Changes for Employers
Rewards for early reporting
An employer has a legislative obligation to report a claim for compensation to WorkCover within five days of receiving notice from a worker. To encourage the early reporting of a claim, an employer will be rewarded if they report a claim within 2 business days, through a waiver of their responsibility to pay the first two weeks of wages (South Australian employers usually cover an injured worker’s first two weeks wages).
This change starts on 1 January 2009 to coincide with the introduction of provisional liability.
Download factsheet: Early reporting rewards for employers
View Waiver of excess FAQs
Requirement to register
There are approximately 14,000 employers in the WorkCover Scheme who have an annual remuneration liability of less than $10,200. The reform package removes the need for employers to register and pay a levy if their leviable remuneration is less than $10,200 a year, unless a claim is lodged by one of their workers. This has the benefit of removing the administrative and cost burden on small businesses and reduces the costs within the Scheme associated with administering their registrations.
This change became effective from 1 August 2008.
Minimum levy
Under the former legislation, the minimum WorkCover levy that a registered employer was required to pay was set in regulation. The regulation has not been updated since 1991, and indexation has not been applied to that amount. With the benefit of hindsight, it is clear the minimum levy has been inadequate in meeting the cost of claims and administration of the Scheme since its inception.
The new legislation allows the WorkCover Board to set the minimum levy and to review it regularly over time to ensure that claims and administrative costs are met from levy payments.
This change became effective from 1 July 2009.
Levy payments
In the past, employers paid WorkCover levy in arrears. The new legislation changes the basis for the payment of the levy – it will now be paid in advance rather than arrears.
This change will not alter the payment arrangement for the many employers who pay levy monthly – this is not a requirement to pay an annual lump sum amount. Significant attention will be paid throughout the transition to ensure that the impact on business is minimised when the new system is introduced.
WorkCover will consult with stakeholders on the levy payment before it becomes effective no later than 1 July 2010.
Incentives to employ apprentices and trainees
The WorkCover levy paid by employers is calculated as a percentage of total wages paid by each employer. Under the reform package, wages paid to apprentices and trainees will be excluded from the calculation of employers’ levy. It is envisaged this change will assist skills creation in South Australia by encouraging employers to take on trainees and apprentices and is modeled on provisions in Victoria and NSW.
This change became effective from 1 July 2008.
Self-insurance changes
In the new legislation, a change in terminology from ‘exempt employer’ to ‘self-insured employer’ has occurred.
The size requirement of 200 employees has been removed as a prerequisite requirement to make an application for self-insurance. WorkCover, however, will still consider size as one of the relevant matters when deciding whether to grant, renew or reduce a period of registration as a self-insurer.
In order to recognise the needs of the current business environment, the new legislation makes a number of changes to administrative processes associated with registration of self-insured employers.
These changes include reinforcement of the ‘one-in-all-in’ rule which states that all related entities must register as a group. Registrations can be transferred, split, amalgamated or extended in line with the regular occurrence of restructuring and buying and selling of companies in the corporate world.
These changes became effective from 1 July 2008.
Rehabilitation and return to work coordinators
Properly-trained rehabilitation and return to work coordinators (referred to as a coordinator) are now required in workplaces with 30 or more employees.
A coordinator focuses on and coordinates rehabilitation and return to work efforts as early intervention at the workplace reduces lost-time claims and overall claims costs, and has a big impact on reducing long-term claims.
This change starts for workplaces with 30 or more employees from 1 January 2009; however an employer has until 30 June 2009 for their coordinator to do the required training and to notify WorkCover of the appointment.
To find out more about the training view the fact sheets below and/or refer to the guide All you need to know about rehabilitation and return to work coordinators.
WorkCoverSA has approved a number of registered training providers to provide training for rehabilitation and return to work coordinators. For a full list of approved training providers click here or download Rehabilitation and return to work coordinators - Registered training providers.
This change becomes effective from 1 January 2009.
Download factsheet: Rehabilitation and return to work coordinators - What employers need to know
Download factsheet: Rehabilitation and return to work coordinators - Registered training providers
Download form: Nomination form for rehabilitation and return to work coordinators
Download the guide: All you need to know about rehabilitation and return to work coordinators
Download guidelines: Rehabilitation and return to work coordinator training and operational guidelines
View Rehabilitation and return to work coordinators FAQs