workerscomp
by: Honan Marketing

Victoria Workers Compensation Update 2018-19

In this annual update, we provide an overview of the following topics.

  • Workers Compensation Renewal Notice
  • Premium Discounts and Premium Funding
  • Claims experience period 2018/19
  • Certificate of Currency
  • Remuneration details
  • How remuneration impacts premium
  • Have you reviewed your industry classification?
  • Key dates

Workers Compensation Renewal invoice

Victorian renewal premium invoices will be available from 12 July 2018.

Premium projections and industry classification comparisons are now available from Honan Workplace Risk Consultants based on your available claims statements and estimated wages. Please contact your Honan Workplace Risk Consultant if you would like further information.

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Premium Discounts and Premium Funding

To be eligible for 5% discount on your premium, please pay the full amount (the annual payment due as listed on your invoice) by 6 August 2018. Employers must also:

  • Pay any outstanding balance from 2017/18 (or previous years); and
  • Pay your full 2018/19 premium (less the 5% discount) by 6 August 2018.

Honan Tip!

You may also wish to consider a premium funding arrangement with Honan. The arrangement can involve financing the full payment as a lump sum, typically over a series of 6 – 10 instalments, to save upfront. Please contact your Honan broker if you would like to explore this option.

Claims experience period 2018/19

WorkSafe Victoria has confirmed that the claims experience period for the 2018/19 premium year will be maintained at 2.5 years.

This will mean that your claims experience for the period 1 January 2015 to 30 June 2017 will be used to calculate 2018/19 year’s renewal. This continues the pattern of recent policy years.

The maximum cost of any individual claim that will be included in your premium calculation is $390,600. (This amount is indexed each year and is an increase from last year’s calculation of $376,100.)

A limit of 30% is placed on premium rate increases per year to protect your business from premium rate fluctuations due to prior claims you may have incurred.

Certificate of Currency

If there is no outstanding premium to pay on your account, you can obtain a Certificate of Currency from 5 June either online or by requesting this from Honan Workplace Risk Consultants.

Are your remuneration details up to date?

Any wage updates received before 30 June will be reflected in your 2018/19 premium calculation. Otherwise, WorkSafe calculates your premium based on your remuneration estimate for 2017-18, indexed by 4.75%.

Our recommendation

To avoid any potential financial penalty, you will need to provide your Claims Agent a revised remuneration estimate within 28 days, if, at any time, you become aware that:

  • What you expect to pay in remuneration is 20% or above your current estimate, or
  • What you have paid in remuneration to date is greater than your current estimate for the whole financial year.

To update your remuneration or any other policy details, please visit WorkSafe’s Online Employer Services portal or seek advice from your Honan Workplace Risk Consultant.

You must certify your Rateable Remuneration by 30 October 2018 for 2017-18 (if your rateable remuneration for 2016–2017 was more than $200,000).

How remuneration impacts premium

Victorian remuneration includes wages, salaries, superannuation and other benefits you pay to your workers.

The below highlights how premiums are calculated based on remuneration.

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Have you reviewed your industry classification?

Premiums are largely influenced by the industry classification of your business. If the industry classification is incorrect on your policy, you may be paying considerably more for premium than you should be.

Our recommendation

Review your industry classification before your renewal date. Contact your Honan Workplace Risk Consultant for any further information.

Key dates summary and parameters

The key dates summary and parameters for VIC workers compensation insurance premiums in the 2018/19 Premiums Order are listed as below.

  • 5 June 2018 – Certificate of Currency available
  • 12 July 2018 – Victorian premium renewal invoices available
  • 7 August 2018 – Premium due for 5% discount
  • 1 January 2015 to 30 June 2016 – Claims Reporting Period
  • 1 July 2014 to 30 June 2016 – Remuneration Experience Period
  • Minimum premium – $202 ($222.20 including GST)
  • Maximum claims cost for an individual claim – $390,600
  • Maximum legal costs for an individual claim – $73,100
  • Maximum recovery – for an individual claim allocated to an employers’ performance calculation – $390,600.

We’ll be in touch for any further developments. In the meantime, if you have any further queries, contact your Honan Workplace Risk Consultant for further information.

Our Experts

Kieran Drum

Head of Risk Consulting

kierand@honan.com.au

+61 488 688 656

Jules Paolino

Workplace Risk Consultant

julesr@honan.com.au

+61 499 799 464

Sharon Rutherford

Workplace Risk Consultant

sharonr@honan.com.au

+61 499 799 558

Tim Clifford

Workplace Risk Consultant

timc@honan.com.au

+61 499 799 456

Honan Insurance Group Pty Ltd (“Honan”) ABN 67 005 372 396, AFSL 246749. Honan is not the underwriter for any insurance product that you may decide upon and insurance is issued subject to the terms, conditions and exclusions as set by the particular underwriter.
Please note this information provided is for general advice only and does not factor in the objectives, needs or financial situation of the client. It is important for you to consider these matters and read the Product Disclosure Statement (PDS) and policy before deciding if this product is right for you. You can get a copy of the PDS on our website www.honan.com.au or by calling 03 9947 4333.