Public Rulings

The premium rulings system has been introduced as a method for publishing the decisions of the WorkSafe Victoria in respect to the interpretation and application of:

• The Accident Compensation Act 1985; and
• The Accident Compensation (WorkCover Insurance) Act 1993 and associated Premiums Orders

It is essential to note that premium rulings issued by WorkSafe are not a conclusive statement of the law in that particular area. They represent the interpretation of the law that WorkSafe is applying over the period the ruling is effective.
The purpose of this ruling is to clarify the status and effect of premium rulings issued by WorkSafe.

Ruling

A premium ruling will be issued in respect of a decision which satisfies the following criteria:

• It provides an interpretation, guideline, precedent, practice or procedure to be followed in making a decision that effects the rights or liabilities of employers liable to premium under the laws administered by the WorkSafe; and
• It is of general application and does not relate solely to an individual situation.

WorkSafe must, at any particular point in time, apply the law as it understands it to operate, even if a different interpretation was adopted previously.

The fact that WorkSafe has not previously publicly stated its interpretative or administrative policy does not mean a ruling should not have a past application.

In most cases a ruling represents WorkSafe’s view of what the law has always been. In other words, a ruling usually has a continuing application, ie both a past and future application.

A premium ruling will replace existing rulings, memoranda and other forms of advice from the Authority on the subject matter of the ruling.

A premium ruling issued by WorkSafe is binding on WorkSafe until it is replaced. This means that WorkSafe is not able to use a position that conflicts with a position WorkSafe has taken in a premium ruling as a basis for determining the liability of an employer to pay premium.
However a premium ruling is not binding on an employer liable to pay premium. An employer always retains the right to challenge a determination that is based on the application of a ruling.

While rulings are compiled with care and are intended to assist in the interpretation of the law in given circumstances, they may be overruled by legislative amendments to the law, or by decisions of appellate tribunals or courts.

Rulings dealing with legislative amendments will usually apply from the application date of the amending legislation. Because these rulings are usually issued after the legislation has come into effect, they have both a past and future application.
In using premium rulings, it should be recognised that they cannot supplant the terms of the law.

Statements or declarations by WorkSafe do not have an effect of an estoppel against the operation of the law.

If a new premium ruling is more favourable to employers than that contained in an earlier premium ruling or WorkSafe publication, the new ruling ordinarily will have both a past and future application.

If a new ruling is less favourable to employers than a previous ruling or WorkSafe publication, the new ruling only has a future application.

A ruling dealing with the criteria for, or the method by which the Authority will exercise a discretionary power will only apply to an exercise of the particular discretion after the ruling is issued. Such rulings cannot fetter an officer in the exercise of the discretion.

If a ruling is inconsistent with an earlier determination and the new ruling is less favourable to the employer than the determination then the ruling will apply to the employer for all transactions, arrangements, agreements, acts or events entered into, commenced or occurring after the date the ruling is issued or any later date specified in the ruling.

The date of effect of a ruling will not be any different for those employers who are subject to a premium audit at the time the ruling is issued.

The issue date on rulings merely indicates the date that the ruling was distributed to the public.

Premium rulings are issued subject to these necessary reservations.

Rulings
• PR 2006.01 Income Protection Insurance
• PR 2006.02 WIC Review Retrospectivity - Superseded
• PR 2006.03 WIC Ruling - Revised date of effect
• PR 2006.04 Contributions to defined benefit superannuation funds
• PR 2006.05 Share Farmers - Superseded
• PR 2006.06 Casual Relief Teachers
• PR 2006.07 Royalty Payments - Superseded
• PR 2007.01 Royalty & Residual Payments
• PR 2007.02 Share Farmers Ruling
• PR 2007.03 Default Penalty
• PR 2007.04 Termination Payments
• PR 2007.05 Profit Distributions and Loan Accounts
• PR2008.01 Owner drivers to be included for premium purposes
• Owner Driver Ruling Frequently Asked Questions
• PR2008.02 Homogenous Workplaces