WorkCover insurance compliance
WorkSafe's Premium Compliance Program aims to:
- ensure employers meet their WorkCover insurance obligations;
- verify the information used to calculate employers premiums is accurate; and
- help employers better understand their insurance premium calculation.
A range of measures are used to make sure employers are meeting their obligations. They include:
- Communication and Guidance – providing communication and guidance to improve employers' understanding of the WorkCover Premium system.
- Employer Self-Assessment – gives selected employers a detailed questionnaire that allows WorkSafe to gauge employers' understanding of the WorkCover Premium system.
- Audit and Investigation – undertaking audits based on information available to WorkSafe. This may include inspections and interviews at workplaces if more in-depth investigation is necessary.
- Targeted programs – WorkSafe operates programs aimed at ensuring compliance within specific groups of employers, for example new employers or employers within a specific industry or group of industries. Usually targeted programs involve a combination of Employer Self-Assessments and Audits.
The Employer Self-Assessment process helps employers identify any potential non-compliance, allowing the disclosure of the correct information for WorkCover premium purposes. Employers are contacted by WorkSafe if they are required to undertake a self-assessment.
The self-assessment process requires employers to complete a questionnaire on the aspects of their business that are relevant to the calculation of their WorkCover insurance premium.
Further information is available in this booklet:
Premium compliance audits aim to identify employers who may not be meeting their WorkCover insurance obligations and may not have the correct information used in the calculation of their WorkCover insurance premiums. WorkSafe's auditors may visit employer's premises to examine documentation, review workplace activities and to assist them with their compliance during, and after, the audit process.
WorkSafe runs targeted programs focussing on employer compliance with WorkCover insurance obligations. The current targeted program is focussed on employers in the residential construction sector. For more information on this program see the Residential Construction Insurance Compliance Program FAQ.
Why is it important to supply the correct information?
WorkSafe is funded by employers through the payment of annual WorkCover insurance premiums. WorkSafe does not receive Government funding. Employer's WorkCover insurance premium calculation is designed to charge them their equitable share of the funding. This makes it all the more important for employers to supply correct information. This information allows WorkSafe to make sure that all employers are paying their fair share of premium, and are not disadvantaged by those that aren't meeting their obligations.
What if I have made a mistake?
WorkSafe understands that employers can make genuine mistakes when supplying information for WorkCover insurance purposes.
The Premium Compliance program assists employers in paying their fair share of premium and helps to improve employers' understanding of their obligations, how to calculate their Premium accurately, and reduces the likelihood of mistakes.
If you identify that you have made a mistake in the information provided to calculate your WorkCover insurance premium during an audit then making the auditor aware of the mistake will minimise any penalty that may be applied. If you identify a mistake at any other time then you should inform your agent and have your premium recalculated.
WorkSafe's penalty provisions are designed to encourage employer's to comply with their WorkCover insurance obligations and to promote equity through the potential implications of premium avoidance.. Employers are required to exercise reasonable care and make full and true disclosures to their WorkCover Agent and WorkSafe regarding their insurance.
There are severe penalties that may apply if WorkSafe believes that incorrect information has been supplied with the deliberate intent of reducing the amount of Premium payable.
More information regarding how penalties are applied can be found in WorkSafe's premium rulings.
What if I know of other employers who I believe are not paying the correct Premium?
If you have information in relation to an employer that you suspect is not meeting their obligations, please contact WorkSafe at firstname.lastname@example.org.
Payroll tax compliance
For information about compliance programs for payroll tax, please visit the State Revenue Office website.