As employers wrap up their Workers Compensation requirements for FY20 and plan out their FY21 commitments, our Workplace Risk team have summarised the complex key information and dates for Victoria, in this simple cheat sheet. For information about the Workers Compensation process in other states and territories, please contact us using the details below.
Workers Compensation Renewal Invoices
Victorian Workers Compensation (WC) renewal premium invoices are available from July 4 2020, and revised notices will be generated by WorkSafe each weekend during July.
Based on your available claims statements and estimated wages, premium projections and industry classification comparisons have already been calculated by your Honan Workplace Risk Consultant. If you are yet to receive these, or would like further information, please contact us.
To be eligible for a 5% premium discount, employers must:
- pay any outstanding premium from FY20 policy period (or previous years)
- pay the full (annual) amount listed on their FY21 WC renewal invoice (less 5%) by no later than 31 August 2020
Premium Funding Option: You may also like to consider a premium funding arrangement with Honan. This can provide immediate benefit as financing the full FY21 premium payment to Worksafe will maximise the discounts described above.
Updates to Claims for FY21
The claims experience period for 2020/21 has been determined as follows:
- The claims reporting period used for the employers’ experience rating has been extended to three years. This means (consistent with previous years), in the period of 1 January 2017 to 30 June 2019, claims costs including statistical case estimates will be used
- In the period 1 July 2019 – 31 December 2019, only weekly payments will be included (statistical case estimates will be excluded)
Worksafe Victoria is expected to release the FY21 claims experience period by April 2021.
Certificate of Currency
If there is no outstanding premium to pay on your account, you can obtain a Certificate of Currency either online, or on request from your Honan Workplace Risk Consultant.
Ensure Your WC Renewal Details Are Up to Date
Any wage updates received before 30 June will be reflected in your FY21 premium calculation. In the absence of any updates, WorkSafe will simply calculate your premium based on your remuneration estimate for FY20, indexed by 4.75%.
Avoiding Financial Penalties
To minimise the risk of financial penalties, any revised remuneration estimates must be disclosed to Workcover within 28 days. Our recommendation is always to contact your broker ASAP if:
- What you expect to pay in remuneration is 20% or above your current estimate, or
- What you have paid in remuneration to date exceeds your current FY estimate.
To update your remuneration, or understand any other elements of your policy, reach out to your Honan Workplace Risk Consultant at any time, or visit the WorkSafe’s Online Employer Services portal directly.
For the FY20 policy period, you must certify your Rateable Remuneration no later than 23 October, 2020.
VIC Workers Compensation Renewals: Important FAQs & Deadlines
How does remuneration impact premium?
Victorian remuneration includes wages, salaries, superannuation and other benefits paid to your workers. The following table outlines how premiums are calculated based on remuneration.
Can industry classification impact premiums?
Yes. Premiums are largely influenced by the industry classification of your business. If the industry classification is incorrect on your policy, you may be paying more for your premium than necessary.
We always recommend reviewing your industry classification before your renewal date.
Key dates for VIC workers compensation insurance premiums in the 2020/21 premiums order:
- 4 July – 2020/21 premium notices sent to all employers
- 31 August – Pay 2020/21 premium in full to receive a 5% discount
- 1 October – Pay 2020/21 premium in full to receive a 3% discount
- 23 October – Large employers to certify remuneration for 2019/20 year
- 26 March 2021 – Small employers to certify remuneration for the 2019/20 year.
We’re with you all the way.
As always, we’re committed to providing you with timely updates and support. Feel free to contact our Workplace Risk experts for more information, including the Workers Compensation process in other states and territories.
Sharon Rutherford – Head of Workplace Risk
Jules Paolino – Workplace Risk Consultant
Grace Rod – Client Executive Workplace Risk