Premium refunds
If you have paid your premium and an adjustment causes your premium to be reduced, you may be able to apply for a partial or full refund of your premium.
Applying for a premium refund
Application for a refund of premium is to be undertaken in accordance with these guidelines, which are provided in addition to applicable legislation contained in the Workplace Injury Rehabilitation and Compensation Act 2013 (the Act).
What constitutes a premium refund?
In most cases, premium refunds are triggered by premium credit adjustments following a reduction of remuneration. This may occur during or after a premium period, or upon cancellation of registration. Other premium refunds may occur after an adjustment of employer claims costs.
Please note a credit adjustment cannot be issued as a premium refund by a WorkSafe agent (the agent) until the employer has:
- confirmed the adjustment in the form of a premium notice from their agent or via Online Employer Services
- lodged certified remuneration for all relevant years
Where the above criteria is met and a premium credit adjustment is confirmed, an employer may choose to offset some or all of that adjustment against remaining premium instalments in the period, or , request some or all to be issued as a premium refund.
An exception to this rule is found in Section 432 of the Act. This states, where an employer with a credit adjustment is a member of a group (as defined in Section 431 of the Act), WorkSafe Victoria may use that credit in part or full to offset outstanding premium or penalties owed by another employer within the group.
Requesting a refund of premium
Where an employer believes they are entitled to a premium refund, they must contact their agent to request payment. In some cases an agent may require an employer to submit their request in writing. This will be clarified at the initial point of contact.
Section 456 of the Act requires that any premium refund application must be made within five years of the premium period to which the refund relates.
Under section 459 of the Act an agent must notify an employer in writing of its decision within four months of receiving the refund application. Where the agent determines the premium amount in question is not refundable, or the employer disagrees with the outcome of the review, the employer may seek to have the matter independently reviewed by WorkSafe Victoria.*
* Note: The agent will instruct the employer on the application process.
Summary
Following confirmation of a premium credit adjustment an employer may choose to request the adjustment be paid as a premium refund, or leave the adjustment to offset future premium instalments. Premium refunds are conditional on confirmation of the credit and the employer having certified remuneration for all relevant years.