in respect of the period of insurance.
If an employer:
makes an application to an insurer for the renewal of a policy, and
does not supply the insurer, in accordance with clause 6 (2) of the Workers Compensation (Insurance Premiums) Regulation 1995, with a duly completed return relating to wages paid during the last period of insurance preceding that renewal,
the insurer may, for the purpose of calculating the initial premium payable by the employer for the renewed policy, determine the amount of “W1” in the formula in subclause (1) (a) to be the amount determined as “W” in the calculation of the experience premium for the employer in respect of the last period of insurance preceding that renewal.
If during any past period referred to in C1 C2, W1 or W2 in the formula in subclause (1) (a) a predecessor of the employer was insured under a policy or policies:
the cost of claims for the employer during that period includes, for the purposes of C1 and C2, the cost of claims for the predecessor in respect of the business acquired by the employer, and
the wages payable to workers by the employer during that period includes, for the purposes of W1 and W2, the wages payable to workers by the predecessor in respect of the business acquired by the employer.
If the policy concerned relates to per capita rates, those rates are to be substituted for wages to determine W, W0, W1 or W2 in the applicable formula in subclause (1).
If the policy concerned relates to both per capita rates and wages, 2 separate calculations of E (E1 and E2) are to be made and E is to equal the sum of E1 and E2 where:
E1 is calculated by using the applicable formula in subclause (1).
E2 is calculated by using the applicable formula in subclause (1) but also by substituting the per capita rates for wages to determine W, W0, W1 or W2 in that formula.
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