There are a number of key insurance instruments published by WorkCover WA under the Workers Compensation and Injury Management Act 2023 (the Act) that are directly relevant to insurance underwriting. These instruments are published on our website and referenced in further detail below.
Recommended premium ratesWorkCover WA has determined the recommended premium rates for policies issued or renewed under the Act with a period of insurance commencing from 1 July 2024. Premium rates and associated information are below:
- WorkCover WA Recommended Premium Rates 2024-25
- Recommended Premium Rates by PRC 2024-25
- Recommended Premium Rates Report Actuarial Assessment 2024-25
- Consolidated WC12 – Statement of Wages and Claims
These rates are published annually by WorkCover WA and replace the rates which were previously published in the Government Gazette.
In determining the premium rate for your business, your insurer will:
- request a remuneration/wages declaration as the recommended premium rate is based on the total amount of remuneration paid to your workers
- assign an industry classification to your business – if your business conducts more than one industry at the same single location, the classification of your predominant industry (based on gross remuneration) applies
- examine the risk factors (claims history, safety and injury management policies etc.) associated with your business
- discount or load the recommended industry rate, depending upon your business’s individual risk factor
- adjust your premium following the submission of your actual gross remuneration, depending on whether the actual wages were more or less than the estimate you first provided. If you wish to renew your policy with the same insurer, you need to submit an estimate of gross wages to be paid the following year.
The WorkCover WA Remuneration Guidelines give meaning to the term ‘remuneration’ used in the insurance part of the Act, and has the status of subsidiary legislation. They clarify the status of all remuneration payment types and whether the payment is included or excluded as remuneration.
The WorkCover WA Remuneration Guidelines apply from 1 July 2024 and are a key reference document for:
- employer remuneration declarations at policy inception and renewal
- audit or compliance activities undertaken by WorkCover WA or insurers
- premium reviews.
The Act requires an employer applying for the issue or renewal of a workers compensation policy to declare the estimated total remuneration to be paid or payable to the employer’s workers for the proposed policy period of their workers compensation policy.
The Act requires an employer to declare the total remuneration actually paid or payable to the employer’s workers over the previous policy period, as soon as practicable after the end of the policy.
The Act requires the declaration of estimated remuneration and total remuneration paid to be in the approved form.
The following forms have been approved by the WorkCover WA CEO and must be used by employers when providing remuneration declarations for policies issued or renewed on or after 1 July 2024:
Both declarations have three sections addressing general workers, contractors, and working directors.
To assist you to complete the declarations and understand your obligations, insurers are expected to provide you with supporting information on terms and WorkCover WA publications that must be referred to when making remuneration declarations.
To achieve consistency in the information is given to employers, see the Declaration of Remuneration – Important Information, located in the Blueprint for Insurance Underwriters. This is not an approved form and is not mandated, but is a useful reference for insurers.
Insurers can make changes or additions to the supporting information they provide employers, and may have commercial preferences for how any supporting information is communicated, whether in renewal applications or otherwise.
We are aware of some historical commercial practices with remuneration declarations being provided by employers to insurers late – and possibly not at all – after the policy is renewed or effective.
It is an offence for an employer not to provide a remuneration declaration as and when required.
If a remuneration declaration is provided late or not at all, we may investigate and take regulatory action against the employer, however, the Act does not expressly prevent the insurer from issuing or renewing the policy. Section 203 of the Act (obligation of employer to provide information to insurer) operates separately to section 236 (obligation on insurer to quote and/or issue policy).
The provision of information referred to in section 236 of the Act is discretionary and non-compliance simply gives an insurer the right to refuse a quote and not issue the policy.
Further information can be found in the below resources:
- Guidelines on the PRC System – Coming soon
- WorkCover WA Industry Codes for Recommended Premium Rates
The WorkCover WA Industry Classification Order provides for the industry based premium rating classification system, for the purpose of calculating premiums for workers compensation policies.
The WorkCover WA Industry Classification Order provides for the assignment of WorkCover WA Premium Rating Codes (PRCs) to identify an employer’s industry.
The industry-based premium rating system is primarily based on the Australian and New Zealand Standard Industrial Classification Coding System (ANZSIC 2006).
The WorkCover WA Industry Classification Order applies from 1 July 2024 and is a key reference document for:
- employer remuneration declarations at policy inception and renewal
- audit or compliance activities undertaken by WorkCover WA or insurers
- industry classification and premium reviews.
See the below resources for information on labour hire:
