Determining Your Remuneration
Your insurance premium is determined by your remuneration, which is made up of the wages and other benefits you pay to your workers.
Remuneration is the gross amount you pay to workers, before tax. Rateable remuneration can include both cash and non-cash payments.
Providing your remuneration information
From 2014/15 the VWA will estimate your rateable remuneration and calculate your WorkCover premium using that estimate in early August. If you do not agree with the VWA estimate you can change it at any time to have your premium recalculated with your own estimate. Note: premium due dates still apply.
Depending on your previous rateable remuneration you will either be required to tell your WorkCover Agent your Certified Rateable Remuneration by either:
- 28 October 2014 (remuneration over $200,000), or
- 31 March 2015 (remuneration under $200,000)
If you do not provide your certified remuneration by the due date that applies to you, the VWA will estimate your remuneration as 20% more than your previous year.Your premium amount for 2013/14 will be adjusted accordingly.
If your remuneration changes
You must provide your WorkCover Agent with a revised estimate within 28 days if, at any time, you become aware that:
- What you expect to pay in remuneration is 20% or more above your current estimate; or
- What you have actually paid in remuneration at any time prior to 30 April is greater than your current estimate for the whole financial year.
If you don't, a penalty of up to 100% of the insurance premium difference may be applied for the financial year
You should also advise your WorkCover Agent if your actual remuneration will be less than your estimate so your future insurance payments can be adjusted.
If you remuneration is over $200,000 your premium will be calculated as a large employer, which is more heavily based on your own claims experience. You should talk to your WorkCover Agent about how this may affect you.
Reducing your premium
If you operate your business for the full financial year, you will have the first $15,500 of your remuneration automatically deducted in the calculation of your insurance premium. If you operate for only part of the year, you will receive a pro-rata amount of this deduction.
If your annual rateable remuneration is between $7,500 and $15,500 you are still required to pay at the minimum insurance premium amount for 2014/15 of $204.60 (inc. GST).
This deduction will be shown as the 'remuneration deductible benefit' on your insurance premium notice.