Injury Insurance Calculation - Small Business

Small employers - annual remuneration $200,000 or less

The premium rate for employers with annual remuneration of $200,000 or less depends on the industry-wide experience and risk. The cost of claims for small employers does not affect individual employer’s rates.  Small employers will generally be charged the industry rate for the relevant policy year.

The premium rate is set in August; however your insurance premium can change during the year if the total remuneration of your business changes, if you add any workplaces or if the WorkSafe Industry Classification of your workplace has changed.

You need to advise your Agent if the predominant activity at one of your workplaces changes, as this could affect the way in which your premium is calculated.  You also need to advise your Agent if you add or remove any workplaces or if your estimated remuneration has changed. Your agent will inform you if this classification has changed.

The rates of small employers depend on a number of factors as summarised in the table below.

2007/08	2008/09
Industry rate applied	The rate is set at the rate applicable to the industry in which the employer operates.  The rate will move up or down with the industry rate.
Frozen below industry rate	If the rate the employer paid in 2007/08 is below the rate of their industry and their 2007/08 rate is less than the 2008/09 industry rate, the employers current rate will continue into 2008/09. If the employer has had had a claim in recent years, they will pay the industry rate.

Generally, unless the employer’s activity or industry classification changes at a workplace or the employer is paying less than 60% of their true premium, any premium rate increases from one year to the next will be capped at 30%.

For more information regarding small employers see: Key Dates and Further Information: Your WorkSafe Injury Insurance - A guide for small employers