Premium guideline: Premium avoidance schemes

How WorkSafe decides whether you have entered into a scheme to pay a lower premium than you should, and what the penalties are.

Shape

What it contains

To ensure fairness for all employers, WorkSafe may apply penalties under Section 457 of the Workplace Injury Rehabilitation and Compensation Act 2013 to employers that enter into premium avoidance schemes.

WorkSafe will decide you have entered into a premium avoidance scheme if

  1. an employer has obtained a premium benefit from entering into a scheme, and
  2. the employer or any other person entered into or carried out the scheme, or any part of it, for the substantial purpose of obtaining the premium benefit

This document outlines what WorkSafe takes into account when deciding if point 2 applies to you.