What happens if I don't comply with my WorkCover insurance obligations?
Understand the activities WorkSafe undertakes to encourage Victorian businesses to comply.
You may be penalised for doing the wrong thing
WorkSafe's penalty provisions are designed to encourage employers to comply with their WorkCover insurance obligations and to promote equity through the potential implications of premium avoidance.
Employers are required to exercise reasonable care and make full and true disclosures to their WorkCover Agent and WorkSafe regarding their insurance.
There are severe penalties that may apply if WorkSafe believes that incorrect information has been supplied with the deliberate intent of reducing the amount of premium payable.
What if I know of other employers who I believe are not paying the correct premium?
If you have information in relation to an employer that you suspect is not meeting their obligations, please contact WorkSafe.
What happens if you make a mistake
WorkSafe understands that employers can make genuine mistakes when supplying information for WorkCover insurance purposes.
The Premium Compliance program assists employers in paying their fair share of premium and helps to improve employers’ understanding of their obligations, how to calculate their premium accurately, and reduces the likelihood of mistakes.
If you identify that you have made a mistake in the information provided to calculate your WorkCover insurance premium during an audit then making the auditor aware of the mistake will minimise any penalty that may be applied. If you identify a mistake at any other time, you must inform your agent and have your premium recalculated.
Ways WorkSafe encourages compliance
WorkSafe provides a number of notices and statements to help employers understand the premium system.
The self-assesment is a detailed questionnaire that allows WorkSafe to gauge employers’ understanding of the WorkCover premium system. The employer self-assessment process helps employers identify any potential non-compliance in their business.
It also encourages the disclosure of the correct information for WorkCover premium purposes. Employers are contacted by WorkSafe if they are required to undertake a self-assessment.
The self-assessment process requires employers to complete a questionnaire on the aspects of their business that are relevant to the calculation of their WorkCover insurance premium.
Audits are based on information available to WorkSafe. This may include inspections and interviews at workplaces if more in-depth investigation is necessary.
Premium compliance audits aim to identify employers who may not be meeting their WorkCover insurance obligations and may not have the correct information used in the calculation of their WorkCover insurance premiums.
WorkSafe’s auditors may visit employer’s premises to examine documentation, review workplace activities and to assist them with their compliance during, and after, the audit process.
WorkSafe operates programs aimed at ensuring compliance within specific groups of employers, for example new employers or employers within a specific industry or group of industries. Usually targeted programs involve a combination of employer self-assessments and audits.