A workers’ compensation premium compliance program is underway through WorkSafe ACT
A workers’ compensation premium compliance program is underway through WorkSafe ACT.
A number of ACT employers were selected to participate in a review of premium compliance under Part 8.1 of the Workers Compensation Act 1951 (the act) as part of the first phase of the compliance program. This review asked employers to provide statutory information relating to wages paid to workers during specific periods of cover.
Relevantly, the Act requires that within 30 days:
• the employer must give the insurer a statement of the total wages paid by the employer to territory workers in the period from the day the policy was issued to the day before the latest renewal or cancellation; and
• the statement must be signed for the employer by any of the following:
a. if the employer is a corporation-an officer of the corporation authorised to sign the statement;
b. in any other case – an owner of the employers business
Non-compliance with these provisions may result in significant penalties applying to employers ranging from 50 to 250 penalty units ($1,500 – $7,500), including possible infringement notice penalties of $1,500.
In the course of conducting the reviews referred to above, preliminary results and associated industry feedback suggests that compliance with the wage declaration provisions under the Act is low. The declaration of wages information is a legal requirement on em players under the Act. The provision of this information ensures that businesses are paying workers’ compensation premiums that reflect their share of the workforce risk pool.
Consequently, and to ensure there is a level playing field across all employers with workers connected to the ACT, the premium compliance program being conducted by WorkSafe ACT will now focus on wage declarations.
Insurance brokers are encouraged to inform clients of their obligations under the wage declaration provisions. This will assist WorkSafe ACT ahead of any possible audits in relation to compliance with these provisions.
If you have any questions, or wish to discuss this matter further, please contact Kerry Van De Laarschot, Director, Regulatory Policy, Workplace Safety and Industrial Relations on (02) 6205 0861 or by email at firstname.lastname@example.org.