Setting of premium
54 Setting of premium
WorkCover must set the premium payable under a policy.
The premium payable for the policy for a period of insurance must be assessed according to the method (the method) and at the rate (the rate) specified by WorkCover by gazette notice.
If no rate is specified in the notice for an employer’s industry or business, WorkCover must decide the rate to be the rate applying to the industry or business classification specified in the notice that most closely describes the employer’s industry or business.
Without limiting subsection (2), the gazette notice may state a method or rate that provides for a premium payable by an employer in the event that the employer’s premium rate repeatedly exceeds the relevant industry rate.
Before WorkCover publishes the gazette notice, it must notify the Minister of the proposed specification of method or rate.
The specification is subject to any direction the Minister may make under section 481.
An assessment of premium must be made on the following basis—
wages paid or estimated to be paid during the period of insurance—
are taken to have been paid in equal weekly instalments during the period; or
if the employer establishes to WorkCover’s satisfaction the wages were paid by the employer in another way, are paid in the other way during the period;
the premium payable for the period of insurance is according to the method and at the rate in force from time to time during the period.
An employer to whom a premium notice is given must pay the premium as assessed by the due date.
If the employer is a corporation and an administrator is appointed under the Corporations Act to administer the corporation, the administrator must pay the premium for the period during which the corporation is under administration.
If an employer is aggrieved by WorkCover’s decision, the employer may have the decision reviewed under chapter 13.
In this section—
employer’s premium rate means the premium rate calculated for the employer by using a formula that takes into account the number and cost of claims made against the employer’s policy during previous financial years.
relevant industry rate, in relation to an employer, means the industry or business classification rate applying to the industry or business classification—
stated in the gazette notice under subsection (2) for the employer’s industry or business; or
as decided by WorkCover under subsection (3)—for the industry or business that most closely describes the employer’s industry or business.
This Act’s bill:Explanatory memorandum
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