NSW Workers Compensation Policies01-Aug-2019
ICare (NSW Workers Compensation Authority) has changed the WIC Rate (the rate they charge you at) for ‘Shearing Services’, the workers compensation ‘category’ NSW shearing contractors work under, from 8.74% to 9.00%.
What does this mean to you
Aside from the increased cost of approximately $260.00 per $100,000 in wages per annum, the more important thing to note is that it lowers the amount of remuneration that the ‘small business’ can pay their employees from $343,243 to $333,333 (basically a $10,000 decrease) to stay under the small business threshold of $30,0000 in premium, per annum.
It appears that this change has taken affect for the current insurance year (the ‘year’ or policy period varies from employer to employer) so you need to check the rate on your policy. If you have not had any claims in the last 3 years then, you will just pay 0.26% more, which hopefully you can pass on to your customers.
The important thing to Remember
If you do have any claims in that policy that are less than 3 years old, you will need to ensure that the ‘actual’ declared remuneration in that policy is less than $333,333 otherwise you will be subject to paying a ‘claims history adjustment’, in other words potentially a lot more in premiums, than if you were under the ‘small business threshold’ of $30,000. This ‘oversight’ could result in Tens-of-Thousands, more in ‘Premium Adjustments’ if you accidentally ‘cross the threshold’.