What remuneration is and how it affects the cost of your premium.
What is remuneration?
Remuneration includes wages, salaries, superannuation and other benefits you pay to your workers before tax and can include both cash and non-cash payments.
Your remuneration also determines if your own claims experience is used in your premium calculation.
If your remuneration is $200,000 or less, your insurance premium is calculated using the rate for your industry.
If your remuneration is over $200,000, then your WorkCover insurance premium is calculated taking into account your claims experience relative to the claims experience of the rest of your industry. If you perform better than your industry average, you will pay less. If you perform worse, you will pay more.
Understand what is included and what is exempt from remuneration
When does WorkSafe estimate your remuneration?
WorkSafe estimates your rateable remuneration and calculates your WorkCover premium every July.
If you don't agree with WorkSafe's estimate you can change it at any time to have your premium recalculated – the premium due dates still apply.
You're required to tell your WorkSafe agent your certified rateable remuneration by:
30 October 2020 if your remuneration is over $200,000
31 March 2021 if your remuneration is under $200,000.
If you don't provide your certified remuneration by the due date that applies to you, WorkSafe will estimate your remuneration as 20% more than it was the previous year.
If you expect your remuneration to change
The amount you pay your workers can easily change. You must provide your WorkSafe agent with a revised estimate within 28 days of you becoming aware that:
what you expect to pay in remuneration is 20% or more above your current estimate, or
what you've actually paid in remuneration at any time before 30 April is more than your current estimate for the whole financial year.
Failure to notify your WorkSafe agent will result in a penalty of up to 100% of the insurance premium difference being 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 your remuneration is over $200,000, your premium will be calculated taking into account a weighting, based on your own claims experience. If you think this may affect you, talk to your WorkSafe agent.
Updating your remuneration
If you disagree with the estimated remuneration figure used to calculate your WorkCover insurance premium you can go login into your Online Employer Service insurance account and update your remuneration.
You can then recalculate your premium and pay it on the spot.