Industry classification: How it affects your premium

What industry classification is and how it affects the cost of your premium.

Date last updated

Friday 31 Jan 2020

Industries and topics
  • Insurance

Industry classification rates

Your industry classification and rate reflects the claims experience of the industry you operate in. The factors used to classify your industry and determine the predominant activity at your workplace include:

  • the goods and services you provide
  • the activities carried out in your workplace
  • what you consider to be the main activity and why
  • a list of raw materials, types of equipment, and processes used
  • a breakdown of the sales, cost of goods produced, and the cost of labour
  • whether or not you own the goods you provide
  • whether or not you provide the goods or services internally
  • whether or not you provide the goods or services to another business which is associated to your business.

You may be able to split your classification

You can apply to split your classification if your workplace has two or more physically distinct areas of operation and the main activity of each one is different.

You can't split your workplace if your main business activity includes:

  • clerical services
  • management services
  • administrative services
  • sales and marketing services
  • warehousing services associated with manufacturing, wholesaling or retailing.

More information on industry classifications can be found in the latest Premiums Order at Victoria Government Gazette.