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.
Certifying your remuneration
You need to complete the 'declaration of rateable remuneration' form, to estimate what you think your remuneration will be over the coming year. This form is sent to you with your WorkSafe insurance premium notice in early September each year.
If you don't tell WorkSafe what you paid in remuneration by 1st August each year, WorkSafe will estimate your remuneration as 20% more than your previous year.
You can change this figure later on, but it could:
- Cost you higher premiums in the short term
- Result in more hassle with additional paperwork
At the end of the policy year, you will be asked to recalculate and supply your certified remuneration to your WorkSafe Agent, so your premium amount can be adjusted accordingly.
If your remuneration changes
You must provide your WorkSafe 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 WorkSafe Agent if your actual remuneration will be less than your estimate so your future insurance payments can be adjusted.
If you remuneration is over $200,00, your premium will be calculated as a large employer, which is more heavily based on your own claims experience. You should talk to your WorkSafe 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 least the minimum insurance premium of $172.70 (including GST).
This deduction will be shown as the 'remuneration deductible benefit' on your insurance premium notice.
