It’s compulsory for all employers across Australia to have workers compensation insurance. Often the largest insurance cost for a business, premiums can spiral upward if they’re not actively managed. But did you know that there are discounts and incentives available that can help lower the cost of your premiums?
Some States and Territories have specific incentive schemes in place. These are predominantly based on a business’s performance and are designed to encourage the implementation of more effective work health and safety management plans in the workplace. The aim is to lower the incidence of injuries, resulting in lower premium costs.
Here’s what you need to know.
New South Wales
There are a range of incentives and discounts available to employers in New South Wales:
- Apprenticeship Incentive Scheme – If you employ an apprentice, you’re entitled to a reduced premium based on the wages you pay to the apprentice. To be eligible, you must have a valid workers compensation policy and you must have entered into a NSW Training Services approved contract.
- Claim excess – To avoid an excess (equal to the first week of weekly compensation), you should notify your insurer no later than 5 calendar days of becoming aware that an incident has occurred.
- Premium discount – If you pay your annual premium in full on or before the due date, you are entitled to a discount. The current discount for small employers is 5 per cent and for experience-rated employers, it’s 3 per cent.
- Employer Safety Incentive – All employers (whether small or experience rated) are entitled to a 7.5 per cent discount on their premium upon renewal of each policy period.
- Return to Work Incentive – In the case of experience-rated employers, a Return to Work Incentive discount is available of up to 15 per cent to the cost of any claim with a sustainable Return to Work outcome within 52 weeks of the date on which the injury was sustained. Higher discounts apply to shorter Return to Work outcomes. This discount is applied on policy adjustment.
- Performance discount – Experience-rated employers with claims performance better than the Scheme are eligible to receive a performance discount at the end of the policy year. The performance discount will depend on the financial position of the Scheme and is subject to change.
- Employer Safety Reward – An Employer Safety Discount of 5 per cent will be applied at the end of the insurance period for experience-rated employers who have not incurred any claims that affect their premium in the last four consecutive policy periods.
Victoria – WorkSafe VIC
Employers in Victoria with a claims history are given a rating that will affect their premium if their wages total more than $200,000 per annum. If a business has a good rating (or low claims), their premium will be reduced. Employers are encouraged to implement proactive measures to reduce the incidence of workplace injury and intervene early in the event of an incident occurring.
Employers can also lower premium costs by helping their employees return to work. This is important when estimating your claim. If an employee can return to work, compensation will cease. This means the estimation of future costs and therefore premiums will reduce. Establishing an effective Return to Work plan is the most effective way to get employees back to work following an injury.
South Australia – ReturnToWork SA
Employers can directly influence the amount of the insurance premium they pay by helping to prevent incidents and ensuring recovery and return to work occurs. This minimises the income support costs associated with the injury claim and therefore the amount of the premium you will pay.
Queensland – WorkCover QLD
A program designed to assist Queensland employers is the Injury Prevention and Management program. There is no charge to participate in the program and it’s available to any Queensland employer with a WorkCover QLD policy, regardless of the size or business maturity. Those employers who have already undertaken the program have seen improvements in injury and claim rates, productivity and insurance premiums. Emjay Insurance Brokers can provide you with further information about the program and help you with your nomination.
Western Australia, Northern Territory, Tasmania and the Australian Capital Territory
In these States and Territories, premiums vary between insurers, and are calculated and charged by the insurers. While there are no specific schemes or initiatives in place, Emjay Insurance Brokers can ensure you receive the most competitive premium reflective of your risk profile.
Call Emjay about your cover
Emjay Insurance Brokers offers specialist workers’ compensation advice and solutions to businesses of all sizes. We have expertise in both premiums and claims, and deliver comprehensive and integrated workers’ compensation services to clients with a focus on effective risk management and real cost savings.
Call us today to discuss your needs on (02) 9796 0400.
