Average premium rates and key WorkCover dates

The Average Premium Rate for 2017/18 is 1.272% of the State's rateable remuneration. This is a continuation of the average rate for the past two years and reflects a record low for Victoria.

Industry Rates and Industry Claim Cost Rates (IRs and ICCRs) were gazetted on 17 May 2017. The Gazettal Notice is available from the Gazette website. Individual industry rates are available in a Special Gazette (Special 154 Wednesday 17 May 2017).

Key dates

Please note the following key dates for 2017/2018:

Date Action
20 April 2017 Online system available to estimate 17/18 remuneration.

You can review or update your Estimate of Rateable Remuneration online now using the WorkSafe insurance account (Online Employer Services).

Submissions received before 30 June 2017 will be reflected in renewal notifications.
18 May 2017 Claims Statement available online.

Employers with claims impacting on the calculation of their 2017/18 WorkCover insurance premiums will be able to access a Statement of their WorkCover insurance claims from your WorkSafe insurance account (Online Employer Services).
8 June 2017 Certificate of Currency available.

Note: To have a Certificate of Currency sent to you each year, sign up for email preferences via your WorkSafe insurance account (Online Employer Services).
13 July 2017 Employers will be able to access their Premium Renewal notifications for 2017/18.
1 August 2017 Last day to take up the excess buy-out option.
7 August 2017 Due date for annual premium payment (discounted by 5%).
1 October 2017 Due date for annual premium payment (discounted by 3%).

Due date for first premium instalment (if you pay on a monthly or quarterly plan).
30 October 2017 Certify your Rateable Remuneration for 2016-17 (if your rateable remuneration for 2015–2016 was more than $200,000).

You can certify your rateable remuneration online using the WorkSafe insurance account (Online Employer Services).
1 November 2017 Due date for annual premium payment (without discount).
31 March 2018 Complete your Declaration of Rateable Remuneration form (if your rateable remuneration for 2015–2016 was $200,000 or less).

You can certify your rateable remuneration online using the WorkSafe insurance account (Online Employer Services).

You can pay your WorkCover insurance premiums online using the WorkSafe insurance account (Online Employer Services).

You can update your estimated rateable remuneration for 2017/18 at any time throughout the year using your WorkSafe insurance account (Online Employer Services). You can also recalculate your premium with your updated estimate.

Continuation of the 5% and 3% discount for early payment of premium

A discount of 5 percent per annum is again available for employers who pay their full year's premium by 7 August 2017. A discount of 3 percent per annum is also available to employers who wish to continue to pay their premium in full by 1 October.

To qualify for the 5 percent discount employers must:

  • Pay any outstanding balance from 2016/17 (or previous years); and
  • Pay their full 2017/18 premium (less the 5% discount) by 7 August 2017.

To qualify for the 3 percent discount employers must:

  • Pay any outstanding balance from 2016/17 (or previous years); and
  • Pay their full 201/18 premium (less the 3% discount) by 1 October 2017.

Information on ways to pay your premium will be set out in your Premium Notice.

If you disagree with the estimated remuneration figure used to calculate your WorkCover insurance premium for 2017/18 you can go online and update your remuneration. You can then recalculate your premium and also pay your premium at this time.

Earlier date for electing to buy-out insurance excess option

Each WorkSafe claim is subject to an insurance excess consisting of payment of the first 10 days of weekly benefits and the first $682* of reasonable medical and like expenses (*for 2016/17). Employers can elect to remove this excess by paying an additional 10% of their premium (referred to as the buy-out premium).

The effect of removing the excess is that your claims are managed and paid for by your Agent from day one. This makes it easier for employers to manage the early stages of a claim.

As occurred last year, the date by which you have to inform your Agent that you want to remove the excess or reinstate it is 1 August 2017. This date reflects the fact that premium notices are now being issued in July instead of September. This can be done when you update your 17/18 remuneration online provided this is before 1 August.

If you are a new employer you must make your election at the time of registering with WorkSafe.

Other key dates and parameters for WorkSafe insurance premiums in the 2017/18 Premiums Order.

  • Claims Reporting Period – 1 January 2014 to 30 June 2016
  • Remuneration Experience Period – 1 July 2013 to 30 June 2016
  • Minimum premium – $195 ($214.50 including GST)
  • Maximum claims cost for an individual claim – $376,100
  • Maximum legal costs for an individual claim – $70,400
  • Maximum recovery – for an individual claim allocated to an employers' performance calculation - $376,100.
  • 2016/17 Average premium rates and key WorkCover dates

    The Average Premium Rate for 2016/17 is 1.272% of the State's rateable remuneration. This is a continuation of the average rate for 2015/16 and reflects a record low for Victoria.

    Industry Rates and Industry Claim Cost Rates (IRs and ICCRs) were gazetted on 18 May 2016. The Gazettal Notice is available from the Gazette website. Individual industry rates are available in a Special Gazette (Special 156 Wednesday 18 May 2016).

    Key dates

    Please note the following key dates for 2016/2017:

    Date Action
    3 May 2016 Online system available to estimate 16/17 remuneration.

    You can review or update your Estimate of Rateable Remuneration online now using Online employer services.

    Submissions received before 30 June 2016 will be reflected in renewal notifications.
    31 May 2016 Claims Statement available online

    Employers with claims impacting on the calculation of their 2016/17 WorkCover insurance premiums will be able to access a Statement of their WorkCover insurance claims from Online employer services.
    9 June 2016 Certificate of Currency available

    Note: To have a Certificate of Currency sent to you each year, sign up for email preferences via Online employer services.
    7 July 2016 Employers will receive their Premium Renewal notifications for 2016/17.
    1 August 2016 Last day to change your current excess buy-out option.
    5 August 2016 Due date for annual insurance premium payment (discounted by 5%).
    1 October 2016 Due date for annual insurance premium payment (discounted by 3%).

    Due date for first instalment insurance premium (if you pay on a monthly or quarterly plan).

    Note: If you pay using a quarterly instalment plan, you must pay the instalments by the first day of October, December, March and June. If you choose to pay your premium monthly, payment is due in 10 instalments on the first day of each month, starting on 1 October 2016 and ending on 1 July 2017.
    30 October 2016 Due date to certify Rateable Remuneration for 2015/16 (if your rateable remuneration for 2014/2015 was more than $200,000).

    You can submit your Declaration of Rateable Remuneration online using Online employer services.
    1 November 2016 Due date for annual insurance premium payment (without discount).
    31 March 2017 Due date to certify Rateable Remuneration for 2015/16 (if your rateable remuneration for 2014/2015 was less than $200,000).

    You can submit your Declaration of Rateable Remuneration online using Online employer services.

    Continuation of the 5% and 3% discount for early payment of premium

    A discount of 5 percent per annum is again available for employers who pay their full year's premium by 5 August 2016. A discount of 3 percent per annum is also available to employers who wish to continue to pay their premium in full by 1 October.

    To qualify for the 5 percent discount employers must:

    • Pay any outstanding balance from 2015/16 (or previous years); and
    • Pay their full 2016/17 premium (less the 5% discount) by 5 August 2016.

    To qualify for the 3 percent discount employers must:

    • Pay any outstanding balance from 2015/16 (or previous years); and
    • Pay their full 2016/17 premium (less the 3% discount) by 1 October 2016.

    Information on ways to pay your premium will be set out in your Premium Notice.

    If you disagree with the estimated remuneration figure used to calculate your WorkCover insurance premium for 2016/17 you can go online and update your remuneration. You can then recalculate your premium and also pay your premium at this time.

    Earlier date for electing to buy-out insurance excess option

    Each WorkSafe claim is subject to an insurance excess consisting of payment of the first 10 days of weekly benefits and the first $669* of reasonable medical and like expenses (*for 2015/16). Employers can elect to remove this excess by paying an additional 10% of their premium (referred to as the buy-out premium).

    The effect of removing the excess is that your claims are managed and paid for by your Agent from day one. This makes it easier for employers to manage the early stages of a claim.

    As occurred last year, the date by which you have to inform your Agent that you want to remove the excess or reinstate it is 1 August 2016. This date reflects the fact that premium notices are now being issued in July instead of September. This can be done when you update your 16/17 remuneration online before 1 August.

    If you are a new employer you must make your election at the time of registering with WorkSafe.

    Other key dates and parameters for WorkSafe insurance premiums in the 2017/18 Premiums Order.

    • Claims Reporting Period – 1 January 2013 to 30 June 2015
    • Remuneration Experience Period – 1 July 2012 to 30 June 2015
    • Minimum premium – $188 ($206.80 including GST)
    • Maximum claims cost for an individual claim – $363,400
    • Maximum legal costs for an individual claim – $68,000
    • Maximum recovery for an individual claim allocated to an employers' performance calculation – $363,400

    Changes to the premiums order

    Each year a new Premiums Order is made which sets out the rules for calculating employer premiums and includes the industry classifications which form part of the premium calculation. The Premiums Order for 2016/17 is available as a PDF from the Victorian Government Gazette website.

    The main changes in the 2016/17 Premiums Order are as follows:

    1. Employer performance rate calculation

    Employer performance is taken into account in the premium calculation of large employers as a measure of employer's OH&S and claims management performance compared to the average performance of their industry. The calculation of an employer's performance, used in determining their WorkSafe premium, is known as the Employer Performance Rate (EPR).

    The EPR calculation includes the total claims costs and remuneration for all workplaces of the employer, including any predecessor workplaces that operated during a specified three-year period (the remuneration experience period).

    A workplace becomes a predecessor workplace where the predominant activity that was being carried on in that workplace is now carried on at a new workplace and there is a relationship of control between the two employers (for instance, the old employer, or 'predecessor', and the new employer, or 'successor').

    The Premiums Order for 2016/17 clarifies the application of predecessor workplaces.

    2. New arrangement for employer excess

    Each WorkSafe claim is subject to an employer excess consisting of:

    • payment of first 10 days of incapacity, and
    • the first $669* in medical anf like expenses (*this is the excess for 2015/16).

    To reduce red tape and delays in administering claims, employers now have option of paying the medical costs excess directly to their WorkSafe Agent who will then handle payment of invoices in relation to this amount on their behalf.

    A provision has been included in the Premiums Order for 2016/17 to provide that any payments made by the Agent under this arrangement are not included as claims costs in the EPR calculation.

    3. New defined term for workplaces located outside Victoria

    For ease of reference, a new defined term 'out-of-state workplaces' has been inserted into the General Introduction to Schedule 1. This term has also been inserted into the definition of 'predominant industry', the operational services rule and class M69610 Corporate Head Office Management Services.

    Workplaces located outside Victoria are relevant in the following instances:

    • Determining the predominant industry where the employer or group has more than one workplace
    • Applying the operational services rule contained in item 9 of the General Introduction to Schedule 1
    • Determining whether the requirements for the Corporate Head Office Management Services class have been met.

    4. Classification changes

    Retirement villages

    With the introduction of the ANZSIC based industry classification system in July 2011 the activity of 'retirement village operation' was included in class Q86010 Aged Care Residential Services. WorkSafe has identified that this treatment of retirement village workplaces may conflict with the rule for determining the predominant activity of a workplace under the value added methodology, as retirement villages have different production functions to residential aged care facilities.

    Residential aged care facilities:

    • Regulated by the Commonwealth Government and are for elderly persons who are assessed as being too frail to live independently;
    • Consist of hostels and nursing homes where nursing, medical and personal care is provided (high labour costs mainly relating to the provision of care);
    • Operators are government approved and receive both government funding and private fees for the provision of residential care.

    Retirement villages:

    • Regulated by the State Government and are for elderly persons are able to live independently;
    • Consist of independent living units or serviced apartments in community settings with no nursing, medical or personal care provided (low labour costs mainly relating to upkeep of property);
    • Operators are not government funded and receive fees from the residents for the maintenance of property and communal facilities.

    Changes have therefore been made to the 2016/17 Premiums Order to remove the two listed activities relating to retirement villages from class Q86010 Aged Care Residential Services. This will have the intended affect that all retirement villages will be required to be classified based on their predominant activity as determined under the value added methodology. For more information on WorkSafe's application of value added analysis see The value added approach to predominant activity.

    In order to implement this change, WorkSafe's Agents will be reviewing all retirement village workplaces to ensure that they are correctly classified. It is anticipated that the majority of retirement villages are correctly classified. Where this is not the case, workplaces will be reclassified and relevant premiums recalculated in accordance with the current policy regarding the over-payment of underpayment of premium as a result of an incorrect classification. For more information on WorkSafe's approach to re-classifying workplaces see Classification date of effect.

    Any queries regarding the classification of retirement villages should be referred to your WorkSafe Agent.

    Roofing services

    A new exclusion has been inserted in class E32310 Plumbing Services to prevent the incorrect classification of roofing workplaces to this class. The only roofing activity that goes to this class is the installation of roof guttering. The installation of roofing materials (except roof guttering) are included in class E32230 Roofing Services.

  • 2015/16 Average premium rates and key WorkCover dates

    The Average Premium Rate for 2015/16 is 1.272% of the State's rateable remuneration. This is a continuation of the average rate for 2014/15 and reflects a record low for Victoria.

    Industry Rates and Industry Claim Cost Rates (IRs and ICCRs) were gazetted on 27 May 2015. The Gazettal Notice is available from the Victorian Government Gazette website. Individual industry rates are available in a Special Gazette (Special 124 Wednesday 27 May 2015).

    Date Action
    Mid June 2015 Online system available to estimate 15/16 remuneration.

    You can submit your Estimate of Rateable Remuneration online using Online employer services.
    9 July 2015 Employers will receive their Premium Renewal documents for 2015/16.
    1 August 2015 Due date for annual insurance premium payment (discounted by 5%).

    Last day to take up the buy-out option.
    1 October 2015 Due date for annual insurance premium payment (discounted by 3%).

    Due date for first installment insurance premium (if you pay on a monthly or quarterly plan).

    Note: If you pay using a quarterly installment plan, you must pay the installments by the first day of October, December, March and June. If you choose to pay your premium monthly, payment is due in 10 installments on the first day of each month, starting on 1 October 2015 and ending on 1 July 2016.
    30 October 2015 Complete your Certification of Rateable Remuneration for 2014/15 (if your rateable remuneration for 2013/2014 was more than $200,000).

    You can submit your Declaration of Rateable Remuneration online using Online employer services.
    1 November 2015 Due date for annual insurance premium payment (without discount).
    31 March 2016 Certify your Rateable Remuneration for 2014/15 (if your rateable remuneration for 2013/2014 was less than $200,000).

    You can submit your Declaration of Rateable Remuneration online using Online employer services.

    Continuation of the 5% and 3% discount for early payment of premium

    A discount of 5 percent per annum is again available for employers who pay their full year's premium by 1 August 2015. A discount of 3 percent per annum is also available to employers who wish to continue to pay their premium in full by 1 October.

    To qualify for the 5 percent discount employers must:

    • Pay any outstanding balance from 2014/15 (or previous years); and
    • Pay their full 2015/16 premium (less the 5% discount) by 1 August 2015.

    To qualify for the 3 percent discount employers must:

    • Pay any outstanding balance from 2014/15 (or previous years); and
    • Pay their full 2015/16 premium (less the 3% discount) by 1 October 2015.

    Information on ways to pay your premium will be set out in your Premium Notice.

    If you disagree with the estimated remuneration figure used to calculate your WorkCover insurance premium for 2015/16 you can go online and update your remuneration. You can then recalculate your premium and also pay your premium at this time.

    Earlier date for electing to buy-out insurance excess

    Each WorkSafe claim is subject to an insurance excess consisting of payment of the first 10 days of weekly benefits and the first $667* of reasonable medical and like expenses (*for 2015/16). Employers can elect to remove this excess by paying an additional 10% of their premium (referred to as the buy-out premium).

    The effect of removing the excess is that your claims are managed and paid for by your Agent from day 1. This makes it easier for employers to manage the early stages of a claim.

    This year, the date by which you have to inform your Agent that you want to remove the excess or reinstate it, has been brought forward to 1 August 2015 (instead of 30 August). This earlier date is due to the fact that premium notices are now being issued in July instead of September.

    If you are a new employer you must make your election at the time of registering with WorkSafe.

    Other key dates and parameters for WorkCover insurance premiums in the 2015/16 Premiums Order

    • Claims Reporting Period – 1 January 2012 to 30 June 2014
    • Remuneration Experience Period – 1 July 2011 to 30 June 2014
    • Minimum premium – $186 ($204.60 inc.GST)
    • Maximum claims cost for an individual claim – $360,200
    • Maximum legal costs for an individual claim – $67,400
    • Maximum recovery for an individual claim allocated to an employers' performance calculation – $360,200

    Changes to the Premiums Order

    Each year a new Premiums Order is made which sets out the rules for calculating employer premiums, and as well includes the industry classifications which form part of the premium calculation. The Premiums Order for 2015/16 is available as a PDF from the Victorian Government Gazette.

    The main changes in the 2015/16 Premiums Order are as follows:

    1. Restructuring of the premiums order

    The 2015/16 Premiums Order has been restructured so that the provisions included in Schedules 1, 2 and 3 are now contained in 'Parts' which are organised as follows:

    • Part 1 – Preliminary Matters
    • Part 2 – Premium Payable
    • Part 3 – Employers
    • Part 4 – Workplaces
    • Part 5 – Classification and Rates
    • Part 6 – Remuneration
    • Part 7 – Cost of Claims and Recoveries
    • Part 8 – Payment of Premium and Discounts

    Schedule 4, which contains the WorkSafe Industry Classifications, has now been renamed Schedule 1.

    This restructuring has resulted in a complete reordering of the Premiums Order (with the exception of the new Schedule 1). In order to assist you in locating relevant provisions the following conversion tables have been developed.

    Note: whilst the location of the clauses in the 2015/16 Premiums Order may have changed, the clauses themselves remain largely unchanged.

    2. More explanatory notes

    More explanatory information has been inserted into the Premiums Order to assist users in understanding key concepts of the premium calculation (for instance, buy-out premium, weighted industry rate, capping factor, predecessor workplace and predominant activity). A simplified outline of the overall premium calculation has also been inserted into Part 2 to explain the various components that go into the calculation of employer premiums.

    3. Predominant activity test

    The test for determining the predominant activity of an employer workplace has been clarified by including information about the methodology to be used (for instance, value added). The value added approach is an economic method that will be used by WorkSafe to substantiate an employer's predominant activity. This approach identifies and characterises the predominant activity of a workplace based on an economic measure of its production functions. (A production function is the transformation of intermediate inputs, through the application of labour and capital, to produce outputs.)

    Further information on the value added approach is set out in 'Premium Guideline: Your WorkSafe Industry Classification' which will be available from 1 July 2015 on the Rulings and Guidelines page on WorkSafe's website.

    In addition, an amendment has been made to clause 27(2) (formerly sub item 3(2) of Schedule 1) by removing the reference to "sales, cost of goods produced or cost of labour". The purpose of this change is to avoid employers relying on one particular factor rather than all relevant factors. The reference to 'statement' in this clause has been changed to 'financial statement'.

    4. Buy-out premium

    The rules concerning take up or discontinuance of buy-out have been included in the Premiums Order so that employers are aware of the manner, and date, elections have to be made.

    5. Classification changes – General stores

    The predominant activity 'general store operation' has been transferred from class G42600 Department Stores to class G42790 Other Store-Based Retailing n.e.c. in order to be consistent with the ANZSIC 2006 classification system.

Popular tasks

  1. WorkSafe insurance login (Online Employer Services)
  2. A-Z of safety information
  3. Apply for a license or view fees
  4. Make a claim or find out next steps
  5. Subscribe to marketing updates