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This Order is the Insurance Premiums Order 2010–2011.
This Order commences at 4 pm on 30 June 2010 and must be published in the Gazette.
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:
if the employer is a medium or large employer for the purposes of the policy, in accordance with the following formula:
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:
except as provided by paragraph (b), the initial premium so payable in accordance with this Order, or
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.
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.
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):
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 is not to exceed one and a half times the amount of that basic tariff premium , and
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 is not to exceed twice the amount of that basic tariff premium , and
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 is not to exceed two and a half times the amount of that basic tariff premium .
However, if the employer is a member of a group:
subclause (2) does not apply, and
where the sum of the basic tariff premiums less the sum of apprentice incentive amounts [TG− AG] for all the members of that group:
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 is not to exceed one and a half times the amount of the employer’s basic tariff premium , and
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 is not to exceed twice the amount of the employer’s basic tariff premium , and
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 is not to exceed two and a half times the amount of the employer’s basic tariff premium ,
where:
AG is the sum of apprentice incentive amounts (if any) for all the members of the group calculated:
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
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:
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
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.
An employer is entitled to a discount of 3 percent on the initial premium payable by the employer for a policy of insurance if:
the period of insurance to which the policy relates is 12 months, and
the employer has paid the discounted amount of the premium in full by the date on which payment of the premium is due, and
the employer has not elected to pay the premium by instalments, and
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 130 of the Workers Compensation Regulation 2003 requires an employer to notify the insurer concerned of the matter referred to in paragraph (d).
For the purposes of the definition of prescribed excess amount in section 160 (1) of the Act, the following excess amount is specified:
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,
in all other cases—the lesser of the following:
the amount that is the current weekly wage rate of the worker as determined by section 42 of the Act,
$1,716.40.
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.
For the purposes of sections 170 (8) and 172 (5) of the Act, the prescribed rate is 0.961% per month compounded monthly.
For the purposes of clauses 137 (2) (c) (ii) (C) and 138 (2) (c) (ii) (C) of the Workers Compensation Regulation 2003, the amount specified is $1,716.40.
Schedules 1–12 form part of this Order.
The explanatory note does not form part of this Order.