Returning to sustainable, consistent work after an injury has significant benefits for both employers and workers.
When calculating the 2021/2022 premium, we will include weekly payment costs only for a claim that was made in the 2020 calendar year. All other costs will be excluded. If a claim was made in that period and the worker returned to consistent work within the same period, the future cost will be minimised and will therefore have less of an impact on the employer’s premium calculation in future years.
Performance rating compares the claims experience of an individual employer to the average claims experience within the relevant industry.
Employers whose experience is better than the industry average receive a discount against the industry rate. Those whose experience is worse than the industry average receive a loading on top of the industry rate.
The larger an employer, the more its own experience impacts on its premium rate.
If an employer is a small employer or a new employer, its premium is calculated using its remuneration and the applicable industry rate only.
Will my premium increase?
Employer premium-rate increases from year to year are generally capped at 30 per cent. Capping generally applies to workplaces that continue from one year to the next and that retain the same industry classification. Capping also applies to the imputed workplaces of labour hire employers.
Other factors that affect the premium payable by an employer are the deductible benefit, the minimum premium and any buy-out premium.
The premium payable is subject to GST, which is applied after the premium is calculated.
What are claims costs?
These are payments made in relation to a claim, including an estimate of future costs. This includes:
costs and expenses relating to the claim
the estimation of future payments, expenses, and costs
All employers have their claim costs measured in the same way – measuring your performance compared to your industry.
Please note that provisional payments will not impact your 2021-22 premium.
Your premium rate for 2022-23 is expected to be calculated based on the standard factors including your remuneration, industry classification, previous claims and other aspects that may affect it (such as provisional payments).
How do future claim costs work?
WorkSafe uses a model to estimate the lifetime cost of WorkSafe claims. The model uses WorkSafe's experience over 25 years to estimate the average cost of a similar claim.
The main factor impacting an estimate is your return to work rate. If a worker returns to work and compensation ends, the estimation of future costs is reduced. The longer a worker remains back at work, the more the estimate will fall, reflecting the reduced likelihood of the worker requiring further time off work to recover.
Each estimate is made after a three-month delay, to allow all invoices and reimbursements for a claim to be received. This allows a more accurate cost calculation of the claim.
You can influence the estimated future claim costs by ensuring your WorkSafe agent has up to date claim information including:
requests for reimbursement
return to work plans
other documentation the WorkSafe agent requests
What happens with rejected or closed claims?
Rejected or closed claims may still have a cost estimate allocated to them. This is because claims can reopen, and workers may have the ability to appeal the rejection of their claim. A claim estimate will only be included in your premium calculation if compensation has been paid.
What is the employer performance rating?
If you have had WorkCover insurance claims in the period between 1 January 2018 and 31 December 2020, WorkSafe will give you a performance rating. This rating will be displayed on your July premium notice.
This rating is an indication of your performance relative to other employers operating within the same industry and is used to recalculate your premium rate. The larger your rateable remuneration, the greater the weight that is given to your past experience.